Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Almost 40% of Leggett & Platt’s U.S. electric consumption was produced from nuclear energy and other sources of sustainable power.
• Over 88% of our Canadian electric consumption was produced by nuclear energy and other sources of sustainable power.
• Approximately 15% of the Company’s U.S. electric consumption was supplied by renewable energy under mandatory Renewable Portfolio Standards.
• Reduced diesel fuel consumption and maintenance requirements through APU program in trucking fleet.
• Recycled over half a million tons of recycled scrap steel each year.
• Incorporated several hundred million pounds of recycled urethane foam in annual production.
• Reduced water usage by three million gallons per year at one wire mill through leak inspection programs.
• Reduced scrap wire by more than 30% through production-efficiency projects.
• Reduced plastic usage by 55,000 pounds annually through packaging optimization.

Social Achievements

• Named one of Fortune’s World’s Most Admired Companies in 2021 (every year since 2013).
• Launched global Frontline Supervisor Training Program in 2019, covering communication, leadership, respect, conflict resolution, and safety.
• Established an inclusion and diversity team in 2020 to create long-term strategies and action plans.
• Provided Anti-Corruption Training globally to over 6,500 employees in 14 languages.
• Contributed more than $600,000 in cash or in-kind donations to over 100 agencies in 12 countries.
• Employees raised more than $100,000 for hundreds of organizations.

Governance Achievements

• Annually elected directors.
• Majority voting and 3/3/20/20 proxy access.
• Diverse board and management team (6 of 11 directors and 4 of 8 corporate executive officers diverse by race/ethnicity or gender).
• Policies supporting operational integrity (conflict minerals, human trafficking, supplier code of conduct, code of business conduct and ethics, and governance guidelines).
• 100% of approximately 200 allegations received through the Ethics Hotline were investigated in 2020.

Climate Goals & Targets

Environmental Challenges

• Competitive labor markets.
• Maintaining compliance with environmental regulations globally.
• Managing risks associated with Conflict Minerals and human trafficking in the supply chain.

Mitigation Strategies

• Competitive compensation and benefits programs, learning and development opportunities, and employee engagement initiatives.
• Company-wide Environmental Management System (EMS) with compliance programs, audits, and corrective action systems.
• Supplier Code of Conduct, on-site assessments, and corrective action plans for non-compliant suppliers.
• Membership in RMI and AIAG to improve Conflict Minerals compliance and responsible sourcing.

Supply Chain Management

Supplier Audits: 187 on-site assessments since 2018

Responsible Procurement

• Supplier Code of Conduct
• Conflict Minerals Policy
• Human Trafficking and Slavery Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB Building Products & Furnishings Standard

Certifications: ISO 14001 (18 of 21 automotive facilities and one textiles facility), ISO 18001 (8 facilities), ISO 45001 (4 facilities), CertiPUR-US® (specialty foam), CRI Green Label Plus (carpet cushion)

Sustainable Products & Innovation

• Lightweight automotive components
• Carpet underlayment products contributing to LEED certification
• Geotextile products for erosion control
• CertiPUR-US®-certified specialty foam
• Carpet cushion products with recycled content

Awards & Recognition

• Fortune Magazine's World's Most Admired Companies

Environmental Metrics

ESG Focus Areas

• Environmental, Social, and Governance (ESG)

Environmental Achievements

• U.S. facilities’ electric consumption was supplied by approximately 17% renewable energy, an increase of 11% over 2020.
• Approximately 29% of our Canadian facilities’ electric consumption was supplied by renewable energy.
• Approximately 42% of our U.S. electric consumption was produced from nuclear energy and other sources of sustainable power, a 7% increase over 2020.
• Over 80% of our Canadian electric consumption was produced by nuclear energy and other sources of sustainable power.
• Five facilities installed LED lighting, which is projected to save 2.7 million kilowatt hours (kWh), resulting in a 58% decrease in lighting energy consumption at those locations.
• Reduced energy consumption of approximately 14% at the steel rod mill over the past 10 years.
• U.S. locations diverted approximately 900 tons of business materials from landfills.
• Our rod mill used over 500,000 tons of recycled scrap steel.
• We incorporate several hundred million pounds of recycled urethane foam in our annual production of bonded carpet cushion.
• Our Work Furniture business uses post-consumer plastics to make molded parts.
• Over 13,000 tons of slag/ladle debris at our rod mill was sent to a local landfill where it is accepted as a beneficial reuse material.
• Acid used in our wire-drawing operations is processed in acid- recovery systems, allowing for acid reuse.
• Approximately two thousand tons of zinc was reclaimed from dust created from the EAF at our rod mill, and the remaining kiln by-product is used by the cement industry.

