2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTCONNECTIONSTHAT CREATE
VALUE

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

A mosaic brings together many parts tocreate something greater, and the same istrue of our global businesses and each ofour ~40,900 employees around the world.
1

Through the Mohawk familyof brands, we are committed
to working together inenvironmentally sound andsocially responsible ways toenhance the spaces where welive and work.
ABOUT THIS PHOTO
This permanent public artwork, Curiosa Meravigliosa,by Joan Fontcuberta, Spanish photographer, teacher,essayist, curator and writer, is a porcelain slab photomosaic, 16 meters high and 6 meters wide, which
consists of 12,000 photos submitted by the citizens ofReggio, Italy. The design, printing and installation of
the work was a joint project between the City of Reggio
Emilia and Marazzi Group, Mohawk’s European ceramic
tile business. The small photographs speak to theidea of individual contribution, while the larger muralbuilds a sense of community and coming together
to create a collective work. Curiosa Meravigliosa is
the perfect analogy for the dynamic that Mohawk’s
global business units are striving to achieve as wework to build a better world. Learn more about theaward‑winning collaboration between Marazzi Groupand Joan Fontcuberta.
1

As of 12/31/2022.

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTCONTENT OVERVIEWWELCOMECEO Message

APPENDIX
3

Value in Scale and Scope5

ESG at Mohawk

6

CSO Q&A

10

ESG Recognition 12

Global Reporting Initiative (GRI) 63
Sustainability AccountingStandards Board (SASB)

78

Taskforce on Climate-Related 79
Financial Disclosures (TCFD)

BETTER FOR
CUSTOMERS
Product Circularity
Make
Use
Recover

BETTER FOR
THE PLANET
16
17
21
23

Climate Positive Future
Logistics Efficiency
Water Restoration
Waste Efficiencies
Biodiversity

BETTER FOR
PEOPLE
28
30
31
33
35

Performance Driven
Workforce
Inclusion at Mohawk
Training and Development
Zero Harm Workplace
Health and Well-being
Connected Communities

BETTER FORPERFORMANCE
40
42
44
46
48
50

Corporate GovernanceSupply Chain Management
EthicsData Security and Privacy

Reconciliation of Non-GAAP
Measures

81

55
58
60
61

/ 1

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTABOUT THIS REPORTWe are pleased to present Mohawk Industries’ 14th annual Environmental, Social and Governance (ESG) Report. The publication
conveys our passion for sustainability and our commitment to transparency as well as sharing how our businesses around theglobe are addressing the needs of their customers in responsible ways. Much of their progress is realized through sharing bestpractices and innovative technologies that yield consistent, efficient and effective programs and processes across our businesses.
Mohawk’s decentralized structure enables each business to implement initiatives that are best suited for their markets,
employees and communities—all while moving together toward a more sustainable future.
This year’s report is prepared in reference to the Global Reporting Initiative (GRI) Universal Standards and covers the 2022
calendar year, which is also Mohawk’s fiscal year. We also provide information from 2023, as appropriate. The report’s content
relates to the products and operations of Mohawk Industries and its wholly owned subsidiaries.
In addition to GRI, Mohawk uses the Sustainability Accounting Standards Board (SASB) and the Taskforce on Climaterelated Financial Disclosures (TCFD) to guide our ESG disclosures. Since 2017, we have also published an annual climatechange questionnaire with CDP Global, an international nonprofit organization that helps companies and cities disclose theirenvironmental impact. We are currently working on the EU Corporate Sustainability Reporting Directive framework. We will be
subject to the EU Taxonomy and will report to that in the future. We also participate in the S&P Global Corporate Sustainability
Assessment, an annual evaluation of companies' sustainability practices, and a component of the S&P 500 ESG Index.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTA MESSAGE FROM OUR CHAIRMAN AND CEO, Jeffrey S. Lorberbaum
We are excited to share our strategies and metrics, which reflect how we arebuilding a better future for our customers, employees, stakeholders and the planet.

Sustainability is a key component of our business strategy and a corevalue for the thousands of men and women who make, sell and deliver
our products. Within Mohawk, sustainability is not a stand-alone
department or a separate function—it is integrated into all we do. Our
philosophy is simple: doing what is good is also good for our business.
Each year, our ESG report details the progress behind our efforts.
Since our last ESG report, we have achieved many meaningfulaccomplishments. These include promoting Malisa Maynard as our
new global Chief Sustainability Officer, being ranked by USA Today as
the only flooring manufacturer among America’s Climate Leaders andreporting Scope 3 GHG emissions for the first time. Our innovative
products were recognized by Green Builder Media, which honored us for
product of the year and named us the sustainable flooring brand leader.
In 2022, Forbes magazine once again included us among America’s
Best Large Employers, which is underscored by the fact that almost
ten percent of our global workforce has been with the Company for 25

or more years. In addition, we earned the Susan G. Komen® Promise Awardfor our two-decade leadership in the fight against breast cancer. In 2022, we
increased diversity on our Board, and in 2023 we implemented a formal Boardof Directors Selection Policy, while also strengthening our privacy policy andour defense against cybersecurity threats.
During the past year, we have worked diligently on achieving our primary
2025 environmental goals and have driven significant improvements ineach area:

Scope 1 & 2 GHG Emissions Intensity
EXCEEDED GOAL
Waste-To-Landfill Intensity
EXCEEDED GOAL
Water Withdrawal Intensity
EXCEEDED GOAL
For years, we have prioritized being a part of the climate solution, and wewere gratified to be recognized by USA Today as one of America’s mostimpactful large businesses. We have reduced our carbon footprint throughactions that also benefit our bottom line, reinforcing that sustainable
practices enhance business results. We have invested in renewable energy
production—wind, solar, biomass—on four continents, which reduces ourreliance on fossil fuels and lowers our energy costs. We have taken actions
around the globe to reduce energy consumption in our operations as well
/ 3

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

as fuel consumption in our trucking fleets. To lower
emissions, we have consistently increased the amountof recycled content in our products, as an alternative to
virgin material.
Our products are an important feature in countlesshomes and public spaces in 170 countries, andthey connect us with millions of people. We have a
responsibility to all of them to deliver superior style,performance and value as well as sustainable choices.
Consumers, particularly Millennials and Gen Z, areincreasingly seeking sustainable products in all aspectsof their lives. We see this in the transition to electricvehicles, and it is impacting building materials, as well.
This is particularly important for the wood we use in ourparquet and laminate flooring, chipboards and panels. By
using recycled and reclaimed wood, Mohawk keeps the
carbon sequestered in the wood fiber by extending thelifecycle of the material.
Mohawk is the world’s largest ceramic tile
manufacturer, and almost all of our tile collections
include recycled content. Throughout the Company,
we are applying closed-loop manufacturing to minimize
our waste streams by either repurposing material into
new products or identifying businesses that can upcycle
it. We recycle billions of plastic bottles into polyester
carpet to provide sustainable options in addition
to offering bio-based SmartStrand and renewably
sourced wool collections.

Our ability to deliver innovative products, enhanced
manufacturing and superior logistics rests with thethousands of talented men and women who share ourcommitment to continuously improve—they are thefoundation of our success! All of our choices related
to people are based on a simple principle: respect.
That is why we provide training to create career
opportunities, invest in safety and health resourcesand ensure that the workplace is fair and equitable foreveryone. For the sixteenth consecutive year, Mohawk’s
world‑class employee development initiatives wereranked among the world’s top corporate programs by
Training magazine. Some of the most critical training
we offer are the courses focused on employee safety.
In 2022, we made additional progress in reducing ourrecordable incident rate, which is now 20 percent lower
than baseline. We continue to develop additional safety
resources and engage employees at all levels in these
initiatives as we work toward our 2025 goal.
Our investments in health care accessibility are also
yielding results. Our Healthy Life Centers have madea significant impact in quality of life by helping our
employees control chronic conditions. Aggregate data
illustrates that we are moving the needle on grouphealth, which is no small feat. These men and women
have taken the actions necessary to lead healthier lives
once they gained access to resources to guide theirdecisions and manage their needs. We value all of thepeople who work at Mohawk, and we are committed tomaintaining workplaces where everyone can fulfill theirpotential and deliver their best results.

We work to be a good citizen in every community inwhich we operate, which includes taking actions to
reduce environmental risks as well as creating excellent
career opportunities that support local prosperity.
We and our employees work with local non-profit
organizations to improve the quality of life in ourcommunities both through donations and volunteering.
We have also developed local partnerships to ensure
our workforce mirrors our communities, and 45 percent
of our U.S. workforce is comprised of Black, Indigenous
and other People of Color. By training internal candidates
and recruiting talented new hires, we are also growing
our ranks of female leaders, which is now at 25 percent.
The internship and apprenticeship programs we havedeveloped in collaboration with high schools, vocational
schools and colleges are critically important tomaintaining a healthy talent pipeline as we build
the workforce of the future.

Throughout our ESG report, we share the actions weare taking to improve our business and enhance how
we impact the planet and the people with whom weshare it. We continue to adapt to a changing world, andwe are listening to and learning from our stakeholders
around the world to build a brighter future. I appreciate
your interest in Mohawk and your support of our ESG
initiatives.
Sincerely,

Jeffrey Lorberbaum
Chairman and CEO/ 4

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTVALUE IN SCALE AND SCOPE
Mohawk Industries, the world's largest
flooring manufacturer, creates products toenhance residential and commercial spaces
around the globe. Our family of brands isamong the most recognized in the industry.
Though each brand and business operates
within its respective market and productcategories, we are all connected by acommon commitment to product innovation,
responsible operations, ethics and integrity.

1
2

See page 81 for Reconciliation of Non-GAAP Measures.
As of 12/31/2022.

2022 Business Highlights

2022 Sales by Business Segments$11.74B $1.65B 5
worldwide net sales

adjusted EBITDA

1~40,900 ~170 19
countries
with sales

37%

acquisitions completed2

employees
worldwide

27%

countries
with manufacturing

36%■ Global Ceramic■ Flooring North America■ Flooring Rest of the WorldFor additional information on Mohawk Industries’
financial performance, please view our 2022 Annual
Report at mohawkind.com.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTESG AT MOHAWKSUSTAINABILITY VISION
Building a better future for our people, our planet and Mohawk as
the global leader in innovative, sustainable and healthy products
designed to enhance and inspire people’s lives.

SUSTAINABILITY MISSION
Our future depends on the work we do today. At Mohawk, ourcommitment to sustainability extends beyond just products andprocesses; it is how we challenge ourselves to do and be better
every day, how we make decisions, how we reinvest in our people
and our planet, and how we define what matters as we work todeliver value for generations to come.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTA STRATEGY TO HELP BUILD A CONNECTED FUTURE
BETTER FOR
PEOPLEBETTER FOR
THE PLANET

Performance Driven Workforce

Climate Positive Future

Responsible Sourcing

Building and developing a high‑performing team withdiverse backgrounds and experiences.

Being part of the climate change solution byimplementing a decarbonization strategy throughmeasurable science-based targets.

Selecting suppliers and partners that meet our ethical,
sustainable and socially conscious standards.

Build out comprehensive, accessible talentdevelopment programs across all levels and career
stages to achieve maximized business results bygrowing our sustainable internal talent pipeline.

Reduce Scope 1 and 2 emissions intensity by 25%
by 2025.1
Develop consistent process for measuring andassessing Scope 3 emissions by 2024.

Zero Harm Workplace
Creating safe, hazard-free environments that support
employee health and well‑being.
Further the reduction of workplace injuries bylowering our recordable incident rate to 1.0 by 2030.
Safety is a core Company value that is continuous,
driven by leadership commitment and embraced by
all levels of employees in their daily activity.

Define science-based emissions targets andpublish by 2024.

Product Circularity
Thoughtfully minimizing environmental impact
across product life cycle through sustainable design,
innovation, extended use and responsible reuse.

Connected Communities

Reduce waste-to-landfill intensity 30% by 2025.1

Partnering locally and globally with organizations toimprove lives where our team members, customers andstakeholders live and work.

Release a product circularity goal for eachbusiness segment by 2025.

Attract best-fit talent by building community
partnerships and maintain an applicant pool thatreflects the diversity of our communities.
Invest in and engage with local nonprofit partners to
improve the quality of life in the communities where
we live and work.

Water Restoration

Establish a cross-functional Supplier Diversity
Committee in 2022.
All manufacturing locations adhere to wood
sourcing principles, such as FSC®, PEFC™ orother third-party validation, to ensure 100%of our wood fiber in our products comes from
responsibly managed forests, recycled waste
streams or recovered wood sources by 2030.
Engage in carbon reduction partnerships with our
supply chain.

BETTER FORPERFORMANCE
Sustainability Leadership
Aligning business direction and decision-making
with sustainability goals via a multi-level council ofkey stakeholders.

Policies
Maintaining clear, accessible and consistent ethics,
compliance and other ESG-related policies; ensure
feedback can be provided through anonymous platforms
across the enterprise.
Mature existing global, enterprise-wide ESG Executive
Council, Planet Council and People Council to growand develop our ESG objectives and goals.

Grow a Supplier Diversity strategy to increase theopportunity for diverse suppliers.
Modify the existing Flooring North America
bidding process to include supplier diversity
outreach and analysis to support increased
business opportunities for diverse suppliers.

Improving efficient and responsible use of water inall processes and products.
Reduce water withdrawal intensity by 30%
by 2025.1
1

2010 baseline year. Intensity is based on revenue in constant currency.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS
Mohawk supports the United Nations Sustainable Development Goals (UN SDGs), 17 interlinked global goals designed to be a “blueprint to achieve a better and more sustainable future for all.” The goals were set by the UN General
Assembly in 2015 and are intended to be achieved by 2030. Our ESG strategy is aligned with the goals in several ways, most notably with Goal 8, Decent Work and Economic Growth, and Goal 12, Responsible Consumption and Production.

GOAL

MOST RELEVANT UN SDG TARGETS

MOHAWK STRATEGICOBJECTIVES

Performance Driven Workforce

10.4 Adopt policies, especially fiscal, wage and social protection
policies, and progressively achieve greater equality

Performance Driven Workforce

6.4 By 2030, substantially increase water-use efficiency acrossall sectors and ensure sustainable withdrawals and supply offreshwater to address water scarcity and substantially reduce thenumber of people suffering from water scarcity

Water Restoration

12.2 By 2030, achieve the sustainable management and efficientuse of natural resources

8.2 Achieve higher levels of economic productivity throughdiversification, technological upgrading and innovation, including
through a focus on high-value added and labour-intensive sectors

Product Circularity

8.4 Improve progressively, through 2030, global resource
efficiency in consumption and production and endeavour todecouple economic growth from environmental degradation,in accordance with the 10‑Year Framework of Programmes
on Sustainable Consumption and Production, with developed
countries taking the lead

Climate Positive Future

8.5 By 2030, achieve full and productive employment and decent
work for all women and men, including for young people andpersons with disabilities, and equal pay for work of equal value

Performance Driven Workforce

MOST RELEVANT UN SDG TARGETS
5.5 Ensure women’s full and effective participation and equal
opportunities for leadership at all levels of decision-making inpolitical, economic and public life

MOHAWK STRATEGICOBJECTIVES

GOAL

Climate Positive Future
Water Restoration
Responsible Sourcing

12.4 By 2030, achieve the environmentally sound management ofchemicals and all wastes throughout their life cycle, in accordancewith agreed international frameworks, and significantly reduce
their release to air, water and soil in order to minimize theiradverse impacts on human health and the environment

Product Circularity

12.5 By 2030, substantially reduce waste generation throughprevention, reduction, recycling and reuse

Product Circularity

13.2 Integrate climate change measures into national policies,
strategies and planning

Climate Positive Future/ 8

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTESG MATERIALITY
ESG materiality, as used in this report, differs from the definition used in the context of filings with the U.S.
Securities and Exchange Commission (SEC). Mohawk’s refreshed sustainability strategy followed the 2020 updateof our material topics, which helped us better understand what is most pertinent to our business and, therefore,
those areas through which we can make the greatest impact. As part of the process, we sought input from external
stakeholders, including residential and commercial customers, suppliers and industry trade association members,
asking them to rate the importance of topics to their relationship with Mohawk. We used this input, as well as
industry benchmarking and materiality studies specific to some of Mohawk’s regional businesses, to identify thefollowing topics as high priorities.

SOCIALENVIRONMENTAL￭ Ethics and Integrity￭ Sustainable Product Design￭ Product Impact on Health and Indoor Air Quality￭ Circular Economy and End-of-Life Solutions￭ Occupational Safety￭ Waste￭ Talent Management/Diversity and Inclusion￭ Carbon and Energy￭ Employment￭ Water StewardshipAs part of our preparation for the upcoming EU Corporate Sustainability Reporting Directive regulations, we havebegun an updated third‑party‑led double materiality ESG assessment, which we expect to complete in 2023.

Stakeholder Engagement
Our key stakeholders include employees, customers, consumers, suppliers, investors and the communities in which
we operate. We engage with these stakeholders consistently through a variety of communication channels, ranging
from our employee intranet portals to customer surveys to ESG discussions with investors and analysts. We takefeedback and incorporate it to shape a long-term strategy that will help us grow our business sustainably. We
always appreciate feedback to make us better. Comments may be shared at sustainability@mohawkind.com.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTGROWING VALUE THROUGH CONNECTIONSA Conversation with Our Chief Sustainability Officer
MALISA MAYNARD

Mohawk Industries Chief Sustainability Officer

You were recently named Mohawk’s
Chief Sustainability Officer. What are
your goals in this new position for you
and the Company?
My goals are Mohawk’s goals. When I joined
the business two years ago, we established
new goals for safety, emissions, water use andproduct circularity. As a team, we have madegreat progress toward these goals, with somealready achieved. A larger goal was measuring
and assessing Scope 3 greenhouse gas (GHG)
emissions. Our decentralized structure, global
reach and diverse product offering has made thatdata challenging to gather, but we have madesteady progress and are excited to include it inthis year’s report.

This year’s ESG report also underscores
the idea of connectivity among Mohawk’s
family of brands and businesses. Why isthat important?
Regardless of where we operate in the world, all
Mohawk businesses are trying to solve common

and often complex challenges—decreasing theircarbon footprint, innovating more products withsustainable attributes, conserving resources andbeing an employer of choice in competitive labormarkets. Solutions to these challenges will vary,
but can almost always be shared, adapted andapplied among our businesses.

How do you support that effort?
In 2021, we established People and Planet
Councils to spur dialogue and share bestpractices to further ESG objectives. This year’s
report includes important information on thework those councils are doing. They have beena great channel for enterprise-wide initiatives,
such as gathering Scope 3 emissions data andfinding common ground within our decentralized
operating structure.

So, you see decentralization as astrength for Mohawk?
I do. It is really one of Mohawk’s greatest
attributes because it ensures that anentrepreneurial spirit flourishes around theworld. And that spirit is critical to product andprocess innovation, which in turn, is criticalto furthering our ESG progress. People canmake local decisions that impact local markets
and communities. We recognize and value ourdistinct cultures, so having a “one size fits all”
approach for business or for ESG work would
never make sense at Mohawk.

How does this impact your role at thecorporate level?
When I joined Mohawk, one of my initial
impressions was the number of sustainability
initiatives underway around the world. I havebeen able to assist with refining data collection
and improving reporting, ensuring externalaudiences are aware of our work and connecting
internal groups working on similar projects toensure best practices were in place. I see myself
and our ESG team as a bridge between different
functional areas and business groups. We arehere to work with others to achieve Mohawk’s
goals and improve the businesses performance.
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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTAs a flooring industry leader, what sortof responsibility does Mohawk have to
be a leader in sustainability, as well?
We have a great responsibility to lead byexample. And one of the most important
examples is to demonstrate that what is good forpeople and the planet is also good for business.
We have promoted transparency and integrity in
how we share information to reinforce retailer
and consumer confidence. Through our Supplier
Code of Conduct, we have elevated sustainability
expectations for our vendors, which is an area
where we have influence. We are also working
with our sales teams to help retailers better
understand the advantages of sustainableproducts and more effectively communicate
them to consumers.

feel good about having in their homes, but theyalso want them to meet their needs. Mohawk
repeatedly proves that sustainable products are
beautiful and practical, as well.

