2021 Owens Corning Sustainability Report | Appendices | 354 TCFD CLIMATE RISK & OPPORTUNITIES Appendix G Impact of Climate-Related Risks and Opportunities on Our Strategies The continued rise of climate-related risks and opportunities have led Owens Corning to develop a range of strategies that have had a major impact on the way we conduct our business. These include the following: ■ Products and Services In response to the identified risk of potential for increased regulation on energy efficiency and emissions standards, Owens Corning has in recent years made dramatic improvements to its product lines in all businesses, including Cool Roof Collection™ shingles, and Sustaina ® in our Composites business, which is a nonwoven glass fiber fabric that uses a bio-based binder system with high tensile strength performance and does not contain formaldehyde. We have also developed completely new products to comply with climate-related regulation and reduce emissions from blowing agents, such as FOAMULAR ® NGX™, a new foam product is optimized to demonstrate a greater than 80% reduction in embodied carbon, compared to legacy FOAMULAR ® insulation products, and reduces Scope 1 emissions in production. The product also addresses a short-term climate transition risk, as a Canadian regulation phasing out certain blowing agents went into effect in 2021, and this product helps the company to stay ahead of regulations of this sort elsewhere as well. The time horizon for the conversion of our legacy blowing agent to the new FOAMULAR ® NGX™ is active currently, with more activity expected to convert in the short term. In 2020, we also introduced PAROC ® Natura insulation. This carbon-neutral line of stone wool insulation uses low- carbon melting technology, green electricity, recycled waste materials, and new technologies to minimize the amount of CO 2 emitted during the manufacturing process. In February 2020, we extended our Cool Roof Collection with the launch of six new colors in the TruDefinition ® Duration ® COOL Plus line, plus two additional colors added to our Oakridge line. These shingles meet or exceed the minimum 20 Solar Reflective Index requirements set by Los Angeles City and County discussed above. These innovations have had a moderate impact on our revenues as we deliver new market leading products in the near term, and products like these, that can help our customers save energy and avoid emissions, accounted for 63% of our revenue in 2021. ■ Supply Chain We believe transportation of materials and engagement with a supplier can be done more efficiently if the supplier is nearby, which enhances sustainability across the supply chain and minimizes the impact of storms and natural disasters. An important area where supply chain- related risks have impacted our business is regional shingle production. Historically, shingles of a particular color made at different plants were slightly different and could not be mixed on a roof. To mitigate the impact of natural disasters, we have worked with our suppliers to create regional shingles so that we can produce consistent colors across many of our roofing plants. This improves our ability to meet demand if a disaster disrupts production at one plant. Regional shingles have had a significant impact on our roofing business, as we can now mix product from different plants, greatly expanding our distribution flexibility, even in non-storm-related situations. This process allows for us to be advantageously prepared in the immediate term to respond to severe weather disruptions as a result of the regional shingles. This preparation provides our company with an advantage when responding to natural disasters, and therefore we are focused on maintaining successful regional shingle colors for the long-term. Another way in which climate-related risks and opportunities influence our strategy in the value chain can be seen in the recent development of our 2030 long-term sustainability goals. A Sustainability Materiality Assessment indicated responsible sourcing as a material topic, along with combating climate change: these two areas combine to inform a 2030 goal to reduce Scope 3 emissions from our supply chain 30% by 2030 against a 2018 base year, in line with IPCC guidance to limit global warming to 1.5° C above pre-industrial levels. ■ Investment in R&D Owens Corning has invested in energy-efficient, environmentally responsible products such as Cool Roof Collection™ shingles, WindStrand ® high performance glass fiber roving, and others that have proven successful in the marketplace. Currently, Owens Corning is investing substantially in further R&D in response to the many climate-related risks and opportunities that we have defined. We intend to create new processes and products in response to these risks and opportunities in the short term through the long term, as the world transitions to increased climate action. The risk management process has had a moderate impact on how funds are invested in R&D, as the risk management process often leads to mitigation needs and identified business opportunities. For example, the investment in R&D for WindStrand ® was driven in part by climate change- related risk and opportunity evaluations. WindStrand ® is a high-efficiency fabric for wind blades designed to make wind energy more cost-effective. This innovative material allows wind blade manufacturers to use 30% fewer layers of material in the molds for the blades, while delivering the same quality and performance as standard fabrics. That, in turn, represents a 50% savings in labor and production time for the blades. By enabling longer, stronger, lighter wind blades, our high-efficiency fabric