Social Achievements

• Hired an experienced ID&E Director.
• Launched our first employee engagement survey in the U.S.
• Gathered representation data on our salaried and hourly workforce.
• Delivered Anti-Corruption Training globally to over 6,500 salaried employees.
• Conducted training on Preventing Workplace Harassment.
• Redesigned the Frontline Supervisor Training Program in virtual format, with almost 400 global team leaders participating.

Governance Achievements

• Broadened the scope of the Board of Directors’ Nominating, Governance and Sustainability Committee to include oversight of Leggett’s ESG programs and related risks.
• Added newly created positions, including our first Chief Human Resources Officer (CHRO); Inclusion, Diversity, and Equity (ID&E) Director; and Sustainability Manager.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Need to improve data gathering processes and analytical tools for consistent data gathering and improved long-term tracking capabilities.
• Need to reduce carbon emissions.

Mitigation Strategies

• Partnering with a third-party service provider to strengthen the supplier assessment process, monitoring social and labor standards, financial condition, and cybersecurity controls.
• Working to expand and improve data gathering processes and analytical tools across the company.
• Completing the first GHG emissions inventory to inform a long-term GHG-reduction strategy.

Supply Chain Management

Supplier Audits: 198 on-site assessments since 2018; 70% of US import suppliers received initial assessment

Responsible Procurement

• Leggett & Platt Supplier Code of Conduct
• International Supplier Certificate of Compliance
• On-site assessments of new international U.S. import suppliers
• Annual supply chain security survey for suppliers with minimal spending levels.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Certifications: ISO 14001 (15 facilities), ISO 18001 (8 facilities), ISO 45001 (4 facilities), CertiPUR-US® (specialty foam products), CRI Green Label Plus (carpet cushion products)

Sustainable Products & Innovation

• Lightweight automotive components
• Carpet underlay products contributing to LEED certification
• Geotextile products for erosion control
• Specialty foam products meeting CertiPUR-US® certification
• Adjustable beds with 90% recyclable base
• Products using recycled polypropylene or nylons
• Products using ferrite magnets instead of rare earth magnets
• Products using 100% recycled plastics
• ThermaGel™ Bio additive

Environmental Metrics

ESG Focus Areas

• Business Ethics and Governance
• People (Inclusion, Diversity, Equity, Employee Health, Safety, Wellbeing)
• Environment (Environmental Management, Sustainability, Climate Change)
• Supply Chain (Social Standards, Compliance)
• Product Stewardship
• Community Investment

Environmental Achievements

• U.S. locations diverted approximately 800 tons of business materials from landfills.
• Rod mill used approximately 360,000 tons of recycled scrap steel in production.
• Over 15,000 tons of slag/ladle debris from rod mill’s electric arc furnace (EAF) reused as road-building material.
• Approximately 1,600 tons of zinc reclaimed from EAF dust; remaining by-product used by cement industry.
• Several hundred million pounds of recycled urethane foam incorporated in bonded carpet cushion production.
• Acid reused in wire-drawing operations through acid-recovery systems.
• UK Aerospace facility reduced non-hazardous waste by 28% (2011-2022) and hazardous waste by 73% (2017-2022); zero waste to landfill for seven years.
• Lighting improvement projects at nine U.S. facilities projected to save 2.8 million kWh annually.
• Reduction of natural gas use by 62% at a European facility (Q4 2021 to Q4 2022).
• Over 450 MWh of electricity produced from rooftop solar energy system at a UK facility, avoiding CO2 emissions.
• Reduced light-duty fleet by almost 100 vehicles, resulting in an annual average reduction of approximately 55,000 gallons of gasoline fuel.

Social Achievements

• Introduced Leggett Learning and Leadership internal site with tools and resources for employee growth and career development.
• Created and facilitated 15 Leadership Essentials Experience (LEX) courses for over 350 employees.
• Internal promotion rate over the last three years for corporate officer positions was 88%.
• Hosted 27 interns from college campuses across the country.
• Established a Women’s ERG.
• Employees donated more than $50,000 to aid 13 employees impacted by natural disasters.
• Employees raised more than $100,000 for United Way, matched by a $135,000 corporate donation.

