2021 Owens Corning Sustainability Report | Expanding Our Product Handprint | Supply Chain Sustainability | 127 Management of Suppliers and Risk Owens Corning takes a holistic approach to managing suppliers and risk. We also include supply chain resilience in our assessments, which refers to our suppliers’ ability to manage disruptions with relatively minor impacts on the supply chain. The sections below discuss our overall approach in greater detail. Supplier Segmentation Owens Corning seeks to develop a complete understanding of every company in our supply chain, including the various ways these companies could affect our operations. To achieve this, our global sourcing team uses our Segmentation Tool to assess and classify primary suppliers. Suppliers included in the segmentation process: The tool compiles an overall score using the following criteria: • Three questions related to risk, weighted based on their importance to Owens Corning. • Four questions related to impact, weighted based on their importance to Owens Corning. • The supplier’s ESG score. The assessment we have developed reflects our emphasis on risk mitigation, our need to address single and sole source suppliers, and our need to develop strategies in each commodity category. Each supplier is assigned scores based on two categories. ■ Risk The risk score captures potential for instability in our ability to purchase a given product or material. Higher risk may be the result of one or more of the following reasons: • There is only one supplier for this material or product. • There would be significant cost associated with switching suppliers. • The supplier is subject to greater instability or disruptions. • The supplier may not have publicly stated sustainability or safety measures. ■ Impact The impact score reflects the ways that a supplier’s situation can affect Owens Corning’s bottom line. High- impact suppliers are generally those who: • Offer innovative products. • Offer significant cost and/or productivity savings. • Deliver a competitive advantage for us. • Serve as a necessary part of Owens Corning’s business operations. Once the scores have been assigned, the suppliers are placed into one of four categories, and from there we are able to establish action plans that ensure our relationship with each supplier is optimized, increasing their overall impact and mitigating our risk. The classification is also used to identify relationship owners, action items, and supplier, commodity, and/or business strategies. The Segmentation Tool has been updated and improved over the years, with the latest update taking place in 2021 to streamline the segmentation of suppliers and the questions asked to assess them. We have segmented the top 775 suppliers based on their impact and risk. In 2021, approximately 16% of our segmented suppliers were identified as critical suppliers (high risk/high impact), and approximately 37% were identified as bottleneck suppliers (high risk/low impact). Both segments are key focus areas in our supply chain responsibility efforts. Photo submitted by: Scott Campen | Knoxville, Tennessee, U.S. Grand Canyon, Arizona, U.S. Constitute ~75% of overall global sourcing managed SINGLE OR SOLE source suppliers Suppliers with a high-risk ESG score and a spend over $250K