2021 Owens Corning Sustainability Report | Appendices | 358 TCFD CLIMATE RISK & OPPORTUNITIES Appendix G Assessing Climate Scenarios in Partnership with The Ohio State University Climate scenario analysis has been an emerging priority for responsible corporations in recent years, as stakeholders like CDP, investors, and the TCFD seek to ensure that businesses are adequately considering the potential risks and opportunities posed to their operations both by climate change and climate action. To address this growing area, Owens Corning began work with The Ohio State University in 2020 to expand our efforts to assess the resilience of our strategies against a range of climate-related scenarios and time horizons. The scenario analyses focused on “Shared Socioeconomic Pathways” (SSPs) for the scenario analysis: SSP1-2.6, SSP2-4.5, and SSP5-8.5. The use of these SSP models aligns our analyses with the most recent 2021 IPCC sixth assessment report (AR6). These initial analyses referenced time horizons of the current period, 2036, and 2051. The initial scenario analysis work focused on two areas of understanding for Owens Corning: physical climate risks posed to our company locations, and potential impacts of climate change on demand for our roofing products, as sales of roofing products is influenced by severe weather and storm activity. In the first project, climate scenario analysis was conducted for physical climate risk to our facilities over the same emission pathways and time horizons, and these facilities level findings will be incorporated into our risk determination for our plants. Variables assessed included factors like winds, cyclones and severe weather, flood risk, drought risk, and maximum temperature. Each of these factors can change for each facility in response to different climate scenarios, and awareness of these potential changes at the site level is a key step to ensuring preparedness at the enterprise level. We are currently evaluating more detailed analysis for specific facilities. For the second scenario analysis, OSU was able to model the potential changes to US roofing product demand by region for each emission pathway and time horizon. This analysis can help us to understand how drivers of roofing shingle demand could potentially change as variables like wind, tropical cyclones, and hail fluctuate in different climate scenarios. Outcomes of this analysis can help Owens Corning to ensure our production capability can adapt to climate change and ensure we successfully serve our markets as their demand for roofing products changes due to climate change. The exact way in which these findings will be incorporated into our business decisions is still being determined, but undertaking the analysis was a key first step achieved in 2021. Risk Management Enterprise Risk Management (ERM) is owned by the executive committee, who delegates its management to the risk committee. The executive committee then monitors the risk committee’s management of ERM, culminating in a final review by the audit committee of the board. The risk committee is responsible for overseeing and monitoring our risk assessment and mitigation actions. The risk committee is not a board committee; instead, it is a cross-functional corporate committee that includes members across many areas of expertise. It is also structurally independent of our business lines. This internal mechanism identifies risks and mitigation strategies, and it provides key updates to executive officers and the audit committee. In 2020, safety and environmental concerns were added to the core risk register, which increases the extent to which sustainability issues are embedded into the enterprise-wide risk process. The risk committee reports to the executive committee, and it is specifically sponsored by both the chief financial officer and general counsel, who are themselves members of the executive committee. In support of these efforts, the independent corporate audit function systematically addresses risk throughout the organization. Audit results are reviewed with the audit committee of the board of directors, which has primary responsibility for assisting the board’s oversight of risk. The audit committee’s responsibilities include: ■ Discussion of guidelines and policies that govern the process by which senior management and relevant departments access and manage the company’s exposure to risk. ■ Annual review of, and quarterly updates on, identification of Owens Corning’s key risks, major financial exposures, and related mitigation plans. ■ Oversight of our management of the key risks and major financial exposures that fall within the audit committee’s specific purview. ■ Assurance that the board and its committees oversee our management’s key risks and major financial exposures within their respective purviews. ■ Quarterly evaluation of the effectiveness of the above- referenced process of oversight. In addition to the ERM process, three board committees — compensation, finance, and governance and nominating — review and evaluate risks associated with their respective areas. Each board committee reports on its respective risk management activities to the board, and the board then considers such reports.