DIVERSITY: INSPIRING INNOVATION THROUGH INCLUSION

DIVERSITY: INSPIRING INNOVATION THROUGH INCLUSION

DIVERSITY IS THE MIX; INCLUSION IS GETTING THE MIX TO WORK WELL TOGETHER. LONNY LANGFORD JACKSONVILLE, FL UNDERSTANDING AND ACCEPTING DIFFERENCES BETWEEN PEOPLE TO ACHIEVE OUR PLAN TO WIN. What Diversity and Inclusion Means to Our People SETH PARSONS GYPSUM, OH EMBRACING AND LEVERAGING OUR DIFFERENCES! YOUNG EUN YANG NORFOLK, VA EVERYONE HAS A SEAT AT THE TABLE! KATIE JOHNSON CLOQUET, MN

ACKNOWLEDGING, SUPPORTING, AND INCORPORATING THE DIFFERENCES IN THE INDIVIDUALS AROUND YOU. ERICA JENKINS CHICAGO, IL A VISIBLE AND I M ALWAYS PROUD OF THE WAY USG IS RESPECTFUL OF DIVERSE POINTS OF VIEW, A RESPECT THAT LEADS TO CREATIVE AND EFFECTIVE SOLUTIONS FOR OUR CUSTOMERS. MARY MARTIN CHICAGO, IL INVISIBLE WAY OF LESS CORRECTING AND MORE CONNECTING! PHIL REALE NORFOLK, VA

Table of Contents 5 LETTER FROM THE CHAIRMAN 6 INTRODUCTION 8 VISION 9 JOURNEY 10 INFLUENCING OUR WORLD 11 LIVING OUR VALUES 12 PROGRESS 13 DIVERSITY BY THE NUMBERS 14 GETTING PEOPLE INVOLVED 15 DIVERSITY & INCLUSION STRATEGY COUNCIL 16 RECOGNIZING EXCELLENCE 17 LOCATING TALENT 18 COMMUNITY USG employees all over the world, from many different cultures, work together in harmony. We celebrate our differences and leverage them to make better business decisions for our customers, shareholders and each other. / 4

Letter from the Chairman From the very beginning, USG has put our people and our values at the center of everything we do. Our teams are creating high performance technologies and building systems for our customers around the world, and we work hard to think ahead and understand their needs so we can serve them with excellence. While we survey our customers, we also survey our teams. We often ask them important questions and use their feedback to make positive changes in how we run our business. We recently asked them to define diversity in twelve words or less. You ll see some of their answers in this report, and I hope you re as inspired as I am. But we have an opportunity and a responsibility to move better, smarter and faster. That means continuing to focus on building an inclusive culture that empowers us all to do our best. Inclusion starts with our beliefs: we believe in inspiring innovation through our heads, hearts and hands; we believe in building leadership at every level; and we believe that teamwork and diversity lead to positive impact and progress. But this isn t about a written statement, and it isn t a one-time exercise. It s about our actions and how we treat each other every day our individual behaviors, hidden biases and habits. It s about our organizational practices everywhere we do business. our customers expectations now and in the future. We are proud of the progress we ve made, but we know there is more work to do. As we move ahead, we ll continue to use our diverse range of thought, experience, perspective and background to create breakthrough innovation that improves the spaces where we live, work and play. Thank you for joining us on this journey, and I welcome your feedback on how we can do better. It s Your World. Build It. Over the last 20 years, we ve made great progress in amplifying our diversity and inclusion efforts, and this report tells that story. Our commitment is reflected in the way we support our communities, develop innovative programs, seek out talent and provide opportunities for everyone who works with us. You ll learn more about our Employee Resource Groups, Training & Development initiatives, volunteer efforts and thought leadership as you read on. We take an active role in ensuring that everyone feels welcome and encouraged to contribute, regardless of their race, age, gender, gender identity, ethnicity, religion or sexual orientation. We know that when employees are in a great work environment, they do great work. They feel comfortable to be themselves in their jobs. That s when creativity and innovation flourish, and that s how we ll exceed Jim Metcalf Chairman, President & CEO, USG Corporation LETTER FROM THE CHAIRMAN / 5

