Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Economic Responsibility
• Corporate Governance

Environmental Achievements

• Reduced total water consumption by more than 45 percent in carpet manufacturing facilities over the past decade
• Received Recycler of the Year award from the Carpet America Recovery Effort (CARE)
• Received CalRecycle’s Waste Reduction (WRAP) Awards for waste reduction leadership at four manufacturing facilities
• Evergreen Nylon Recycling facility recycled almost 100 million lbs of Nylon 6 carpet
• Achieved Zero Waste to Landfill status at two Tuftex facilities in Santa Fe Springs, California and one fiber extrusion facility in Clemson, South Carolina
• Reclaimed energy from 11.4 million pounds of wood flour waste and 9.9 million pounds of post-industrial carpet waste

Social Achievements

• Received Georgia Department of Labor’s Director’s Safety Award
• Named to Selling Power® magazine’s “Top Manufacturing Companies to Sell For”
• Named to Training magazine’s “Training Top 125”
• Shaw associates self-reported more than 130,000 hours of personal time to hundreds of meaningful causes
• Contributed $2,118,912 to local communities through payroll deduction program and corporate matching

Governance Achievements

• Established a Growth & Sustainability Council to drive sustainable business practices
• Implemented a Behavior Based Safety Program
• 1,956 management associates (99.9%) and 16,115 non-management associates (69.8%) received ethics training

Climate Goals & Targets

Environmental Challenges

• Global economic downturn, declines in the housing market and construction industry, fluctuations in fuel and raw materials costs
• Slow economic conditions affecting operational efficiencies
• Shift in customer demand from staple yarn products to filament yarn products

Mitigation Strategies

• Plant closings and workforce reductions
• Investment in people, processes and a diverse product portfolio
• Investment in Re2E energy facility and Clear Path Recycling
• Recommissioning of an idled facility in Calhoun, Georgia to meet filament demand

Supply Chain Management

Responsible Procurement

• Supplier diversity policy
• Supplier sustainability survey

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI C level

Sustainable Products & Innovation

• EcoWorx carpet tile and broadloom
• Epic Hardwood
• Eco Evolution print base

Awards & Recognition

• Recycler of the Year award from CARE
• CalRecycle’s Waste Reduction Awards
• Georgia Department of Labor Director’s Safety Award
• Selling Power® Top Manufacturing Companies to Sell For
• Training magazine’s Training Top 125
• American Floorcovering Alliance Floortek Environmental Award
• Architect magazine R&D Award
• Floor Covering Weekly First Annual GreenStep Awards

Environmental Metrics

ESG Focus Areas

• Corporate Citizenship and Social Responsibility
• Operational and Environmental Excellence
• Innovative Products and Services

Environmental Achievements

• Installation of solar panels at carpet tile manufacturing facility in Cartersville, Georgia
• Opening of a sustainably designed carpet tile manufacturing facility in Nantong, China
• Reclaimed more than 700 million pounds of carpet since 2006
• Reduced total landfill waste intensity

Social Achievements

• Opened the Shaw Family Health Center to provide quality, affordable healthcare to associates
• 736 new jobs created in the U.S.
• 100 new jobs created in China
• 85 percent of associates surveyed would recommend Shaw as a good place to work
• 85,000 volunteer hours by Shaw associates
• Donated $3.9 million to community organizations

Governance Achievements

• Executive compensation linked to company’s annual performance
• 26-member Growth and Sustainability Council responsible for oversight of economic, environmental, and social performance

Climate Goals & Targets

Environmental Challenges

• Recordable incident rate increased in 2013
• Need for a financially viable market for all types of carpet fiber to sustain recycling operations

Mitigation Strategies

• Pilot programs addressing training, associate engagement, and ergonomics
• Expanding ability to recycle all types of carpet fiber
• Announcement of Evergreen Ringgold facility to recycle nylon and polyester carpet

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Shaw’s Sustainable Sourcing Framework

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI 3.1 Application Level B

Certifications: Null

Third-party Assurance: Deloitte & Touche LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• EcoWorx carpet tile
• Butterfly Effect carpet tile
• Hexagon carpet tile
• Caress broadloom carpet
• Living Heritage engineered hardwood
• Clearly Chic residential broadloom
• Snapshot Volume II commercial broadloom
• Fired Hickory porcelain tile
• The Royal Collection engineered hardwood
• Eco Solution Q nylon 6
• Anso nylon 6
• EcoTouch Crush Resistant carpet cushion
• ClearTouch Platinum PET
• EnviroCore high-density core board
• Solution Q Extreme nylon 6
• Lok Dots adhesive

