Armstrong World Industries : 2023 ESG Performance Summary (2023 esg performance summary)

2023 ESG Performance Summary

Building

Better

Together

Our Sustainability

2023 Highlights

Healthy and Circular Products

PRODUCT SALES FREE OF CHEMICALS OF CONCERN

2023 61%

2030 TARGET 100%

In 2023,

80%

of our Mineral Fiber product sales were free of chemicals of concern, bringing us closer to reaching our 2030 goal of 100%.

In 2023,

$776 million

in revenue was generated from products that met SUSTAIN® criteria, representing verified transparency and the elimination of chemicals of concern.

Thriving People and Communities

75

organizations were impacted through employee choice giving and foundation matching.

The enthusiasm surrounding our sustainability efforts is palpable. We're not just setting targets anymore; we're weaving sustainability into the fabric of our operations and securing buy-in across all levels. It's about getting to genuine, long-lasting sustainability progress, not just quick fixes. I'm thrilled about the path we're on and excited to see the transformative impact of our commitment to our future."

-KELSEYHERRING, Director of Sustainability

Healthy Planet

SCOPE 1 AND 2 EMISSIONS REDUCTION

2023 12%

2030 TARGET 30%

In 2023, we decreased our market-based Scope 2 GHG emissions by

21%

compared with a 2019 baseline.

17%

of our electricity comes from renewable sources and it's our goal to reach 100% by 2030.

100%

of AWI employees receive access to company platforms that provide an opportunity to express views on topics that matter to them.

ARMSTRONG WORLD INDUSTRIES | ESG Performance Summary

2023 Performance Summary	We have established nine goals under our three sustainability pillars. They reflect our evolving
	Our Sustainability Goals and Targets
	materiality analysis and align with the UN SDGs and other reporting frameworks. Armstrong
	continues to work toward our 2030 targets.

GOALS

Sustainably	We aim to create products and solutions from healthy, sustainably sourced
sourced products	materials by eliminating chemicals of concern through sustainable supply chains.

TARGETS	TARGET DATE
100% of our products are free of chemicals of concern.	2030
100% of our products have verified transparency.	2030
100% of our material sourcing activities are evaluated for social, ethical and environmental performance.	2030

Healthy

and Circular	Circular products	We aim to design our products to be recycled, reused or repurposed and drive
Products	circularity in our operations, with customers and throughout our value chain.

50% of our products have a viable path to be recycled, reused or repurposed at end of use.

2030

	Reduced carbon	We aim to make a positive contribution to spaces and the environment by	50% reduction in the carbon footprint of our products, compared with a 2019 baseline.	2030
	decreasing our products' carbon and water footprint, and by creating solutions
	and water footprint	20% reduction in the water intensity of our products, compared with a 2019 baseline.	2030
	that actively contribute to health and wellness.
	Reduced	We aim to reduce our greenhouse gas emissions and increase our reliance on	30% reduction in absolute Scope 1 and 2 GHG emissions compared with a 2019 baseline,	2030
	in accordance with the SBTi, allowing us to meet a well below 2oC scenario.
	carbon footprint	renewable electricity using climate-science-based targets.
Healthy	100% of our electricity needs are sourced directly or indirectly from renewable electricity.	2030
	We aim to eliminate waste through innovative manufacturing processes and by
Planet	Circular systems	50% reduction in absolute waste from our operations, compared with a 2019 baseline.	2030
creating circular systems from order to delivery.
	Protecting Water	We aim to optimize our use of water and contribute to water management and	100% of our water management practices include measures designed to minimize usage and	2030
	and Biodiversity	restoration efforts by reducing our reliance and impact on local water systems.	environmental discharge.
	Community	We aim to engage in communities where we operate to make them vibrant places	Locations formally engaged in local community outreach.	ongoing
	to live and work by strengthening and supporting local programs and fostering	Employees offered opportunities to actively engage in their communities on an ongoing basis.	ongoing
	engagement
	impactful relationships.
	Increased community engagement scores year over year.	ongoing
	Diverse & inclusive		Employees receive training or engagement on diversity and inclusion topics on a regular basis.	ongoing
	We aim to develop an inclusive culture and a diverse workforce at all locations.	Locations have a representative diverse workforce.	ongoing
Thriving	workforce
	Employees have a meaningful and safe opportunity to share their views on topics that matter to them.	ongoing
People and
		Employees offered tools and resources to improve their financial, physical and mental health
Communities			ongoing
		and well-being.
	Safe & healthy	We aim to cultivate a culture that leads to safe, healthy, fulfilled employees.	Employees offered learning and development opportunities annually.	ongoing
	employees	Improved workplace safety scores year over year, while we strive to have zero workplace injuries.	ongoing
			Employees offered at least a fair wage, to be defined as competitive total rewards based on	ongoing
			position and location.