Introduction DIVERSITY Inspired by people who come from many cultures and backgrounds, USG embraces the diverse perspectives and skills that our employees, customers, shareholders and suppliers bring to our company. We create a sense of belonging by leveraging the power that comes from welcoming and encouraging the differences that surround us. Driven by our values and commitment to our people, we respect everyone for who they are regardless of their race, age, gender, gender identity, ethnicity, religion or sexual orientation. SAFETY EFFICIENCY We encourage everyone to be themselves so they re able to be creative, engaged and productive. CORE VALUES QUALITY SERVICE INTEGRITY INNOVATION Through dedication, inspiration and innovation, every one of us will do our best work. This collectively leads to the positive impact and progress USG seeks to make wherever we go. OUR DEDICATION TO OUR CORE VALUES SAFETY, INNOVATION, DIVERSITY, INTEGRITY, SERVICE, EFFICIENCY AND QUALITY IS WHAT MAKES USG A GREAT COMPANY FOR OUR EMPLOYEES, OUR CUSTOMERS AND OUR COMMUNITIES. A DIVERSE AND INCLUSIVE WORKPLACE IS CRUCIAL TO OUR ABILITY TO ATTRACT TALENTED EMPLOYEES, CONNECT WITH AN INCREASINGLY DIVERSE CUSTOMER BASE AND BE MORE EFFECTIVE COMPETITORS IN THE GLOBAL MARKETPLACE. BRIAN COOK, CHIEF ADMINISTRATIVE OFFICER, USG CORPORATION INTRODUCTION / 6

The key ingredient in Our Plan to Win strategy is great people. Our strategy is our guide to succeed in an increasingly diverse global market, and our people bring it to life. To compete and win in our industry, we must: 1 STRENGTHEN OUR CORE BUSINESS DIVERSIFY OUR EARNINGS Those three pillars make up Our Plan to Win, and we re focused on living our values as we accomplish each one. Part of that is our commitment to building a truly diverse and inclusive workforce one that engages and attracts all kinds of people and keeps us open to new ways of thinking, new ideas and new results. For us, inclusion is a call to action that means actively involving everyone s ideas, perspectives, approaches and styles to maximize our success. It s good for our teams, our customers, our shareholders and our business. We re proud of the initiatives we ve implemented and the progress we ve 2 made in improving our workplace, but we re not stopping here. 3 DIFFERENTIATE OURSELVES THROUGH INNOVATION v ONE OF OUR CORE VALUES AS A COMPANY IS DIVERSITY IT IS PART OF WHO WE ARE AND HOW WE RUN OUR BUSINESS. WE NEED OUR WORKFORCE TO BE AS DIVERSE AS THE CUSTOMERS WHO USE OUR PRODUCTS ALL OVER THE WORLD. INCLUSION HELPS US UNDERSTAND AND DELIVER WHAT OUR CUSTOMERS NEED. MATT BYRNE, SENIOR VICE PRESIDENT, NORTH AMERICAN SALES Our customers are rapidly changing. In order to best serve them, we re adapting more effectively by recognizing these changes and understanding their needs. This means having meaningful conversations and maintaining trust in our relationships, and that s what good business is built on. INTRODUCTION / 7

Vision We re striving towards building a workforce that is made up of people who feel free to be who they are and consider the art of the possible. We see them pushing the envelope with creative ideas that take our business to the next level. To realize our vision, we re committed to: 1 2 Valuing the diversity of our people and their ideas so we can extend our market leadership position Recruiting and maintaining the highest caliber of employees so we can create an environment where each individual s contribution is maximized 3 Promoting diversity and inclusion so we can ensure the quality of our workforce and increase our ability to exceed customer expectations through continuous innovation We are, and will be, relentless in the pursuit of our vision, and our teams around the world will make it a reality. WE LEVERAGE DIVERSITY AND INCLUSION TO BUILD A WORK ENVIRONMENT THAT OUR TEAMS ARE PROUD OF, AND THAT DELIVERS WHAT OUR CUSTOMERS AND COMMUNITIES EXPECT. JOHN REALE CHICAGO, IL VISION / 8

Journey FORMATION OF WOMEN IN MANUFACTURING FORUM TO SUPPORT FEMALES IN SCIENCE, TECHNOLOGY, ENGINEERING AND MATHEMATICS INCORPORATION OF DIVERSITY AS A CORE VALUE INITIATION OF DIVERSITY AND INCLUSION CHAMPION RECOGNITION CEREMONY FIRST ALL-COMPANY DIVERSITY EVENT: FOOD DRIVE RAISING MORE THAN 112,000 POUNDS OF FOOD FOR LOCAL COMMUNITIES ADDITION OF DOMESTIC PARTNER BENEFITS CREATION OF DIVERSITY AND INCLUSION STRATEGY COUNCIL (DISC) While we believe our best is yet to come, we ve made great progress on our journey towards meeting our vision. It s a journey that will never end, but we take pride in the steps we have taken and the impressions we have left along the way. JOURNEY / 9