Awards & Recognition

• Numerous awards listed on page 12

Environmental Metrics

ESG Focus Areas

• Product Stewardship
• Supply Chain Management
• Waste Reduction
• Energy & Emissions Reduction
• Water Stewardship
• Talent Management
• Diversity & Inclusion
• Community Engagement
• Safety

Environmental Achievements

• Improved water intensity by 36% vs. modeled intensity.
• Improved waste intensity by 34% from 2008 baseline.
• 85% of Shaw manufactured products are Cradle to Cradle Certified™ (based on unit sales).
• Reduced energy intensity by 16% vs. modeled intensity.
• Improved emissions intensity by 24.6% from 2010 baseline.
• Reclaimed and recycled nearly 940 million pounds of post-consumer carpet since 2006.

Social Achievements

• Launched new Associate Resource Groups (ARGs) for Latino/Hispanic and Black/Multicultural associates.
• Delivered nearly 49 hours of training per associate in 2016.
• Donated more than $5.3 million to community organizations, including over $84,000 in-kind donations.
• 90% of associates feel pride in their work, and 88% feel good about the company's community contributions.
• Named to Forbes America’s Best Large Employers list 2016.

Governance Achievements

• Zero incidents of non-compliance with regulations and voluntary codes concerning marketing communications.
• Executive compensation is linked to the company’s annual performance.
• Deloitte & Touche LLP provided external assurance for the report.

Climate Goals & Targets

Environmental Challenges

• Increased hazardous waste and waste intensity in 2016 due to shifting usage of the Evergreen Ringgold recycling plant and adjustments from new facilities and processes.
• OSHA incident rate did not improve as hoped in 2016.

Mitigation Strategies

• Investing nearly $5 million in new equipment and systems to reduce energy and emissions intensity.
• Implementing new training videos and campaigns to reinforce safe practices and the Lockout Program.
• Creating an internal contest to recognize safety advancements in ergonomics.
• Focusing on identifying new technologies and innovative solutions to reduce water use.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable sourcing guide for suppliers; Supplier Expo to foster partnerships focused on sustainable solutions; 75% of total supplier spending in 15 states where 95% of associates are located; 25% of allowable spend to small and diverse businesses.

Climate-Related Risks & Opportunities

Physical Risks

• Drought conditions affecting facility locations

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Framework (Core option)

Certifications: Cradle to Cradle Certified™, GREENGUARD, Green Label Plus®, Health Product Declaration® (HPD), ILFI Declare™, NSF/ANSI 140

Third-party Assurance: Deloitte & Touche LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• EcoWorx® backed carpet tile products; polyester carpet fiber from recycled plastic bottles.

Awards & Recognition

• Numerous awards listed in the Appendix (page 63)

Environmental Metrics

ESG Focus Areas

• Health & Wellbeing
• Material Health
• Cleanability
• Acoustics
• Supply Chain
• Giving & Volunteering
• Community Education
• Talent Management
• Diversity & Inclusion
• Circular Economy
• Energy & Emissions
• Water

Environmental Achievements

• Reduced greenhouse gas emissions intensity by 40% compared to 2010 (achieving 2030 goal nine years early)
• Cut Scope 1 & 2 emissions in half compared to 2010 baseline
• Reduced energy intensity by more than 27% (per pound of finished product) compared to 2010 baseline
• Recycled nearly 1 billion pounds of carpet since 2006 through re[TURN]® Reclamation Program
• Reduced landfill waste intensity to 3.26% in 2020
• Recycled input materials make up more than 12% (by weight) of manufacturing inputs

Social Achievements

• Contributed $6.9 million+ to nonprofit/philanthropic organizations in 2020
• Provided 1 million+ hours of training annually
• Expanded supplier diversity program to include small-, women-, veteran-, minority- and LGBT-owned businesses; supplier diversity spend was almost 34% of allowable spend in 2020
• Supported associate wellbeing through health and wellness resources and benefits
• Implemented COVID-19 response policies focusing on associate safety and well-being, including cleaning, social distancing, temperature checks, masks, and limiting meetings/travel
• Donated PPE, cleaning supplies, and tablets to support communities and schools during the COVID-19 pandemic

