Goals

Owens Corning established its first set of 10-year footprint reduction goals in 2002. Having significantly reduced our environmental footprint by the end of 2010, we established a new set of footprint reduction goals for 2020. These new goals raised the bar on our commitment to sustainability and reflect an increasingly holistic approach that encompasses our environmental footprint, the attributes of our products, and our desire to affect change by partnering with our customers and suppliers to deliver sustainable solutions.

In October of 2015, we announced we had met our greenhouse gas and toxic air emissions goals ahead of schedule. At that time we made a decision to increase our 2020 commitments of 50 percent and 75 percent reductions for these environmental impacts respectively, and incorporated science-based greenhouse gas target-setting methodology into our strategy.

We are six years into our 10 year environmental goals and can say we have exceeded our goals in both Fine Particulate Matter (PM2.5) and Water Consumption.

Also in 2016 we are proud to announce several additional Goals/KPIs which we feel are important to our stakeholders and provide transparency to our initiatives and programs aligned to our materiality matrix.

For more information on our programs and efforts related to our goals view our annual sustainability report.

***Indicates item has been externally verified through SCS Global Services in accordance with the requirements of ISAE 3000 for commercial independence and other ethical requirements of the Internal Standard ISO 14065:2013.

The boundary of all these aspects covers our entire global operations including Asia-Pacific, Europe, Latin America, Canada and United States. Internal boundary includes all Owens Corning plants and offices that are owned and leased.

2020 Environmental Footprint Goals

2020 Goal 2016 Progress SDG Target Linkage
Primary Energy Reduce primary energy intensity by 20% from the 2010 baseline 18% intensity reduction SDG #7 Affordable and Clean Energy
SDG #8 Decent Work and Economic Growth
SDG #12 Responsible Consumption and Production
SDG #13 Climate Action
***Consumed Energy 17% intensity reduction SDG #7 Affordable and Clean Energy
SDG #8 Decent Work and Economic Growth
SDG #12 Responsible Consumption and Production
SDG #13 Climate Action
Greenhouse Gas Emissions Reduce greenhouse gas emissions intensity by 50% from the 2010 baseline 35% intensity reduction SDG #3 Good Health and Well-being
SDG #12 Responsible Consumption and Production
SDG #13 Climate Action
SDG #14 Life Below Water
SDG #15 Life on Land
Fine Particulate Matter (PM2.5) Reduce PM2.5 emissions intensity by 15% from the 2010 baseline 23% intensity reduction SDG #3 Good Health and Well-being
SDG #12 Responsible Consumption and Production
SDG #14 Life Below Water
SDG #15 Life on Land
"Toxic Air Emissions (TAE)

Combination of hexavalent chromium, formaldehyde, manganese, polycyclic aromatic compounds and ammonia emissions

Reduce TAE intensity by 75% by 2020 from the 2010 baseline 61% intensity reduction SDG #3 Good Health and Well-being
SDG #12 Responsible Consumption and Production
SDG #14 Life Below Water
SDG #15 Life on Land
Waste to Landfill Reduce waste to landfill intensity by 70% from the 2010 baseline 5% intensity reduction SDG #3 Good Health and Well-being
SDG #6 Clean Water and Sanitation
SDG #12 Responsible Consumption and Production
***Water Consumption Reduce water intensity by 35% from the 2010 baseline 37% intensity reduction SDG #6 Clean Water and Sanitation

Product Sustainability

Priority Goal/KPI 2016 Progress SDG Target Linkage
Implement continuous improvements In 2016, to meet both regulations and market demand, we announced the transition to a fire retardant that contains no hexabromocyclododecane (HBCD).
Create pipeline of sustainable products, and increase the value through sustainability in the innovation process by 2020 We are committed to evaluating each of our innovation programs for their net sustainability gains or losses vs. existing products measuring the results through our sustainability mapping tool. By 2020, we are committed that 85% of our new products and 85% of our new applications will have net sustainability gains. 62% of new products and 75% of new applications for our products have shown net sustainability gains. These gains were most frequently caused by product developments that improved our manufacturing footprint, such as lower plant air emissions, lower material consumption, lower energy usage and higher process efficiencies. We also continue to adopt new product designs that use fewer materials and result in less energy usage for the end user. Another frequent cause of gains in 2016 was moving to new product designs that use fewer materials and result in less energy usage for the end user.