How well are consumers understanding
the importance of sustainability in theirflooring decisions?
Surveys suggest climate change has become agreater concern for certain segments of buyers,
such as Millennials and Gen Zers, over the past
few years. They rightfully expect businesses toreduce GHG emissions. From a sustainability
perspective, our industry will probably evolve
much like the automotive industry. The numberof electric vehicles increases every year, andeventually these vehicles will be the norm.
Sustainable building materials also will become
the norm as consumers focus on healthier,more energy-efficient and more environmentallyfriendly homes. This is consistent with every
consumer survey we read. Sustainability is, andwill be, a must-have in our industry and acrossall consumer goods.

Is the Company’s product portfolio
offering enough sustainableproducts today?
When you purchase one of our products, there
is a sustainable aspect to its manufacturing,whether it is waste, energy and water reduction;
recycled or sustainable material; end-of-life-cycle

reclamation; or corporate social responsibility
through our partnerships with nonprofit groups.
One of our most important responsibilities is toamplify that message so that consumers canfeel even better about purchases, while also
appreciating the beauty and performance our
products bring to their homes. Many people may
be unaware that most of our laminate, chipboard
and ceramic tile collections contain recycled,
recovered or reclaimed materials. While that isa great proof point, we are committed to doingeven more. One of the most common questions
I receive from employees is, “How can weget better?” That speaks volumes about ourcommitment and our approach of being better
today than we were yesterday and working
diligently to be even better tomorrow.

How are you ensuring thatsustainability translates into value
for your retail customers?
There is no question that product innovation,much of which is driven by sustainability, helps
us provide more differentiation to retailers.
For example, through our patented Continuum
process, Mohawk has enhanced the value
proposition of polyester carpet made fromrecycled plastic bottles. Continuum made thepolyester fiber softer and more substantial
and improved its soil and stain resistance anddurability. That is a win for every retailer who
can showcase that differentiation to consumers,
because consumers want products that they can/ 11

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTESG RECOGNITION
Global￭ Training Apex Award (16 consecutive years)

Europe￭ Artribune Best Company Award 2022 in Italy for cooperation

with institutions, cultural entities, public healthcare andnonprofit organizations￭ Top® Employer in Spain certification since 2021
￭ Top® Employer in Belgium certification since 2018
￭ Top® Employer in Italy certification since 2017
￭ Cradle to Cradle Material Health Certificate￭ One of the first companies to obtain the new ISO 17889-1
certification for sustainable ceramic tiles

Australia￭ Kinaway Business Award for Best Collaboration 2022

U.S.
￭ Floor Covering Weekly GreenStep Awards, Practice/Process

Winner, ReCover Recycling Program 2022
￭ Floor Covering Weekly GreenStep Awards, Promotion Winner,

UltraWood Naturally Sustainable Infographic 2022
￭ Floor Covering Weekly Dealers' Choice Awards, Hardwood Winner,
UltraWood Plus 2022
￭ Green Good Design Award for Data Tide 2022
￭ Green Good Design Award for UltraWood 2022
￭ Green Builder Media, Sustainable Product of the Year,UltraWood 2022
￭ Chattanooga Times Free-Press “Best of the Best” North Georgia
Employer Award 2022
￭ United Way of Northwest Georgia “Community Builder” and“5‑Star Champion” 2022
￭ Latin American Association Compañeros Award for Corporate
Partner of the Year 2022

￭ Georgia Association of Manufacturers Large Facility Safety Award 2022
￭ Best of NeoCon Awards, Sustainability category for Social Canvas and Painted

Perspectives 2022
￭ Forbes’ Best Large Employers 2022
￭ Forbes’ Best Employers for Veterans since 2020
￭ Dal-Tile's “Our Promise” sustainability program received Best of

Sustainability/Disruption Award at TISE 2022
￭ Healthcare Design Nightingale Awards in the carpet sustainability category for

Fractal Fluency and Social Canvas￭ USA Today America’s Climate Leaders 2023
￭ Green Builder Media, Sustainable Brand Leader in Flooring 2023
￭ Floor Covering News Best of Surfaces Awards, Industry Disruption/

Sustainability, SmartStrand Color Wall 2023
￭ Susan G. Komen Promise Award, Mohawk 2023
￭ eTextile Communications' 2022 Textile Industry Champion Award, Mohawk/ 12MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTWe are dedicated to revolutionizing the way
we think about products and their life cycles tomeet our customers’ needs for more sustainable
flooring choices and to contribute to a moresustainable world.

BETTER FOR
CUSTOMERS/ 13

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTBUILDING SUSTAINABLE PRODUCT DEMAND

Executive Roundtable on Customer Sustainability Priorities

CHRIS WELLBORNPAUL DE COCK

President and Chief Operating
President,
Officer; President, Global Ceramic Flooring North America

Which of your customer segments aremost interested in sustainable productattributes, and what is driving theirinterest? Have you seen any customer
segments taking an increased interest?
Architects and designers are typically more
attuned to sustainable products because manyare pursuing LEED or other sustainability
building certifications for their clients. They havea deep knowledge of product options that will
add value to their projects. They have embraced
green building concepts, so sustainability is a key
part of their practices.
This depends a great deal on markets. In Europe,
regulations on new construction and remodelingrequire energy-efficient choices, which we
provide in many product categories. Consumers
also have those expectations. They want beautyin their homes, and they value products thatare sustainably manufactured and that reflect
their values. Additionally, recently introduced
European regulations also take into account theenvironmental footprint of building materials,
setting maximum life cycle emission levels. Moreand more, consumers want to understand how
we use our materials, where they come fromand what their impact is. That is why we have
independent certificates to validate the safety
and sustainability of our products.
I agree that architects and designers definitely
play an important role; however, Millennials
and Gen Z consumers are prioritizing producttransparency because they want to understandthe environmental and social impact of theirpurchases. These generations are not only
concerned about the planet, they are also taking
actions to help reduce the environmental impact
in their buying choices. Just as they pursue
vintage wood furniture because they are re-using
it, they are looking for more sustainable flooring
options.
The generational effect is very real. We see
Millennials and Gen Z considering ceramic tile
because they recognize the sustainability in thatchoice: ceramic tile is made to withstand the testof time. And Bernard is right: consumers aredefinitely more conscious about how products are
made and what they contain, so they recognize
ceramic tile as a choice made primarily fromnatural materials.

BERNARD THIERS

President,
Flooring Rest of the World

What macroeconomic and market
trends are driving demand for moresustainable products?
There is definitely a transition toward a circular
economy. At Unilin, circularity has been in our
DNA since the company began in 1960. Our
chipboards consist of 95% recycled wood, andour laminate flooring is also wood based. Woodis a renewable material that stores carbon andtherefore is a very sustainable product. Beyond
wood, we recently invested in new technologythat will enable us to recycle post-consumer PVC
into new, innovative and beautiful vinyl floors.
What Bernard is referring to is consistent
with our manufacturing philosophy across theenterprise. We have thousands of products that
include recycled content, and we are able torepurpose our own waste streams into new, firstquality products.
The shift from fossil fuels to renewable energy
is another example. Today, 60% of the energy weconsume at Unilin is renewable. To increase thatshare even further, we are constantly looking forways to generate green electricity ourselves. In/ 14

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

our production and in our own power plants we
use wood waste to generate renewable energy,
creating less waste and using fewer fossil fuels.
In the last decade, polyester has grown toa majority share of the U.S. carpet market.
Polyester is a lower-cost fiber alternativethat has taken share from more premium andperformance-oriented products. Mohawk has
invested in a proprietary Continuum process to
produce EverStrand and EnviroStrand polyester
fiber, which is made from recycled PET plastic
bottles. Through this process, we can provide
differentiated and fashionable products forbudget-conscious consumers. Additionally,
Mohawk continues to offer and invest in higher
performing, long-lasting and luxury carpet
products that include renewable content likeour corn-based SmartStrand collections andcarpets made from New Zealand wool soldunder our Karastan and Godfrey Hirst brands.
Our SmartStrand products were the first toincorporate our revolutionary new ReCoverbacking, which makes SmartStrand 100%
recyclable and reusable at the end of the carpet’s
first life.
Our carpet collections give consumers manysustainable options at different price points, andwe do that with ceramic tile, as well. The average
lifespan of ceramic tile is over 70 years, so many
people recognize that an investment in ceramic
tile means they are unlikely to have to replace
it in their lifetimes, reinforcing the value it
represents. Also, after the pandemic, many people

became more health conscious in their homechoices, and ceramic tile is naturally resistantto bacteria, mold and mildew. We have added
anti-bacterial protection to further enhance thehealthy properties of many of our collections.

How is innovation leading to moresustainable manufacturing processes
and products?
Our R&D teams integrate sustainability into
product design while also focusing on consumer
expectations. A sustainable product must meet
consumer needs, or it will not survive in themarketplace. We have an exciting new flooring
option that does just that: our renewable polymer
core (RPC) PureTech collection. We have retained
the performance features, easy installation andwaterproof attributes that consumers expect
while engineering a PVC-free alternative to
traditional resilient flooring. This eco-resilient
concept is 100% renewable with bio-basedmaterials rather than petroleum-based materials
found in most resilient floors.
I agree with that, Paul. For example, technologicaladvancements are enabling us to produce thinner
ceramic tile that is just as durable as thicker
tiles but require less energy and less material
to create. As consumer preferences have shiftedto larger tile sizes, making lighter products also
supports the safety of installers and minimizes
the transportation impact. I mentioned earlier
that we use recycled content in thousands ofproducts. Many people may not realize that whentiles fail to pass our rigorous quality standards,
we crush them and repurpose that material into
the manufacturing process. That has significantly
reduced our waste stream.
Innovation is a driving force. Our R&D teams use
our Sustainable Innovation Framework during
each design phase to immediately include thesustainability impact. Sustainability requires atransformation in our processes and our use of
raw materials. A good example is our recently
patented recycling technology which allows us toreuse wood fibers in medium-density fiberboard(MDF) and high‑density fiberboard (HDF) andbring them back into circulation. The carbon
stored in the wood is retained longer, so we are
doubling their life cycle.

What are some other ways in whichsustainability influences yourproduct offering?
We are committed to continually reviewing andimproving the sustainable credentials of our
products and services. Making our products
recyclable is one of our main challenges. We areworking to develop 100% bio-based MDF andchipboards, entirely free of petroleum-based
ingredients, and we are identifying possibilities torecycle our polyurethane insulation boards. Also,
where feasible, we have switched to transparent
and/or thinner packaging films made with thegreatest possible percentage of recycled content.

With advanced technologies, we are pushing theboundaries with many new product innovations.
In contrast to that, ceramic tiles date backthousands of years, when people began to
combine earth and water and then flatten andheat the mixture. Today, the materials we use in
our tiles are still almost all naturally sourced,
which people really value. Tile production
requires a lot of water, and we recognize theimportance of water conservation. We have beenable to recycle wastewater back into our plants
around the world to prevent it from requiringexternal treatment.
We have the same needs for water in manyof our manufacturing processes, and we havealso embraced the importance of water topeople’s lives. For example, we work with
the Waterkeeper Alliance to clean rivers andstreams and with Water.org to make clean
drinking water accessible in at-risk areas. These
partnerships reflect our values. For instance,
for more than two decades, we have grown anational cause marketing partnership with Susan
G. Komen. Recently, we collaborated with artists
with disabilities to produce award-winning
commercial carpet and hard-surface collections.
We are a better company when our products help
to drive positive changes in the world.

/ 15

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTPRODUCT CIRCULARITY
By embracing circular economy
principles, we conserve natural
resources and minimize
environmental impacts.
Mohawk’s “make, use, recover” product circularity
model is a holistic and sustainable approach to productdesign, consumption and disposal—aiming to minimize
resource depletion, reduce waste generation andcreate a closed-loop system where materials can becontinuously reused and repurposed.
During the past year, our Planet Council has establisheda product circularity subgroup to formalize productcircularity goals by 2025.

Make

Use

RecoverThrough thoughtful design andefficient manufacturing, innovate
regenerative products that optimize
material use and expand postconsumer and sustainable content.
Employ a zero-system-waste
framework, including renewableenergy use, to minimize our products’
full life cycle impact.

Ensure healthy environments
where product life is extended
through superior performance anddurability. Educate end-users about
post‑life cycle options for reducing
environmental impact.

Reclaim materials for second andsubsequent purposes after an
initial, useful life.

/ 16

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

MAKE. USE. RECOVER.
Mohawk incorporates recycled and renewable materials in many of our
products, reducing our reliance on virgin resources.
We also use advanced manufacturing processes andtechnologies—discussed in the Better for the Planet
section of this report—to maximize resource efficiency
and minimize waste generation throughout the
production process.

Sustainable Product Design
Material selection is a key part of our design process
and our efforts to make products more sustainable.
Through circular design principles, we work to reducethe material required for manufacturing and have thepotential to achieve significant savings in raw materials.
For instance, in 2022 Godfrey Hirst introduced Enviro
Bac Lite®, a lighter-weight carpet backing. In addition to
being made from recycled content, this backing uses lessmaterial, which results in a lighter product to transportand reduced associated emissions. In addition to
reducing the amount of material used in manufacturing,
we use sustainable materials that are renewable,
recycled or bio-based.

At its facility in northeastern Brazil, Eliane manufactures
ceramic tile using lime mud—a natural residue from anearby cellulose manufacturing plant—as a sustainable
alternative to limestone. This is an example of “industrial
symbiosis,” where by-products of one manufacturing
process become inputs for another, and its benefits
are numerous. Replacing limestone with lime mud
has resulted in cost savings, while also preventing
the depletion of non-renewable resources. Use of thisindustrial residue also has reduced the direct impactsof mining and processing limestone—leading to energy
savings, lower carbon transportation emissions andincreased production efficiency. In addition, because theresidue is already refined and free of contaminants, it
has facilitated smoother manufacturing processes.

Transforming Ocean-Bound Plastic
into Flooring Solutions

Bio-based products extend to using renewable materials,
which are derived from replenishable sources. Mohawk
produces wool flooring products for residential andcommercial applications in many of our markets. In
addition, Mohawk's UltraWood is made from 90%
recycled wood fiber, which is 100% renewable. This
manufacturing process delivers 10 times more natural
hardwood floors per log than traditional hardwood
flooring production. In addition, natural wood products
like UltraWood extend the life cycle of the wood recycled
in their production, keeping carbon stored in the floor
and delivering even greater environmental benefits.

Unilin has partnered with Plastic Bank®,
an organization that works to stop
plastic litter on coastlines aroundthe world from entering the oceans,
while creating jobs for marginalized
communities. Unilin began incorporating
this ethically sourced plastic, known as
Social Plastic®, into its Texmark textile
backing—which is made using 100%
recycled material. Texmark products
use around 12 million recycled plastic
bottles each year. Unilin’s partnershipwith Plastic Bank extends to its sheet
vinyl collection as well, adding an extra
layer of environmental stewardshipto the plastic bottle-based flooring.
For both product lines, one in every
10 recycled plastic bottles used in
manufacturing are Social Plastic
bottles recovered from coastlines.

Mohawk's exclusive SmartStrand carpet fiber (triexta) is
made in part from bio-based materials, specifically corn,a first-generation resource-efficient, renewable cropgrown by American farmers using regenerative farming
practices. In 2022, Mohawk launched the ReCover
Backing System in its SmartStrand carpet line. ReCoveris hypoallergenic, latex-free and does not absorb
moisture that can lead to mold and mildew growth.
ReCover backing makes SmartStrand 100% recyclable
and reusable at the end of the carpet’s first life.

/ 17

Bio-based Products
Derived from renewable resources such as plants,
bio-based products play a crucial role in the transition
toward a more sustainable and environmentallyconscious future. These products provide a viable
alternative to traditional petroleum‑based counterparts.

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTPRODUCT CIRCULARITY IN ACTION
Worldwide, Mohawk manufactures thousands of products containing post-consumer recycled materials.

Ceramic Tile

Residential Carpet

Laminate and Wood

￭ Over 99% of Dal‑Tile’s manufactured tile collections contain￭ EverStrand and EnviroStrand carpet fiber are made from￭ More than 90% of the wood used in our laminate

recycled or reclaimed materials.
￭ Eliane's facility in northeastern Brazil manufactures

ceramic tiles using lime mud—a natural residue from anearby cellulose manufacturing plant.
￭ Ceramic tile is naturally resistance to bacteria, mildew andmold, and we have taken that a step farther by introducing
antimicrobial protection to eliminate the growth of up to
99% of surface bacteria.

recycled PET plastic bottles using our state-of-the-art
Continuum process, averaging more than 6 billion bottles
per year during the past decade.

flooring collections is recovered content fromsources such as roadside maintenance and sawmillsthat would otherwise be burned or sent to landfills.

￭ Our ReCover backing is made from recycled polyester and￭ End-of-life trees from the Malaysian rubber industry

eliminates the need to separate the backing from fibers
for recycling.
￭ Our exclusive SmartStrand carpet fiber (triexta) is madein part from bio-based material and is inherently stain
resistant and durable.

become cores for our parquet wood flooring.
￭ Our revolutionary UltraWood Plus waterproof

engineered wood collections require only 2.5 logs tofloor a 2,500-square-foot home compared to 25 logs
for traditional wood flooring.

/ 18

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTPRODUCT CIRCULARITY IN ACTION

Resilient

Carpet Tile

Panels￭ Our new RPC product, PureTech, offers a PVC-free alternative￭ Mohawk Group released EcoFlex ONE, its lowest embodied￭ In 2022, 95% of the wood used in our chipboards

to resilient flooring while maintaining waterproof capabilities
and exceeding the scratch resistance of traditional Luxury
Vinyl Tile (LVT).
￭ All commercial LVT manufactured at the Dalton, Georgia,

closed-loop facility consists of 100% post-industrial recycledcontent, which is aligned with Mohawk Group’s “Beyond Carbon
Neutral” program.
￭ Through our ReCover program, Unilin collects and recycles

used vinyl flooring through external partners.
￭ In addition, Unilin's take-back program includes reusing click

LVT by cleaning and repurposing the tiles for use in youth clubs
and community centers.

carbon offering for soft surface flooring. Because recycledmaterial emits less carbon than virgin material, manufacturing
this product reduces emissions by 50% compared to traditional
cushioned carpet tile. Each square yard is made of 28 plastic
bottles diverted from landfills and contains a minimum of
74% recycled content.

was recycled, reclaimed or recovered wood.
￭ Unilin became the first business to recycle MDF

and HDF material to produce new boards throughpatented recycling technology.

￭ Our award-winning ReCover Recycling Program diverts carpet

from landfills through a partnership with external vendors.
￭ GH Commercial in Australia has formed a partnership to trial

the use of carpet waste as an alternative to steel reinforcement
in concrete.

