Sustainability 5 T MGEN3 SL THEMOHAWKGROUP.COM

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1 Sustainability

2 As a global flooring manufacturer and responsible corporate citizen, Mohawk Industries is committed to becoming an ever more environmentally friendly and sustainable supplier of flooring products. To this end, we have identified four areas reductions in energy use, water use, greenhouse gas emissions and material diversion to improve upon by 25 percent each by the year % reductions by the year 2020 Energy In support of our commitment to the Department of Energy s Save Energy Now LEADER initiative, we will reduce our overall energy intensity by 25 percent as compared to 2009 levels. We will achieve this goal through energy use optimization, including proven technologies, process innovation and employee engagement. Water We have made great strides in reducing the amount of water used in our manufacturing processes by well over 50 percent since We commit to a further reduction of our total water use intensity by 25 percent, using 2008 as the baseline year. Our engineering teams are looking at a multitude of water reclamation and recycling programs to help achieve this goal. Greenhouse Gases (GHG) Decreasing the amount of greenhouse gas emissions is important to our organization and to our stakeholders. We will reduce our total greenhouse gas emission intensity by 25 percent as compared to 2009 levels. These reductions will be achieved through reduced energy consumption and the use of renewable or alternative energy sources as appropriate. Waste Diversion As a recognized industry leader in recycling, we have worked diligently to reduce, and in some cases eliminate, the amount of waste from our manufacturing processes sent to landfills. Today, we divert over three billion pounds of material annually from landfills. We will continue to increase our recycling rates and our reuse initiatives in order to further lower our total landfill intensity by 25 percent as compared to 2009 levels.

3 My sustainability commitment is real. It s easy to say that you do sustainability just because you use some recycled materials in your products or have vague plans in place to do more for the environment. Our aim is to lead our industry in sustainability. Our commitment affects everything we do and everyone in our organization. Sometimes it s as simple as turning off lights to save electricity. Other times, it s developing major technological advances that reshape our industry. But always, our commitment to sustainability is a matter of doing what s right for the environment and doing it better than anyone else. THEMOHAWKGROUP.COM

4 My sustainability is certified. Now, with NSF 140 the first ANSI approved, multi-attribute sustainable carpet standard you can quickly and easily identify carpet that is certified to reduce environmental impact. Dedicated to helping you achieve your sustainability goals, The Mohawk Group proudly offers Silver, Gold and Platinum NSF 140 certified products across the majority of our tile, broadloom and woven styles. NSF 140 Certified Product Platforms UltraSet RC & ICT RC...Gold Unibond...Gold Unibond RE... Platinum UPS RE... Platinum UPS RE Bloc... Platinum Woven...Gold ActionBac... Silver Thermoplastic...Gold EcoFlex... Platinum DuraLoc MG... Platinum

5 Our sustainability initiatives can be seen at work throughout all our Mohawk facilities where our goal is to create the highest quality product with minimal impact on the environment. Through innovative new processes, technologies, and products, we re leading the way towards more environmentally-friendly manufacturing. All of The Mohawk Group manufacturing facilities are ISO and 9001 third-party certified. Environmental training We emphasize environmental training for our employees through programs like Behavior Based Safety. Our employees are well acquainted with our best manufacturing and business practices so that we re able to maintain the highest environmental awareness possible. Lean manufacturing We re finding ways to do more with less. Our partnership in P2AD highlights our efforts to reduce pollution at the source while our water reduce/reuse efforts have cut the amount of water we use by 50% since Additionally, all of The Mohawk Group manufacturing facilities have been ISO and 9001 third-party certified. Continuous improvement We incorporate the Six Sigma philosophy at Mohawk facilities. By striving for continuous improvement, we re becoming more efficient and productive in our manufacture of carpet lessening our impact on the environment. Our Six Sigma Black Belt certified employees help lead the way towards eliminating defects and achieving near-perfection at all our facilities. Envirometrics Envirometrics give us detailed, scientific numbers that show exactly how we re doing with our environmental efforts. Our new programs, initiatives, processes, and technologies are clearly reducing Mohawk s environmental footprint. As we follow our envirometrics over the years to come, we re confident that they will continue to bear witness to our progress and leadership in sustainability. THEMOHAWKGROUP.COM

6 My sustainable products. At Mohawk, we believe that the most effective way to implement real sustainability is to build it in from the very beginning starting with product design. This not only ensures a higher level of sustainability in all our products from the outset, but also gives us a great head start in addressing environmental issues at other stages of the life cycle.

