2021 Owens Corning Sustainability Report | Appendices | 361 company is a significant user of recycled content, and we strive to reduce the energy usage and GHG emissions from producing our products while tracking avoided emissions from product usage. Owens Corning Building Science engineers the complex, interconnected systems that make buildings and homes comfortable, energy efficient, high performing, durable, sustainable, and affordable – that is our material difference. Product innovation, developing products like EcoTouch ® “Made with 100% Renewable Electricity and Reduced Embodied Carbon” products, and Cool Roof Collection Shingles that reduce energy and emissions, puts us in a position to take advantage of this opportunity. Metrics & Targets Owens Corning set aggressive 2030 GHG emissions goals using the Absolute Emissions Contraction Method from the Science Based Targets initiative (SBTi). Our approved targets are to reduce absolute Scope 1 and 2 GHG emissions 50% from 2018 levels by 2030 and to reduce absolute Scope 3 GHG emissions 30% within the same timeframe. We ran the model, using both the 1.5° C scenario and 2.0° C scenario, and our Scope 1 and Scope 2 target was determined to be in line with 1.5° C trajectory. In 2019, we received confirmation from the SBTi that our Scope 1, 2, and 3 greenhouse gas goals are approved as aligned with the planetary actions needed to reach the 1.5° C target. We have established additional 2030 targets and initiatives to enable us to meet these aggressive targets, such as our 2030 goal for 100% renewable energy, which are in place to help us sharply reduce emissions from our processes and products. For example, our 2030 renewable electricity goal will require Owens Corning to pursue additional large renewable energy projects in several regions outside North America. We continue to review potential projects domestically and internationally. We plan to also continue to expand our portfolio of low-carbon products certified as being made with wind energy. Owens Corning chose 2030 as our target year for our third set of 10-year goals. We evaluated 2017 and 2018 as potential base years, and we chose 2018 because it more accurately reflects the nature of our business today after further acquisition integration. Linking Executive Compensation to Climate-Related Performance Monetary rewards for the CEO and the corporate executive team are based on performance toward their individual goals, which can include sustainability goals. This is part of our executive performance objectives, which affect variable incentives for executives within the science & technology organization, each business unit, as well as our corporate sustainability function. This includes individuals such as our CEO & chairman of the board, our chief sustainability officer, the presidents of each of our three main businesses (Insulation, Composites, and Roofing & Asphalt) as well as other executives, such as the VP of roofing & asphalt operations, the VP of advanced manufacturing, the VP of composites science & technology, and the VP of insulation and roofing science & technology. Understanding the Cost of Emissions In implementing an internal carbon price, we consider Scope 1, 2, and 3 emissions — the total impact of our operations and our supply chain. We have both internal and externally published reduction goals, which are aligned to drive strategy and action. We do not have an internal carbon tax or carbon charge allocated to our businesses. Quantifying the cost of carbon emissions with an internal carbon price helps us plan future scenarios and make business decisions. Our internal carbon price varies by region and considers a range of potential forecasted costs, ranging up to $120 per metric ton depending on the location. A regional approach to internal carbon pricing allows us to more accurately estimate and evaluate the costof carbon for capital project planning in regions with varying carbon prices. It also places value on carbon emissions in regions that do not yet have taxes or trading schemes. By estimating the difference in metric tons of carbon dioxide equivalent (CO2e) from one year-end to the next, then multiplying that amount by $120 per metric ton, we can arrive at the high-endestimate of cost savings of emissions reduction if a carbon tax were implemented. We have also been able to quantify our current total risk in the event of an efficient, economy-wide carbon tax, and we can see how dramatically we have reduced that risk since 2007, our peak GHG emissions year. This also allows us to value our future forecasted emissions reductions as we work toward our 2030 goals. Addressing Emerging Climate-Related Risks and Opportunities Our commitment to sustainability starts with our passion for developing energy-saving products, such as insulation and durable products that significantly reduce energy use and associated emissions. A significant portion of global greenhouse gas emissions come from the combustion of fossil fuels; therefore, energy savings, or avoided energy consumption, are directly tied to a quantifiable amount of avoided emissions. More information about our sustainable product portfolio and approach is included in the Expanding Our Product Handprint section of this report. TCFD CLIMATE RISK & OPPORTUNITIES Appendix G