A DIVERSE AND INCLUSIVE ENVIRONMENT DRIVES INNOVATION AND GROWTH. Influencing Our World Advancing change in the area of diversity and inclusion isn t limited to what happens inside USG. We strive to be thought leaders and reach out to the world around us. Our leaders participate in and sponsor forums that address diversity and inclusion and the importance of both in today s workplace. Here are a few examples of how we ve reached outside our walls: TELEVISION FEATURE Our Corporate Innovation Center and our market-leading products were featured on The Henry Ford s Innovation Nation, highlighting how our diversity impacts innovation. DR. SRINIVAS VEERAMASUNENI LIBERTYVILLE, IL CHICAGO TRIBUNE The Chicago Tribune recently interviewed Jim Metcalf about our innovative mindset, and how it keeps us competitive in the marketplace. GLOBAL HEALTH SYMPOSIUM On International Women s Day, Jenny Scanlon, Senior Vice President, USG Corporation; President, L&W Supply Corporation and President, International, was a keynote speaker who discussed the safety of women and children in global manufacturing environments and how we can influence these areas of the world through western building practices. INFLUENCING OUR WORLD / 10

Living Our Values Our company is built on remarkable people who value safety, innovation, diversity, integrity, quality, service and efficiency. These core values define who we are and what we stand for. They keep us grounded and focused on what s important for our people, our business, our customers and our shareholders, and we live them every day: OUR EMPLOYEES IMPACT THEIR LOCAL COMMUNITIES We recently completed a companywide food drive that gathered over 112,000 pounds of food collected by 120 locations in the United States, Canada and Mexico. OUR LEADERS TREAT DIVERSITY AS A STRATEGIC PRIORITY Executive Committee members and key leaders participate in diversity retreats to identify key initiatives related to inclusion. We convene a monthly talent management steering committee to make decisions on structure, quality and quantity of talent, and people implications of key objectives. WE SUPPORT THE ORGANIZATIONS OUR EMPLOYEES CARE ABOUT We believe deeply in giving back to the communities we serve. The Diversity and Inclusion Strategy Council formalized a Volunteer Connections group to promote volunteerism at WE SUPPORT THE WORKFORCE OF TOMORROW We provide opportunities for interns and co-ops through our college recruiting efforts and participation in diverse organizations that support our youth. WE INVEST IN OUR PEOPLE We hire people for careers, not jobs. We invest in our employees and offer a number of training opportunities to encourage continuous learning. One of our key training programs focuses on diversity and inclusion, reinforcing our beliefs and guiding meaningful conversation to uncover hidden biases so we can all do our best work. our company through tracking time and talking about their experiences with their colleagues. The USG Foundation s Matching Gift Program also recognizes volunteer work in addition to financial contributions. LIVING OUR VALUES / 11

Progress Today, our workforce represents the realization of our recruiting efforts and the inclusion of employees with a wide variety of backgrounds, talents, interests and cultures. WE STRIVE FOR DIVERSITY OF THOUGHT, EXPERIENCES, AND BACKGROUNDS WHEN ATTRACTING AND PROMOTING CANDIDATES AT ALL LEVELS. THIS IS A KEY COMPONENT IN OUR INCLUSION JOURNEY. GINA MAX CHICAGO, IL 55% OF OUR SALARIED FULL-TIME HIRES ARE DIVERSE 50% SINCE 2009, WE HAVE INCREASED THE NUMBER OF NEW FEMALE ENGINEERS HIRED ON COLLEGE CAMPUSES BY 400% PRESENT 2009 OF OUR PROMOTIONS ARE FOR DIVERSE CANDIDATES 44% OF OUR TOP 250 LEADERS ARE DIVERSE PROGRESS / 12 / 12

Diversity by the Numbers We believe in building leadership at every level of our company, and we empower each other to define our own path to success. Our senior leadership team is a direct reflection of our workforce and brings a wide range of experience and background which helps us make stronger business decisions. Those decisions are driven by a diverse workplace welcoming and encouraging women, people of color and those who identify as gay, lesbian or transgender. 14% OF THE SENIOR EXECUTIVE TEAM 44% OF OUR BOARD OF DIRECTORS 33% OF OUR CORPORATE OFFICERS 50% OF NEW OFFICERS RECENTLY SELECTED DIVERSITY BY THE NUMBERS / 13