7 Recycled content One of the ways we increase the sustainability of our products is by incorporating pre-consumer content. Our research and development team is constantly working to identify new types of recycled content that can be used in our products. As a result, we re making carpet products out of everything from carpet waste to post-consumer glass to plastic beverage bottles. Life Cycle Analysis (LCA) LCA is about evaluating the environmental impact of a product at every stage of its life. Through LCA, we have identified and implemented a variety of sustainability measures, including BEES (Building for Environmental and Economic Sustainability) and the elcie suite of software tools that help us analyze lifecycle data. As a result, we are shrinking our environmental footprint at every stage of the product lifecycle. Renewable materials At Mohawk, we aim to reduce our dependence on petrochemicals wherever possible. One way we do this is by seeking out renewable materials to use in our products that can be easily replenished. For example, we re now using carpet fibers made from the starch in corn kernels and using soy oil to make backing systems. Micro engineering Using fine gauge tufting machines, we reduce the amount of carpet face fiber in our products while maintaining the exact same level of performance. Less face fiber means fewer raw materials are required to produce our carpet. Dematerialization We are constantly looking for ways to do more with less. Our steady shift from resource dependent practices to dematerialization design has enabled us reduce the amount of materials used in production while at the very same time maintaining or even raising the level of quality. Recyclable products Not only do we choose and develop materials with the lowest environmental footprint when designing our carpet products, but we choose components that will allow our products to be recyclable at the end of their useful lives so as to live again with a second life by using those same recycled materials to make new products. THEMOHAWKGROUP.COM

8 My sustainable fibers. You can see our passion for the environment in every fiber of Mohawk carpet. Although our carpets feature a wide range of both man-made and natural yarns, all of them have been chosen for their durability, sustainability, and small environmental footprint. Whether it s fiber made from corn kernels or recycled plastic bottles, we re constantly implementing new breakthroughs that benefit the environment. We re not only concerned with the sustainability of the fiber itself, but also with the environmental impact of its manufacturing processes, its recyclability, and its performance features. We even address the issue of how our fibers will be cleaned. Why? Because, if all it takes to clean a carpet is a little water, then fewer harsh chemicals are introduced into the environment. For more information about our fiber technologies, visit: themohawkgroup.com

9 Our Colorstrand fiber with 25% pre-consumer recycled content is now third-party certified by Underwriters Laboratories. Up to 100% recycled content We use recycled content in our fibers wherever possible, intercepting materials that would normally be on their way to a landfill and transforming them into beautiful Mohawk carpet fibers. Renewable content from field to floor A variety of our products contain bio-based or renewable content, helping us reduce our dependence on petroleum-based products and shrink our environmental footprint. A perfect example is SmartStrand Contract. Thirty-seven percent of this fiber is made from a corn sugar polymer and every seven yards saves energy and resources equal to one gallon of gasoline. Better performance means longer lifecyles Many of our fibers have a tighter molecular structure which helps them resist matting and crushing. Exceptional fade resistance and stain resistance is also built into many of these fibers. And why? Because carpets with high performance qualities need replacing less often, which means less carpet ends up in landfills. THEMOHAWKGROUP.COM

10 My sustainable backings. As one of the largest producers of carpet backing, we know that anything we do to increase sustainability has the potential to make a big difference for the environment. That s why we work hard to develop innovative backings, with a holistic approach to sustainability that stretches from design to production to reclamation. And we re seeing amazing results. We re taking post-consumer glass and using it to make carpet backings. We re making backings out of something as simple and sustainable as soy oil. Across the board, we are setting new standards and inventing completely new processes as we strive to make our backing systems the most sustainable in the flooring industry.

11 Our ICT RC and UltraSet RC backings are now standard across the Karastan, Lees and Bigelow modular offerings with 35% pre-consumer recycled content. Pre-consumer and post-consumer content We recycle and use everything from old carpets to bottle caps. We also recycle other companies waste streams such as Celceram, a byproduct of coal combustion in electric utility plants. This diverts over 20,000 tons of pre-consumer material from landfills and significantly reduces our use of non-renewable natural resources. Bio-based content We have reduced our dependence on petroleum by 3 million pounds annually by using biobased renewable materials like pine resin. To further reduce our use of non-renewable natural resources, we are exploring ways to use rapidly renewable resources such as soy in our backing systems. The results so far have been very promising. Low-embodied energy We design our backing systems so that they require less energy for production than other similar products, further reducing our strain on the earth s environment. Longer lifecycles Our superior quality performance backing systems actually extend the life of our carpet. And the longer a carpet lives, the longer it stays out of the landfill. Recyclable products We do more than just use recycled materials in production, we specially design our backings so that they can actually be recycled too. This reduces even more waste and puts old backing to good use. For more information about our backing technologies, visit: themohawkgroup.com THEMOHAWKGROUP.COM

12 My sustainable recycling. As the largest recycler in the flooring industry, we recognize that one of the most effective ways we can reduce our environmental footprint is through recycling and re-engineering. We have explored all kinds of ways to recycle or re-engineer, not only the waste from our own manufacturing processes, but also other pre- and post-consumer waste. As a result, we have developed many new recycling initiatives that are making a real difference for the environment. In fact, we have put so much energy and resources behind our recycling initiatives that we divert over 3 billion lbs. of waste from landfills every year.