/ 19

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTPRODUCT CIRCULARITY IN ACTION

Insulation

Rugs

Countertops￭ Through the CIRCULAR FOAM project, Unilin aims to recover￭ We recycle PET plastic bottles into the fiber used to tuft

￭ Our manufactured quartz, porcelain and natural stone

raw materials from insulation boards, converting polyurethaneback into building blocks for new boards, diverting this material
from incineration or the landfill.
￭ Unilin Insulation switched to a transparent, fully recyclable

film made from up to 35% recycled material for packaging
insulation boards.

polyester bath rugs and non-woven industrial mats.
￭ In 2022, we upcycled more than 42 million pounds of tires tocreate crumb rubber door mats.
￭ We convert waste carpet fiber into non-woven rug pads.

countertops are comprised almost entirely of naturally
occurring materials and provide durable finishes that reduce
the need for early replacement.
￭ Many of our quartz countertop collections are certified

GREENGUARD® or GREENGUARD Gold, having met
some of the world’s most rigorous third-party chemical
emissions standards.
￭ Our porcelain stoneware slabs conform to NSF/ANSI 51,

attesting to the quality and composition of the raw materials,
certifying that they do not release hazardous substances.
/ 20

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

MAKE. USE. RECOVER.
We continually challenge ourselves to develop innovative products that meetthe market's evolving needs and that have a lighter impact on the planet.
Key to this objective is ensuring that our products support
healthy environments. In 2022, several of our brands forged new
milestones on this front.
During the year, all Mohawk Group floor covering products—
including carpet tile, broadloom, woven carpet, LVT and otherresilient surfaces—went Beyond Carbon Neutral. This means theseproducts have a net-positive impact on the environment, defined ashaving an additional 5% carbon offset beyond neutral.
Dal-Tile also unveiled a major brand initiative with the introductionof its new sustainability program, OUR PROMISE, aimed at
highlighting Dal-Tile’s green and sustainable practices. The
comprehensive platform educates customers about Dal-Tile's
environmentally friendly products and processes, emphasizing
their commitment to the planet, people and governance. Dal-Tile’s
environmental achievements include￭ Preventing more than 125 million gallons of wastewater fromentering local water treatment facilities by recovering andreusing 84% of process wastewater in ceramic tile manufacturing￭ Using recycled or reclaimed materials in over 99% of their

tile collections￭ Recovering and reusing over 300 million pounds of recycled orreclaimed material per year in American facilities

In 2022, Brazilian ceramic tile manufacturer Eliane became thelatest Mohawk brand to complete a Life Cycle Assessment (LCA).
This study encompassed all stages of production, from raw
material extraction to product disposal, quantifying environmental
impacts at each phase, which allows Eliane to make moresustainable decisions in its operations. The LCA results enable
Eliane to obtain an Environmental Product Declaration (EPD),
which allows those products to be incorporated into buildings
seeking sustainability certifications such as LEED and the Brazilian
certification AQUA.
Also in 2022, Marazzi Group became one of the first businesses
in the world to obtain the new ISO 17889-1 certification. Thiscertification sets international standards for measuring thesustainability of ceramic tiling systems by evaluating theenvironmental, economic and social impact of ceramic tiles
throughout their entire life cycle, including raw material sourcing,
manufacturing and disposal. The certification also considers
employee safety and health parameters among the 38 indicators
used to determine a specific score for each product. Marazzi
achieved a 127.5 out of a maximum 130 score, indicating a strong
commitment to protecting the environment and people.

Mohawk Group Unveils Sustainability Estimator Platform for Flooring Collections
Mohawk Group has recently launched the Sustainability Estimator. The
Estimator allows users to assess the positive impact of their flooring projects
on the environment and society by leveraging our vast catalog of EPD, Health
Product Declarations (HPD) and various additional product certifications. By
selecting different flooring products and entering the required information,
users can view relevant building and product certifications, as well as carbon,
water and social impacts. The Estimator is a resource to help specifiers
feel confident about the finishes they are choosing and to spark meaningfulconversations around sustainability and responsible manufacturing.

/ 21MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Product Certifications
Customers expect companies to provide transparency and credibility around their sustainability claims. We rely on third-party
certifications to validate the sustainable attributes of our products. These certifications serve as a trusted endorsement, assuring
our customers that our products meet stringent sustainability standards.
By proudly displaying a range of certifications and labels, we demonstrate our commitment to meeting the expectations ofenvironmentally conscious consumers. Many of our products contribute to Green Building Certifications such as LEED and WELL,
and hold various sustainability certifications including￭ The International Living Future Institute’s (ILFI)

DeclareSMprogram￭ The HIGG Index￭ Global GreenTagCertTM￭ ILFI’s Living Product Challenge certification￭ Environmental Certification Scheme (ECS)￭ ILFI's Living Building Challenge Red List Free

￭ Cradle to Cradle (C2C) Material Health￭ Environmental Product Declarations (EPDs)￭ Health Product Declarations (HPDs)￭ Indoor Air Quality/Volatile Organic Compound (VOC)

For more detail about our product certifications,please visit our corporate website.

certifications

Indoor Air Quality
We prioritize healthy indoor air quality by designing andmanufacturing flooring products with reduced emissions of
VOCs. By collaborating with vendors to identify alternative
chemicals, we have significantly reduced the emissions
attributable to these products. We ensure compliance withhealth, safety and quality standards, as well as local andfederal VOC regulations. Our environmental departments ineach business rigorously evaluate and approve new chemicals
and materials, while also requesting evaluations fromsuppliers for any substances of concern.

1

 egistration, Evaluation, Authorisation and Restriction of Chemicals (REACH) is a regulation of the European Union, adopted to improveR
the protection of human health and the environment from the risks that can be posed by chemicals, while enhancing the competitivenessof the EU chemicals industry.

Unilin’s sheet vinyl floors provide clean indoor air quality byusing water-based inks and extra coatings to eliminate therisk of harmful toxins released into the air, in accordancewith REACH.1 In addition, Marazzi Group has achieved
GREENGUARD or GREENGUARD Gold certification for morethan 600 products, indicating that products contributeto healthy indoor air quality. Marazzi uses low-emission
inks and fixatives as well as antibacterial technology for
ceramic surfaces, and the porcelain slab collections hold
NSF/ANSI 51 certification, guaranteeing these products do

not shed hazardous or toxic substances into foods and areeasy to sanitize.
Aspects of our products’ installation processes also contributeto good indoor air quality. Our patented Uniclic® technology
requires no glue or chemicals during installation. Additionally,
our in-house production of vinyl and resin binder allows for
greater control over the use of potentially harmful substances.
Some natural ingredients have an intrinsic ability to improve
air quality as well. For instance, we offer premium residential
and commercial flooring products made with renewable wool.
Wool carpet is inherently hypoallergenic and purifies theair—absorbing common indoor air pollutants, dust and odors
like pet smells (without re-emitting them) until they can be
vacuumed out.
Similarly, the non-porous nature of ceramic tiles makes them
resistant to the growth of mold, mildew and bacteria, which
can help reduce potential allergens and improve overallindoor air quality. In addition, because our tiles are made fromnatural materials such as clay and minerals, they do not emit
/ 22
VOCs or other harmful substances into the air.

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTBreaking New Ground: Transforming Carpet into Concrete

MAKE. USE. RECOVER.
To achieve product circularity, we recognize the importanceof taking responsibility for our products at the end of their life.
In contrast to other life cycle phases that we control,
such as manufacturing, sourcing and supply chain,collaboration with customers is a necessary step tokeep products out of landfills. Mohawk promotes better
decision-making by implementing programs for therecovery, reuse and recycling of flooring materials. In
this way, we aim to close the loop on product life cycles,
promoting circularity and reducing the reliance on
finite resources.

North America
Our ReCover Recycling Program offers landfill diversion
solutions for both commercial and residential customers.
We recycle old flooring produced by Mohawk andother manufacturers through a network of recyclers
across North America. The program is customized foreach project and provides a holistic and service-based
approach to reclamation. In 2022, we recovered andrecycled 548,497 pounds of old carpet tile and broadloom
carpet, which equals 65,533 square yards of product.
As the ReCover program expands and evolves, we are
exploring opportunities to make it even more accessible
to residential customers. We are also working to raiseawareness and expand usage of ReCover through various

mediums. Additionally, we are exploring opportunities
to upgrade the ReCover program’s database to facilitate
program growth, improve tracking, and enhance
visibility and transparency in the process for bothcustomers and the Company.
Dal-Tile's GREENWORKSTM is a take-back program thatprovides the building industry with an alternative tolandfill disposal for waste or unused materials that may
arise from demolition/construction projects or inventory
reduction programs.

EuropeUnilin has also implemented take-back programsfor various products. In 2022, Unilin collected morethan 33 million pounds of chipboards, recycling
100% of them in-house. Unilin also offers services
to collect used vinyl flooring and recycle it throughexternal partners. In addition, the take-back program
includes reusing click LVT and carpet tiles—
cleaning and repurposing them in youth clubs andcommunity centers. Test runs are underway to add
polyisocyanurate (PIR) insulation boards to theprogram, exploring both mechanical and chemical
recycling methods.

Godfrey Hirst and GH Commercial are working to convert waste carpet into FiberCrete®,an innovative carpet-fiber‑reinforced concrete product. By using carpet waste insteadof traditional steel mesh, GT FiberCrete offers a sustainable alternative for concrete
reinforcement. Through successful trials on industrial driveways, it has demonstrated
superior resilience against cracks compared to plain concrete. This breakthrough creates
possibilities for future applications in residential driveways, footpaths, cycle paths andindustrial hardstand areas.

Australia and New Zealand
GH Commercial’s Loop program breathes new life into
carpet tiles. The business takes back any modular
carpet products in good condition, free of charge, andrepurposes them in fresh installations. The program
serves a diverse range of customers, including
charities, schools, budget-conscious buyers andenvironmentally aware corporate clients. Throughthe Loop program, GH Commercial achieves productcircularity while preserving the value of the tiles andminimizing energy consumption.

40M

pounds of product recovered at
end‑of‑life globally during 2022.

/ 23

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTPRODUCT TRANSFORMATIONSConverting end-of-life products into new ones is an important
aspect of our circular economy model. Our brands arecontinually exploring new ways to achieve this.
For example, Unilin Panels is the first business in the world to recycle wood fiber from MDF and HDF
materials, which were previously incinerated at the end of their life cycle. By moistening the boards withsteam, subjecting them to high pressure and then releasing the fibers, the company can recycle MDF and HDF
fibers and reuse them for new boards. In 2022, Unilin Panels recycled more than 6 million pounds of MDF,
50% of which was recycled in-house.
This breakthrough not only allows for the deployment of unused raw materials but also helps in capturing
and retaining CO2 for longer periods. This patented technology should make it possible to replace at least
25% of our raw material mix with recycled fiber by 2030. This will enable us to retain 380,000 tons of CO2 peryear in the wood fiber that is given a new life through this technology. This achievement aligns with Unilin’s
sustainability strategy and commitment to extending the lifespan of wood.

/ 24

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Consumers count on us to provide products thatmake their spaces beautiful and functional while
also respecting our planet.
By embracing responsible practices andprioritizing environmental stewardship, we create
a positive impact on the planet and strengthen ourbusiness through the efficient use of resources.
As we align with circular economy principles,water restoration, waste reduction, renewableenergy and emissions reduction play a vital rolein achieving circularity in our operations.

BETTER FOR
THE PLANET/ 25

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTERICKA ACOSTA

Global Ceramic

TINA CLEMENTS

Flooring North America

CONNECTING ON GLOBALENVIRONMENTAL STEWARDSHIPKATRIEN GODART

UnilinIn 2021, Mohawk formed its Planet Council to better align businessdirection and decision‑making at the segment and brands levels
with corporate sustainability goals. Seven members of the Council,
from Mohawk Industries’ worldwide brands, sat down to discuss
what they’ve learned from working together during the past
two years.

RACHEL HESTER

Flooring North America

JAMUNA SIVATHASAN

Godfrey Hirst

What has been the primary focus of theCouncil since it was formed in 2021?
The focus of this group has been to bring
together Mohawk colleagues from around theworld to discuss and align on our planet strategy,
targets and outcomes across the globe. Throughthese discussions, we address accomplishments
and challenges. We also work together on planetwide objectives—including carbon reduction,water restoration, waste management andcircular economy practices.
Since its inception, this team has been focusedon utilizing the diverse backgrounds, knowledge
and skill sets of the members to establish bestpractices, overarching goals and objectives
to drive change. Sharing ideas and different
perspectives has been critical to enabling eachbusiness across the world to learn from one
another and accelerate their individual programs.

LASSE SIX

UnilinPAIJ THORN-BROOKS

Dal-Tile

How does working together asa Council further Mohawk’s
environmental stewardship?
The Council provides us with a platform to
openly ask questions, express concerns andseek clarification about changing regulations,
reporting capabilities, guidelines and our sharedgoals. Additionally, we have formed specialized
subgroups that focus on different areas ofexpertise. This targeted approach enables
the development of comprehensive solutions,promotes innovation and maximizes our impact.
Through knowledge sharing, we can move fasterand take meaningful actions to address carbon
emissions and climate challenges. By unifying
our vision, sharing best practices and leveraging
collective expertise, we act as a catalyst for
driving positive change, enabling Mohawk to
make significant strides in its environmental
stewardship journey.
/ 26

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

What is an example of a sharedbest practice that has been
implemented globally?
One notable example in 2022 was theestablishment of the Climate Positive Future
subgroup. Members of this subgroup haveshared knowledge on Life Cycle Assessments(LCAs) and taught one another how to effectively
use LCAs as a tool to quantify carbon emission
reduction benefits on current and future projects.
It ensures that we are using the same platforms
and evaluating based on the same metrics. This
global collaboration allowed us to leverageinsights, learn from each other’s experiences
and implement robust strategies for reducing
environmental impact across different regions
and business segments.
This year, we also achieved global alignmentof waste definitions, benefiting future reporting
while fostering teamwork and understanding ofdiverse waste perspectives. This collaborative
effort has led to the development of clear anddistinct waste definitions, enhancing the accuracy
and efficacy of our reporting processes.

What types of challenges andopportunities does the Council needto address given Mohawk’s diverse
portfolios of businesses and regional
decentralization?
Challenges arise from differing customer
expectations, government regulations andculturally based environmental priorities acrossregions. However, these challenges also present
opportunities for us to gain better insights, create
tailored strategies and implement initiatives thatalign with local contexts. The Council strives
to strike the right balance between Mohawk
Industries' global vision and the autonomy
of business units, ensuring that actions are
impactful and aligned with regional requirements.

Looking ahead, what are the Council’s
priorities and objectives over the next
two years?
We are dedicated to developing standardized
policies at a global level to ensure compliancewith international and local regulations andlegislation, such as climate change policy andchemical management policy. The Council fosters
good dialogue around how we balance global andlocal needs. Additionally, we are implementing
a unified reporting platform to effectively track,
monitor and manage our ESG performance,aligning with the organization’s goals, so there
are very practical outcomes that benefit thebusiness as well as more strategic discussions.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

CLIMATE POSITIVE FUTURE
Mohawk is focused on sustainable practices that help to mitigate the effects of climate change.
Our Planet Council oversees this work by aligningbusiness decisions with sustainability goals. The Council’s
priority is to establish science-based targets (SBTs) by
2024 for reducing GHG emissions, including Scope 1, 2
and 3 emissions. We have been tracking and reporting
energy and Scope 1 and 2 emissions since 2010, and weare pleased to expand our reporting to include Scope 3
emissions in this year’s report.

Total Scope 1 and 2 GHG Emissions Intensity1 (biogenic and non-biogenic)

2018

2019

2020

2021

2022

.280

.242

.280

.300

.308

.310

2010 Baseline: .374

2025
GOAL

During the past year, we have engaged a third-party
expert to help us collect Scope 3 emissions data fromall global business units and evaluate each Scope 3
category to determine its relevancy to Mohawk operations.
As a result of this work, we have collected and analyzed
data for all 15 Scope 3 categories, found nine of them to
be material enough to report and established a baseline.
A climate risk assessment will be conducted in 2023
and will include a global scenario analysis exercise. As
we look forward, our priority in 2024 is to implement a
global ESG data platform for capturing metrics in order tostrengthen sustainability measurement and performance.
As we work at the enterprise level for an approved SBTi,some business units already have an SBT in place. This
includes our Flooring Rest of the World segment, which
received approval in late 2022.
Mohawk Group—our North American commercial flooring
division—is part of The Climate Pledge, committing toachieve net zero carbon emissions by 2040, which is 10 years
ahead of the goals set by the Paris Agreement. More than
400 companies worldwide have signed this pledge since its
establishment in 2019.

2022 Scope 3 Emissions by Type2

0.7%
1.7%
1.9%
2.1%
6.1%
12.4%

0.2%

57.3%

17.5%

■ % Purchased Goods and Services■ % End-of-life of Sold Products■ % Upstream Transportation and Distribution■ % Fuel and Energy-Related Activities■ % Waste Generated in Operations■ % Processing of Sold Products■ % Capital Goods■ % Employee Commuting■ % Business Travel

Collected and analyzed data for thenine relevant Scope 3 categories.

Our Oceania-based business, Godfrey Hirst, isalso dedicated to reducing its operational carbon
footprint. In 2020, Godfrey Hirst became the firstAustralian carpet manufacturer to achieve carbon
neutral status from Climate Active, an Australian
government-accredited carbon neutral certification
program. In 2023, Godfrey Hirst New Zealand also
became a carbon neutral organization.4

2022 Total Energy Consumed by Type2

2.2%
6.1%
8.5%
20.8%

62.1%

■ % Natural Gas■ % Grid Electricity■ % Biomass Energy ■ % Other Fossil Fuels■ % Low Carbon3■ % Other Renewables

Metric tons CO2e/rev CC.
Totals may not add up to 100% due to rounding.
3
Energy from CHP (combined heat and power).
4
Godfrey Hirst Australia Pty Ltd and Godfrey Hirst NZ Ltd are ‘carbon neutral’ organizations. This means that those entities purchase and voluntarily retire carbon offsets equivalent to their annual carbon dioxide GHG emissions from sources within their organizational boundary.
For New Zealand, organizational GHG emissions are accounted for in accordance with ISO14064-3:2018. For Australia, organizational GHG emissions are accounted for, and carbon neutral status is certified, in accordance with the requirements of Climate Active.
1

0.2%

2

/ 28

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTEnergy and Emissions Reduction Initiatives
We prioritize energy efficiency and operational improvements
as vital strategies to achieve our emissions reduction
targets. In 2022, we implemented a range of tactics acrossbusiness segments to support these aims.

Optimizing Energy Use
Marazzi Group’s ISO 50001 certification and implementationof energy‑efficient measures reduced CO2 emissions by
14,000 tons. The Company’s three cogeneration plants saved
an additional 15,000 tons of CO2.

Improving Air Management
Flooring North America rolled out an air management
program for ovens and dryers that optimizes airflow andtemperature control and implements energy-saving features,
which leads to lower operational costs and decreased
environmental impact, as less energy is required to achieve
the desired results.

Enhancing Compressor Energy Efficiency
Mohawk Group's Dalton, Georgia, plant installed acompressed air management program in 2020. It is currently
saving 25%–35% electric consumption while providing
improved air quality.

ALTERNATIVE ENERGY

Beyond active measures to conserve energy and enhance energy efficiency, we also understand the need to find sustainable energy sources for ouroperations. This is why we are investing in alternative energy production to further our emissions reduction goals.

DISTRIBUTION GENERATION

WIND

BIOMASS

SOLAR• In Italy, Marazzi Group’s three combined heatand power (CHP) units in addition to one CHP
unit in Flooring North America generate morethan 280,000 MWh of low-carbon energy andeliminate more than 40,000 metric tons of CO2
each year.

• In 2022, Unilin Insulation installed two
wind turbines in Feluy, Belgium, covering
71% of the plant’s energy demand. Unilin
also operates three wind turbines at its
Avelgem vinyl flooring facility.

• Unilin has invested in two joint venture biomass
power plants in Belgium, where it converts
non‑recyclable waste wood into heat and energy.

• Dal-Tile’s plant in Dickson, Tennessee, has a
CHP unit that can achieve thermal efficiencies
of well over 90% and uses the waste heatproduced to avoid natural gas consumption
within the powder production process.

WATER• Godfrey Hirst has installed a 500 kW solar
panel system in Geelong, Australia, supplying
nearly 30% of the site’s electricity. Another220 solar panels are located at the Truganina
site, and 216 panels at the Laverton site. In
2022, Godfrey Hirst installed 1,560 solar panels
at the Auckland, New Zealand, facility and738 panels at the Dannevirke plant, generating
30% and 45% of each plant’s electricity,respectively.

• Unilin’s laminate flooring businessin Brazil runs on hydropower and is
exploring solar opportunities to cover its
remaining energy use.

• In the U.S., Mohawk operates a biomass system
in North Carolina to generate thermal energy.

• Rooftop solar panels are in place at
our insulation manufacturing plants in
Chesterfield, Derbyshire, U.K., and Navan,
County Meath, Ireland.
• Mohawk’s Flooring Rest of the World segment
headquarters in Belgium uses a photovoltaic
solar system to help supply electricity.

Improving Lighting Efficiency
Godfrey Hirst upgraded its warehouse and factory facilities
with LED lighting, resulting in an estimated collective annual
savings of over 300 MWh across four sites.

/ 29

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Investing in Renewable Energy: Empowering Employees to Createa Sustainable Future

LOGISTICS EFFICIENCY

Unilin was proud to offer its employees in Belgium two
unique opportunities to invest in renewable energy andactively contribute to a greener future. Through collaborative
partnerships with the solar energy provider Engie Sun4Businessand crowdfunding firm Spreds, the Company launched two
crowdlending initiatives: one focused on solar panels and theother on wind turbines.

