Owens Corning has strategies in place to mitigate these risks. Chief among them is our commitment to the circular economy model, in which we work to avoid the use of virgin raw materials whenever possible, manufacture products to deliver the least negative environmental impact, and ensure that materials used in our products and packaging remain in the economy indefinitely. We had eleven plants in 2021 that were impacted by the EU ETS: Composites plants L’Ardoise, Chambéry, Besana, and Apeldoorn, and Insulation plants Tessenderlo, Klášterec, Hällekis, Hässleholm, Parainen, Vilnius, and Trzemeszno. Both composite glass and insulation production create GHG emissions. In 2021, 25% of our Scope 1 emissions fell under emissions limiting regulations. A primary way we have been managing this risk is by emission reduction projects. In 2021, we implemented 29 projects, generating energy savings of over 34,000 MWh and reducing greenhouse gas emissions by more than 8,000 MT per year. Identification of Climate-Based Opportunities In addition to the risks outlined above, conditions related to climate change can present opportunities for our business. While there is the potential for some degree of growth in these opportunities, it is important to note that Owens Corning remains committed to our sustainability goals. Opportunities are addressed through our long-range planning process. Opportunity: Increased Demand for Mineral Wool Products More aggressive building codes and regulations regarding energy efficiency and climate drive the use of Owens Corning’s insulation and other energy-saving products and systems. Increased transportation industry-related energy efficiency regulations help drive the use of lighter and stronger materials like our glass-fiber reinforcements. Demand for products in our roofing business is generally driven by both residential repair, remodeling activity and by new residential construction. To cite an example: In response to the 2017 Grenfell Tower fire in the U.K., and similar fires in Europe and the Middle East, attention has turned to the codes and standards on the fire performance of products and wall systems. New York City is considering revising its code to limit the use of combustible materials in exterior assemblies of commercial buildings, especially tall structures. Combined with strong energy codes calling for exterior insulating sheathing, this new code requirement is likely to drive the market toward non-combustible mineral wool insulation board, like Owens Corning Thermafiber ® products. Other alternatives like extruded polystyrene (XPS) can have a much higher global warming potential and are higher in embodied carbon than mineral wool board insulation. Thus, while fire and life safety were the driving forces in updating the New York City code, it would have a positive impact on climate as mineral wool board gets more market penetration. Other cities and states may adopt similar measures. We see a similar scenario arising in California for single- family homes. To meet the zero-energy code, builders often choose continuous insulation on exteriors of walls, and combined with the urban wildland interface code, we expect to see the use of combustible expanded polystyrene (EPS) diminish in favor of non-combustible insulative sheathings such as Thermafiber ® mineral wool. The market penetration of non-combustible mineral wool insulation may be faster in tall commercial buildings. Specific to our mineral wool products, there are presently three identified example opportunities related to stricter codes: the growth attributable to non-combustibility, the development of codes that call for increased R-value per inch, and the ability of our products to satisfy Buy Clean California requirements for global warming potential (via embodied carbon) of products, which would grow the potential comparative market for mineral wool. Owens Corning actively engages with NGOs, state and federal agencies and legislative bodies through its Governmental Affairs organization concerning increased climate, energy conservation, and fire and life safety requirements. In 2021, we continued to partner with builders throughout the U.S. and Canada who are building in a wide variety of climates, regions, and communities. One example of this is our work with the Canadian government’s Natural Resources Canada (NRCan). We partner with NRCan on several demonstration projects to help the building construction industry move toward net zero-ready performance, which will be mandated for all new buildings in 2030 as part of the PanCanadian Framework on Clean Growth and Climate Change. In 2020, we began a two-year project with NRCan in Quebec to demonstrate and educate the building construction industry on building affordable net zero-ready homes in a large-scale setting. We are also working with NRCan on the prefabricated exterior energy retrofit (PEER) group project, which develops insulation systems and technologies for deep energy retrofits to get existing buildings in Canada up to net zero-ready performance. Opportunity: Increased Demand for Roofing Materials Demand for products in our roofing business is generally driven by both residential repair and remodeling activity and by 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 products in our roofing business due to storm-related roof damage. 2021 Owens Corning Sustainability Report | Appendices | 352 TCFD CLIMATE RISK & OPPORTUNITIES Appendix G