13 ReCover Each year, an estimated 6 billion pounds of carpet waste is sent to the landfill across North America. Our ReCover program helps reduce this waste by allowing customers to dispose of their old carpet without having to send it to the landfill. We partner with recycling centers around the country that collect post-consumer carpet, collecting all face fiber types such as Nylon 6,6; Nylon 6; and Polypropylene. Together, we process 100 percent of the carpet face fiber, backing, and latex converting 85 to 90 percent of it into usable materials. This is the highest recovery rate in the industry. All customers have to do is give us a call, and we work out the logistics. Just call us at 877-3RE-CYCL ( ) to get the job rolling. GreenWorks Center Opened in 2007, our GreenWorks Center is the newest element in our continuing sustainability efforts. This facility processes postconsumer carpet fibers including product from competitors and manufactures plastics that can be used in new products like carpet, furniture, and automobile industry parts. PET recycling Mohawk is one of the world s largest recyclers of plastic bottles. Every year, we take three billion soda and water bottles approximately 25% of all the bottles collected in North America made from polyethylene terephthalate (PET) and use them to produce approximately 170 million pounds of recycled EverStrand fiber at our Summerville, Georgia plant. This fiber is then used to make many or our beautiful Mohawk carpets. Rubber tires Old tires are one of the worst sources of waste for our environment. They are among the largest items regularly discarded and and one of the most resource-hungry products to manufacture. At Mohawk Industries we take in 30 million pounds of recycled crumb rubber annually to make door mats. This represents 2.1 million tires, or 83 times the number of tires on taxicabs in Chicago (2007). Post-consumer bottle glass In recent years, we have begun using glass, a post consumer ingredient, in our carpet products to reduce the amount of virgin raw materials required for production. Some of our most popular backing systems now contain significant levels of recycled glass in their material make up, including UPS RE and Unibond RE. For more information about our recycling efforts, visit: mohawkgreenworks.com THEMOHAWKGROUP.COM

14 My sustainable marketing. For us, green isn t just the way we manufacture our products, it s also how we search, sample and market them. We have developed a number of product selection tools that have changed the carpet buying process from a costly and time consuming chore to an interactive, easily accessible, and almost instantaneous task. Customers can now explore all kinds of different color and pattern combinations without ever having to order a tufted sample. These tools offer greater flexibility for our customers, greater efficiency for our company, and greater sustainability for our environment. For more information about our sustainable marketing tools, visit: themohawkgroup.com

15 SMART Books Because this book uses digital imaging, it requires 63% less virgin raw materials than a traditional carpet sample folder. With each product line that we convert to SMART Book samples, we can save enough energy to power up to 4 homes for a whole year. SIMs We are drastically reducing the number of actual carpet samples sent out to our customers by offering high definition, digital simulations instead. Every simulated carpet sample saves a whole quart of oil and reduces the amount of carpet that ends up in landfills. ADS Our Accelerated Design System further reduces the amount of carpet samples needed. It lets our customers and marketing teams view carpet simulations in pre-designed room scenes. The tremendous design flexibility actually improves the customer selection process, making it easier for the customer to get the right carpet, right from the start. Online tools We have developed a number of new online product selection tools that have changed the carpet buying process from a costly and time consuming chore to an interactive, easily accessible, and almost instantaneous task. Customers can now explore all kinds of different color and pattern combinations without ever having to order a tufted sample. These tools offer greater flexibility, efficiency and sustainability for all parties involved. Sample Take Back Program The Mohawk Group provides a return box and bag made of recycled content with a postage label for all tile and broadloom samples requested by our customers. We are committed to making sure our samples are reused and recycled, thus reducing the amount of waste we produce. LEED Plus Calculator This online tool makes achieving sustainability even simpler. Powered by EcoScorecard, this tool lets you browse, calculate and document the eco-attributes of all our products. LEED Plus will quickly calculate environmental compliance for top rating systems including LEED, CHPS, GGHC, LABS21 and NSF 140, as well as other third party certifications. This reduces the need for multiple sample ordering, excess paperwork and saves you valuable time. THEMOHAWKGROUP.COM

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