Mohawk Sustainability Vision & Strategy A. CEO Statement: Mohawk Industries, Inc. B. Mohawk Flooring Vision 1. Strategies 2. Key Objectives C. Corporate Policies & Standards i. Business Conduct: ii. Ethics & Employment iii. Environmental Management Systems iv. Safety Management v. Community D. Environmental Management & Performance i. Climate Impacts ii. Energy Reduction iii. Water Management iv. Resource Management v. Safety vi. Emissions
A. CEO Statement Corporate Environmental Policy Mohawk Industries believes that sustainability is an essential business practice in today s global economy. Mohawk s goal is to be a leader in the area of sustainability and environmental responsibility for the industry, the corporation and our stakeholders. We will plan for the future, while accepting the urgency of today. We are committed to the communities where we live and work as well as our other stakeholders. In line with these principles, Mohawk strives to encourage continuous improvement in all areas of environmental stewardship responsible use of raw materials and natural resources, design processes and operations of all facilities, to reduce the impact of our activities on the environment and our associates. Mohawk s strong focus on reducing, recycling and reuse; have made us an industry leader. Production as well as Research & Development efforts continually assess alternate materials and process improvements for our products and potential new products. This cycle of continuous improvement allows Mohawk to capitalize on technology and efficiency to reduce our environmental footprint. Quality of life, Quality of the environment, Quality of products and processes is a byproduct of all that we do at Mohawk From the boardroom, to the employees on the production floor, to the field sales staff. Our most valuable asset is our associates. Their well-being is an uncompromizable core value for all Mohawk operations. Through training and technology, we will continuously improve/optimize our products, our processes, safety of our work environment, and technical skills of our associates throughout the organization. All of these values encompass the foundation of our efforts in becoming a leading sustainable company. We are committed to maintaining an open and transparent dialogue with each of our stakeholders by reporting our performance on a regular basis. Mohawk s management is committed to supporting the development of, and compliance with, environmental and safety programs based on Mohawk s common objectives and business success goals. Jeff Lorberbaum CEO
B. Flooring Vision Mohawk Flooring commitment is to actively contribute to sustainable development through Environmental protection, Social Responsibility and Economic Progress. To us, that means meeting the needs of society today, while respecting the ability of future generations to meet their needs. Corporate Values Mohawk Industries sustainability policies and practices are directly linked to our fundamental corporate values: A Act with uncompromising honesty and integrity in everything we do. B. Satisfy our customers with innovative technology and superior quality, value and service. C. Provide our investors an attractive return through sustainable, global growth. D. Respect our social and physical environment around the world. E. Value and develop our employees diverse talents, initiative and leadership F. Earn the admiration of all those associated with Mohawk Industries, worldwide.
B. Flooring Vision 1. Sustainable Strategies Mohawk Flooring strategies for sustainability, encompass the pursuit of customer satisfaction and commercial success in Flooring products within a framework of Environmental, Social, and Economic values. Mohawk Flooring s values are designed to advance society s continued move toward sustainability. A. Utilize Mohawk Industries Corporate Environmental Services & Corporate Safety Management Systems to help and our business units identify key issues and long-term solutions. B. Utilize a Life Cycle Approach to continuously improve our products and processes. C. Set aggressive Environmental Goals and communicate our progress. D. Meet employee and community needs as a socially responsible business by: attracting and retaining a diverse and talented work force and sustaining a workplace where individual initiative is rewarded, employee health and safety is safeguarded, and innovation is a way of life. Supporting continuous learning and knowledge sharing to increase personal satisfaction, organizational effectiveness and business results. Where we operate; providing jobs for local residents; and supporting education, the environment, social and economic development.
B. Flooring Vision 2. Key Objectives Key issues are identified through Mohawk Flooring management systems such as ISO 14001, ISO 9001 Six Sigma methodology, Life Cycle Product Thinking, Lean Processes and feedback from our stakeholders. Mohawk Flooring key objectives around sustainable development include: A. Reducing our environmental footprint. B. Assuring our products are safe for their intended use through their entire life cycle. C. Assuring the appropriate resolution of all Mohawk health and safety issues that may touch customers, neighbors and the public. D. Maintaining a safe and healthy workplace. E. Satisfying our customers with superior quality and value. F. Providing a supportive, flexible work environment. G. Supporting local needs and education in communities where Mohawk employees live and work.