2022 U.S. Fleet Highlights

Employees had the opportunity to invest between €500 and€2,500 for the wind turbine project and €500 to €550 for thesolar panel project, receiving a gross annual return of 4.5% forfive years. In practice, this means that employees fix this amountof money for five years and receive annual interest calculatedon this amount. At the end of this period, the invested capital isrepaid in full.
In the solar panel campaign, employees had the chance toinvest in the photovoltaic installations at the Desselgem
and Izegem sites. With over 8,000 solar panels generating
3.5 megawatt peak of sustainable energy annually, thisinvestment not only offers an attractive financial return but also
supports Unilin’s commitment to the clean energy transition.
In the wind energy initiative, employees had the opportunity toinvest in the wind turbines at the Unilin Insulation site in Seneffe(Feluy). These turbines cover over 70% of the site’s electricity
needs and contribute to the Company’s goal of reducing CO2
emissions by 42%. Together, these initiatives make a significant
impact, providing enough renewable electricity to power theequivalent of around 6,500 households.

54.6M
miles traveled

Mohawk's U.S. distribution fleet prioritizes efficiency
within diesel trucks. Current electric and natural gas
powered vehicles are incompatible with the heavy
weight of flooring products, and range limitations ofelectric vehicles pose challenges given the distances
the trucks must travel. We also optimize ourbackhaul network to minimize empty trips.
In 2022, we also made significant investments infuel-saving initiatives. One key advancement
has been the adoption of the Environmental

Protection Agency (EPA) Tier 4 engine
requirements. As we upgrade our fleet,at a rate of approximately 20% eachyear, we embrace newer technologies
that enhance fuel efficiency and reduce
emissions in accordance with EPA standards.
Additionally, we have implemented auto
shutoff technology, which minimizes
the idle run time of our vehicles. By
automatically shutting down engines
during periods of inactivity, we effectively
reduce fuel consumption. We also haveincorporated speed limiters into ourvehicles to prioritize safety and improve fuelefficiency. These ensure that our vehicles
adhere to predetermined speed limits,
optimizing fuel usage while promoting
safer driving practices.

7.94%
YOY fuel gallons
reduction

8.05%
YOY reduction inCO2e emissions

3.7%

biofuel as a percentage
of total fuel consumed/ 30

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTWATER RESTORATION
We recognize the crucial role water plays in sustaining life andecosystems—and the water scarcity challenges facing many partsof the globe.
We have made it a priority to conserve and responsibly
manage this limited resource. Currently, we are in theprocess of completing water risk and stress assessments
using the World Resources Institute Aqueduct and theWorld Wildlife Fund’s Water Risk Filter tools.
Carpet manufacturing has traditionally been a waterintensive process, especially in dyeing fiber. For morethan a decade, our carpet businesses have been working
to change that. In 2022, Mohawk Group furthered
its commitment by developing flooring productsthat are net positive water. This means that our
manufacturing practices result in a net benefit to water

resources, replenishing more than we consume, throughpartnerships with organizations such as water.org.
Mohawk Group introduced Color PulseTM technology—afiber dyeing breakthrough that uses zero water—into its
carpet tile product collections. The process saves 331,000
gallons of water each year—approximately one cup ofwater per carpet tile. Mohawk Group commercial carpet
tile manufacturing uses an average of 56% less water thancompetitive products due to Color Pulse and additional
manufacturing advances. Each Color Pulse purchase also
supports water preservation projects around the world,
through water.org.

2022 Water Withdrawals by Type

Total Water Intensity (gallons withdrawn/rev CC)2010 Baseline: .531

.283

.355

.355

.395

.428

.444

15.2%

2018

2019

2020

2021

2022

2025
GOAL

23.1%
61.7%

13,025 Megaliters Total
or 3.44 billion gallons■ Third-Party ■ Surface ■ Ground

In Australia, Godfrey Hirst introduced water recycling
into its dye washing process, which has dramaticallyreduced water and energy consumption. This bestpractice saves 132 gallons of water per minute during
a production run compared to a pre-implementation
baseline. In addition, Godfrey Hirst has foundways to conserve water during latex application—amanufacturing process that uses water to adhere asecondary backing to the carpet. In 2015, the team
implemented a “closed wash line” for the latex
application system, which reuses water in new latex
mix. This initiative has resulted in significant watersavings, with 600 fewer liters of water being used forevery 14-ton latex batch made, with an estimated 2022
water savings of approximately 394,000 liters.
Water is also an important input to ceramic tile
manufacturing. In 2022, Marazzi Group implemented

a water management process to recover 100% of
the wastewater generated from tile production. In
this way, Marazzi effectively averts the discharge ofindustrial wastewater into waterways or the sewage
system. As a result, Marazzi’s industrial water
recycling index reached 120%, a level that is possible
by including water derived from other companies inthe sector.
Dal-Tile’s ceramic tile manufacturing plants
have implemented water restoration measuresby recovering and reusing wastewater generated
during production. This practice has prevented
125 million gallons of wastewater from entering
local municipal water treatment facilities. Acrosstheir 11 North American manufacturing plants, 84%
of process wastewater is recovered and reused tocreate new products.
/ 31

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTGREEN WORKSPACE INITIATIVESIn 2022, Unilin launched pilot projects in its facilities in Belgium to make it easier for employees to make sustainable choices.

WASTE SORTING

REDUCING FOOD WASTE

Multiple offices and production sites
are currently piloting the introductionof waste islands—designated stations
where different waste streams
can be sorted and disposed ofproperly—with the goal of sharing
best practices internationally once
the implementation is complete by
mid-2023.

At Company cafeterias, Unilin
began selling surplus meals at a
reduced price after 2 p.m. At Unilin
headquarters in Wielsbeke, Belgium,
the initiative recovered morethan 500 meals that would haveotherwise gone to waste and 1.1 tonof CO2 in 2022.

VEGETARIAN OFFERINGS
Unilin provides vegetarian
options across all facilities
that offer warm and cold
meals during lunchtime. In
Waregem, more than 1/5 ofmeals purchased during 2022
were vegetarian.

BIKE LEASING
Employees have the option to lease abike at an affordable rate, with Unilin
covering 50% of the lease amount (upto 50 EUR per month). In 2022, there
were 842 running lease contracts
in Belgium, with plans to expand in
the future.

ELIMINATING BOTTLED WATER
Unilin developed guidelines to replacebottled water with filtered tap water
across all sites and initiated a pilot projectin Wielsbeke at the end of 2022.

ORGANIZED CARPOOLING
In 2022, Unilin launched a new carpool
platform for employees, allowing them
to offer or find rides with colleagues intheir area. The platform is available forboth operations and non-operations staff
in Wielsbeke and surrounding sites, withhopes to expand it further.

/ 32

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTWASTE EFFICIENCIES
We recognize the importance of reducing waste across our business operations, and we arecommitted to promoting sustainable practices throughout our manufacturing processes.
Though we have achieved waste reduction goals in the past, we remain dedicated to building upon thisachievement, partnering with waste management businesses near each of our facilities. During the past
year, we have worked to align all waste-related definitions with EU standards in order to harmonize ourmanagement and measurement of waste reduction.

In 2022, Mohawk operated 42 Zero Waste-to-Landfill(ZLF) facilities. These sites achieve at least a 90%
diversion of materials from the manufacturing process.
Our ZLF sites span
￭ Carpet, carpet cushion and laminate/wood facilities

in the U.S.
2022 Waste by Type

Waste-to-Landfill Intensity (tons/rev CC)

0.8%

2010 Baseline: .0250

.0175

.0179

.0089

.0118

.0140

.0140

60%
24.1%

■ Non-hazardous Recycled/Other Recovery/■ Non-hazardous Landfill■ Non-hazardous Incineration with

2018

1

2019

20201

2021

2022

2025
GOAL

Energy Recovery■ Hazardous Waste￭ Resilient flooring and carpet tile facilities in Belgium

and Luxembourg

15.2%

Prepared for Reuse￭ Ceramic tile facilities in the U.S., Mexico and Brazil

In addition to minimizing waste in their manufacturing
processes, Eliane also focuses on assisting customers
in waste reduction. In Brazil, they have introduced the“Lean Tile” service, which follows lean construction
principles. Lean Tile optimizes value on projects while
reducing waste through its technical properties.

Lower‑Waste Trade Shows
In 2022, as an alternative to attending the ceramics
trade show in Bologna, Italy, Marazzi Group
organized the first “Tile Week” at the headquarters
campus in Sassuolo, giving customers an inperson look at laboratories and showrooms.
This event eliminated the need for materials tobuild a large temporary exhibit that would havebeen demolished after a week—avoiding morethan 100 tons of waste.

Increase due to loss of some recycling partners and non-viable beneficial reuse outlets.

/ 33

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Recycling Manufacturing Materials
Another way to reduce waste is to find ways
to recycle and re-use by-products frommanufacturing processes. Godfrey Hirst has
recently had several successes on this front.

Yarn pallets

Wool

Scrap metal

The business explored the possibilityof repurposing the wooden pallets
used to transport yarn. After
identifying different types of pallets
used across its sites, GH Commercial
engaged with suppliers to modify
pallets to suit specific requirements.
This innovative approach led to amore resource-efficient operation.

Godfrey Hirst recycles yarn waste
rather than purchasing surplus virginwool. The business collaborates witha center that employs people withdisabilities to carefully sort and bale
the waste before processing it into
fibers, separating it by color andusing it to make new products. Anyremaining unused yarn is sold to
suppliers for further repurposing.

Sims Metal, the leading collector
and processor of recycled metal inAustralia, regularly collects metal
scraps and unused machineryfrom the Godfrey Hirst premises.
In 2022 alone, Godfrey Hirst sites
provided 36,900 kilograms of metal
for breakdown and repurposing.
Notably, all the metal collected fromthe Geelong sites is reused andrepurposed within Australia.

/ 34

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTBIODIVERSITY
The responsible sourcing of
natural materials is a criticalaspect of our sustainablebusiness practices.
By understanding the origins of the materials we source,
we can help preserve forests, protect biodiversity,
support local communities and mitigate climate change.
We are also conscious of the impact our ceramic tilebusiness has on the land—and we are proactive about
restoring those natural habitats. Ceramic manufacturing
requires the extraction of clay and other minerals from soil.
This process can impact the surrounding natural landscapeand impede soil’s ability to support plant life. In 2022, Eliane
Brazil spearheaded two initiatives to address this issue.
The business undertook an environmental restoration
project on a 4.5-hectare area around its kaolin mine innortheastern Brazil. Kaolin is a fine white clay which,due to its chemical composition, undergoes hydrolysis
when mined, acidifying the soil and inhibiting naturalvegetation growth. To address this, Eliane corrected soil
acidity by adding limestone. They also incorporated anorganic natural substrate from their factory’s rainwaterdrainage channels, which is rich in seed bank. The
incorporation of the substrate into the soil yielded
remarkable results. Within just six months, the area

became dense with plants. This initiative brought both
environmental and economic benefits. Eliane eliminatedthe need for chemical fertilizers to revitalize the area’ssoil, relying solely on the organic substrate obtained
from cleaning the factory’s rainwater drainage channels.
Eliane also launched a project to restore and reclaim
a seven-hectare area that had been degraded bymineral extraction activities and pollutants from anearby petrochemical complex. The soil quality was
already considered poor, deficient in nutrients andorganic matter. As part of the restoration efforts,
Eliane introduced cellulose biomass, supplied by the
petrochemical complex, into the soil. Not only did thevegetation flourish, but also various species of animals
and insects returned to the area. The biomass infusion

The transformation is evident in before
and after photos.
returned soil fertility, helping it to retain moisture andprevent erosion. The enriched soil also gave the plants
increased resilience to atmospheric weathering. Thistransformation is evident on-site, where the plants
native to the region typically have a yellowish-green
hue, while those in the restored area exhibit vibrantcolors and continuous growth throughout the year.

/ 35

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

A Sweet Buzz for Sustainability
In honor of Earth Day, Mohawk Group organized a series of activities andevents to draw attention to our year-round dedication to sustainability. At our“Living Site” carpet tile plant in Glasgow, Virginia, we proudly showcased theresults of our efforts over the past year and celebrated the culmination ofyears of hard work.
One highlight was the expanded Mo-Honey program, featuring seven new
on-site beehives as well as a donated beehive to the local 4-H programat Natural Bridge State Park. This initiative reflects Mohawk’s passion forpreserving bees—essential pollinators for a healthier planet.

In addition, Grupo Daltile’s Vitromex ceramic tile plant in
San Luis Potosí, Mexico, implemented a project to restore
the 848-square-meter natural area surrounding thesite, which had been degraded by mining. Reforestation
efforts included planting aloe vera, mesquite andcottonwood trees. They also established an orchard witha variety of fruit trees, which further revitalized the area.
Sustainable forest management practices help toprevent the destruction of ecosystems, which reduces
the impacts of climate change. One area where we havea significant impact on biodiversity is through the supply
chain of our wood products, which includes laminate,
parquet floors and panels.

2022 Mohawk Product Wood Sourcing Totals

Mohawk ensures that the wood we purchase adheresto sustainable forestry standards. We adopt a localized
approach to wood sourcing, obtaining it from forests
managed according to local markets’ best practices. In
2022, four of GH Commercial’s leading flooring products
received Programme for the Endorsement of Forest
Certification (PEFC). In Europe, the wood used in ourlaminate floors complies with EU Timber regulation
995/2010 and is certified by recognized organizations
such as the Forest Stewardship Council (FSC) orother validated methods. Globally, FSC mandates
landowners to protect wildlife habitats beyond the legal
requirements, contributing to biodiversity conservation.

2%
17%

81%

■ % FSC/PEFC Certified ■ % Not Third-Partyor Controlled1■ % Third-Party Validated2
1

In 2022, Unilin Brazil calculated its CO2 emissions from trade fairs and planted trees tooffset those emissions and support the restoration of biodiversity to a nearby forest.

2

Validated

Includes Chain of Custody and Controlled Wood Standards.
Sourcing investigation with use of external auditing services toensure wood is sourced according to Lacey Act requirements,
including but not limited to, onsite visits, conclusive risk andorigin risk.

/ 36

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTOur diverse, talented and dedicated workforce
plays an indispensable role in driving
sustainable growth and creating long-term value
for all Mohawk stakeholders.
In addition to ensuring that the needs of ourworkforce are met, it is also our responsibility togive back to the communities around the world
where we live and work. From professional
development programs to philanthropic
initiatives, we are dedicated to the well-beingof the people who make our business what it istoday and in the future.

BETTERFOR PEOPLE/ 37

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTROD WEDEMEIER

Mohawk Industries

KATIE ENGLEMAN

Flooring North America

LUCA GATTIMarazzi GroupLUC LEMARCQ

UnilinJASON LEONARD

Dal-Tile

JUAN MANUEL LINAN

Grupo Daltile

ALINE DUARTE
RONCONI SILVAElianeCONNECTING
ON SOCIALRESPONSIBILITY

People Council Roundtable

What has been the primary focus of
the Global People Council since it wasformed in 2021?
For me, it has been a great forum to share bestpractices from around the world, to learn more
about how the business overall is performing
and to have a meaningful dialogue with corporate
leadership as we implement strategies at thebusiness unit level.

How does working together as a council
further social responsibility at Mohawk?
We discuss a lot of different topics such as
employee well-being, development, engagement
and community support. This helps build acommon vision, align priorities and underscorethe importance of social responsibility across
many different parts of the Company.

What is an example of a sharedbest practice that has been
implemented globally?
We recently created two Centers of SharedInterest (COSI)—one for new-hire experiences
and a second one for management development.
Both workgroups are composed of humanresource (HR) managers from different divisions
and geographies of Mohawk. The COSIs will
share best practices, which we expect to resultin faster global implementation.
In addition to the COSIs Luc mentioned, we
have implemented several technical andproduction-oriented training initiatives. These
include our MPACT new-hire training center innorth Georgia and The Dive in Belgium, which
focus on developing the next generation ofindustry workers and helping them thrive inthe workplace.

What types of challenges andopportunities does the Council haveto address given Mohawk’s diverse
portfolios of businesses and regional
decentralization?
Like other functions in Mohawk, we arealways working to find the right balance
between centralized corporate initiatives
and local business units. We understandthat the entrepreneurial and decentralized
management approach found at thebusiness unit level is one of Mohawk’s
greatest strengths. We want to capitalize onthat strength, while also ensuring that wehave the right forums in place to share andadapt best practices across the enterprise.

/ 38

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTWe are all challenged by constrained labormarkets and actively deploy new strategies toattract and retain critical talent in our respective
geographies. Depending on where we live andthe labor market constraints, we must deploy
regional strategies to overcome these obstacles.
In some regions, it may be developing talentpipelines; in other regions, it may be training.
In others, it may be competitive benefit offerings.
By working collectively as a team, we shareideas to address the variable needs of ourrespective markets.
As others have said, it can be challenging tobalance the priorities and subtle differences of
local businesses in contrast to the global needsof Mohawk Industries. There can also be local
political and compliance complexities that limit
what can be done as well as define what may belegally required. Our opportunity is to increase
productivity, profitability and social responsibility
beyond what we can each do individually.

Looking ahead, what are the Council’s
priorities and objectives over the next
two years?
Talent acquisition is critical. We must find ways
to attract more talent from generations that
may lack awareness about the technologicalsophistication of today's manufacturing workplace
and also retain key talent to drive the success ofthe business.
I agree. It seems like no matter where any one of
us is operating in the world, we are all challenged
with making our respective businesses attractive
to the next generation of talent. Continuing
to promote diversity and inclusion as well as
employee engagement are keys to reinforcing ourbusinesses as workplaces of choice.

/ 39

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTPERFORMANCE DRIVEN WORKFORCE
Our workplace is defined by individual performance that isrecognized and rewarded.
Performance requires engagement, which is
instrumental to driving productivity, innovation andoperational excellence. Through open communication
channels, opportunities for growth and a supportive
work environment, we strive to create a flourishingorganization in which all employees are empowered toreach their potential and do their best.
Talent management and HR are among the mostdecentralized functions at Mohawk. We embed HR
management within each of our global business
units. This ensures each of our employee populations
has ready access to an HR professional and that HR
management is in place to fully understand the uniquenorms, regulations and competitive environmentof a given labor market. Our Corporate HR function
facilitates the sharing of best practices among these
global HR teams, as well as establishing the enterpriselevel systems required for workforce management.
Another key role performed by Corporate HR is
the global engagement survey to understand how
employees feel about our business and their roles.
While we use this survey to measure engagement,
its real value lies in the insights that it provides

managers around the world. We share aggregate datafrom all teams with their respective managers. Not
only do we expect managers to focus on improving
what is not working, but also to ensure that what isworking is understood so that it can be maintained andeven strengthened.
Understanding our strengths as an employer is critical
for recruiting and retaining talent, especially in tightlabor markets. This perspective drove our Flooring
North America (FNA) business segment to launch a
new employer brand—“More with Mohawk.” The idea
came from focus group discussions with a wide arrayof employees—ranging from salaried managers tohourly plant workers to transportation drivers. The
common theme that emerged among all employees
was that a career at Mohawk is what each employee
makes of it, thanks to an entrepreneurial culturethat supports taking risks, being resourceful andcelebrating individuality. The resulting campaign, which
was developed entirely through internal resources,
promotes individual empowerment by defining “more”
on each person’s own terms, such as “learn more,”“grow more” or “achieve more.”/ 40

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Recognizing Great Work at Dal-Tile
Recruitment

Recognition is another important way that we engage and encourage employees.

At the core of our talent strategy is our commitment tosourcing, attracting and retaining the best people forour organization. We prioritize strategic recruitment
efforts that reflect the communities in which
we operate.