Getting People Involved As you ve read through this report, you ve seen that diversity and inclusion is not a nice to have or a compliance box to check at USG. Here, our employees are active participants in and proponents of our inclusion efforts. Some of the ways they do this are through their contributions to our Employee Resources Groups and our Diversity and Inclusion Strategy Council. WE WANT OUR EMPLOYEES TO BRING THEIR AUTHENTIC SELVES TO WORK SO WE CAN PUSH THE ENVELOPE. THAT S WHAT BRINGS OUR CORE VALUES TO LIFE. KATHY LIETZ CHICAGO, IL EMPLOYEE RESOURCE GROUPS (ERG) Employee Resource Groups make everyone feel welcome. They create a sense of community and belonging, and encourage us to be who we are while teaching each other about appreciating our differences. Groups are formed and run by employees and will continue to expand as we move forward. What they do is focused around four objectives; namely, USG support/community affairs; recruiting, retention and opportunity; education and training; and employee awareness and communication. Their accomplishments reflect these objectives. Chicago Cares MLK Jr. Celebration of Service Black History Month Professional Book Club Salvation Army Angel Tree Professional Development Seminars Taste of Asia Honor Flight and Patriot Day Military Career Fairs and Veterans Website Education on Benefits and Resources Ronald McDonald House American Heart Association Heart Walk Spanish Classes and Financial Workshops School Supply Drive Cardz for Kidz Networking Events Wellness Challenge Business Book Library Company-wide Food Drive GETTING PEOPLE INVOLVED / 14

Diversity & Inclusion Strategy Council We formalized our Diversity & Inclusion Strategy Council (DISC) in 1998, and since then we ve made great strides in bringing everyone to the table and encouraging idea sharing. DISC includes employees at every level from throughout our company and makes impactful changes through engaging our workforce and setting strategic direction. All employees are welcome to join, and each new member must complete an application where they have the opportunity to express their passion for our values and discuss what diversity and inclusion means to them. Being a member of DISC is an opportunity for our employees as much as for our business. We learn new ways of talking to each other, meet new people and have experiences that change the way we think and interact with each other. DISC plays an important role in our company, and all those who are part of it are a tremendous asset for us. WHAT WAS YOUR GOAL WHEN YOU INITIALLY BECAME A MEMBER OF DISC? To make a difference and help change the culture of our work environment. My goal was to be part of a group of people who were shaping the future of our company and how we value our employees. JAY HOFFMAN, DISC member 2014-2015 My goal was to network and create lasting relationships within the company, while sharing my personal experiences to help make USG a more inclusive place to work. JENNIFER PRIDE, DISC member 2013-2015 DO YOU THINK YOU HAVE MADE AN IMPACT AND/OR ANY DIFFERENCES IN INCLUSION AT USG? I m pleased with the conversations that I ve had with non-disc members and the attention that our employees give towards developing an inclusive culture. MATT ACKLEY, DISC member 2012-2015 Yes, I feel my position on DISC has allowed me to make positive impacts for the plants I have worked at as well as contributing to diversity at USG as a whole. WHAT HAVE BEEN SOME OF THE ADVANTAGES TO YOUR CAREER OR YOU PERSONALLY BEING ON DISC? It has been a good experience and a way to meet and work with people I would not have been able to if I hadn t been on DISC. It has helped me grow personally in the areas of diversity and inclusion and made me a better manager because of it. TIM HEROLD, DISC member 2012-2015 The interaction with DISC members has helped me understand how diverse USG is. I have a better understanding of what roles some employees have at Corporate, at the plants, and out in sales. Also, by being able to go to the corporate office, I have had exposure to what it s like there as well as being able to meet co-workers I would have never been able to meet had I not left the branch to attend DISC meetings and functions. JENNA LEGER, DISC member 2013-2015 NORMA SERRATO, DISC member 2013-2015 DIVERSITY & INCLUSION STRATEGY COUNCIL / 15

Recognizing Excellence Living our values means rewarding excellence when we see it. We recognize people who are committed to embracing diversity and making a positive, lasting impact on others. We ve created a number of ways to celebrate our employees who live our values every day. Award winners are selected by the Diversity and Inclusion Strategy Council (DISC) and recognized at our annual awards ceremony. DIVERSITY AND INCLUSION ANNUAL CHAMPIONS Since 2008, the Annual Diversity and Inclusion Awards recognize the outstanding contributions that our employees make in creating a diverse and inclusive workplace. These awards honor employees, manufacturing plants and distribution branches in several categories, including: Luminary Award, recognizing a leader at the director level or higher Leadership at Every Level Award, recognizing a manager or individual Manufacturing Facility of the Year Award, recognizing a plant location L&W Branch of the Year Award, recognizing a branch location Employee Resource Group (ERG) Most Valuable Persons Award, chosen by the ERGs HELPING HANDS VOLUNTEERS Through our Helping Hands program, we recognize outstanding employees who give back to their communities through various volunteer efforts. We encourage and reward those who volunteer their time and also support the organizations that matter most to our employees through financial gifts from the USG Foundation. TO BUILD A SUCCESSFUL FUTURE, WE NEED A DIVERSE WORKFORCE AND AN INCLUSIVE ENVIRONMENT THAT EMPOWERS US ALL TO DO OUR BEST. THIS BENEFITS OUR EMPLOYEES, OUR CUSTOMERS AND THE COMMUNITIES WE SERVE. CHRIS ROSENTHAL, VICE PRESIDENT, HUMAN RESOURCES RECOGNIZING EXCELLENCE / 16