ARMSTRONG WORLD INDUSTRIES | ESG Performance Summary

2023 Performance Summary (Continued)

Key Sustainability Data

HEALTHY AND CIRCULAR PRODUCTS

2019

2020

2021

2022

2023

Percentage of product sales free of chemicals of concern	55%	58%	57%	58%	61%
Percentage of product sales with verified transparency	55%	58%	57%	58%	68%
Product carbon footprint (Mt CO2e)	1,291,000	1,116,000	1,146,000	1,129,000	1,173,000

HEALTHY PLANET

Scope 1 emissions

2019

214,000

2020

199,000

2021

206,000

2022

196,000

2023

198,000

	Market-based Scope 2 emissions	108,000	93,000	91,000	88,000	86,000
Carbon1 in metric tons CO2e:
Total market-based Scope 1 & 2 market-based emissions	322,000	292,000	297,000	284,000	284,000
	GHG intensity for Scope 1, 2 & 3: Mineral Fiber only (metric tons CO2e/million ft2)	1,190	1,180	1,130	1,100	1,130
	Location-based Scope 2 emissions				103,000	97,000
	Percentage of renewable electricity	0%	0%	10%	13%	17%
Energy1 in megawatt hours	Direct energy consumption	1,179,000	1,096,000	1,137,000	1,085,000	1,094,000
Indirect energy consumption	260,000	246,000	258,000	257,000	250,000
	Energy intensity for Scope 1 & 2: Mineral Fiber only (MWh/million ft2)	1,530	1,590	1,600	1,570	1,610
	Total waste	21,180	20,960	23,110	20,970	20,243
Waste2 in metric tons	Nonhazardous waste landfill	20,860	20,550	22,820	20,770	19,433
Nonhazardous waste incinerated	270	320	190	120	752
	Hazardous waste	50	90	100	90	58
Water3 Mgal	Water used	733	687	713	733	699
	Nitrous oxides (NOx)		150	130	129	147
	Volatile organic compounds (VOCs)		550	530	503	501
	Particulate matter (PM)		240	240	230	232
Air Quality4 in metric tons
Hazardous air pollutants (HAPs)		90	80	79	86
	Carbon monoxide (CO)		2,410	2,170	2,026	2,034
	Sulfur oxides (SOx)		40	60	62	49
	Ammonia (NH3)		70	60	57	54

ARMSTRONG WORLD INDUSTRIES | ESG Performance Summary

2023 Performance Summary (Continued)

THRIVING PEOPLE AND COMMUNITIES

2019

2020

2021

2022

2023

	OSHA recordable injuries		37	38	51	39	31
Health and safety5
OSHA total recordable incident rate		1.62	1.55	1.76	1.30	1.03
	Fatalities		0	0	0	0	0
Charitable giving U.S. dollars in thousands			$544	$834	$623	$600
	Total employees	Male		75%	73%	73%	73%
	Female		25%	27%	27%	27%
	New hires	Male		71%	69%	72%	74%
Employee data by gender (global)	Female		29%	31%	28%	26%
	Male		9%	12%	16%	9%
Percent (%)	Employee turnover
Female		7%	12%	16%	10%
	Leadership	Female			23%	24%	24%
	Mid-level managers and staff	Female			38%	38%	36%
	Production	Female			15%	16%	17%
		<30		15%	15%	15%	15%
	Total employees	30-50		43%	43%	43%	44%
		50+		41%	41%	42%	42%
Employee data by age (global)		<30		33%	37%	35%	36%
New hires	30-50		45%	44%	45%	46%
Percent (%)
	50+		22%	19%	20%	18%
		<30		13%	22%	29%	16%
	Employee turnover	30-50		5%	10%	15%	9%
		50+		10%	10%	11%	8%
	Total U.S. employees			23%	25%	28%	31%
Employee data by minority	New employee hires			20%	34%	37%	42%
Employee turnover			7%	13%	15%	9%
status (U.S. only)
Leadership				12%	12%	11%
Percent (%)
Mid-level managers and staff				15%	18%	19%
	Production				15%	16%	44%
	Gender	Male		78%	78%	78%	75%
Board of Directors	Female		22%	22%	22%	25%
Percent (%)	Minority status			22%	22%	33%	38%
	Independent status			88%	88%	88%	88%
Senior leadership	Gender	Male			57%	57%	67%
Female			43%	43%	33%
Percent (%)
Minority status				14%	29%	33%