An example is the quarterly Dal-Tile IGNITE Awards, which recognize exceptionalinnovation, transformation and execution by individual team members or groups.
Among recent winners recognized were the following projects:￭ Innovation: Developing an online portal to help employees quickly accessfrequently searched HR information

Many of the operations in our FNA business segment
are located in small communities where the labormarket is highly competitive. Within this business, ourinternship program serves as a valuable recruitment
channel for future leaders, offering participants
hands-on experience while they contribute toimpactful projects and make connections across ourorganization. In 2022 and 2023, the FNA segment
welcomed approximately 120 interns, with more thanhalf of the graduating cohort securing permanent
positions at Mohawk. Our FNA university recruiting
team also supports students in finding their ideal
career paths by participating in approximately
30 career fairs per year and engaging with students on
a more personal level at more than 60 other events.
Another FNA education-based initiative is theWork‑Based Learning program, which gives highschool juniors and seniors the opportunity to gain
work experience while completing their education.
In the program's first year, more than 20 high school
students worked in Mohawk facilities throughout theschool year and during the summer. Additionally,
the FNA team has hosted a week-long program with
15 rising seniors and college freshmen to provide
them with a job shadow experience with leaders intheir areas of interest. These programs have earned
Mohawk local and state recognition for partneringwith schools to address this critical need for
manufacturing employees.
1Black, Indigenous, People of Color.

￭ Transformation: Creating a tracking system to simplify and streamline processes

for overweight shipments￭ Execution: Swiftly arranging for donated tile to be delivered with complimentary

freight to Uvalde, Texas, as part of a memorial tile painting event following the
Robb Elementary School shooting

2022 Intern Diversity for Flooring North America

37%

BIPOC1—up 37% from 2021

40%

female—up 18% from 2021

In Brazil, the father of Eliane's current president
established Colégio Maximiliano Gaidzinski (CMG) in
1979. CMG has not only become one of Brazil's top
ceramics schools but is also a valuable channel for
recruiting talent. CMG has played a significant rolein improving the technical expertise of professionals
in the national ceramics sector, providing training
and specialization across the production chain. Many
students from CMG begin their professional journey
at Eliane through apprenticeships, which integrateyoung individuals into the job market by offering skill
development opportunities and firsthand experiences.
Currently, 36 CMG alumni hold leadership positionsat Eliane, and Eliane professionals also teach at
the school.
In the U.S. we also collaborate with various
platforms to reach students from underrepresented
groups nationwide. Through our University
Relations program, we establish and nurture strong

partnerships with leading colleges and universities,
particularly focusing on Historically Black Collegesand Universities. In 2022, we partnered with Langston
University, Alabama A&M University and Morehouse
College to participate in career fairs, information
sessions and mock interviews. We also strengthened
strategic relationships with other colleges anduniversities in Georgia with high minority populations.
Veteran recruitment has also been a focus of our FNA
segment. We actively participate in military outreach
initiatives and provide a supportive military leave
policy to accommodate and assist military employees
who join our workforce. In 2022, we hired a dedicatedrecruiting leader for veteran candidates and participatedin 32 hiring events targeting veterans that resulted insuccessfully recruiting 85 veterans.

/ 41

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTINCLUSION AT MOHAWKWith ~40,9001 employees spanning the globe,
we foster a workforce that thrives on diversity,
embracing individuals with varied backgrounds,
talents and experiences from around the world.

Our organizational culture emphasizes bothindividual accountability and teamwork. This creates
an environment that nurtures personal growth
and advancement opportunities for all employees,
regardless of their position within the Company.
Mohawk’s inclusive workforce environment mirrors
our communities. This commitment is reflected in
the composition of our workforce, which includes
individuals of diverse racial and ethnic groups, gender
identities, abilities and experiences. An inclusive
workforce not only enriches our Company culture
but also better enables us to innovate and connect
with our global customer base.
We help build an inclusive culture at Mohawk throughinitiatives such as￭ Diversity and inclusion training for people leaders￭ Unconscious bias training￭ Performance-based hiring and promotion strategies￭ Facility communication and operation in preferred

employee languages￭ Employee-led committees

1

Our businesses around the world define diversity
according to the unique cultural and demographic
profile of their respective markets, each of which has
its own opportunities and challenges. For example,
a Dal-Tile program, LeadHer, focuses on mentoring,developing and preparing women for leadershiproles to address the historic underrepresentationof women as managers in the flooring industry. A
steering committee of senior women leaders guides theinitiative, which includes a formal mentorship program,quarterly virtual engagement events with guest
speakers, leadership panels and greater access to theleadership team.
Inclusion also extends to individual ability. Unilin, forexample, has a long-standing partnership with Gandae,
a nonprofit organization in Ghent, Belgium, to produce
marketing materials such as swatches, sample boards
and other promotional items for its laminate and LVT
products. Gandae employs individuals whose disabilities
make finding work challenging. More than 20 Unilincolleagues work at the Gandae site with approximately
50 Gandae employees and managers. The collaboration
between Unilin and Gandae reflects their sharedcommitment to local entrepreneurship, while supporting
the needs and abilities of their workforce.

As of 12/31/2022.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Employees by Gender

Leadership by Gender3

28.1%

24.9%

Employees by Generation²

2022 Employee Demographics Highlights

1, 2~40,900
employees worldwide

45%of U.S. workforce is BIPOC

55%

71.9%

■ % Male■ % Female

Employees by Type

19%

75.1%

■ % Male

New Hires by Type0.8%

of 2022 U.S.
hires were BIPOC

of global workforce has
been with the Company
for 25+ years

U.S. Employees by Ethnicity

0.8%
1.6%
2.2%
6.2%
9.5%

0.2%

53.7%

25.9%
98.2%

99.2%

■ % Full-time ■ % Part-time■ % Full-time ■ % Part-time

New Hires by Gender

New Hires by Generation

12.7%

27.0%

45.5%
Percentages may not equal 100% due to rounding.
1
Data as of 12/31/2022.
2
As of 12/31/2022, the Company employed approximately 40,900 persons, consisting ofapproximately 17,700 in the United States, approximately 14,800 in Europe and Russia andapproximately 8,400 in other countries. Some recent acquisitions are not yet integrated into ourglobal HRIS platform, which limits the detail we can access on employees in those businesses.
3
Leadership is defined as employees with direct reports.

30%

73.0%

■ % Male■ % Female■ <30 Years■ 30–50 Years■ 50+ Years■ % Female

1.8%

~10%

51%

41.9%

■ <30 Years ■ 30–50 Years■ 50+ Years■ % White■ % Hispanic/Latino■ % Black/African American■ % Other/Chose Not to Disclose■ % Asian■ % Multiracial (not Hispanic/Latino)■ % American Indian/Alaska Native■ % Native Hawaiian

Employees by Region

2.1%
2.6%
6.5%

0.2%

9.6%

42.8%

36.3%

■ % U.S./Canada■ % Europe■ % Mexico■ % Brazil■ % Australia/New Zealand■ % Malaysia■ % Other/ 43

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTTRAINING AND DEVELOPMENT
From the front line to the leadership suite, we make meaningful
investments in training and development programs customized
to support employees at each step of their careers.
By helping our employees realize their full potential andlong-term goals, we enhance our ability to build andretain a performance driven workforce with the skills togrow our business and make a difference. We continuously
identify and adopt leading-edge learning, development
and engagement strategies, applying our knowledge andexperience to evolve tactics. This enables us to best serve
customers and retain top talent to help our business thrive.
In the U.S., we offer four tiers of development
programs—from entry-level professionals all the way tosenior management.
Designed for recent college graduates
who demonstrate exceptional potential
in organizational leadership andsales development
Tailored for ambitious front-line andmanufacturing leaders who exhibit highpotential for growth and advancement
Geared toward mid-level leaders in crucial
roles who have the potential to makesubstantial business impacts
Aimed at seasoned leaders, equippingthem with the tools and strategies
to inspire their teams and drive
meaningful change

Our global businesses have also continued to grow theirtraining programs. In 2022, Marazzi Group facilitated its
second annual international future leader development
program, which brought together 25 employees fromacross the European ceramics operations. Participants
had the opportunity to visit and learn about Marazzi
operations in Bulgaria, Poland and Spain. The main
objective was to work collaboratively in teams to develop
innovative projects centered around three fundamental
themes for the company: sustainability, digital innovationand strategic technology. These projects were presented
to the Marazzi Group leadership team for consideration.
In addition, Marazzi’s Pietro e Maria Marazzi Training
Center, established in 2011, serves as a dedicated spacefor internal training. Marazzi also collaborates with otherorganizations such as the Red Cross, Cerform, Adecco,and the University of Modena and Reggio Emilia tosupport educational initiatives and training projects forthe wider community at the training center.
In 2022, we partnered with the Latin American
Association and University of Georgia to advance thefirst Latino Leadership Institute. This involved hosting
26 emerging Latino leaders (18 Mohawk employees andeight community partners) through a joint leadershipdevelopment program.

Connecting the Community Around Lifelong Learning
In 2022, Unilin developed and launched a new facility in Wielsbeke, Belgium, known as
The Dive, which aims to revolutionize training and development. The Dive borrows its
name from diving into new information, discovery and personal growth. The Dive offers aninspiring and motivational experience for employees and potential recruits, showcasing
Unilin's job opportunities and career paths.
The Dive offers an extensive range of interpersonal and functional training to upskill andreskill employees. The center uses technology to provide an accessible and immersive
understanding of working and learning at Unilin.
Interpersonal training content at The Dive consists of widely shared development topics
on health and safety, well-being, communication and project management.
Functional training includes morethan 100 product and technical training
courses, language training support andemployee-tailored coaching.
The concept of The Dive may be
expanded to other countries to cater tolocal needs and a web-based application
is being developed to provide insights tointernational employees.
Unilin feels strongly that its growthdepends on the growth of its employees,
which has led to this emphasis on
lifelong learning at the core of the talentmanagement philosophy.

GH Commercial launched its first continuing professional development training module,
which explored how architects and designers use high-quality flooring materials toenhance building designs.
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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Reimagining Manufacturing Worker Training
Today’s labor market has created challenges to recruiting workers for hourly
manufacturing jobs. Also a challenge: retaining those we recruit. Proper onboarding
can make a difference, as we have learned through an innovative program for our
Flooring North America manufacturing facilities in north Georgia.
The program, known as Mohawk Product & Customized
Training (MPACT), is conducted in Dalton, Georgia,
in a facility that simulates a factory. During thefirst week of training, new employees learn about
our Company and the benefits that accrue withbuilding a career with Mohawk. The MPACT programemphasizes teaching values, employment and financial education, while building
connections between new employees and coworkers, managers and trainers toincrease their sense of belonging. Recruits are slowly introduced to the machineryon which they will be working and then trained on that machinery through hands-on
practice. New employees also visit the plant where they will be working to receive a
personal tour from the plant manager.
We take an incremental approach to increasing responsibility, until after several
weeks, recruits are fully proficient at the job. The program also emphasizes a senseof community and camaraderie. Trainees go through the program in cohorts. Uponcompletion, several trainees are assigned to the same plant and shift so that there isa built-in social network from day one.
The MPACT program offers many benefits to both Mohawk and new hires. Turnoveramong participants has dropped dramatically from 74% to 16% as of July 2023, which
creates stability in the workplace and in the homes of the individuals. Productivity
has improved as experienced workers who were historically asked to train newhires are no longer pulled away from their own workstations. MPACT participants
now enter the factory 30% more proficient than new hires before the program was
implemented, which yields productivity improvements and also supports safety andprovides the new hires with a sense of success from day one.
The program represents a major investment in people, particularly entry-level
employees who are new to manufacturing or may be entering the workforce for the
first time. By empowering these individuals with the skills to succeed in a friendly,
supportive environment, we are ultimately improving people's lives by fostering
financial and social stability through retention.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTZERO HARM WORKPLACE

Safety Performance
We foster a collaborative partnership with our employees
to uphold safe and secure workplaces across the globe.
Through corporate initiatives, we prioritize continuous safety
improvements by implementing expanded training programs
and promoting best practices. Each of our business segments
uses corporate resources to enhance safety measures within
their respective facilities, with a heightened focus on equipment
maintenance, machine guards and peer-to-peer feedback.
By consolidating safety data from all business segments, we
calculate our corporate recordable incident rate, which serves
as a key indicator of our overall safety performance.

In 2022, Godfrey Hirst (Australian facilities) andMarazzi Group (Italian facilities) attained ISO 45001
certification, which is the global benchmark forworkplace health and safety.

Safety Management Systems

1.0

1.49

Our dedicated safety team has developed 41 safety training
programs that cover a wide range of health and safety concerns
across our various work environments and operations. These
programs address critical topics, known as “cardinal rules,”as well as areas of equal significance, such as ergonomics,
CPR, battery safety and emergency preparedness. In 2022,
we released a new safety training for our highest-risk jobtasks, which prioritizes life-safety-critical aspects of our work
and improves our measurement of employee comprehension
through post-course knowledge assessments.

1.50

Safety Training

1.51

2010 Baseline: 1.87

1.59

Safety at Mohawk encompasses not only the absence of injuries
and accidents but also the support we provide to our employees
in creating a secure work environment. We want employees tocome to work each day knowing that their safety and well-being areat the forefront of our values.

Recordable Incident Rate

1.69

Mohawk is dedicated to creating an environment that is free from hazards,
promoting employee well-being and prioritizing safety at every level.

2018

2019

2020

2021

2022

2030
GOAL

The Company's U.S. businesses are expanding their commitment
to safety by implementing robust safety management systems(SMS). These systems, which will be operational during 2023, will
be used to track the progress each location has made toward
Mohawk’s ambition to become a world-class benchmark forindustry safety. The SMS will identify gaps in localized training
resources and assign corrective measures to ensure we train all
employees to perform their jobs safely and effectively. Individual
facilities or functional areas within facilities will use the SMS todemonstrate the maturity of their safety programs from level 1 tolevel 4 and identify steps to improve safety by advancing to thenext level. The goal is to standardize our businesses’ approach tosafety culture development, consistently and effectively share
best practices and improve our safety performance.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTA Proactive Approach to Safety Risks
Unilin is committed to establishingzero harm workplaces by identifying
and addressing risky behaviors before
incidents occur. In 2022, Unilin began
conducting Zero Harm Risk Reviews(ZHRRs), during which trained in‑houseobservers monitor the shop floor,
focusing on critical behaviors suchas body position, ergonomics andhand placements.
Observers provide immediate
feedback, and if they identify unsafe
behaviors, they initiate conversations
to understand the reasons behindthem. ZHRRs across three Unilin sites
resulted in over 3,220 observations in
2022. The ZHRR work group, supervisedby the governance team, analyzes thedata collected from the observations to
identify and eliminate barriers to safe
working practices.

Dal-Tile implemented a similar SMS in 2022. It consistsof four progressive levels: Compliance, Operational
Integration, Employee Involvement and Continuous
Improvement. These levels validate the implementationof structured safety programs and procedures by
manufacturing plant teams. The SMS not only establishes
safety as an integral part of operations but also cultivatesa mindset where safety is considered crucial to deliveringhigh-quality products. Currently, three facilities haveattained the SMS Level 1 Certification￭ Dickson, Tennessee in 2022
￭ Monterrey, Mexico, Floor Tile Plant in 2022
￭ Muskogee, Oklahoma in 2023

Logistics Safety
With an extensive distribution network spanning the United States, Mohawk operates
a robust transportation system that plays a vital role in moving our products between
manufacturing facilities, distribution hubs and customer sites. Our dedicated team ofover 1,000 drivers faces unique safety challenges compared to our manufacturing,administrative and sales employees. The mobile nature of their job presents
additional communication complexities. To address this in 2022, Mohawk’s Supply
Chain Safety team expanded its use of on-board fleet telemetry (automated datatransmission) systems to collect real-time data from over-the-road drivers. This data
expands our understanding of safety risks facing our fleet division and allows us tobetter manage and enforce safe operating procedures. As we continue to learn fromthe data, we will be able to deliver relevant safety information that can influence
positive behaviors and reduce on-road safety incidents. Additionally, Mohawk vehicles
are equipped with advanced safety features, including collision avoidance technology,
further reinforcing our commitment to driver safety.
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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTHEALTH AND WELL-BEING
Mohawk prioritizes the well-being of employees and their families
and takes a holistic approach to helping them improve and maintaintheir total health.
The Covid-19 pandemic reinforced the extent to which
individuals in every part of the world need access tomental health resources. Mohawk’s commitment tomental health care includes many benefits, resources,
training modules and support platforms—many at no costor low cost—which reflects the Company’s commitment
to embracing the unique conditions and experiences thateach employee brings to the workplace.
Our employee benefits website outlines benefits available
to U.S. employees and their eligible family members
and is accessible to prospective employees, as well.
The website also offers health and wellness training
and resources—including healthy lifestyle videos,
nutrition tips and practical tools for maintaining ahealthy and active lifestyle. Mohawk shares employee
success stories on the website to inspire others to adopt
healthier choices.
In the U.S., we provide Healthy Life Centers (HLCs) at
locations with high employee concentrations, as well
as virtual clinics for smaller locations and a telehealthoption for field sales and logistics employees. HLCs offer
a wide variety of physical and behavioral health services
for employees and their eligible family members. The
convenience and affordability of HLCs, coupled withthe flexibility to remain on the clock for appointments,
has made it easier and more affordable for employees
to receive the care they need. HLCs have proven to beparticularly valuable in helping employees with chronic
conditions obtain a diagnosis and receive effective care
to manage these ailments, ultimately enhancing their
quality of life. Our HLCs also support employees by
guiding their follow-on care for specialized medicine
to doctors and hospitals that provide care at a lower
cost to the employee and with better medical outcomes.
Mohawk’s U.S. health plan partner has collaborated
with leading mental health organizations in the industry
to provide broad access to virtual therapy, psychiatry
and coaching services, all of which are covered under
the Mohawk health plan. Some services offer therapy
sessions at no cost through the Employee Assistance
Program (EAP).
Several of our global businesses have implemented
similar initiatives aimed at promoting overall employee
health and well-being. For instance, in Brazil, Eliane’s
Saúde 360 (Health 360) program promotes positivechanges in individuals’ habits and lifestyles, focusing
on physical, psychological and financial health. The
program currently has more than 900 participants, which
has helped to increase the Healthy Work Environment

dimension of the employee engagement survey to
75% favorability, a 7-percentage point improvement.
New programs are implemented each year to keep
participants engaged. Activities have ranged fromgym classes for manufacturing employees to face-toface workshops on healthy weight loss, nutrition andmanaging stress and anxiety. In 2022, more than 165
online exercise classes were offered and recorded, andthe program held its first annual 5K walk and run, which
attracted 80 participants who donated toys for the Casa
Guido Institution, supporting children battling cancer.
Godfrey Hirst has partnered with Converge Internationalto establish an EAP for all employees. The EAP provides
free, 24/7 counseling, nutritional guidance, money
management, legal support and other assistancefor overall health and well-being. The company also
developed a well-being strategy that reflects the
support systems most important to employees.
Marazzi Group offers a supportive and holistic approachto employee health through a range of comprehensive
health services. All employees have access to an
osteopath and a nutritionist. Additionally, Marazzi Group
provides a listening and psychological support service
called Nobody Is Alone, ensuring that employees havethe necessary support for their mental and emotional
well-being. They also provide access to the MyPsico
app, which gives employees struggling with mental
health issues unlimited access to support resources
anytime, anywhere and to coach providing round-theclock support.
In 2022, Unilin expanded its well-being charter tocreate a safe, positive and sustainable working
environment for employees. After a pilot period in
the group’s Belgian facilities, the training was madeavailable for all employees worldwide via a learning
platform. The training modules help employees
identify and address psychological risks forthemselves or others, which may include stress andburnout, unwanted unacceptable behavior (violence,bullying, sexual intimidation or discrimination) andsubstance abuse. For all new employees, this training
was included in the onboarding program. Along withe-learning, training on this topic was launched ininteractive team workshops.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Pioneering Onsite Healthcare and Transforming Lives
Grupo Daltile in Mexico were pioneers in providing onsite
healthcare programs to ensure employees had access toquality care. After almost 70 years of continuously expanding
services, the on-site care team facilitated approximately
29,000 consultations during 2022, to identify, eliminate
or modify risk factors, as well as to encourage beneficial
behaviors that support healthier lives.
In 1955, after the Grupo Daltile leadership team recognizeda need for accessible healthcare, the team hired an onsite
nurse to provide first-aid and basic medical consultations. In
two years, two additional nurses joined the team to provide
services across shifts. In 1966, a doctor joined the department
to address the needs of all employees with a particularfocus on rapid response to workplace accidents, as well as
identifying potential opportunities for improving health in
the workplace.
By 1989, the medical department offered service aroundthe clock. They maintained detailed records and statistics
regarding accident categories and partnered withmanagement to identify ways to avoid injuries. The initial
version of the wellness program to detect and prevent
diseases such as diabetes and hypertension was introduced
in 2000. The program was expanded to cover family members,
as the Company understood the correlation between health,happiness and peace of mind of employees who valued
having their families treated by on-site medical consultation
services. The expanded care services yielded a moreengaged workforce and created a real sense of belonging
among employees.
In 2000, the respiratory health program was initiated, andthe hearing conversation program followed in 2007. These

initiatives inspired more preventative health campaigns
that have been held on site in collaboration with testinglaboratories and the Federal Health Department (IMSS).
Cancer prevention and detection programs for men andwomen, as well as vaccination and other consultation
services have been offered, and in 2014 Grupo Daltile
deployed free on-site mammogram and cervical screening
services through local providers.
When the medical department detected and addressed risk
factors of employees and their families such as obesity,
high blood pressure and diabetes, a collaborative program
between Grupo Daltile, IMSS and external nutrition experts
from nearby universities launched specific nutrition programsfor employees and their families.
In 2014, Grupo Daltile also launched its annual free influenza
vaccination campaign, which has since been expanded tochildren of employees.
More recently, the medical department expanded services toprovide evaluations and offer psychological support throughan external network of psychologists who collaborate with the
medical team. The medical team follows stringent standards,
such as NOM 035 (MX official standard on psychosocial risks)
to determine psychosocial risk factors for employees andtheir family members.
Over the years, the medical department has grown andexpanded to meet the evolving needs of employees and theirfamilies. Through intervention and ongoing care, the resource
has made a positive impact on thousands of lives during thepast seven decades.

