2021 Owens Corning Sustainability Report | Appendices | 360 TCFD CLIMATE RISK & OPPORTUNITIES Appendix G 4. Meet quarterly. The risk committee meets quarterly to review the risk registers and their potential impact to Owens Corning. They review the existing risk aspects, add any new risks being identified from internal or external sources, and update any risks which are no longer considered applicable to the businesses. The risk committee also reviews the mitigation actions and outputs for the annual cycle. Annually the business reviews emerging risks for the company and partners with the Strategic Growth Council to ensure these are contemplated in strategic planning cycle for the company. 5. Provide quarterly update to the board of directors. We have a variety of processes for identifying and managing opportunities within the business, marketing, R&D, and across the company, including climate-related opportunities. As an example, tech scouting is a business strategy aligned with our corporate innovation team, and it is designed to continuously fuel Owens Corning business pipelines with technology-based opportunities that enable growth or mitigate threats. Our tech scouting team is integrated with each business unit, systematically finding and assessing business opportunities that match our needs and strategy, and effectively sourcing the most suitable technologies and partners. Any new products developed must go through our stringent product stewardship process, and each product is evaluated through our Ecodesign Strategy Wheel. Recycling, in the context of the circular economy, will be a key focus of the tech scouting team. Some case studies of how we have followed our processes for managing climate-related risks and opportunities: ■ Transitional Risk Broad and gradual tightening of limits on emissions by federal and state governments could impact Owens Corning by disrupting our use of specific raw materials which in turn would disrupt our production capacity for products using those materials. One specific Owens Corning example involves the phase-out of certain blowing agents used in our XPS foam plants in North America and Asia. As this occurs, we have been required to make certain capital investments at our plants to use alternative blowing agents. Because we believe the likelihood of this identified risk is high in the long term, we have completed development and certification of new foam blowing agent blends with lower GWP that could be used with our existing equipment, and we have also begun capital upgrades needed to run our lines with these lower GWP blowing agent blends. All our plants in regions affected by existing or emerging regulation will be capable of using the new blowing agent in the near term (by early 2022). As a result, we can manage this risk into the future, and are doing so already, as with the 2021 release of FOAMULAR ® NGX ® for Canada and certain U.S. states. ■ Physical Risk We have a plant in Tennessee located in a high earthquake and tornado zone. This plant is important as it helps supply raw material to another business within the company as well as outside companies. We therefore needed to find a way to manage the physical risk to this plant. To do so, we developed a management plan that involves insurance, loss prevention, supply chain, and our commercial teams to mitigate the losses in the event of a natural catastrophe. The plan includes having the appropriate amount of insurance, planning to convert other facilities to make similar product, making updates to the facility to help it withstand natural disasters, and having appropriate contractual obligations with outside customers to supply a prorated amount of materials in the event of a disaster. This plan is reviewed and updated annually as circumstances change. As a result, this plant is managing physical risks posed to it, which helps us operate more effectively. ■ Transitional Opportunity Owens Corning actively lobbies the U.S. Department of Energy and other legislative bodies through its Governmental Affairs organization for increased energy conservation requirements. Evaluation of risk and opportunities by the businesses determined that more aggressive building codes can help drive the use of Owens Corning’s products, to save customers energy and reduce GHG emissions. We estimate that aside from the benefit to consumers, Owens Corning could see a considerable amount of new business attributable to code changes. ■ Physical Opportunity Demand for products in our roofing business is generally driven by residential repair, remodeling activity, and new residential construction. As the effects of climate change are felt in the increased frequency and severity of storms, Owens Corning as a building materials company may see an increased demand for our roofing products due to storm related roof damage. Evaluation of climate-related physical risks and opportunities have driven changes and expansion in production and marketing of specific Owens Corning products, like WeatherGuard ® and Duration FLEX ® shingles, which are rated against high winds and storm activity. Recognizing Climate Risks and Opportunities Through Building Science Owens Corning recognizes the importance of sustainability and has embedded building science professionals into the business. We understand the impacts of our products and aim to innovate solutions that provide positive impacts on the building envelope. Our sustainability organization and sales force actively and broadly promote our company’s stand for sustainability and train professionals on how to achieve maximum environmental benefits using our products. The