ARMSTRONG WORLD INDUSTRIES | ESG Performance Summary

2023 Performance Summary (Continued)

Notes About Data

• Certain 2019, 2020, 2021 and 2022 figures have been updated from previously reported data.
• Our operating segments are as follows: Mineral Fiber, Architectural Specialties and Unallocated Corporate. Our Mineral Fiber segment produces suspended Mineral Fiber and soft fiber ceiling systems. Our Mineral Fiber products offer various performance attributes such as acoustical control, rated
  fire protection, aesthetic appeal and health and sustainability features. Our Architectural Specialties segment produces, designs and sources ceilings and walls for use in commercial settings. Products are available in numerous materials, such as metal, felt and wood, in addition to various colors, shapes and designs. Products offer various performance attributes such as acoustical control, rated fire protection and aesthetic appeal. We sell standard, premium and customized products, a portion of which are derived from sourced products. Our Unallocated Corporate segment includes certain assets, liabilities, income and expenses that have not been allocated to our other business segments.
• Data covers all the entities under Armstrong World Industries, including acquisitions of Tectum, Inc. (Jan. 2017), Plasterform, Inc. (May 2018), Steel Ceilings, Inc. (Aug. 2018), Architectural Components Group, Inc. (ACGI) (Mar. 2019), MRK Industries, Inc. (Nov. 2019), TURF Design, Inc. (Jul. 2020), MOZ Designs, Inc. (Aug. 2020) and Arktura LLC (Dec. 2020).
• Data does not include recent acquisitions of BŌK Modern or Insolcorp, discontinued operations (our international businesses in Europe, the Middle East and Africa, including Russia, and Asia-Pacific, which we sold to Knauf International GmbH in Sept. 2019) or the WAVE joint venture.
• Unless otherwise noted, data related to acquired entities is included in the figures disclosed only for the time periods after acquisition.
• We have limited external assurance of 2019, 2022 and 2023 Scope 1 and 2 GHG emissions. We have not obtained any third-party assurance for the other data presented in this document.
• Data within this report represents our best attempt at collecting accurate information about our performance on key issues. As we improve and formalize our data tracking systems, we may retroactively adjust figures in future reports.
• All data reflects U.S. employees only. Leadership refers to director level and above. Mid-level managers and staff represent senior managers, early career and remaining salaried and hourly non-production staff. Production workers represent hourly production plant employees.

See our full SCS Global Services Footprint Verification Report online.

1

• 2020 carbon and energy figures exclude data from TURF, MOZ and Arktura. 2021 figures exclude data from TURF for the first six months of 2021.
• CO2e refers to carbon dioxide equivalents.
• Scope 1 emissions include on-site fossil fuel consumption, primarily natural gas consumption with a small proportion from other on-site fuel usage.
• Scope 2 emissions include purchased electricity.
• Direct energy consumption refers primarily to natural gas consumed in our facilities with a small proportion from other on-site fuel usage.
• Indirect energy consumption refers to electricity used at our facilities.

2

• 2019 and 2020 waste figures exclude data from our Montreal facility. 2020 figures exclude data from TURF, MOZ and Arktura.
• 2019, 2020, 2021 and 2022 waste figures exclude our campus headquarters.
• The increase from 2020 to 2021 in hazardous waste was due to disposal of a large amount of chemicals that became unusable due to acquisitions and consolidation of operations.

3

• 2019, 2020, 2021 and 2022 water figures exclude data from our Montreal facility and our campus headquarters. 2022 figures also exclude Steel Ceilings, Inc. and TURF data. 2023 water figures exclude GC Products.

4

• Air quality data for 2020 and 2021 includes all facilities except Arktura.

5

• 2021 injury increase is attributed to missing the OSHA allowable re-test window of employee hearing tests (Standard Threshold Shift (STS) testing) due to staffing changes. Typically, this re-test would rectify the majority of these recordables.
• All injuries and recordable injury rates for U.S. and Canada use OSHA definitions.

ARMSTRONG WORLD INDUSTRIES | ESG Performance Summary

Headquarters

Armstrong World Industries 2500 Columbia Ave. Lancaster, PA 17603 717-397-0611armstrongceilings.comPublished: 05/23/2024