/ 49

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTCONNECTED COMMUNITIESWe are an integral part of the places that are home to our employees
and facilities.
Mohawk partners locally and globally to improve lives within communities where we operate, share natural resources
and recruit many employees. Given the geographically distributed nature of our business, we empower local teams to
manage their initiatives related to product donations, cause marketing and employee citizenship.

Product Donations
As a manufacturer of high-quality flooring materials,
donating our products to worthy causes is an important
way we give back and educate our communities about
what we produce. Over the past two years, Mohawk
has provided materials for a variety of renovation andconstruction projects.
For example, in 2023 we celebrated 10 years ofpartnership with Sunshine on a Ranney Day, an Atlantabased nonprofit that builds custom rooms for children withspecial needs. Over the past decade, Mohawk has provided
innovative flooring products, such as SolidTech luxury
vinyl tile, for bedrooms, accessible bathrooms and therapy
rooms, including two rooms in 2022.
Several of our businesses helped partners improve theirown facilities—for example￭ Unilin provided Beautifloor products to Stichting

Pompidom SpeelGOED, a foundation in the Netherlands
that supports underprivileged families.

￭ In Sicily, Marazzi Group donated floor and wall tile toa home for children undergoing cancer treatment.
￭ Grupo Daltile donated materials to local community

organizations, including a girls’ orphanage, a local
church and schools.
￭ Our Flooring North America segment provided flooringproducts to local schools, volunteer fire departments
and nonprofit organizations.
Following the May 2022 mass shooting at Robb
Elementary School in Uvalde, Texas, Dal-Tile played asmall part in helping the community heal. A Dal-Tilecustomer who owns a paint-your-own-pottery studioreached out to Dal-Tile about organizing a memorial tile
painting event in remembrance of the victims. Joshua
Jackson, Dal-Tile Sales Project Coordinator, located 2,000
bisque quarry tiles to donate to the project, which one of
our logistics partners offered to transport free of charge.
Over the course of a weekend, community members came
together to paint the tiles, which will form a permanentmural display with messages of love and reverence.

Flooring for the Fight Against Cancer
One of our most enduring community partnerships is with Susan G. Komen®, theworld’s leading nonprofit breast cancer organization. Mohawk has been a proud
partner of Susan G. Komen for over 20 years and continued to cushion the fightin 2022. We sponsored the 2022 Komen 3-Day Series, during which people in
Boston, Chicago, Dallas/Fort Worth and San Diego walked up to 60 miles overthree days to raise money for cancer research. Our support of this one-of-a-kind
event took many forms￭ Comforting walkers and crew members as they rested between walk days

with more than 5,000 SmartCushion pads
￭ Cleaning up used SmartCushion pads to be recycled into new padding

through ReCover, Mohawk’s recycling program￭ Teaming with retail partners in each city to host a celebratory lunch to markthe halfway point of the walk
￭ Providing bright pink carpet runners for the “Mohawk Mile,” a path lined withcheer teams that led and encouraged walkers to the finish line each day of
the walk
Mohawk’s long-running partnership with Komen includes two national programs￭ In Mohawk’s residential flooring business, we donate a portion of the proceedsfrom SmartCushion sales through Decorate for the Cure
￭ Mohawk Group donates a portion of the proceeds from the sale of eligible

commercial flooring products through Specify for a Cure, and 2022 was arecord-breaking year in terms of donations
Combined, Mohawk has donated more than $7 million to Komen and is proud tobe one of Komen’s corporate partners.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Mohawk Group will empower 75,000 people in areas
experiencing scarcity and drought by providing lasting
access to safe water and/or sanitation, totaling
275 million gallons by 2030. Additionally, the partnershipwill mobilize $2 million toward household solutions
for people in need. The thoughtful utilization andconservation of water is at the heart of Mohawk Group’s
holistic design and manufacturing processes. Since
2017, Mohawk Group has saved 198 million gallons ofwater through partnerships, product innovations andoperational improvements.

Community Give Back
Mohawk is a proud supporter of the arts, design andcreativity. We have sponsored multiple events in recent
years: some with new partners, others with partners
whom we have established long-term relationships.
In 2022, Eliane revitalized the facade of the HospitalSão José, in Criciúma, Santa Catarina, Brazil, with anartistic panel more than 15 meters high, featuring theimage of the saint who is the namesake of the healthinstitution. Eliane created the installation throughdigital printing on 30x60 cm porcelain tiles anddonated the pieces for the hospital’s renovation. In
addition to revamping the space, the installation has
completely changed the outlooks of those who visit
the region, whether for work, medical attention or awalk down the street.
Godfrey Hirst and GH Commercial were proud to be
partners of the PayPal Melbourne Fashion Festival
2023 and Melbourne International Comedy Festival

2023. The brands supplied a range of products to support
the events, including Corsica Oak engineered woodflooring for the fashion show’s luxurious runway. GH
Commercial also supported Australian street artist Rone
with carpet and hard flooring products for his exhibitionat the Geelong Gallery.
Mohawk Group is promoting progress in our industry
and in the arts community by launching two new carpet
and hard surface flooring collections in partnershipwith ArtLifting, an organization that champions artists
affected by housing insecurity or disabilities. ArtLifting
creates opportunities for underrepresented artists toamplify their voices and participate in the contemporary
art market, and in 2022 Mohawk Group manufactured andsold products by six artists who contributed designs.
In 2023, in celebration of World Water Day, MohawkGroup also announced its partnership with Water.org
in an effort to help increase access to safe water andsanitation worldwide. As a part of this new initiative,

Mohawk and many of our businesses have longparticipated in the International Living Future Institute’s
Declare program. GH Commercial has been a majorsponsor of the Living Future Institute of Australia (LFIA)
since 2019, and was the first flooring manufacturer inAustralia to have carpet products certified as Declare
Red List Free. In 2023, the brand became a sponsor
of LFIA’s inaugural National Biophilic Design Awards
in the Interior and Renovation category. Many of GH
Commercial’s products are designed with biophilia in
mind, purposefully incorporating colors, textures andpatterns found in the natural environment.
To further share its point of view on the benefits ofbiophilia, GH Commercial also became a sponsor of
the Talking Architecture & Design podcast, where
the brand’s National Commercial Sales Manager,
Joel Williamson, was featured in an episode aboutincorporating biophilic principles in design. GH
Commercial also recently launched its Native Collection,from which a portion of the proceeds will help to support
tree planting in New Zealand.

What Employee-Driven Engagement
Looks Like
Flooring North America and our
Calhoun, Georgia, corporate
headquarters recently launched an
employee-driven giving strategy
through which team members cannominate organizations to receive
support. Through this model, we
donated to over 100 organizationsin 2022 and more than 40 in 2023
to date. Recent organizations we’ve
supported include￭ Latin American Association—

Supported a student scholarship andprogram for rising Latino leaders innorthwest Georgia￭ Dalton United—Sponsored weekly

games and hosted soccer camps forunderprivileged children￭ Junior Achievement—Organizedbimonthly volunteer events for
Finance Park, a financial and careerplanning program; and 3DE, anexperiential education initiative￭ United Way—Enhanced a U.S.

organization-wide employee andcompany giving campaign thatraises over $1 million per year

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTEMPLOYEE CITIZENSHIP
While much of the work we do to partner with nonprofits is facilitated through the business, we also support employee-driven efforts to contribute to communities around the world.
We encourage each of our locations to determine what local needs they want to address—and how they want to address them—whether through volunteering, donations or partnerships.

Cleaning up communities

Helping neighbors

Promoting healthMany recent efforts have involved cleaning up or
rebuilding spaces that had been damaged during
natural disasters.

Other projects focused on helping vulnerable
community members.

Across the world, employees teamed up to get healthyand support disease research.

￭ Unilin Malaysia employees recently donated desks and￭ More than 500 Unilin employees spent over 1 million￭ A Unilin team in Malaysia came together to rebuild

the Sri Ramar temple that was destroyed in a recent
landslide in Sungai Batu.
￭ Multiple businesses, including Godfrey Hirst, Grupo

Daltile and Flooring North America, organized teams of
employees to clean up local beaches and waterways.
￭ After severe floods swept through the Bahia state ofBrazil, Eliane donated food, water and ~6,500 m ofceramic tile for use in building approximately 300 homes
for low-income families displaced by the rains.
2benches to a nearby orphanage.
￭ Grupo Daltile employees volunteered at a local

animal shelter and helped elderly neighbors withhousehold tasks.
￭ Unilin UK, Dal-Tile Dallas and Flooring North America

collected Christmas gifts for children and supplies forkids heading back to school.

minutes cycling, walking, running or swimming, raisingmore than €5,500 for Médecins Sans Frontières.
￭ In France, Unilin employees participated in “Une rose

un respoir,” a fundraiser during which motorcyclists
form a procession through the countryside and gather
donations for cancer research.
￭ Since 2017, Marazzi Group has collaborated with

the Italian Cancer League and offers resources for
employees who want to quit smoking.

/ 52

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

By upholding the highest standards throughout
our operations and supply chain, we build trust
among our stakeholders. Our commitment toperformance excellence serves as the foundationfor our sustainable growth and the positive
impact we aim to create within our industry
and beyond.

BETTER FORPERFORMANCE/ 53

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTBUILDING A CONNECTED APPROACH TO
ESG GOVERNANCE AND DISCLOSURE

A Conversation with James Brunk, Chief Financial Officer, and Dave Patton, General Counsel
JAMES BRUNK

Chief Financial Officer

How is Mohawk’s governance andoversight of ESG evolving?
We recently appointed Malisa Maynard as our
new Chief Sustainability Officer (CSO). The CSO
serves as an enterprise level leader overseeing
ESG and reporting directly to the CEO, which
demonstrates our commitment to integrating
sustainability into our core business strategy
and operations. We believe Malisa’s appointment
is coming at a critical time as the Company
prepares for regulation of climate disclosure.
We expect this position to drive collaboration
across Mohawk business units and champion
best practices.

What areas of ESG does the Board
engage in most?
In recent years, we have witnessed a substantial
increase in investor interest in ESG, which
directly impacts shareholder value. The Boardof Directors recognizes the importance of ESG
considerations in investment decisions as wellas the need to align our business practices withsustainable principles. Together with our CEO,the Board maintains ultimate responsibility for

the Company’s ESG programs and initiatives. Risk
oversight is a critical aspect of the Board’s role,with a focus on financial, operational, legal andother business risks. The Board, however, takes anactive interest in all ESG-related issues that impact
the Company’s ability to grow profitably and drive
shareholder value—either positively or negatively.

How are you preparing for increased
regulation of ESG disclosure aroundthe world?
We are proactively preparing for the anticipatedincrease in regulation of ESG disclosure. In
the European Union, we already must comply
with expanded ESG regulations, and we expect
similar mandatory disclosure requirements
to be implemented soon in the United States
through new SEC rules. To ensure compliance,
we are implementing robust reporting systems
and controls for ESG similar to those in place forfinancial reporting. While the rules regarding ESG
data collection and disclosure are still evolving
and not as mature as financial data collection anddisclosure, we believe our existing processes forthe collection and dissemination of financial data
will accelerate our capabilities in the ESG arena.

DAVE PATTON

General Counsel

Mohawk is managed in a very
decentralized manner, yet ESG
regulation may require more centralized
controls. How do you plan to balance
this dynamic?
We have historically managed our business on
a local market level to best serve customers,
while financial controls and disclosures havebeen centralized at the corporate level, primarily
for legal and regulatory reasons. We intend to
manage ESG disclosures in a similar way. Eachbusiness unit will develop and execute ESG
initiatives to support our overall ESG strategy,
leveraging their understanding of local needs andopportunities. At the same time, ESG disclosure
will be centralized at the corporate level toensure consistency and transparency across ouroperations. This approach will allow us to strikea balance between local responsiveness andcentralized governance to meet the evolving ESG
regulatory landscape.

/ 54

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTCORPORATE GOVERNANCE
A commitment to sound and transparent governance principles is a criticalenabler of corporate financial success and sustainable progress.
By ensuring accountability, integrity and ethical decisionmaking in our behavior, we build trust, mitigate risks andenhance the resilience of our business.
To promote transparency, our website provides public accessto a comprehensive range of corporate governance materials.
These resources include

Mohawk upholds a set of transparent, accessible anduniform policies that encompass ethics, complianceand various other ESG-related aspects throughout theorganization. These include￭ Standards of Conduct and Ethics￭ Human Rights Policy￭ List of Board of Directors and executive officers￭ Supplier Code of Conduct￭ Corporate governance guidelines￭ Conflict Minerals Policy￭ Board committee charters￭ Health and Safety Policy￭ Board member contact information￭ Environmental Policy

Additionally, investors can find our 10-K, 10-Q and Proxy
filings with the SEC in the Investors section of our website.

￭ Privacy and Data Security Policy￭ Related Person Transactions Policy￭ Direct and Indirect Political Contributions

ESG Governance￭ Board of Directors Selection Policy

By integrating sustainability into our core operations, we arecommitted to mitigating environmental risks and maximizing
the long-term viability of our business. These priorities, aswell as robust governance principles and risk management
processes, are embedded in our management philosophy.

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ESG GOVERNANCE STRUCTURE

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTCEO AND BOARD OF DIRECTORS
Ultimate responsibility for the Company's ESG programs and initiatives

ADVANCING ESG GOVERNANCEFOR THE FUTURE

A Conversation with Karen Smith Bogart, Ph.D.
In your time as a board member, how has Mohawk’s
approach to ESG evolved?
Since I joined the Board in 2011, the Company has continually
increased its commitment to sustainability. During this period
Mohawk has evolved from using recycled content in key products
to utilizing advanced circular product strategies that are an
essential basis of the Company’s global R&D philosophy andoperations. The amount of recycling product inputs is truly
exceptional. We have accelerated our progress in the last two
years through an integrated strategy that is delivering excellent
results. As a leading manufacturing company, we are taking
many actions to reduce emissions. Recycled inputs are a partof that approach, but we have also expanded our green energy
production, lowered fossil fuel consumption, reduced packaging
material, extended the life cycle of C02 stored in wood fiber andmuch more.

How are Mohawk’s corporate governancepractices evolving?
Diversity is a key consideration when we review director
candidates for the Board. I am pleased that the Board hasformalized that commitment through its new Board of Directors
Selection Policy. Diverse boards often perform better, and thisnew policy will help ensure that we continue to serve our
stakeholders’ interests well.

NOMINATING & CORPORATE GOVERNANCE COMMITTEE￭ Oversees the Company's ESG-related programs

KAREN SMITH BOGART

Board Member and Chair of the Nominating
and Corporate Governance Committee

As chair of the Nominating and Governance Committee,
with oversight of sustainability programs, how do you
ensure that the Board stays up to date on ESG issues?
First, most of our directors have experience with ESG issues throughtheir professional backgrounds, so these are issues and opportunities
that they have addressed for years. Mohawk also has built top-notch
sustainability expertise within the Company. The Board reviews ESG
issues and progress toward sustainability goals on a quarterly basis.
In these updates, Mohawk’s CSO shares insights regarding the work
currently being done on key initiatives and investments, and we￭ Helps the Board formulate strategies to respond to public policy, legislative,

regulatory, political and social issues, as well as trends related to theenvironmental and social risks that may significantly affect the business
operations, financial performance or public image of the Company

ESG EXECUTIVE COUNCIL￭ Reviews and approves sustainability strategy￭ Works with the Board to provide oversight and guidance to the business￭ Engages in risk planning to identify and understand ESG risks to theCompany, including climate change-related risks, that might arise fromchanges in regulation, and physical or operational risks￭ Applies understanding of risks to inform our sustainability strategy￭ Sets environmental and social goals

provide feedback based on our own experiences.

CHIEF SUSTAINABILITY OFFICER

How does Mohawk’s Board consider emerging ESG
risks, such as climate-related risks?
We recognize that managing our sustainability priorities, including
climate risk, helps ensure long-term viability for the Company.
Our ESG Executive Council engages in risk planning to understandand address how climate change may impact the Company. Theserisks might include how our supply chains and facilities could be
affected by severe weather patterns, safety concerns, social issues
and changing market expectations. This work is overseen by the
Nominating and Governance Committee, which helps the Board
provide the Company with guidance on environmental andsocial risks.

￭ Defines and executes Mohawk’s sustainability strategy across theglobal enterprise￭ Partners with functional areas to increase alignment and optimize global

efforts for carbon reduction, product circularity, resource conservation andcommitments to workplace excellence

PEOPLE COUNCIL

PLANET COUNCIL￭ Multi-business, multi-level stakeholder leadership groups tasked withaligning business direction and decision-making with sustainability goals￭ Develops sustainability strategy, including goals and objectives￭ Identifies metrics to track performance and provide business segment

feedback, including best practice sharing/ 56

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTESG Executive Council
The ESG Executive Council is responsible for defining ESG
strategy and programs and ensuring progress toward theassociated goals and objectives at Mohawk Industries, Inc.
The Council reports to the Company’s Board and CEO andwill inform and engage with the Board and the Board’s
Nominating and Corporate Governance (NCG) Committee
on ESG and sustainability issues. The ESG Executive Council
also has the important duties of reviewing and approving
the Company’s sustainability strategy; identifying, assessing
and making recommendations for addressing ESG risks
and opportunities; and establishing global environmental
and social goals.
The ESG Executive Council meets as often as its members
may deem necessary and appropriate, but at least once perquarter in advance of Board meetings. It is comprised of
the Company’s senior executives that represent the main
business areas related to ESG and sustainability matters.
The current members of the ESG Executive Council are
the Chief Financial Officer, the Vice President of Business
Strategy & General Counsel, the President & Chief
Operating Officer, the Chief Sustainability Officer andthe presidents of the Company’s business segments.

￭ Inform the Board of Directors on the progress of the￭ Monitor ESG and sustainability-related risks, impacts and￭ Review and recommend to the Compensation Committee

Company’s sustainability strategy and ESG initiatives
and policies.

opportunities and provide guidance for the managementof these risks and potential responses.

of the Board and the Board any long- or short-term
performance targets for incentive-based compensation
associated with sustainability-related targets.

￭ Recommend to the Board of Directors options toaddress governance issues related to ESG andsustainability matters.
￭ Identify and provide a list of material ESG-related risks

on an annual basis and inform about the impacts andpotential opportunities of these risks to the entities thatprovide oversight to the Company’s risk assessment andmanagement process; as part of this, the ESG Executive
Council will lead the process of identifying climaterelated risks and opportunities that includes developing
climate risk scenarios to be used as part of the corporaterisk management framework.

￭ Review and discuss global proposals directly related to

ESG and sustainability matters.
￭ Review and approve the annual ESG Report and anyother voluntary external reports related to ESG matters.

