Mohawk Industries : 2021 ESG Report (EN)

1. Better Tomorrow Together.

2021 Environmental,

Social and

Governance Report

Innovating for a better tomorrow

As the world's largest flooring manufacturer, Mohawk is comprised of businesses that span the globe to meet the wide range of customer needs in their respective regions. Each of these businesses has its own best practices, strengths and resources to make progress on its environmental, social and governance (ESG) journey. And today, we are collaborating as never before to share these practices, processes and programs and capitalize on these strengths so that we can build a better tomorrow-together.

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Welcome to Mohawk Industries' thirteenth annual Environmental, Social and Governance Report.

Mohawk's passion for sustainability and commitment to transparency can be found in products, processes and practices across the enterprise. This year, our report continues to build on our sustainability strategy that was introduced in 2021 and reflects how our sharing of best practices yields consistent and effective programs and processes across our businesses. The Company's decentralized structure allows our leadership teams in each business to implement initiatives that are best suited for their customers, employees and communities.

Also, this year, we are pleased to report our progress against our enterprise-level commitments, which are guiding our progress over the next decade. These include a corporate

goal to reduce Scope 1 and 2 emissions and a commitment to disclose Scope 3 emissions and develop science-based targets (SBTs) by 2024.

These milestones in our sustainability journey reflect our commitment to addressing climate change and a readiness to formalize and measure more of the good work that has taken place within the business for decades. Mohawk's business strategy has always focused on delivering results, and we bring that same passion for achieving excellence in each of our sustainability pillars.

This year's report is prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option and covers the 2021 calendar year,

which is also our fiscal year. We also provide information from 2022, 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 Climate-related Financial Disclosures (TCFD) to guide our ESG disclosures. Since 2017, we have also published an annual climate change report with CDP Global, an international nonprofit organization that helps companies and cities disclose their environmental impact. Currently, we are beginning to align our reporting with the European Union (EU) Taxonomy framework, a classification system establishing a list of environmentally sustainable economic activities. Finally, we were pleased to participate in the 2022 Dow Jones Sustainability Index submission process and to have been added to the S&P 500 ESG Index in April 2022.

We invite you to read the report and learn more about the actions we are taking to build a better tomorrow together.

Thank you.

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Content Overview

WELCOME

Leadership Messages • Company Overview • ESG at Mohawk • ESG Recognition

Engagement	Climate-Positive Future	Governance
Women's Leadership	Energy Conservation	Ethics
Demographics	Water Restoration	Security & Privacy
High-Performing Workforce	Product Circularity
Safety	Responsible Sourcing
Health & Well-being
Community Partnerships

INDICES

GRI • SASB • TCFD • Reconciliation Table

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A Message

from our Chairman and CEO, Jeffrey S. Lorberbaum

Outside my office, a white oak soars almost 100 feet. This tree was growing in Calhoun when the land on which our headquarters sits was a working farm and, long before that, when it was a forest where indigenous people lived. In the 30 years since Mohawk has been at this location, the tree has symbolized the growth of our business.

Mohawk treats trees with great thoughtfulness, just as we responsibly use all materials and natural resources. In past reports, we have highlighted how we transform billions of plastic bottles into carpet and how more than 99 percent of our ceramic tile collections contain recycled content. These processes reflect our commitment to product circularity,

and similar processes apply to our use of wood, which is a primary component in about one-fifth of our product offering.

Some facts about our wood-based products that you might not know include

• More than 90 percent of the wood used in our laminate flooring, chipboard and panel products is recovered or recycled content
• At 7 facilities in Europe, the U.S. and Brazil, Mohawk utilizes end-of-life wood waste to generate carbon neutral electricity and biomass heat, which amounts to almost 10 percent of our total annual energy consumption
• End-of-lifetrees from the Malaysian rubber industry become cores for our parquet flooring

• We are the first company in the world to extract wood fiber from used MDF and HDF boards, so the content can be reclaimed and repurposed

We apply many approaches to reducing our carbon footprint. One is very simple: keeping CO2 stored in our products for as long as possible through a commitment to product circularity. Not all trees will stay in the environment as long as the one outside my office; those that are responsibly harvested must be used wisely and reused purposefully across multiple generations.

Trees also teach us how to better measure the passage of time. In business, there's a tendency to evaluate success quarter by quarter. I take a 100-year view with Mohawk. Our actions are intended to make the business as sustainable as our products and processes.

We have all been taught that each tree ring marks a year of growth. Study the rings closely and you can see that growth is uneven due to varying conditions. Trees are resilient: their progress continues through both bountiful and challenging years. Mohawk is much the same. We sustain our growth by adapting to evolving conditions, thoughtfully using resources, and, perhaps most importantly, investing in people.

The trajectory of our growth naturally has been impacted by economic cycles. Though the Great Recession hurt our industry, our net sales have approximately doubled from a decade ago, as Mohawk rebounded vigorously. Our geographic footprint in the past ten years has also grown, now encompassing Australia, Brazil, Bulgaria, Germany, Italy, New Zealand, Poland, Spain and more.

Currently, our industry faces near-term economic uncertainty that will temporarily impact housing markets and consumer spending. As trees remind us, growth is sustainable if the structure is healthy, the foundation is stable, and risks are mitigated. All of that is true of our business.