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#LF15

Making the World a Better Place

Living Future 2015

Gale Tedhams Director, Product and Supply Chain Sustainability

Owens Corning THE PINK PANTHER™ & © 1964–2015 Metro-Goldwyn-Mayer Studios Inc. All Rights Reserved. The color PINK is a registered trademark of Owens Corning Copyright © 2015 Owens Corning

Owens Corning at a Glance

• Founded in 1938, inventor of glass fibers

• 2014 sales: $5.3 billion

• 14,000 employees in 25 countries

• Fortune 500 ® company for 60 consecutive years

• An industry leader in glass fiber insulation, roofing and glass fiber reinforcements Insulation

Roofing

Composites

3

Recent Accomplishments

• Owens Corning received the National Safety Council’s

Green Cross for Safety on April 10, 2014 with 11 consecutive yr-over-yr safety improvements

• Listed on Dow Jones Sustainability World Index (5th year) and named Building Products Industry Leader for 2014

• One of 336 companies listed as "Best Places to Work for LGBT Equality,“ in Human Rights Campaign 2015 survey, perfect score for 10 years.

Sustainability Business Strategy

Driving to be a net-positive Company…

• Operations Sustainability

• Product and Supply Chain Sustainability

• Innovation and collaboration to deliver energy efficiency and durable material solutions at scale

• Safety, health, employee engagement and community vitality

Revised 4/8/2015

6.4

6.0 5.9 5.6 5.5

5.1

4.6

3.9 4.0

3.9 3.9

5.74

3.96

3.18

2.18

1.89

1.37

0.88 0.84

0.66 0.5

0.46 0.47 0.56

0

1

2

3

4

5

6

7

Industry

Owens Corning

RIR

It All Starts with Safety…

RIR = Number of employees injured per 200,000

hours worked. Injured is defined by OSHA

recordability guidelines *Bureau of Labor Statistics http://www.bls.gov/iif/oshsum.htm

NAICS - Goods Producing

Goal: Zero

Operations Sustainability

Handprints are the positive impacts we cause or enable to happen, relative to

“business as usual.”

• Footprint reduction, while essential, faces diminishing returns, is not enough and has a negative or limiting frame

Taking it to conclusion, better that the company go away to achieve zero impact

• Handprint creation is unlimited, aligns with business growth, has a positive/creative frame and can be exponential

The world is better off having Owens Corning operating

• Huge synergy potential when companies holistically address well-being and Handprinting in concert: engagement, positive inner work life,

creativity, teamwork

Collaboration with Sustainability and Health Initiative for NetPositive Enterprise

(SHINE ) with Co-Director, Dr. Greg Norris

The Wide Spectrum of Handprinting: A Scope of Scopes

2012 Effect on EnergyFootprint vs Handprint

-100,000,000

-50,000,000

0

50,000,000

100,000,000

150,000,000

200,000,000

Footprint Handprint

GJ

Energy (GJ)

Energy saved due to insulation products GRI EN6

Energy saved due to conservation and efficiency improvements (Scope 1&2) GRI EN5

Scope 3 Non-renewable energy use from OPEN IO

Scope 2 Indirect non-renewable primary energy consumption, GJ (GRI EN4)

Scope 1 Direct non-renewable primary energy consumption, GJ (GRI EN3)

GHG Protocol Scope 3 Standard, Source WRI

Handprint Dimensions

1. Energy Consumption

2. GHG Emissions

3. Waste to Landfill

4. Water Use

5. BioDiversity Impacts

6. Human Health Impacts

7. Economic Development and Community

8. Work Experience

2012 &

2013 data

Add with

2014 data

Growing our Handprint

Positive Impact Initiatives:

Insulation energy efficiency improvements in buildings

Composites vehicle light-weighting via steel replacement

Roofing: end-of-life shingle recycling for road paving

Transportation: carrier fuel switch from diesel to natural gas

12

Continuously Shrinking our Environmental Footprint and… Exponentially Growing our Positive Handprint

Effect on Energy (Consumed & Saved)

Scope 3

Energy saved from insulation sold

Scope 1 & 2

Energy saved from conservation & efficiency improvements

-48 -45

-40 -40

173 157

-100

-50

0

50

100

150

200

2013 2012

MM

Gig

ajo

ule

s

New Town Builders

New Town Case Study

Greenhouse Gas (GHG) Emissions

Avoided energy use from insulation sold Switch to fuel cell

Scope 1 & 2 Scope 3

Elimination of high GWP BA in XPS foam

-4 -4

-3 -3

9 8

-8

-4

0

4

8

12

2013 2012

MM

Met

ric

ton

ne

CO

2 e

q

Shingle Recycling

Owens Corning Roofing and Asphalt makes shingle

recycling differentiating, easy, and cost-competitive by

connecting contractors with eligible recycling services

Results1

– Over 100 open markets

– Over 60% population coverage

– Over 10% waste stream recycled in 2013 …1,000,000 tons

– Contractors save over 30% compared to landfill fees

1 Owens Corning Roofing and Asphalt results and estimates, March 2013.

HOT MIX ASPHALT

GRIND

DROP

TEAR-OFF

ROAD PAVING

R.A.S.

Connecting the Dots Through the Value Chain

Waste Type & Disposal Method

-595 -565

1,079 1,022

1,806

1,194

-1,000

-500

0

500

1,000

1,500

2,000

2,500

3,000

2013 2012

MM

Po

un

ds

Waste to landfill

Recycled shingles

Recycled glass usage

-10 -10

-83 -85

8 8

-120

-100

-80

-60

-40

-20

0

20

2013 2012

MM

Cu

bic

met

er

(m3)

Water use

Water use

Water use avoided by energy savings

Scope 3

Flourishing

Well-being

Growing

Happy Creativity

Volunteer

Relationships

Support

Pleasant

Workplace

Involvement

Longevity

+ +

+ +

+

+

Owens Corning Path to Flourishing

• Employee fitness employee nourishment

• Disease prevention/ numbers

• Safety stand/ program

• Environment for human performance

• Sustainability strong code of conduct

• Corporate giving

• Support to our communities

• Respected brand/ image

• Leading through our values

• Inclusive workplace and diverse workforce

• Competitive and caring

• Training & development

• Retirement and financial well being

• Health and social benefits

• Work/life balance support

• Broad based incentive programs

• 100% leadership development

• Communication/ engagement

• Meaningful and shared goals

• Skill development for job complexity

• Optimal work flow and design

• Supportive environment

• Job-level, collaborative decision making

• Personal and professional development

Reinforcing Cycle - Net Positive Impact

Workforce well-being

Population well-being Productivity

Worker Enterprise Nation

Host and Demographic Factors Health

Occupational Hazards

Environmental Factors

Workplace Factors

Socioeconomic Status

Relationship between workforce well being, productivity and population well being: A Heuristic Model

Overarching Goal: Employees First When a company actively chooses to contribute to the thriving of its workers, the company “gives more than it takes”, enabling the success and sustainability of the larger community.

Adapted from Schulte and Cainio, 2010 Collaboration with SHINE Co-Director, Dr. Eileen McNeely

WE ASPIRE TO BUILD MARKET-LEADING BUSINESSES; GLOBAL IN SCOPE – HUMAN IN SCALE

Our people and products make the world a better place.

#LF15