C. Corporate Policies & Standards i. Corporate Policies & Standards Corporate Governance The values embodied in Vision, Mission, Values, guide the actions of Mohawk Industries at all levels and in all parts of the world. These values extend to our accounting and financial reporting responsibilities. Our management is responsible for timely, accurate, reliable and objective financial statements and related information. As such: We maintain a well-designed system of internal accounting controls. We encourage strong and effective corporate governance from our Board of Directors. We continuously review our business results ii. Ethics & Employment Social Responsibility Policy Prohibition of Forced Labor Mohawk prohibits the use of all forms of forced labor, including prison labor, indentured labor, bonded labor, military labor or slave labor at all of its locations, domestic and international. Prohibition of Child Labor Mohawk adheres to minimum age provisions of applicable laws and regulations in the areas where the Company does business. Mohawk prohibits the hiring of individuals under the age of 18 for positions in which hazardous work is required. Mohawk s prohibition of child labor is consistent with International Labor Organization standards. Discrimination-Free Workplace Mohawk values all employees and the contributions they make and has maintained a longstanding commitment to equal opportunity. Mohawk s people are dedicated to sustaining workplaces free from discrimination or physical or verbal harassment on the basis of race, sex, color, national or social origin, religion, age, disability, sexual orientation, political opinion or any other human trait, condition or system of beliefs. At Mohawk, recruitment, hiring, placement, training, compensation and promotion are based on qualifications, performance, skills and experience. Work Hours and Wages Mohawk compensates employees competitively relative to the industry and local labor market. The Company operates in full compliance with applicable wage, work hours, overtime and benefits laws. Mohawk offers people opportunities to develop their skills and capabilities and provides opportunities for personal growth and professional development where possible. Safe and Healthy Workplace Mohawk provides a safe and healthy workplace and is dedicated to maintaining a productive workplace by minimizing the risk of accidents, injury and exposure to health risks.
C. Corporate Policies & Standards ii. Ethics & Employment Social Responsibility Policy (continued) Workplace Security Mohawk actively works to provide a workplace free from violence, harassment, intimidation and other unsafe or disruptive conditions due to internal and external threats. Security safeguards for employees are provided as needed and will be maintained with respect for employee privacy and safety. Community and Stakeholder Engagement Mohawk recognizes the importance of being a positive corporate citizen and of respecting the communities in which the Company operates its facilities. Mohawk is committed to listening to, learning from and taking into account the perspectives and needs of those communities as the Company conducts its business. Mohawk believes that local issues are most appropriately addressed at the local level. The Company remains committed to creating economic opportunity and fostering goodwill in the communities in which we operate through locally appropriate practices. Guidance and Reporting for Employees Mohawk promotes workplaces in which open and honest communications among all employees are valued and respected. Mohawk is committed to following all applicable labor and employment laws wherever the Company operates its facilities. If you believe that discrepancies arise between this policy and the laws, customs and practices of the place where you work, if you have questions about this policy or if you would like to report a potential violation of this policy, you should direct those concerns through existing processes, which include efforts to maintain confidentiality. You may ask questions or report potential violations to local Management, Human Resources or the Legal Department. You can also report suspected violations through the Code of Ethics Hot Line by calling toll-free 888-566-4295 or safety concerns through the Safety Hot Line by calling toll-free 800-241-4900 #2 9230. No reprisal or retaliatory action will be taken against any employee for raising concerns under this policy. The Company is committed to investigating, addressing and responding to the concerns of employees and to taking appropriate corrective action in response to any violation. Mohawk reserves the right to amend this policy at any time. Nothing in this policy says or implies that a contract exists between Mohawk and its employees or that participation in this program is a guarantee of continued employment with Mohawk.
C. Corporate Policies & Standards iii. Environmental Management a. Mohawk Flooring works to go beyond the minimum compliance at our locations. Mohawk s Corporate Environmental Services Team supports site personnel through training, permitting assistance, data gathering, record keeping, reporting and auditing. b. Site personnel who are routinely responsible for environmental issues are trained on a regular basis to address the environmental issues that arise from operating a plant. Specialized training is often conducted by outside experts to ensure that our personnel are up to date. In addition, site management is also trained in an overview of environmental issues to ensure they understand what is require for their site. c. a number of our sites have developed and implemented ISO 14001 Environmental Management Systems. Currently three carpet manufacturing sites have achieved their ISO certification. An additional five sites are targeting ISO certification by the end of 2009. d. Mohawk Flooring s environmental compliance is verified through internal auditing using our Key Elements Survey as well as unannounced site visits by corporate staff. These audits review regulatory items as well as compliance with corporate requirements. e. Mohawk continues to partner in Georgia with the Pollution Prevention Assistance Division of the Environmental Protection Division to develop formal environmental management systems at more sites. In 2008 Mohawk served as the first site to participate in a Lean and Green event to focus lean business tools to environmental issues. f. Mohawk s Waste Stream Management Team continues to focus on reducing waste at each site by working to minimize waste and maximize the amount of recyclables that are sold by Mohawk.