Governance Achievements

• Almost 90% of products manufactured are Cradle to Cradle Certified®
• Assessed more than 1.8 billion pounds of materials for material health in 2020
• Corporate incident rate (OIR) was 2.23 in 2020
• No incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, marketing communications, or health and safety impacts of key products in 2020
• Incorporated the Ten Principles of the UN Global Compact into sustainable sourcing policy

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions and inventory challenges due to the rapid return of the residential market and the evolving impact of COVID-19
• Balancing the desire for intense disinfection with material health concerns related to cleanability

Mitigation Strategies

• Maintained close contact with customers to address pressing needs during supply chain disruptions
• Continued to innovate to ensure flooring and cleaning products meet market demands
• Provided resources to customers on proper cleaning and maintenance of products
• Evaluated disinfectant products to determine their impact on flooring appearance and performance

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Sourcing Policy incorporating UN Global Compact principles
• Prioritizing local sources (54% of supplier spending in 2020 in US states with Shaw facilities)
• Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact, Cradle to Cradle Certified Products Program

Certifications: Cradle to Cradle Certified, Green Label Plus, FloorScore, GREENGUARD, Assure Certified™

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

The report aligns corporate efforts with relevant UN SDGs, indicated by SDG icons.

Sustainable Products & Innovation

• EcoWorx backed carpet tile
• Clearly Bold Platinum residential products (50% recycled fiber content)
• EcoLogix® backing incorporating recycled green plastic bottles
• NXTPlay performance shock pad made from reclaimed and recycled turf fields

Awards & Recognition

• Forbes Magazine’s Best Employers for Diversity

Environmental Metrics

ESG Focus Areas

• Health & Wellbeing
• Climate Change
• Circularity
• People
• Supply Chain

Environmental Achievements

• Reduced EcoWorx carpet tile carbon footprint by 40% since introduction
• Reduced landfill waste intensity to 3.19% (Target: 0 by 2030)
• Reduced carbon footprint by more than 50% compared to 2010 (Scope 1 and Scope 2)
• Introduced first Cradle to Cradle Certified Gold flooring collection
• Reclaimed and recycled nearly 1 billion lbs of carpet since 2006
• Achieved new Cradle to Cradle Certified milestones; almost 90% of products are Cradle to Cradle Certified
• Introduced first product to be Cradle to Cradle Certified Gold (v3.1) — Patcraft’s Reverse collection
• EcoWorx carpet tile became the first product in the world to be Cradle to Cradle Certified Silver under the new more rigorous version 4.0 standard
• Assessed almost 1.8 billion pounds of materials for material health in 2021
• Set a new goal to achieve net zero enterprise operations by 2030 and to begin measuring and reporting Scope 3 emissions

Social Achievements

• Launched seventh Associate Resource Group — MOSAIC, recognizing and harnesses the power of physical, emotional and neurological diversity
• Set a 2030 diversity and inclusion goal for our talent pipeline to reflect available talent in our communities
• Provided more than 1 million hours of training and education
• Donated more than $6.5 million to charitable causes
• More than 42% of allowable spend was with small and diverse suppliers, up from 30% in 2020

Governance Achievements

• In 2021, we had no incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling.
• In 2021, Shaw had zero incidents of non-compliance with regulations and voluntary codes concerning our marketing communications.
• Shaw had no incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of our key products across their lifecycle in 2021.

Climate Goals & Targets

Environmental Challenges

• Continued supply chain disruptions
• Uncertainty due to COVID-19
• Myriad events around the world that have impacted our personal and professional lives

Mitigation Strategies

• Refined sustainability efforts with the goal of optimizing 100 percent of our products to Cradle to Cradle® design principles by 2030
• Expanded virtual recruiting efforts
• Intentionally expanded our supplier diversity program

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable sourcing policy incorporating UN Global Compact principles and Cradle to Cradle® design principles
• Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Cradle to Cradle Certified Products Standard, UN Global Compact

Certifications: Cradle to Cradle Certified, Green Label Plus, FloorScore®, GREENGUARD, Greenhealth Approved™

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Shaw’s sustain[HUMAN]ability efforts contribute most significantly to several UN SDGs (specific goals not listed).