￭ Review and approve training on ESG and sustainability-

related matters for members of the ESG Executive
Council, the People Council and/or Planet Council.

￭ Review and recommend for approval to the Board andthe NCG Committee any regulatory mandated externalreports related to ESG matters.
￭ Review and monitor the implementation of any

ESG‑related compliance plans for the Company.
￭ Approve and request the support of external

advisors or consultants to provide expertise in
any ESG‑related matter.

The ESG Executive Council’s primary management
responsibilities are to￭ Define the Company’s ESG strategy, programs andassociated goals and objectives.
￭ Review and provide feedback on all ESG andsustainability-related policies, plans, targets and metrics.
￭ Review, monitor and make recommendations to theBoard and NCG Committee regarding the implementationof the Company’s sustainability strategy.
/ 57

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

SUPPLY CHAIN MANAGEMENT
Mohawk prioritizes ethical, environmental and social standards
when selecting suppliers and partners globally.
To this end, we maintain a Supplier Code of Conduct, applicable for Mohawk worldwide, to ensure that materials
incorporated into Mohawk products comply with laws and requirements and that suppliers share our principles
of social responsibility. In 2022, we strengthened the Supplier Code of Conduct by requiring suppliers to alsoalign with Mohawk’s Environmental Policy. Our expectations for compliance with the Code of Conduct extend to
suppliers’ subcontractors. We conduct assessments to verify adherence and promptly address any violations.

OUR APPROACH TO RESPONSIBLE SOURCINGASSESSMENTS
We conduct assessments of
new and existing suppliers
to verify compliance with theCode. These include supplierquestionnaires, management
meetings and facility audits,which may be attended by
Mohawk staff or third parties.
We do not currently retain athird-party verifier, but reserve
the right to retain one, andrequire suppliers to agree tothird-party verification.
In 2022, Mohawk began thedevelopment of a diverse
supplier program and intends
to set a target for this initiativein 2024.

TRAININGEXPECTATIONS

We provide training toindividuals who are responsible
for the implementation,
management and enforcementof our Supplier Code of Conduct.
Should we discover a Codeviolation, we promptly address
the issue with the supplier andrequire correction. Our internal
accountability controls include
unannounced audits to verify
correction and compliance,
as well as the potential for
termination of the supplier
relationship for failure
to remedy the violation.

The Code, which we haveenhanced as we have expanded
globally, clearly outlines our
expectations, consistent with
International Labour Organization
standards, with regard to￭ The prohibition of child labor andforced compulsory labor￭ The maintenance of workplaces

free of coercion and harassment￭ The responsibility to provide

employees with a safe andhealthy workplace￭ Respect for the rights of

employees to organize andbargain collectively and theirright to not seek collective
bargaining
The Code also communicates that
suppliers are expected to meetrequirements applicable to humantrafficking and slavery that are
in accordance with the California
Transparency in Supply Chains
Act of 2010 (SB 657).

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT33%
Human Rights

Ensuring an Ethical LVT Supply Chain

Mohawk respects and protects the human rights of all people.
In locations where our products are manufactured or sold, ourculture promotes respect for the people who make and sellthem, the people living near our facilities, our suppliers andour customers.

As part of our ongoing dedication to responsible
practices, we are committed to ensuring that sourcingof PVC for our LVT products as well as finished LVT
products aligns with our policies, practices andprinciples. Recent external reports have highlighted
the presence of forced labor within the PVC industry,
specifically involving the Uyghur ethnic minority in
China. These reports raise significant concerns regarding
human rights violations and labor abuses.

In addition to our enterprise-wide Human Rights Policy, we
also have specific policies in place to address modern slavery
risks, particularly in our Australian flooring business, Godfrey
Hirst, which has stringent reporting obligations under the2018 Australian Modern Slavery Act. We are committed toworking toward continuously improving our approach tothe management of modern slavery risks by reference tobest practices.
Mohawk maintains an Economic Sanctions Compliance Policy
to ensure that the Company's worldwide employees comply
with U.S. rules and regulations relating to sanctions, as wellas the rules and regulations of the jurisdictions in which
Mohawk's non-U.S. employees and businesses operate. Aspart of the Company's sanctions risk management process,Mohawk utilizes a third-party global compliance sanctions tool
to screen, monitor and conduct due diligence of customers andvendors against U.S. and international sanctions.

As detailed in our Human Rights Policy, Mohawk stands
firmly against child labor, human trafficking, forced orunderpaid prison labor and slavery practices of any kind,and continues to undertake due diligence to validate
this expectation with our suppliers. Voluntary labor is astandard across the Company and a condition for doing
business with Mohawk.
In response to reports of forced labor in China, we began
conducting detailed supply chain mapping and audits
for PVC and LVT suppliers outside the U.S. that weredeemed high risk.
Mohawk also requires compliance with our Supplier Codeof Conduct, which addresses involuntary labor and otherhuman rights concerns as a condition of doing businesswith the Company. In addition, some business units
have started ethical sourcing training to better educate
Mohawk employees and suppliers about raw material
inputs for LVT. Other business units are in the processof implementing training programs.

of Mohawk's U.S. spending
is with diverse suppliers.

Supplier Diversity
We recognize that by engaging and supporting a wide
range of suppliers from diverse backgrounds, we not only
enhance our business performance but also contributeto the advancement of underrepresented communities.
During 2022, our corporate sustainability team partneredwith our U.S.-based purchasing teams to formalize astrategy to grow supplier diversity via a cross-functional
Supplier Diversity Committee. This work began byutilizing external databases to identify current suppliers
that are defined as diverse­and to analyze our current
level of spending with them. This exercise revealed that,currently, 33% of our U.S. spend is with diverse suppliers.
During 2023 and beyond, this initiative will focus ondeveloping a Supplier Diversity Policy, increasing theparticipation of diverse suppliers in the U.S. bidding
process and providing support for diverse suppliers toincrease business opportunities with Mohawk.

/ 59

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTETHICSAs a responsible global company, we recognize the importance ofconducting business with integrity, transparency and accountability.
Our strong ethical foundation serves as the guiding
principle that shapes our interactions with customers,
employees, partners and the communities we serve.
Mohawk has zero tolerance for unethical conduct,
including corruption, discrimination and harassment. Our
Standards of Conduct and Business Ethics, along with
our Human Rights Policy, establish a robust framework
to prevent such behaviors within our organization.
We have also implemented policies across our global
operations to discourage anti-competitive practices.
Compliance with these standards is expected of all
employees, officers and directors.
As Mohawk continues to expand globally, we recognize
the need to continually evaluate and enhance our ethics
policies and procedures. Corruption poses a significant
risk, and we are proactive in identifying and addressing
vulnerabilities. To mitigate corruption risks, we regularly
assess and analyze potential vulnerabilities and provide
anti-corruption training in multiple languages to ouremployees. In 2022, more than 88% of participants
completed the training.
We foster a culture where employees feel comfortable
reporting any concerns. To facilitate this, we conduct
annual business standards surveys to identify potential
issues across our organization. We also provide tools

for employees, customers and suppliers to reportany concerns through 24-hour anonymous third-party
hotlines and a confidential website. These channels areaccessible in local languages to ensure everyone has
a voice and can share their concerns without fear of
retaliation.
To help ensure a safe and respectful work
environment, we have implemented anti-harassment
training programs to promote a culture of respect. We
believe that fostering a supportive workplace not only
benefits our employees but also contributes to ouroverall success as an organization.
We approach political engagement with responsibility
and transparency. We refrain from making direct politicalcontributions to individuals, political parties or politicalaction committees. Our commitment to impartiality
is consistent throughout the organization. While weare members of trade associations and chambers ofcommerce, we do not exert influence over their politicalefforts. We acknowledge that our positions may notalways align with theirs, and we maintain independence
in our decision-making process. To uphold transparency,
we disclose the trade associations and chambers ofcommerce we are associated with, along with themembership fees paid.

Regulatory Compliance
As a global leader in the flooring industry, we recognize
the importance of operating in full compliance withlaws, regulations and industry guidelines. Complianceis not only a legal requirement but a fundamental
aspect of our corporate culture. Our comprehensive
compliance program encompasses legal compliance,data privacy, environmental regulations, labor laws andhealth and safety standards.

Increasing Compliance Awareness in Brazil
Eliane organized its first Compliance
Week in 2022, featuring three panel
discussions led by industry experts
covering various topics aroundcompliance and its connection to ESG.
More than 400 employees attended
each of the talks, which were broadcast
live and also recorded and publishedinternally for later viewing.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTDATA SECURITY AND PRIVACY
The importance of data security and privacy—and the riskof data breaches—has become a significant concern forbusinesses and society.
There is a growing need for companies to responsibly
handle personal data, including personally identifiable
information, payment details, device information andbrowsing history. Mohawk recognizes the importanceof safeguarding this information and only uses
collected data for legitimate business purposes,
such as identity verification, promotional materials
and enhancing our websites and products.
To help ensure privacy and security, we have
implemented a comprehensive Privacy Policy thatoutlines the necessary practices for any website,
application, mobile browser, social media accountor service we operate. This policy applies to our
corporate operations and U.S.-based businesses,
while our global entities have policies aligned withlocal regulations. We respect users' rights underapplicable data protection laws in each country.
We prioritize the protection of personally identifiable
information on Mohawk websites by adhering toapplicable laws and employing organizational,

technical, administrative and physical security
measures. A dedicated team, led by our Chief
Information Officer, implements information
security controls based on the nature of the data
involved. We perform regular reviews and updates
to our information security procedures to maintaintheir effectiveness.
New employees undergo mandatory online
cybersecurity training upon joining the Company,
and we provide annual training to all employees,
covering various topics such as avoiding malicious
attachments and links, phishing prevention, email
security, ransomware protection, URL awarenessand defense against social engineering tactics. While
we strive to minimize the likelihood of security
issues based on the sensitivity of the data, wecannot guarantee the absolute security of personal
information. However, we were pleased to reportthat in 2022, we experienced no significant data
breaches for the fourth consecutive year.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTAPPENDIX/ 62

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

GRIMohawk Industries, Inc. has reported the information cited in this GRI content index for the period January 1, 2021 to December 31, 2022 with reference to the GRI Standards.

DISCLOSURE NUMBERDISCLOSURE TITLERESPONSE

GENERAL DISCLOSURESGRI 2: General Disclosures 2021
THE ORGANIZATION AND ITS REPORTING
2-1

Organizational details

Mohawk Industries, Inc.
Public Corporation
Calhoun, GA, USA

2-2

Entities included in the organization’s sustainability reporting

2022 Form 10-K, Exhibit 21
Data from 2022 acquisitions are not included in this 2022 Environmental, Social and Governance (ESG) Report.
The company incorporates data from mergers, acquisitions and divestitures in the following calendar year. For
example, if a company is acquired in 2022, the data will be consolidated and reported in 2023. This approach isused across topics.
When consolidating information, the company does not include sustainability data from minority investments orfrom investments in which it does not have operational control.

2-3Reporting period, frequency and contact point

The reporting period is for January 1, 2022–December 31, 2022 and is reported annually.
The reporting period for financial reporting is aligned with sustainability reporting.
2022 ESG Report publication date: September 2023
sustainability@mohawkind.com

2-4

Restatements of information

As better data is available, the data is incorporated into past years and the improved data is incorporated in dataprocesses moving forward. There are no restatements of baseline data for targets in 2022.

2-5

External assurance

External assurance was not sought for the 2022 ESG Report data. We plan to seek external assurance in thenext two years.

/ 63

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTDISCLOSURE NUMBERDISCLOSURE TITLERESPONSE

2-6

Activities, value chain and other business relationships

2022 Form 10-K, starting p. 3

2-7

Employees

Total: ~40,9001

ACTIVITIES AND WORKERS

Male: 71.9%
Female: 28.1%
USA/Canada: 42.80%
Europe: 36.25%
Mexico: 9.63%
Brazil: 6.46%
Malaysia: 2.05%
Australia/New Zealand: 2.59%
Other: 0.22%
Full-time: 98.24%
Part-time:1.76%
Full-time Female: 27.62%
Full-time Male: 72.38%
Part-time Female: 54.71%
Part-time Male: 45.29%
Full-time/Part-time by Region:
USA/Canada Full-time: 99.52%
USA/Canada Part-time: 0.48%
Europe Full-time: 96.03%
Europe Part-time: 3.97%
Mexico Full-time: 100%
Brazil Full-time: 100%
Malaysia Full-time: 100%
Australia/New Zealand Full-time: 96.61%
Australia/New Zealand Part-time: 3.39%
Other Full-time: 85.39%
Other Part-time: 14.61%
View our U.S. EEO-1 report1

As of 12/31/2022.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTDISCLOSURE NUMBERDISCLOSURE TITLERESPONSE

Governance structure and composition

The company’s Chief Executive Officer (CEO), Board of Directors (BoD) and Nominating and Corporate GovernanceCommittee (NCGC), alongside an ESG Executive Council that includes the Chief Financial Officer (CFO), Vice
President—Business Strategy & General Counsel, Chief Operating Officer (COO), Chief Sustainability Officer (CSO)
and business unit presidents lead our sustainability agenda.

GOVERNANCE
2-9

The ultimate responsibility for the company’s ESG programs and initiatives is with the CEO and the BoD. The Board
includes a NCGC and an Audit Committee. The first has specific oversight responsibility for sustainability initiatives,
and the second oversees risk management for the Company. The NCGC also has responsibility for helping the BoD
formulate strategies to respond to public policy as well as legislative, regulatory, political and social issues. It also
includes formulating strategies that respond to environmental and social risks that may affect operations, financial
performance or reputation.
For further information, see the NCGC Charter and 2023 Proxy Statement, pgs. 5-10

2-10

Nomination and selection of the highest governance body

NCGC Charter
2023 Proxy Statement, pgs. 44-47

2-11

Chair of the highest governance body2023 Proxy Statement, p. 44

2-12

Role of the highest governance body in overseeing the management of impacts

The ESG Executive Council has amongst its responsibilities to: define the Company’s ESG strategy and programs
and associated goals and objectives; review and provide feedback on all ESG and sustainability-related policies,
plans, targets and metrics; review, monitor and make recommendations to the Board and Nominating and Corporate
Governance Committee regarding the implementation of the Company’s sustainability strategy; inform the BoD on
the progress of the Company’s sustainability strategy and ESG initiatives and policies.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTDISCLOSURE NUMBERDISCLOSURE TITLERESPONSE

2-13

Delegation of responsibility for managing impacts

The NCGC has specific oversight responsibility for sustainability initiatives, and, at the managerial level, the ESG
Executive Council defines all ESG-related matters and approves the Company’s sustainability strategy. In this role,
the ESG Executive Council is guided by a Planet Council and a People Council to support the development of theCompany’s sustainability strategy, identify and manage ESG risks, propose global ESG goals, targets and metrics
and align business direction and decision making with ESG goals and strategies.
The ESG Executive Council has the authority to delegate any of its responsibilities, along with the authority to act
in relation to such responsibilities, to either the People Council or Planet Council as it may deem appropriate in its
sole discretion.
The ESG Executive Council presents to the Board and the NCGC on material impacts, risks and opportunities, theimplementation of sustainability due diligence and the results and effectiveness of policies, actions, metrics andtargets adopted to address them, as well as any other sustainability-related concern that may arise and would
require their attention.
For further information, see the NCGC Charter.

2-14

Role of the highest governance body in sustainability reporting

The NCGC is responsible for overseeing the Company’s sustainability programs. As such, this committee assists the
BoD with formulating strategies to respond to public policy, legislative, regulatory, political and social issues andtrends related to environmental, health and safety, and sustainability performance that may significantly affect thebusiness operations, financial performance or public image of the Company.
At the managerial level, the ESG Executive Council reports to the Board and the NCGC on material impacts, risks
and opportunities, the implementation of sustainability due diligence and the results and effectiveness of policies,
actions, metrics and targets adopted to address them, as well as any other sustainability-related concern that may
arise and would require their attention.

2-15

Conflicts of interest

Standards of Conduct, Conflicts of Interest

2-16

Communication of critical concerns

Standards of Conduct, Reporting Violations
2023 Proxy Statement, p. 47

2-17

Collective knowledge of the highest governance body2023 Proxy Statement, pgs. 4-7; 45-46
Q&A with NCGC Board Chair, Karen Smith Bogart

2-18

Evaluation of the performance of the highest governance body2023 Proxy Statement, p. 46

2-19

Remuneration policies

2023 Proxy Statement, pgs. 15-25/ 66

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTDISCLOSURE NUMBERDISCLOSURE TITLERESPONSE

2-20

Process to determine remuneration

2023 Proxy Statement, pgs. 15-25

2-21

Annual total compensation ratio

2023 Proxy Statement, p. 32

STRATEGY, POLICIES AND PRACTICES
2-22

Statement on sustainable development strategy

CEO Letter, CSO Q&A

2-23

Policy commitments

Standards of Conduct & Business Ethics Policy
Supplier Code of Conduct
Conflict Minerals Policy
Health & Safety Policy
Human Rights Policy
Environmental Policy
Privacy & Data Security Policies
Prior Year Direct & Indirect Political Activity
All Mohawk Industries policies are approved by the CEO. Additionally, every employee must agree to theCompany’s Standard of Conduct upon employment, and all suppliers must agree to the Supplier Code of Conduct andHuman Rights Policy to become a vendor with Mohawk Industries.

2-24

Embedding policy commitments

Better for the Planet
Better for Performance

2-25

Processes to remediate negative impacts

Better for Performance > Supply Chain Management; Ethics

2-26

Mechanisms for seeking advice and raising concerns

Standards of Conduct, Reporting Violations
Mohawk Hotline and Website

2-27

Compliance with laws and regulations

2022 Annual Report, Note 16, Commitments and Contingencies, pgs. 56-58/ 67

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTDISCLOSURE NUMBERDISCLOSURE TITLERESPONSE

2-28

Membership associations

Below is a list of 2022 memberships that have or may have some engagement in the political process though this is
not their primary purpose. See our 2022 Indirect Political Contributions list.
• ABRAMAT—Brazilian Association of the Construction Material Industry• ACIC—Cricima Business Association• ADI—Associazione per il Disegno Industriale• AECS—South Cocal Business Association• AIA—American Institute of Architects• AMCL—Australian Made Campaign Limited• American Society of Interior Designers• American Society of Landscape Architects• American Trucking Associations• APCO—Australian Packaging Covenant Organization• APKM—Association of Ceramic Material Producers• Argentum (formerly Assisted Living Federation of America)• ASCER—Spanish Ceramic Tile Manufacturers Association• Associated Builders and Contractors• Association of Plastic Recyclers• Association of Postconsumer Plastic Recyclers• Assonime (Pedroni)• Belgian American Chamber of Commerce• CARE—Carpet America Recovery Effort• Carpet Cushion Council• Carpet Institute of Australia• Carpet Recycling UK• CCIR—Italo-Russian Chamber of Commerce• Ceramic Tile Institute of America• CET Cerame-Unie• Chamber of Commerce (Texas)• Chamber of Commerce of the United States• Chattooga (County, Georgia) Chamber of Commerce• Climate Active• COMCE (Consejo Mexicano de Comercio Exterior del Noreste, A.C.)• CONAI—National Packaging Consortium• Confindustria Ceramica• Dallas (Texas) Regional Chamber of Commerce• Decorative Hardwoods Association (formerly Hardwood, Plywood & Veneers Association)/ 68

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTDISCLOSURE NUMBERDISCLOSURE TITLERESPONSE

2-28

Membership associations, continued• Der Grune Punkt—Duales System Deutschland• Environment Essentials (Australia and New Zealand)• ERIAC—Asociacion de Professionals en Capital Humanos• Fedustria (Federation of the Textile, Wood and Furniture Industries)• Floor NZ• Forest Stewardship Council• Garner (North Carolina) Chamber of Commerce• GBCI Mexico (formerly Sustentabilidad para Mexico (SUMe))• Georgia Association of Manufacturers• Georgia Chamber of Commerce• Georgia Industry Environmental Coalition• Georgia Motor Trucking Association• Georgia Recycling Coalition• Gordon County (Georgia) Chamber of Commerce• Greater Dalton (Georgia) Chamber of Commerce• Greater Rome (Georgia) Chamber of Commerce• Green Building Certification Institute• Green Building Council Italia• Green Building Council Australia• Green Building Institute of Australia• INDA—Association of the Nonwoven Fabrics Industry• International Facility Management Association• International Interior Design Association• International Well Building Institute• Interseroh Austria GMBH
• Interseroh Di Enstleistungs GMBH
• Lexington (North Carolina) Chamber of Commerce• Living Futures Institute• Living Futures Institute of Australia• Manufactured Housing Institute• Mason Contractors Association of America• Metro Atlanta (Georgia) Chamber of Commerce• Mountain Lake (Alabama) Chamber of Commerce• Murray County (Georgia) Chamber of Commerce• National Association for PET Container Resources/ 69

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTDISCLOSURE NUMBERDISCLOSURE TITLERESPONSE

2-28

Membership associations, continued• National Association of Home Builders• National Association of Manufacturers• National Association of Manufacturers of Ceramics P.A.
• National Association of the Remodeling Industry• National Multi-Family Housing Council• National Wood Flooring Association• North American Laminate Flooring Association• Oriental Rug Importers Association• PEFC—Programme for the Endorsement of Forest Certification Schemes• Randolph County (Alabama) Chamber of Commerce• Resilient Floor Covering Institute• RSS—Russian Union of Builders• Society of Human Resources Management• South Carolina Chamber of Commerce• Southeast Dallas (Texas) Chamber of Commerce• Southeast Recycling Development Council• Southern Motor Carriers Association• Spanish Ceramic Tile Manufacturers Association• Tennessee Chamber of Commerce• The Association of Plastic Recyclers• The Carpet and Rug Institute• The Natural Stone Institute• Thomasville (North Carolina) Chamber of Commerce• Tifton County (Georgia) Chamber of Commerce• Tile Council of North America• Uni Ente Nazionale Italiano di Unificazione• U.S. Green Building Council• Virginia Manufacturers Association• World Floor Covering Association/ 70

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTDISCLOSURE NUMBERDISCLOSURE TITLERESPONSE

3-1

Process to determine material topics

Welcome > ESG at Mohawk > ESG Materiality

3-2

List of material topics

Welcome > ESG at Mohawk > ESG Materiality

3-3Management of material topic

Better for Performance > Ethics
Standards of Conduct

205-2

Communication and training about anti-corruption policies and procedures

All employees and directors are required to comply with the Standards of Conduct, and all salaried employees
receive bi-annual business conduct training.

