2021 Owens Corning Sustainability Report | Appendices | 357 TCFD CLIMATE RISK & OPPORTUNITIES Appendix G Climate-related risks and opportunities are integrated into our current decision making and strategy formulation. This includes planning assumptions and objectives around climate change mitigation, adaptation, or opportunities, including the following: • Research & Development Owens Corning is investing substantially in further R&D in response to the many climate-related risks and opportunities that we have defined. In addition to our FOAMULAR ® NGX™ insulation, this includes Cool Roof Collection™ shingles and WindStrand ® glass fiber roving, as described above. • Future Activities Climate risks influence our investments in many ways. One example is a regulatory transition risk related to our blowing agent blend, which led to our investment in the development of a foam blowing agent with lower global warming potential. The product using this new blowing agent, FOAMULAR ® NGX™, is described above. Identified climate risks have had a moderate impact on our restructuring activities. The acquisitions Owens Corning has made in recent years, including Pittsburgh Corning, Paroc, and vliepa, were made in part due to their ability to add to our portfolio of energy-saving products. These new assets will be beneficial to us as we meet the challenges presented by transition risks, as well as address climate-related opportunities, such as more stringent building codes and increased demand for building products in the aftermath of more extreme weather patterns. • Planning Around Legacy Assets We have established a range of strategies to reduce carbon-intensive, energy-intensive, and water-intensive activities throughout our operations, including major investments in renewable energy. The initiatives described above, such as the solar array at our world headquarters, power purchase agreements, wind farms, and electric arc furnace, all demonstrate our commitment to meeting our Science-Based Targets and overall 2030 sustainability goals. • Capital Planning and Allocation GHG emissions, energy, and water use are also considered as we allocate resources to initiatives throughout our operations. As we develop new products (e.g., FOAMULAR ® NGX™, WindStrand ® , Cool Roof Collection™ shingles), we employ our product stewardship principles to ensure that sustainability is taken into account throughout the entire process. • Flexibility in Positioning/Repositioning Capital As we seek to address emerging climate-related risks and opportunities, we recognize the need to adapt our operations accordingly. The example of regional shingles, discussed in detail above, demonstrates our ability to act with flexibility to adjust to the needs of the marketplace through ingenuity in production and supply chain planning. Our adjustments to planning estimates in the aftermath of Hurricane Sandy are another example. Increases in costs related to cleanup, strain on the supply chain, and production were factored into our planning, and Owens Corning was able to include future potential severe weather events and their impact on operating costs. Resilience of Owens Corning Strategy in Climate-Related Scenarios Owens Corning has developed resilient strategies related to different climate-related scenarios, including Science-Based Targets. Our actions to reduce GHG emissions have always been informed by the latest science-based methodologies. Previously, our GHG reduction goal was designed to limit global warming to less than 2° C above pre-industrial level, consistent with our commitment to the Paris Agreement of 2015. Given the more in-depth understanding of the physical risks associated with climate change gained in recent years, Owens Corning has now set targets aligned with the latest findings from the Intergovernmental Panel on Climate Change (IPCC). To avoid the worst impacts of climate change, the IPCC urges that temperature rise should be held below 1.5° C. As we seek to reduce our Scope 1 and Scope 2 greenhouse gas emissions by 50% over the next ten years, we will use this metric — representing the latest in climate science — as our guide. Owens Corning has assessed all the potential risks associated with climate change, giving us a full understanding of the many ways in which climate-related risks can impact operations across our entire value chain. As weather conditions shift, severe storms can have a significant impact on the markets for residential and commercial construction, repair, and improvement, as well as a material adverse impact on our results of operations. Among our customers, severe weather conditions could slow or limit residential or commercial construction activity, which in turn could adversely affect demand for our products. Within our own operations, extreme weather can lead to disruptions in our manufacturing capacities, as damages to our facilities may occur. In addition, as weather-based disruptions become more common, we anticipate potential difficulties in obtaining affordable insurance.