Supply Chain Sustainability

Priority Goal/KPI 2016 Progress SDG Target Linkage
Set clear expectations for sustainability progress by our suppliers 100% of suppliers in compliance with our Supplier Code of Conduct annually In 2016, we had 100% of suppliers in compliance with the supplier code of conduct based on assessments.
Use leading-edge sourcing practices The Supplier Segmentation process, implemented for the top 87% spend, analyzed supplier risk and impact and companies were asked to provide an annual self-assessment via a survey. The segmentation analysis is used by commodity leaders to prioritize their efforts of engagement and active management of suppliers. Information gained was used in consideration for the annual supplier recognition and awards event. A new quality improvement process and tool was deployed to all North American plants to identify and correct non-conforming material. A supplier scorecard was developed, piloted and approved and is used to address performance issues with specific critical suppliers SDG #12 Responsible Consumption and Production
Measure and disclose performance

993 suppliers were asked to complete a self-assessment survey in 2016, up from 846 in 2015. Of those 260 were returned for a response rate of 26%, down from 40% last year. 100% responding meet the terms of our Supplier Code of Conduct and 66% have environmental goals.

33 new audits were conducted in 2016.

100% of new suppliers are screened for any, global, governmental sanctions using the Thompson Reuters World Check system.

SDG #8 Decent Work and Economic Growth
SDG #12 Responsible Consumption and Production
SDG #16 Peace, Justice and Strong Institutions
Expand our training on sustainability to meet the needs of our global sourcing organization 100% of our global sourcing organization will be trained on sustainability through OC Sourcing Way, developed in 2015, and will be required to recertify annually thereafter on the practices and expectations by 2018. In 2016 we advanced our processes in understanding competitive analytics, which is now a formal component of our playbook and standardizes the way we create, communicate and execute commodity strategies. All of our commodity leaders globally have attended 2-3 day formal training to ensure a consistent process across the Company. Additionally, other functional areas such as supply chain, quality, and R&D were trained in 2016 with continuing growing interest. . SDG #12 Responsible Consumption and Production
SDG #16 Peace, Justice and Strong Institutions
Enhance our transportation efficiency Convert 12% of transportation miles to natural gas or use alternative fuel savings methods by the year 2020. Of our total miles transported in 2016, 11% were moved using natural gas, a 1% increase over 2015. We increased miles moved via alternative means (intermodal, boxcar) to 21% in 2016, up from 19% in 2015. SDG #11 Sustainable Cities and Communities
SDG #12 Responsible Consumption and Production
SDG #13 Climate Action

Building Science

Priority Goal/KPI 2016 Progress SDG Target Linkage
Building Science has been a key element in driving our product sustainability. Through sustained partnerships with customers, specifiers, architects, and builders, we hope to drive net-zero energy building capabilities, thereby achieving no net carbon releases. We also aim to expand our building science expertise to educate the building industry, engineers, contractors, and homeowners on safe and efficient building materials. Increase the number of Owens Corning supported net-zero ready buildings year-over-year vs. 2015 baseline of 35. In 2016 we were able to develop new strategic partnerships with Thrive Home Builders and the NAHB New American Home to increase our completed builds to 40.

Safety

Priority Goal/KPI 2016 Progress SDG Target Linkage
We are committed to our company value of Living Safely – both at work and at home. While we are committed to eliminating all injuries, (goal of 0), our interim goal is to make progress on our march to zero by demonstrating a reduction in the number of injuries year over year. Living safely is a core value of Owens Corning.

*** In 2015, Owens Corning reported the number of injuries at 84, and in 2016, we show the number of injuries at 90. Achieved a modest reduction in the year-over-year employee recordable incident rate while operating at a very high level of safety performance.

2017 KPI: We have committed to a year over year reduction from the 90 injuries reported in 2016.

SDG #3 Good Health and Well-being
SDG #8 Decent Work and Economic Growth

Employee Development

Priority Goal/KPI 2016 Progress SDG Target Linkage
Owens Corning’s employees are our number one asset and we are committed to our employee’s development. We care about our people and are committed to lifelong learning to help them reach their full potential. For 2016, we are demonstrating that commitment by striving for 30 hours of training per employee focused on both the quality and quantity of development beyond basic compliance training.

***As we progressed through 2016 Owens Corning realized the employee development goal was overstated as we transitioned into the new talent management system given several outliers in the data. We report in 2016 18 hours of training per employee beyond basic compliance.

2017 KPI: We have committed to 13 hours of training per employee beyond basic compliance training.

SDG #4 Quality Education
SDG #5 Gender Equality
SDG #8 Decent Work and Economic Growth

Community Impact

Priority Goal/KPI 2016 Progress Social/Environmental Benefit KPI
(SDG Target Linkage)
Social/Environmental Benefit KPI Progress
Safe and Efficient Housing - Advancing Safe & Efficient Housing in Our Communities Increase customer satisfaction and our Net Promoter Score (NPS) through 2022. In 2016, we collected feedback from 1,010 Insulation and Roofing customers and 543 contractors, representing a sample of our distinct customer types and locations. The survey allows us to measure overall satisfaction and the Net Promoter Score (NPS) as well as to go into more detail across customer touch points to help drive specific improvements. In 2016, the NPS score was 47 for building materials customers and 66 for contractors in North America, based on an index ranging from -100 to 100. Increase the number of people benefiting from access to safe and efficient housing in our communities through 2022.
SDG #11 - Sustainable Cities and Communities

