2021 Owens Corning Sustainability Report | Expanding Our Product Handprint | Supply Chain Sustainability | 129 Identifying and Mitigating Risk Owens Corning has several methods to identify risk in our supply base, including ESG risk scoring, segmentation, the risk mitigation tool, supplier performance measurement, category strategies, on-site or self-evaluations, and sustainability evaluations. In addition, risk can be introduced by our suppliers through nonconforming material or work while on-site at our facilities. Our contractor management standard requires that all contract employees working at Owens Corning sites meet certain standards before proceeding with any work. Each contractor that performs medium- and high-risk work activity must submit appropriate documentation and achieve an acceptable grade by our external partner, ISN, prior to being awarded any jobs. Examples of documentation include a Certificate of Insurance, copies of specific safety programs, OSHA forms, and questionnaires about their EHS and sustainability programs. Owens Corning and the individual contractor pay for membership with ISN, and the cost to the contractor is based on their number of employees. In our plants, we have a process to record and track nonconforming material from suppliers. Suspect or rejected material is segregated, which drives further investigation by the supplier into any material that may be in stock or en route. We also use an 8D process, an industry-standard corrective action that requires the supplier to respond with a detailed description of the problem, an immediate containment plan, short-term action, a root cause analysis, long-term corrective action, an implementation plan, a prevention plan, and an implementation evaluation. We use this tool for any corrective action that is requested from our suppliers. We use various subscriptions and memberships to assist in our risk assessment of suppliers, market, and competitive landscape while making sourcing decisions. We have memberships with Procurement Leaders, Gartner, and MAPI, as well as resources related to chemical, oil, and more. Each sourcing professional is trained in gathering category and market intelligence, using a range of tools, including SWOT, PEST analysis, and Porters. Risk Mitigation/Contingency Planning Our detailed risk mitigation tool focuses on all critical suppliers, along with all single and sole source suppliers. The tool consists of the following sections: ■ Risk identification. ■ Risk assessment. ■ Maturity assessment. ■ Risk score and segmentation. ■ Prioritization. ■ Documented contingency planning, where required. Areas of risk assessed for suppliers include human risk, complex risk, information and legal risk, quality risk, reputational risk, and operational risk. The tool takes each identified risk through a series of scoring matrices, with the final chart being a risk tolerance chart showing “impact” and “likelihood” of the risk. This then drives the documented contingency and testing process for the highest priority risks. Contingency plans can be completed on a supplier, category, or business basis and can take different shapes. For example, they can be a documented plan for backup transportation, raw material, temporary employment, or a request for production data to ensure that a supplier’s process is consistently running good material. The risk mitigation tool was used with all category strategies in 2021 to create contingency plans and identify highest risk areas — a required component in the semi-annual category reviews. Photo submitted by: Amanda Meehan | Toledo, Ohio, U.S. Lancaster County, Pennsylvania, U.S.