C. Corporate Policies & Standards iv. Safety Management Mohawk believes that the safety of its employees is a fundamental right but also a great responsibility. Mohawk s goal is for each employee to return to his or her home in the same good health with which he or she came to work. Mohawk provides important resources to support the safety of its people, but the Company is also committed to an ongoing training program that allows individuals to take a shared role in their own safety and the safety of their colleagues on the plant floor. Mohawk utilizes a defined Behavior Based Safety program that has helped us to positively impact the number of incidents in our facilities and has helped our employees feel empowered to take partial ownership of workplace safety. Ongoing job safety observation teams further add to employee participation, and continuous training reinforces Mohawk s commitment to provide a safe and healthy workplace.
C. Corporate Policies & Standards v. Community Mohawk Industries encourages involvement in the communities we serve. Mohawk employees volunteer in a number of community organizations such as United Way, Red Cross, local schools, and similar organizations. The following list is a sampling of the areas where our employees contribute their time and talent to make it a better community. Below are just a few examples of the commitment of our employees: 1. Community Involvement and Volunteerism: a. United Way, Junior Achievement, Big Brothers/Big Sisters, Leadership Programs, Chambers of Commerce, Target Tomorrow, Hands on Georgia, Make A Difference Day, ABC s Extreme Home Makeover, Local Schools (e.g., Reading to children, science fair judges, advisory committees, Habitat for Humanity time and materials, Home Depot (Canada) Charity Golf Tournament, The Marty Lyons Foundation, American Red Cross Disaster Relief, Conasauga River Alliance, Rivers Alive, Roswell Park Alliance Foundation, Various Boards of Directors/Appointed Boards in the communities where we work, Pino Tile Children s Charities Events, March of Dimes, The Gil Oberfeld Lecture, Children s Miracle Network, Various Colleges and Universities, Dublin Diabetes Medication Project, NW Georgia Health Care Partnership, Community Education Foundations, Dalton/Whitfield Solid Waste Authority Board, Relay for Life, Hospice, Feed the Children, American Veterans groups, Broward County Humane Society, Race for a Cure (Participants and organizers), Memorial Sloan Kettering Cancer Center. Alzheimer s Association, Associations of Visual Arts, Boys & Girls Clubs, Brain Tumor Foundation for Children, Arts Councils, Councils for a Literate Community, Chattooga Literacy Council, Conasauga Kidney Care, Creative Arts Guild/Arts Associations, Epilepsy Society, Fellowship of Christian Athletes, Various Emergency/Rescue Squads, NAACP, DARE programs, Tour de Georgia, Bloodmobile Donations, Rotary International, Exchange Club, St. Jude s Hospital. b. at our Coppell, TX distribution facility, there is a program called the Cottonwood Creek Mentors Program. Mohawk has employees who volunteer once a week at the local elementary school. They have specific children that they work with each week with homework, etc. We also have a Volunteer Program where our employees can volunteer once a year to organizations in their community and even at their children s school at 8 hours pay. We also work with an organization called Big Heart Ministries donating toiletries and canned goods collected from our employees that we deliver for the homeless.
C. Corporate Policies & Standards iv. Community (continued) c. At our Waynesboro, VA backing facility, we have employees who work with the Salvation Army every year at Christmas time. They box food and deliver to needy. d. In Northwest Georgia, each year many of our associates participate in Make A Difference Day and Hands On Georgia by contributing their time and talent to our community. In 2006, our employees were lead a project for the beautifying a community park, cleaning up the Conasauga River and Mill Creek, reading to 1st and 2nd graders about volunteering, building bird houses for some of senior citizen homes and numerous other projects. e. At Mohawk s Eden, NC mill, proceeds from the site canteen are used to fund educational scholarships for the employee s children and grandchildren. Each year, approximately $10,000 in scholarships are awarded. In addition the facility provides gifts, through the Salvation Army s Christmas Angel Tree, to over 40 children each year. f. Many Mohawk facilities are in small communities where our workforce makes up a significant part of the community population. In several of those communities, Mohawk employees are often members of the emergency response organizations in those communities. At our Glasgow, VA operations, our employees are involved in five different local volunteer fire departments as well as the regional rescue squad. At this facility, when employees are requested by a 911 call, the supervisor is allowed release the employee from his/her job, if the department can operate safely without them for the duration of the call. This is part of our commitment to our community. g. Mohawks efforts to minimize the impact on the environment go well beyond just what we do at our manufacturing locations. In late 2005, Mohawk implemented a paperless invoice payment system in conjunction with OB10. This effort allows paperless invoices to be paid through a sophisticated electronic system. What this means is that 100,000 s of invoices are managed and paid with out the need for multiple paper copies. The impact to our environment is significant considering that each for approximately each 7500 sheets of paper not needed, one tree is saved as are all the chemicals and energy needed to convert that tree into paper as well as eliminating the paper from any waste stream. OB10 has stated that Mohawk s efforts saved over 900 trees in 2006.