Locating Talent It all starts with recruiting from a diverse pool of candidates and hiring the best without preconception or unconscious bias. Women make up approximately 50% of the labor force. However, the number of women in the manufacturing labor force is only 24% 1, making women the largest untapped portion of the labor pool. OUR COMMITMENT TO A DIVERSE AND INCLUSIVE WORKFORCE IS PART OF EVERYTHING WE DO. IT MAKES US STRONGER, IT MAKES OUR FUTURE BRIGHTER, AND IT MAKES US A GREAT PLACE TO WORK. LEVELLE BROWN CHICAGO, IL We are actively recruiting and promoting women to take on manufacturing roles, as well as positions in the fields of science, technology, engineering and mathematics (STEM). We know that these jobs are incubators for innovation, which help us stay competitive and promote future growth in our business. In addition, our talent management steering committee, comprised of our executive team, is highly engaged in key decisions about our workforce, which sets the tone at the top. We require external searches to include diverse talent. All managers of people have an annual performance goal focused on their team, which can be dedicated to diversity and inclusion measures. We attend diversity career fairs and support college campus organizations such as the Society for Women Engineers and the National Society of Black Engineers to keep relationships with top talent throughout the U.S. 1 The Manufacturing Institute, Untapped resource: How manufacturers can attract, retain, and advance talented women, 2013. LOCATING TALENT / 17

Community At the heart of every community are the people who live and work there. USG is committed to building strong communities everywhere we do business by helping the people and organizations who call those communities home. EXTERNALLY, OUR DIVERSE TEAMS DO A GREAT JOB OF REPRESENTING OUR COMPANY AND OUR COMMITMENTS. INTERNALLY, WE COUNT ON THEM TO MAKE OUR BUSINESS BETTER IN EVERY WAY. LAUREN TRIFFLER CHICAGO, IL VOLUNTEER CONNECTIONS USG FOUNDATION Our Volunteer Connections group helps employees connect with their communities in the spirit of service. It provides a platform for employees at all locations to connect with others to serve the communities in which they live and work through volunteerism. One way we live our commitment to building stronger communities is through the USG Foundation and our Matching Gift Program. The program helps us support our employees and the organizations they care about through strengthening the impact of financial donations and volunteer work. Through the Volunteer Connections newsletter, we highlight the great work our employees are doing and the impact they re making on their communities. The newsletter helps colleagues find common interests and further engage with our company and our values outside of work. The foundation is committed to giving back to the communities we serve, and it has partnered with and helped many local and national charitable organizations focusing on health, social and educational initiatives. COMMUNITY / 18

DIVERSITY AND INCLUSION IS PART OF EVERYDAY BUSINESS FOR US. THE POWER OF OUR DIFFERENCES IS WHAT MAKES A DIFFERENCE. ANN FRANZEN RAINIER, OR EMBRACING EVERYONE ELSE S AUTHENTIC SELF AND BEING YOUR AUTHENTIC SELF. LINA BERNTSEN CHICAGO, IL ENGAGING A DIVERSE AND DYNAMIC WORKFORCE ENABLES ULTIMATE SUCCESS THROUGH EARNEST INCLUSION. THOMAS UPTON SPERRY, IA APPRECIATING OUR DIFFERENCES AND FOSTERING THEM TO MAKE BETTER BUSINESS DECISIONS. BETH JUVE TORRANCE, CA OFFERS AN ADVANTAGE OF UTILIZING DISTINCT DIFFERENCES TO CONTINUALLY GROW AND IMPROVE. MARY SISCHO LAKE GENEVA, WI / 19

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 related to management s expectations about future conditions. Actual business, market or other conditions may differ materially from management s expectations. We assume no obligation to update any forward-looking information contained in this report. Additional information concerning these and other factors may be found in our filings with the Securities and Exchange Commission, including the Risk Factors in our most recent Annual Report on Form 10-K. 2015 USG CORPORATION AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED. WWW.USG.COM For questions, contact: G ina Max, Senior Director, Talent Management and Diversity corporate-communications@usg.com