2021 Owens Corning Sustainability Report | Expanding Our Product Handprint | Supply Chain Sustainability | 130 Reducing Risk from Single-Source Suppliers While raw materials usually come from more than one supplier, Owens Corning has some single-source supplier relationships that provide unique, value-added product and service capabilities. Such companies fall into the critical supplier category in our supplier segmentation tool, and they are subject to close monitoring, engagement, and collaboration with the sourcing team. Our sourcing team maintains a regular schedule of safety, environmental, sustainability, and quality audits of single-source suppliers. In addition, we work with these companies to address any gaps in their risk analysis and contingency plans. Owens Corning meets with leaders of single-source companies to review and update all pertinent information. Supplier Evaluation Owens Corning sourcing and supply chain professionals evaluate existing and potential suppliers using either on-site evaluations or supplier self- assessments. ■ On-site evaluations are specific to the kind of supplier (e.g., chemicals, minerals, cullet, packaging) and focus on the highest risks for each category. ■ Self-assessments are in-depth documents asking about business practices, investments, quality management systems, and more. Both evaluations include questions about the Owens Corning Supplier Code of Conduct, which includes a range of social criteria, including discrimination, child labor, forced labor, human trafficking, the right to collective bargaining, and the right to freedom of association, as well as safety and environmental policies. This process also evaluates the suppliers’ treatment of contracted labor, women, and children. In 2021, on-site evaluations were dramatically curtailed due to COVID-19 travel restrictions. While only 13 on- site evaluations and self-assessments took place in 2021, the pandemic has led us to reassess our processes and identify opportunities for continuous improvements that will enhance the ways we conduct both on-site assessments and self-assessments in the future. Supplier Performance Our supplier performance measurement process is focused on those suppliers that have a risk score of 2.0 and above on the Segmentation Tool. This process uses a supplier performance scorecard, which is separated into four sections: raw material, transportation, indirect, and energy. Each section has questions and ratings that are created and weighted specific to that category. The supplier performance scorecard is designed to provide feedback to the supplier and drive improvement in several areas, each of which are a weighted percentage of the total. These areas are as follows: ■ Cost/Value. ■ Quality. ■ EHS. ■ Delivery/Support. ■ Flexibility and ease of doing business. The EHS questions ask if the supplier complies with the Supplier Code of Conduct, and if the supplier has an environmental and safety policy. If the supplier’s scores are unacceptable, it is the category leader’s responsibility to resolve the issue using a documented corrective action plan, and then continue to monitor the situation until the corrections have been made and subsequent scorecards show improvement. If improvement is not made, other types of resolution will be considered, including business restriction or exit planning. Supplier Sustainability Assessment Another tool used in assessing supplier risk is our Supplier Sustainability Assessment. Our survey is mapped to ESG risk categories, and specific topic areas within the survey include codes of conduct, both Owens Corning and supplier, sustainability policies and goals, environmental management system, health and safety policies and goals, labor policies and practices, and raw material. We began sending annual supplier sustainability assessments in 2014. Over the years, we have continued to refine our approach in identifying and prioritizing key suppliers to engage in the supplier sustainability assessment. In 2021, criteria included suppliers with high-risk ESG rating, along with strategic, single/sole source, and critical suppliers. This strategic approach ensures that we are focusing our efforts with the most impactful and critical suppliers. Each supplier is asked if they can comply with the Owens Corning Supplier Code of Conduct; if they are unable to comply, they are asked to provide the reason and offer supporting documentation We are proud to be a 2021 CDP Supplier Engagement Leader, in recognition of our efforts to measure and reduce climate risk within our supply chain. We were part of CDP’s Supplier Engagement Rating (SER), which rates how effectively companies are engaging their suppliers on climate change. CDP assesses performance on supplier engagement using a company’s response to selected questions on governance, targets, Scope 3 emissions, and value chain engagement in the CDP climate change questionnaire.