3-3Management of material topic

Better for Customers > Make; Recover
Better for the Planet > Waste Efficiencies

301-2

Recycled input materials used

Our laminate collections contain more than 90% recovered wood. The majority of our ceramic products containpre-consumer recycled content. Our Luxury Vinyl Tile (LVT) and sheet vinyl include pre-consumer recycled PVC
content. Our chipboards give new life to approximately 700,000 tons of reclaimed wood each year, and we are thefirst in the industry to find a way to recycle medium-density fiberboard (MDF) and high-density fiberboard (HDF) into
new products. In 2022, Mohawk recovered more than 40,000,000 lbs of product, including carpet and chipboards. On
average, Mohawk recycled approximately 6 billion PET plastic bottles each year over the last decade.

Management of material topic

Better for the Planet > Climate Positive Future

MATERIAL TOPICSGRI 3: Material Topics 2021

GRI 200: ECONOMICGRI 205: Anti-corruption

GRI 300: ENVIRONMENTAL
GRI 301: Materials

GRI 302: Energy
3-3

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTDISCLOSURE NUMBERDISCLOSURE TITLERESPONSE

302-1

Energy consumption within the organizationa) Total energy consumption from non-renewable sources in MWh: 11,642,351; Fuel types include electric, naturalgas, propane, diesel, combined heat and power, light oil and coal.
b) Total energy consumption from renewable sources in MWh: 1,115,253; Fuel types include wind, solar, biomass,
biofuel and biomass steam.
e) Total energy consumption within the organization in MWh: 12,757,604f) Standards, methodologies, assumptions and/or calculation tools used: GHG Protocolg) Source of conversion factors used: Mohawk utilizes utility emissions factors when available, and databases suchas eGrid and IEA when not available.

302-3

Energy intensitya) Energy intensity ratio for the organization: 1.087b) Organization-specific metric (the denominator) chosen to calculate the ratio: Revenue in constant currency (rev CC)c) Types of energy included in the intensity ratio; whether fuel, electricity, heating, cooling, steam or all: Alld) Whether the ratio uses energy consumption within the organization, outside of it or both: Within the organization

3-3Management of material topic

Better for the Planet > Water Restoration

303-1

Interactions with water as a shared resource

Better for the Planet > Water Restoration

303-3

Water withdrawal1

Total Water Withdrawal: 13,025.33 Megaliters
Surface: 3,007.98—23.09%
Ground: 1,979.48—15.20%
Third-Party: 8,037.87—61.71%

3-3Management of material topic

Better for the Planet > Climate Positive Future
Mohawk Data Center

305-1

Direct (Scope 1) GHG emissions

Better for the Planet > Climate Positive Future
Mohawk Data Center

305-2

Energy indirect (Scope 2) GHG emissions

Better for the Planet > Climate Positive Future
Mohawk Data Center

GRI 303: Water and EffluentsGRI 305: Emissions

1

A water stress and risk analysis was undertaken and 2023 and will be factored into reporting in the coming years. Note that sites without significant water consumption like offices are not factored into water data.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTDISCLOSURE NUMBERDISCLOSURE TITLERESPONSE

305-3

Other indirect (Scope 3) GHG emissions

Total: 6,907,945 metric tons CO2e
Purchased Goods and Services: 3,960,913 metric tons CO2e
Capital Goods: 117,012 metric tons CO2e
Fuel and Energy-Related Activities: 422,792 metric tons CO2e
Upstream Transportation and Distribution: 859,419 metric tons CO2e
Waste Generated in Operations: 147,126 metric tons CO2eBusiness Travel: 16,648 metric tons CO2e
Employee Commuting: 47,161 metric tons CO2e
Processing of Sold Products: 130,470 metric tons CO2eEnd-of-life of Sold Products: 1,206,404 metric tons CO2e

305-4

GHG emissions intensity

Better for the Planet > Climate Positive Future
Mohawk Data Center

3-3Management of material topic

Better for the Planet > Waste Efficiencies
Better for Customers > Product Circularity; Make

306-1

Waste generation and significant waste-related impacts

Better for the Planet > Waste Efficiencies
Better for Customers > Product Circularity; Make

306-2

Management of significant waste-related impacts

All vendors are required to follow the Supplier Code of Conduct and to align with the Environmental Policy.
For further information about how Mohawk manages waste-related impacts, see the following sections:
Better for the Planet > Waste Efficiencies
Better for Customers > Product Circularity; Make

306-3

Waste generated1

Total weight of waste generated: 495,978 metric tons

GRI 306: Waste

1

Waste data does not include sites such as offices with insignificant waste impacts.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTDISCLOSURE NUMBERDISCLOSURE TITLERESPONSE

306-4

Waste diverted from disposal1a) Total weight of waste diverted from disposal: 298,200 metric tonsb) Total weight of hazardous waste diverted from disposal, and a breakdown following recovery operations:
Total: 576 metric tons
Recycled: 41 metric tons
Prepared for Reuse: 535 metric tonsc) Total weight of non-hazardous waste diverted from disposal:
Total: 297,624 metric tons
Prepared for Reuse: 5 metric tons
Recycled: 294,103 metric tons
Other Recovery: 3,516 metric tons

306-5

Waste directed to disposal1a) Total weight of waste directed to disposal: 197,778 metric tonsb) Total weight of hazardous waste directed to disposal and a breakdown by the following disposal operations:
Total: 3,154 metric tons
Other Disposal: 2,349 metric tons
Landfill: 479 metric tons
Incineration with Energy Recovery: 247 metric tons
Incineration without Energy Recovery: 80 metric tonsc) Total weight of non-hazardous waste directed to disposal, and a breakdown by the following disposal operations:
Total: 194,624 metric tons
Landfill: 119,418 metric tons
Incineration with Energy Recovery: 75,206 metric tons

GRI 308: Supplier Environmental Assessment

13-3Management of material topic

Better for Performance > Supply Chain Management308-1

New suppliers that were screened using environmental criteria

New suppliers must adhere to the Supplier Code of Conduct, which includes complying with the
Mohawk Environmental Policy.

Waste data does not include sites such as offices with insignificant waste impacts.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTDISCLOSURE NUMBERDISCLOSURE TITLERESPONSE

3-3

Management of material topic

Better for People > Performance Driven Workplace; Inclusion at Mohawk; Health and Well-being

401-1

New employee hires and employee turnover

Total number of employees: ~40,9001

GRI 400: SOCIALGRI 401: Employment

New hires: 23.33% of total
Female: 27.02%
Male: 72.98%<30 years: 41.87%
30-50 years: 45.47%
50+ years: 12.66%
USA/Canada: 36.12%
Europe: 48.28%
Mexico: 9.42%
Brazil: 0.97%
Malaysia: 2.36%
Australia/New Zealand: 2.59%
Others: 0.26%

401-2

Benefits provided to full-time employees that are not provided to temporary or part-time employees

Better for People > Health and Well-being
My Mohawk Benefits

401-3

Parental leave

Better for People > Health and Well-being
My Mohawk Benefits

GRI 403: Occupational Health and Safety

1

3-3Management of material topic

Better for People > Zero Harm Workplace

403-3

Occupational health services

Better for People > Zero Harm Workplace

As of 12/31/2022.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTDISCLOSURE NUMBERDISCLOSURE TITLERESPONSE

403-4

Worker participation, consultation, and communication on occupational health and safety

Better for People > Zero Harm Workplace

403-5

Worker training on occupational health and safety

Better for People > Zero Harm Workplace

403-6

Promotion of worker health

Better for People > Zero Harm Workplace

403-7

Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

Better for People > Zero Harm Workplace

403-8

Workers covered by an occupational health and safety management system

Better for People > Zero Harm Workplace

403-9

Work-related injuries

Better for People > Zero Harm Workplace

GRI 404: Training and Education
3-3Management of material topic

Better for People > Training and Development

404-1

Average hours of training per year per employee

The estimated average hours of training per year per employee is 15.5 hours. Additionally, employees
who participate in our development programs receive over 50+ hours of training annually.

404-2

Programs for upgrading employee skills and transition assistance programs

Better for People > Training and Development

GRI 405: Diversity and Equal Opportunity
3-3Management of material topic

Better for People > Inclusion at Mohawk

405-1

Diversity of governance bodies and employees

Better for People > Inclusion at Mohawk
2023 Proxy Statement, pgs. 4-8

3-3

Management of material topic

Better for People > Connected Communities

413-1

Operations with local community engagement, impact assessments, and development programs

Better for People > Connected Communities

GRI 413: Local Communities/ 76

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTDISCLOSURE NUMBERDISCLOSURE TITLERESPONSE

GRI 414: Supplier Social Assessment
3-3Management of material topic

Better for Performance > Supply Chain Management414-1

New suppliers that were screened using social criteria

New suppliers must adhere to the Supplier Code of Conduct, which includes complying with the
Mohawk Human Rights Policy.

GRI 416: Customer Health and Safety
3-3Management of material topic

Better for Customers > Use

416-1

Assessment of the health and safety impacts of product and service categories

Better for Customers > Use

3-3

Management of material topic

Better for Performance > Ethics > Data Security and Privacy

418-1

Substantiated complaints concerning breaches of customer privacy and losses of customer data

There were no substantiated complaints concerning breaches of customer privacy and losses of customer data in 2022.

GRI 418: Customer Privacy/ 77

MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTSASBThis report contains disclosures in accordance with the Sustainability Accounting Standards Board (SASB) Building Products and Furnishings Standard as compiled December 2022.

TOPIC

ACCOUNTING METRICCATEGORY

CODE

2022 RESPONSE

Energy Managementin Manufacturing(1) Total energy consumed, (2) percentage grid electricity,(3) percentage renewable

Quantitative

CG-BF-130a.1(1) Total energy consumed: 12,757,604 MWh(2) Percentage grid electricity: 20.8%(3) Percentage renewable: 8.74%

Management of Chemicals
in Products

Discussion of processes to assess and manage risks and/or hazards
associated with chemicals in products

Discussion and Analysis

CG-BF-250a.1

Better for Customers > Use; Recover
Better for the Planet > Biodiversity

Percentage of eligible products meeting volatile organic compound (VOC)
emissions and content standards

Quantitative

CG-BF-250a.2

100% of eligible products meet volatile organic compound emissions and content standards.

Description of efforts to manage product lifecycle impacts and meet demand
for sustainable products

Discussion and Analysis

CG-BF-410a.1

Better for Customers > Product Circularity(1) Weight of end-of-life material recovered, (2) percentage of recoveredmaterials recycled

Quantitative

CG-BF-410a.2(1) ~40,000,000 lbs(1) Total weight of wood fiber materials purchased, (2) percentage from thirdparty certified forestlands, (3) percentage by standard, and (4) percentage
certified to other wood fiber standards, (5) percentage by standard

Quantitative

CG-BF-430a.1(1) 1,605,184 metric tons or 3,538,827,878 lbs1(2) 17% of wood products from third‑party‑validated sources1(3) 81% of wood products are FSC/PEFC certified or controlled1(4) 2% are not third-party validated1

Product Lifecycle
Environmental Impacts

Wood Supply Chain
Management

1

ACTIVITY METRICCATEGORY

CODE

2022 RESPONSE

Annual Production

Quantitative

CG-BF-000.A

Welcome > Value in Scale and Scope
Due to the differing nature of products, we use revenue as an external measure to compare across categories. Internally, multiple units are used to track production,
including square feet, square yards, lbs, kgs, m3 and units.

Area of Manufacturing Facilities

Quantitative

CG-BF-000.B

2022 Form 10-K, p. 21
Properties: 6.5M m2

In 2022, we expanded these metrics to include all wood products. Previous years included all wood flooring products.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTTCFDMohawk has adopted the reporting recommendations set forth by the Task Force on Climate-related Financial Disclosures (TCFD) to communicate the evolving impacts of climate change on ourbusiness. Additionally, in line with recommendations made by the TCFD, Mohawk is responding to the CDP Climate Change 2023 questionnaire,1 references to which are included in the table below.
DISCLOSURE FOCUS AREA

RECOMMENDED DISCLOSURE

2022 RESPONSE

2022 REFERENCEa) Describe the board’s oversight of climate-related risks
and opportunities.

The Nominating and Corporate Governance Committee reviews the effectiveness of the Company’s
policies, programs and practices at optimizing its efforts to maintain sustainable ecosystems, safe andhealthy employees, and vital communities as integral elements of its commitment to create long-term
stockholder value. The Committee assists the Board of Directors with formulating strategies to respond to
public policy, legislative, regulatory, political and social issues and trends related to environmental, healthand safety, and sustainability performance that may significantly affect the business operations, financial
performance or public image of the Company or its businesses.

Better for Performance > Corporate GovernanceNominating and Corporate Governance Committee Charter
Mohawk Policies and Resources
2023 Proxy Statement, p. 46b) Describe management’s role in assessing and managing
climate-related risks and opportunities.

The Environmental, Social and Governance Executive Council is responsible for defining ESG strategy andprograms and ensuring progress toward the associated goals and objectives at Mohawk Industries, Inc.
The ESG Executive Council reports to the Company’s Board of Directors and informs and engages with
the Board and the Board’s Nominating and Corporate Governance Committee on ESG and sustainability
issues. The ESG Executive Council also has an important duty in reviewing and approving the Company’ssustainability strategy and identifying, assessing and making recommendations for addressing ESG risks
and opportunities and establishing global environmental and social goals.

Better for Performance > Corporate Governance2023 Proxy Statement, p. 46
Mohawk Policies and Resourcesa) Describe the climate-related risks and opportunities theorganization has identified over the short, medium, andlong term.

See 2.2a in 2023 CDP Climate Change Questionnaire

Better for Customers > Make
Mohawk Policies and Resourcesb) Describe the impact of climate-related risks andopportunities on the organization’s businesses, strategy,
and financial planning.

See 2.3a in 2023 CDP Climate Change Questionnaire

Better for Customers > Make
Mohawk Policies and Resourcesc) Describe the potential impact of different scenarios,
including a 2°C scenario, on the organization’s businesses,
strategy, and financial planning.

Mohawk will perform a climate risk assessment with scenario analysis, expected to be complete in 2023.

Better for Customers > Make
Mohawk Policies and Resources

GOVERNANCE
Disclose the organization’s
governance around climate-relatedrisks and opportunities.

STRATEGY
Disclose the actual and potential
impacts of climate‑related risks
and opportunities on theorganization’s businesses,
strategy and financial planning.

See 3.2 and 3.2b in 2023 CDP Climate Change Questionnaire for climate-related risks and opportunities on
the organization’s businesses, strategy and financial planning.

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RECOMMENDED DISCLOSURE

2022 RESPONSE

2022 REFERENCEa) Describe the organization’s processes for identifying andassessing climate-related risks.

See 2.2 in 2023 CDP Climate Change Questionnaire

Better for Performance > Corporate Governance
Mohawk Policies and Resourcesb) Describe the organization’s processes for managing
climate-related risks.

See 2.2 in 2023 CDP Climate Change Questionnaire

Better for Performance > Corporate Governance
Mohawk Policies and Resourcesc) Describe how processes for identifying, assessing, andmanaging climate-related risks are integrated into theorganization’s overall risk management.

See 2.2 in 2023 CDP Climate Change Questionnaire

Better for Performance > Corporate Governance
Mohawk Policies and Resourcesa) Disclose the metrics used by the organization to assessclimate-related risks and opportunities in line with its
strategy and risk management process.

Scope 1, 2 and 3 emissions; Total water withdrawal; Total waste-to-landfill

Welcome > ESG at Mohawk
Better for the Planet > Climate Positive Future
Mohawk Policies and Resourcesb) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3
greenhouse gas (GHG) emissions, and the related risks.

Scope 1: 1,974,552 metric tons CO2e (Market-based)1
Scope 2: 961,974 metric tons CO2e (Market-based)1
Biogenic: 355,380 metric tons CO2e1
Total Scope 1, 2 and Biogenic: 2,936,527 metric tons CO2e (Market-Based)1
Scope 3: 6,907,945 metric tons CO2e

Better for the Planet > Climate Positive Future
Mohawk Data Centerc) Describe the targets used by the organization to manage
climate-related risks and opportunities and performanceagainst targets.

Reduce Scope 1 and 2 emissions intensity by 25% by 20252

Welcome > ESG at Mohawk
Better for the Planet > Climate Positive Future
Mohawk Policies and Resources

RISK MANAGEMENT
Disclose how the organization
identifies, assesses and manages
climate-related risks.

METRICS AND TARGETS
Disclose the metrics and targets
used to assess and manage
relevant climate-related risks
and opportunities.

Reduce water withdrawal intensity by 30% by 20252
Reduce waste-to-landfill intensity 30% by 20252

1
2

Mohawk Industries is amending Scope 1 and Scope 2 data for the 2023 CDP Climate Change Report. For up to date information, see the Mohawk Data Center.
All targets have a 2010 baseline, and intensity is calculated based on revenue in constant currency.

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MOHAWK / 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTRECONCILIATION OF NON-GAAP MEASURESNET EARNINGS (LOSS) TO ADJUSTED EBITDA(Amounts in thousands)
Net earnings (loss) including noncontrolling interests

25,783

Interest expense

51,938

Income tax expense

158,110Net income attributable to non-controlling interest(536)

Depreciation and amortization

595,464

EBITDA

830,759

Restructuring, acquisition and integration-related and other costs

58,819Acquisitions purchase accounting including inventory step-up

2,762

Impairment of goodwill and indefinite-lived intangibles1

695,771

Legal settlement, reserves and fees, net of insurance proceeds

54,231

Release of indemnification asset

7,324

Adjusted EBITDA

1

2022

1,649,666

 uring the third quarter of 2022, due to the impact of a higher WACC, macroeconomic conditions, and the reduction in the Company’s market capitalization, the Company performed interim impairment tests of its goodwill and indefinite-lived intangible assets,D
which resulted in impairment charges of $695.8 million ($685.6 million net of tax).

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160 SOUTH INDUSTRIAL BLVD.
CALHOUN, GA 30701
MOHAWKIND.COM

Version 1.0 September 2023