Owens Corning measures the results and impact of each project through items such as the number of builds in our communities and homes that have been re-shingled or insulated through product donation to key strategic partners. Through our partnership with Habitat for Humanity International, Owens Corning completed 25 home builds or renovations in 2016 in the United States, Canada, and China. Some 2016 highlights include:

  • Our Roofing and Asphalt plants in Denver, Colorado area have partnered with Habitat for Humanity for a neighborhood revitalization program focused on three neighborhoods – Elyria, Globeville and Swansea
  • Owens Corning Foundation provided financial support to match employee volunteerism and donated materials for a Joplin Habitat for Humanity new-home build in one of our newest plant communities, Joplin Missouri
  • Partnered with Habitat for Humanity China and sponsored five house renovations in Shanghai and two renovations in Guangzhou
  • The Foundation sponsored the Habitat China Young Leaders Build program to help more than a dozen families in need with their urgent home reconstruction needs in Shaoguan, Guangdong Providence
Good Health & Well-being - Foster and Promote Health in Our Communities 100% of our facilities engaged by 2022 through community service projects. ***In 2016, 72% of our approximately 100 operations worldwide were engaged in local community projects, up from 66% in 2015 and exceeding our goal of 70% in 2016. Increase the number of people benefiting from access to basic health and wellness in our communities through 2022.
SDG #3 - Good Health and Well-being
SDG #6 - Clean Water and Sanitation

Owens Corning measures the results by reviewing items such as the number of people provided clean drinking water, number of people provided access to basic sanitation, number of people benefiting from basic medical services, number of children vaccinated, and number of children provided with nutritious meals. 2016 Highlights include:

  • The Owens Corning Foundation has worked with United Way Mumbai and the HOPE foundation to provide basic health services, clean water facilities, and basic sanitation in villages and schools. In 2016, a total of 800 people in these communities in India benefited directly from our basic sanitation facilities, more than 2,000 gained access to clean water, over 3,300 gained access to basic medical services, 1,000 children of migrant construction worked received comprehensive care and health food, and 750 children were vaccinated. This work was supported by more than 6,000 hours of volunteerism by the employees of local Owens Corning facilities.
  • In partnership with United Way Worldwide and Amway Charity Foundation, the Owens Corning Foundation supported the Spring Spout Program in China to equip schools with advanced kitchen equipment, along with books and stationary. By the end of 2016, Owens Corning had set up three “Spring Sprout Kitchens” in Jiangzi and give in Shanxi to serve a total of 5,545 students
Educational Opportunity - Drive Access to Education in Our Communities Increase our results on our annual employee referral survey by 2022 Owens Corning administers an internal survey to its employees with a question related directly to employee referrals. In 2016 we show a slight increase in the results versus the prior year.

Increase the number of people benefiting from promoting educational opportunities in our communities through 2022

SDG #4: Ensure inclusive and quality education for all and promote lifelong learning

Owens Corning measures the results through the total individuals impacted by our projects tracking the number of students with access to non-formal education, the number of students receiving scholarships, the number of students with access to computers in school, and the number of students with additional access to mentoring in reading and acclimation to urban life. Our highlights in 2016 include large programs in India and China.

In India, more than 400 migrant children received assistance through non-formal education opportunities that help them catch up with peers in reading and math. Nearly 700 students were able to access computers in the classroom for the first time, and 36 students were awarded scholarships.

  • Owens Corning employees are involved in English teaching, mentoring, safety awareness sessions and many other volunteering activities to benefit students. Non Formal Education (NFE) classes allow students from primary and secondary schools in the project area to receive special attention to build their basic knowledge in language and mathematics. Regular home visits, interaction with parents and educational counseling for children are special features of this program and help children learn at their own pace. The success rate of these classes is approximately 65% and 475 students were enrolled in the program for the 2016-17 school year.
  • In India, we help children with basic computer education which has helped improved school attendance and reduce school dropout rate. Computer laps were setup in these schools with computer teachers focusing on children grades 4 – 7. For 2016-17 school year, 697 students were enrolled in these computer education classes.
  • During the summer, we provide support for children to unwind from their regular school activities and engage in experiential learning through field visits, sports, interactive games, and arts and crafts with employee participation. In 2016, 146 students participated in these activities.
  • Promoting physical activity among school children is a focus as well. About 200 students participated in interschool sports meets in 2016, and 331 students benefited from regular yoga classes.

In China, the Owens Corning Foundation supported the founding of the Green IT Classroom programs in migrant schools near several of our plants. We continue to promote their development through educational support, donations of renewed computers and contributions for the installation of the necessary IT infrastructure for students. In, 2016 we built one Green IT classroom in Yuhang with 45 refurbished laptops. This program benefited 834 students."