Mohawk Industries Inc

Lobbying Governance

AI Extracted Evidence Snippet Source

The NCGC, as part of its responsibilities, shall review the effectiveness of the Company's policies, programs, and practices at optimizing its efforts to maintain sustainable ecosystems, safe and healthy employees, and vital communities as integral elements of its commitment to create long-term stockholder value. The Committee shall assist the Board of Directors with respect to formulating strategies to respond to public policy, legislative, regulatory, political, and social issues and trends related to environmental (including climate-related issues), health and safety, and sustainability performance that may significantly affect the business operations, financial performance or public image of the Company or its businesses. [...] Furthermore, the company discloses on its website an annual Prior Year Direct & Indirect Political Activity report that includes a list of trade organizations in which it maintains membership and a range of the dues for each one of them.

https://mohawkind.com/_pdf/Mohawk_2023_CDP.pdf

During 2021, Mohawk made no direct political contributions to individuals, political parties or political action committees. This is consistent with past years. While Mohawk may express political engagement by offering technical information to elected officials or governmental agencies or providing context on the impact of political decisions, this is not accompanied by donations. The Company does not employ dedicated lobbyists, and no individuals within the business devote 20 percent or more of their time to lobbying activities in any quarter. Mohawk is a member of a number of trade associations (a list is available in each annual ESG report), and some of these organizations may lobby government officials and agencies as a part of their activities. Mohawk does not direct these efforts and sometimes does not agree with political positions of the trade associations. Similarly, Mohawk is a member of a number of organizations in the United States, typically chambers of commerce, that promote pro-business agendas, which include community initiatives such as job fairs, marketing of a region to prospective businesses or promotion of tourism. In some instances, these organizations take positions on political issues or candidates that includes financial support, which may result in a small percentage of dues from all members being used for these purposes. Mohawk does not have a voice in directing these efforts and sometimes does not agree with political positions of the chambers of commerce. In the interest of transparency, the Company provides a list of trade associations and chambers of commerce that may engage in lobbying activities, including each organization's name and membership fees paid by the Company in 2021.

https://mohawkind.com/_pdf/Mohawk_2021_ESG_Report.pdf

Mohawk's Environmental, Social and Governance (ESG) Executive Council consists of the Company's senior leaders, including the presidents of each business segment, and is responsible for setting the Company's sustainability strategy and goals. The Council ensures appropriate progress is being made toward Mohawk's ESG objectives. The Council reports to the Company's Board and CEO and informs, advises and engages with the Board and the Board's Nominating and Corporate Governance (NCGC) and Audit Committee (AC) on ESG and sustainability topics. The ESG Executive Council also identifies and assesses ESG risks and opportunities and makes recommendations for addressing them and reviews and approves global environmental and social goals. [...] NCGC oversees the Company's ESG-related programs [...] AC oversees risk management as it relates to the Company's sustainability strategy [...] Helps formulate strategies to respond to public policy, legislative, regulatory, political and social topics, as well as trends related to environmental and social risks that may significantly affect the business operations, financial performance or public image of the Company [...] Our approach to political engagement is responsible, transparent and consciously limited. We do not make direct political contributions to candidates, political parties or political action committees. Our political impartiality is consistent throughout the organization. While we are members of trade associations and chambers of commerce, we do not exert influence over their political activities. We acknowledge that our positions may not always align with those of the organizations of which we are members, and we maintain independence in our decision-making process. To uphold transparency, we disclose both the trade associations and chambers of commerce, along with identifying the financial support we provide to organizations that exert even minimal political influence. For more information, see our Political Contributions Policy.

https://mohawkind.com/_pdf/Mohawk_2023_Impact_Report.pdf

#### ESG Governance

###### The Role of Our ESG Executive Council

Mohawk's Environmental, Social and Governance (ESG) Executive Council consists of the Company's senior leaders, including the presidents of each business segment, and is responsible for setting the Company's sustainability strategy and goals. The Council ensures appropriate progress is being made toward Mohawk's ESG objectives. The Council reports to the Company's Board and CEO and informs, advises and engages with the Board and the Board's Nominating and Corporate Governance (NCGC) and Audit Committee (AC) on ESG and sustainability topics. The ESG Executive Council also identifies and assesses ESG risks and opportunities and makes recommendations for addressing them and reviews and approves global environmental and social goals.

###### ESG GOVERNANCE STRUCTURE

CEO AND BOARD OF DIRECTORS

- Ultimate responsibility for the Company's ESG-related programs and initiatives

NOMINATING AND CORPORATE GOVERNANCE COMMITTEE / AUDIT COMMITTEE

- NCGC oversees the Company's ESG-related programs

- AC oversees risk management as it relates to the Company's sustainability strategy

- Helps formulate strategies to respond to public policy, legislative, regulatory, political and social

topics, as well as trends related to environmental 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 impacts to the Company, including

regulatory changes as well as physical, operational and climate change-related risks

- Applies understanding of risks to inform our sustainability strategy

- Sets environmental and social goals

CHIEF SUSTAINABILITY OFFICER

- Defines and executes Mohawk's sustainability strategy across the global enterprise

- Partners with functional areas to increase alignment and optimize global efforts for carbon

reduction, product circularity, resource conservation and commitments to workplace excellence

PEOPLE COUNCIL / PLANET COUNCIL

- Multi-business, multi-level stakeholder leadership groups tasked with aligning 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

https://mohawkind.com/_pdf/Marazzi_2023_Impact_Report_EN.pdf

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Mohawk engages in activities that trade associations and chambers of commerce, some of which seek to influence legislation or regulatory action through lobbying or providing subject matter expertise on topics that may impact the climate. In order to ensure that Mohawk's engagement activities are consistent with the Company's overall climate change strategy it works with each association directly.

For example, Mohawk's Director of Sustainability is on the Board of Directors for CARE, which allows the Company to directly influence its engagement activities.

In 2021, Mohawk Group, our North American commercial flooring division, signed The Climate Pledge, committing to achieve net-zero annual carbon emissions by 2040, ten years ahead of the Paris Agreement. By 2022, all Mohawk Group collections will be carbon neutral plus an additional 5% carbon offset, and our carpet tile products already meet this goal. With this new initiative, all Mohawk Group hard and soft surface floors will have a net positive climate impact later this year.

CDP Questionnaire Response 2022

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]Mohawk engages on a direct basis with numerous external entities that can provide subject matter expertise on climate related topics and that play a key role in shaping regulation. The complete list of the Company's affiliation with trade organizations is included in the company's annual ESG Report. Furthermore, the company discloses on its website an annual Prior Year Direct & Indirect Political Activity report that includes a list of trade organizations in which it maintains membership and a range of the dues for each one of them.

CDP Questionnaire Response 2023