D. Environmental Management & Performance i. Climate Impacts Greenhouse Gases Greenhouse gas (GHG) emission reductions are a priority for Mohawk Industries. Although the science of global climate change is evolving, Mohawk is taking voluntary, responsible action to reduce GHG emissions. Mohawk set a goal to reduce our North American GHG emissions by 10% by 2015 from a 2005 baseline year. The emission-reduction goals include CO2 equivalent emission from fossil fueled sources and indirect emissions from electrical use, and are being accomplished through efforts including manufacturing process improvements, energy conservation and more efficient equipment. In tracking our progress towards our GHG goals, Mohawk is developing a GHG inventory based on the World Resource Institute/World Business Council for Sustainable Development s GHG Protocol. Mohawk s inventory includes emissions from Scope 1 and Scope 2 sources as defined by the GHG Protocol. ii. Energy Reduction Energy Efficiency To drive continuous improvement in energy management, the company has set a goal to improve energy efficiency 15% by 2015 from a 2005 baseline year. This goal is based on Energy Intensity per unit of production. Since 2005, Mohawk has implemented a wide range energy projects which has saved millions of Kw-Hrs. We continue to adopt new methods to improve energy-efficiency,
D. Environmental Management & Performance iii. Water Management Water Usage Water continues to be our most precious natural resource. As such Mohawk continues to respect its use in every phase of our business. Water is essential to every aspect of life. We have implemented rigorous process modifications, including the use of novel technologies to reduce our usage of water from processes and personal usage. Mohawk has set a goal to reduce water consumption by 15% by 2015 from a 2005 baseline year. This is based on water usage per unit of production. iv. Resource Management Post Consumer Diversion Mohawk believes that finite natural resources must be protected. We also believe that we must be good stewards of the products we manufacture. As we look at our responsibilities we believe that recycling our own industry products is one of the most effective ways to conserve these resources. Mohawk has set a goal of increasing recycling of Post Consumer carpets per unit of production 8% per year to 2015 from a baseline year of 2005. Post Industrial Diversion We strive to root out all causes of material inefficiencies by maximizing use of raw materials and reducing the waste from our own flooring processes. The first place to start is before our products are sold into commerce. Through ISO 9001 and ISO 14001 as well as other internal management processes Mohawk has set a goal of increasing Post Industrial diversion from landfills per unit of production by 3% per year to 2015, from a baseline year of 2005.
D. Environmental Management & Performance v. Safety Performance Safety is one of the cornerstones of Mohawk Flooring. Safety of our associates, safety of our products, and safety of the communities in which we operate is of prime emphasis for us. One of the most important responsibilities we have is toward our associates. In order to fulfill our vision we have embarked on what we call behavior based safety, wherein safety is ingrained into the behavior of every associate. Mohawk Flooring has set a goal of reducing OSHA recordable Incident rates by 10% per year to 2015 based on a baseline year of 2005. vi. Emissions Safeguarding our Air, Water, and Land is one of Mohawk Flooring s goals. We fully comply with all Federal, State and local regulations, but we at Mohawk, believe that we must go further by reducing emissions below mandated levels. As a prime indicator of our stewardship, Mohawk Flooring has over 10 product platforms that are certified to NSF 140, a national environmental multi attribute carpet standard, wherein emissions reductions are one of the prime methodologies for certification. Mohawk Flooring closely tracks energy use, a primary source of air missions, utilizing a proprietary computer based system for all locations. By using a number of indicators regarding emissions, Mohawk is able to follow improvements on a site bases as well as for the business unit. Mohawk flooring has set a goal of reducing air emissions as a means of reducing the GHG footprint for our sites. We are going to accomplish this through innovation, improvements in efficiency and using cleaner and greener fuels. We closely review each new or replacement raw material or supply prior to purchase to ensure that the material will not have a negative environmental or safety impact.