Sustainable Products & Innovation

• EcoWorx carpet tile
• EcoSolution Q100™ yarn system
• ReWorx PET hybrid product
• Patcraft’s Reverse collection

Awards & Recognition

• 2022 Training APEX Award winner
• Elearning! Magazine’s Learning! 100
• Forbes Best-in-State Employer

Environmental Metrics

ESG Focus Areas

• Health & Wellbeing
• Climate Change
• Circularity
• People
• Supply Chain

Environmental Achievements

• Almost 90 percent of products are Cradle to Cradle Certified.
• Scope 1 and Scope 2 emissions are 52 percent lower than the 2010 baseline.
• Lowered embodied carbon footprint of numerous product lines; some are carbon neutral.
• Introduced recyclable hybrid flooring (ReWorx).
• Developed a takeback program for Shaw-made resilient flooring.
• Identified partners to recycle an additional 2 million pounds of carpet manufacturing waste annually.
• Reduced water intensity by 43 percent compared to the 2010 baseline.

Social Achievements

• Increased diversity spend to 60 percent of allowable spend (up from 42 percent in 2021).
• Provided more than 1 million hours of training and education.
• Donated more than $6.7 million to charitable causes.

Governance Achievements

• Zero incidents of non-compliance with regulations and voluntary codes concerning marketing communications.
• Zero incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of key products.

Climate Goals & Targets

Environmental Challenges

• Continued supply chain disruptions and geopolitical uncertainty.

Mitigation Strategies

• Robust logistics network to manage disruptions.
• Harnessing technology and data to adapt to disruptions.
• Diversification of partnerships (e.g., Watershed Geo® and Watershed Solar®).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable sourcing policy incorporating UN Global Compact principles and Cradle to Cradle® design principles.
• Chemical Policy & Restricted Substances List (RSL).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products
• Investment in renewable energy solutions (Watershed Solar®).

Reporting Standards

Frameworks Used: GRI, Cradle to Cradle Certified Products Program, UN Global Compact

Certifications: Cradle to Cradle Certified, Green Label Plus, FloorScore®, GREENGUARD

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Shaw’s sustain[HUMAN]ability efforts contribute and align most significantly to several UN Sustainable Development Goals.

Sustainable Products & Innovation

• EcoWorx-backed carpet tile
• EcoSolution Q100™ yarn
• ReWorx hybrid flooring
• NXTPlay® performance pad
• COREtec Soft Step underlayment

Awards & Recognition

• 2023 Training APEX Award winner
• Forbes’ 2022 List of Best Employers in Georgia
• Forbes Best Employer for Diversity 2022
• Newsweek’s America’s Greatest Workplaces for Diversity 2023

Environmental Metrics

ESG Focus Areas

• Health & Wellbeing
• Climate Change
• Circularity
• People
• Supply Chain

Environmental Achievements

• Reduced operational carbon footprint by 57% compared to 2010 (Scope 1 and Scope 2 emissions)
• Reduced water usage per pound of finished product by 48% compared to 2010
• Recycled nearly 1 billion pounds of carpet since 2006
• Turned more than 1.8 billion recycled plastic bottles into flooring in 2023
• Invested in wind farm to reduce operational footprint by ~15%

Social Achievements

• More than 75% of allowable spend with small and diverse businesses (up from 60% in 2022)
• Provided more than 1 million training hours to associates and customers
• Shaw and its associates donated approximately $6.9 million to charitable causes
• Launched eighth associate resource group: Fabric, for Asian & Pacific Islanders and their allies

Governance Achievements

• Zero incidents of non-compliance with regulations and voluntary codes concerning marketing communications in 2023
• Zero incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of key products in 2023

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Reducing embodied carbon footprint of products

Mitigation Strategies

• Diversified supplier portfolio across geographies
• Technology and data for scenario planning to adapt to disruptions
• Systematically measuring product footprints through LCAs
• Introducing new yarn system (EcoSolution Q100™) with recycled content

Supply Chain Management

Responsible Procurement

• Sustainable sourcing policy incorporating UN Global Compact and Cradle to Cradle principles
• Chemical Policy & Restricted Substances List (RSL)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs), Cradle to Cradle Certified Products Program, Works with WELL

Certifications: Cradle to Cradle Certified, Green Label Plus, FloorScore®, GREENGUARD

Sustainable Products & Innovation

• EcoWorx carpet tile
• EcoSolution Q100™ yarn
• ReWorx hybrid flooring
• COREtec Soft Step
• NXTPlay® performance pad

Awards & Recognition

• 2024 Training APEX Award winner
• Forbes 2023 List of Best Employers in Georgia
• Forbes Best Employer for Women
• Forbes Best Employer for Diversity
• Newsweek America’s Greatest Workplaces for Diversity 2023
• 2023 Silver Health at Work Award from ComPsych®