Governance Achievements

• Conducted first materiality assessment to identify ESG-related opportunities.
• Enhanced Supplier Code of Conduct to include additional topics on ethical business dealings, EHS, product regulatory compliance, labor and human rights, ID&E, data privacy and cybersecurity.
• Engaged a third-party service provider to strengthen supplier risk management and assessment processes.
• Implemented a platform to monitor supply chain for key social, labor, and cyber risks.

Climate Goals & Targets

Environmental Challenges

• Rising cost of energy at some facilities.
• Potential physical risks from increased frequency and severity of weather-related events.
• Data collection limitations across global operations.

Mitigation Strategies

• Implementing energy efficiency and operational changes to reduce energy consumption and costs.
• Using technology-based tools to evaluate property portfolio’s exposure to natural catastrophic events.
• Integrating climate-related risk into Enterprise Risk Management process.
• Investing in technology solutions to improve data collection and reporting.

Supply Chain Management

Supplier Audits: 246 onsite assessments since 2018; assessments also conducted virtually.

Responsible Procurement

• Leggett & Platt Supplier Code of Conduct
• Standard purchase order terms and conditions
• Automated risk monitoring of public data sources and relevant news.
• Financial Risk Assessments
• OFAC Denied Party Screening
• Sustainability Assessments
• Supplier Assessments (onsite, virtual, and self-assessments).

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events causing damage to assets, infrastructure, and disruptions to operations.

Opportunities

• Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: SASB, TCFD, GRI

Certifications: ISO 14001, ISO 45001, ISO 18001, IATF 16949, AS 9100, ISO 9001, LP9000 (internal standard based on ISO 9001), ISO/IEC 17025, CertiPUR-US®, CRI Green Label Plus

Third-party Assurance: Third-party limited assurance of GHG emissions data (to be completed)

Sustainable Products & Innovation

• Quantum Edge® Enhanced Profile with Eco-Base™
• Caliber Edge® Enhanced Profile with Eco-Base™
• EcoFlow™ eco-friendly foam technologies
• XT90 Stitch Bridge (reduces adhesive use in mattress manufacturing).

Environmental Metrics

ESG Focus Areas

• Our People
• Business Ethics & Governance
• The Environment
• Innovative Products
• Supply Chain Management

Social Achievements

• Launched the “ID&E People First Learning Program”, including the INCLUDE course for domestic and international employees.
• Maintained U.S. turnover rates comparable to industry averages.

Governance Achievements

• Adopted the Incentive Compensation Recovery Policy.
• Established the ID&E Global Executive Council.

Climate Goals & Targets

Environmental Challenges

• Lower volume and raw material-related selling price decreases in 2023.
• Weak residential end market demand in Bedding Products and Furniture, Flooring & Textile Products segments.
• Supply chain disruptions due to severe weather, natural disasters, and geopolitical conflicts.
• Shortage of semiconductors (mostly resolved).
• Financial instability of some customers, leading to a $444 million impairment charge.
• Operational inefficiencies in Specialty Foam business.
• Pressure from foreign competitors with lower labor and raw material costs.

Mitigation Strategies

• Restructuring plan to create a more focused, agile organization, reducing complexity and enhancing efficiency.
• Consolidating production facilities to align capacity with regional demand.
• Improving distribution network for more efficient manufacturing and distribution.
• Focusing on innovative, higher-value products driven by customer and end-consumer needs.
• Actively marketing idle real estate to generate cash.
• Implementing price increases to recover higher raw material costs.
• Developing new proprietary products to reduce total costs.
• Shifting some production offshore to take advantage of lower input costs.
• Accelerated cybersecurity protection efforts.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather-related events
• Natural disasters
• Changes in climate patterns

Transition Risks

• New environmental laws and regulations
• EU Green Deal
• Paris Agreement
• California Climate Corporate Data Accountability Act
• California Climate-Related Financial Risk Act
• EU Corporate Sustainability Reporting Directive
• EU Carbon Border Adjustment Mechanism
• Ban on new gas-powered automobiles in EU from 2035

Opportunities

• Development of energy-efficient products (lightweight automotive components)

Sustainable Products & Innovation

• Combination pocket unit integrating perimeter edge innersprings and specialty foam
• Quantum Edge Enhanced Profile with Eco-Base
• Caliber Edge Enhanced Profile with Eco-Base