ROCKWOOL. Summary GROUP

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1 CO2 emissins frm ROCKWOOL Grup's prductin f insulatin sld in 2016 and ptential CO2 emissins savings frm use f the same selected prduct segments Summary ROCKWOOL Internatinal A/S has calculated the CO2 emissins frm the ROCKWOOL Grup's prductin f building insulatin prducts sld in 2016 as well as the ptential CO2 emissins savings frm using selected prduct segments. CO2 emissins frm the prductin are calculated based n cnslidated sld vlumes f tns stne wl fr insulatin in 2016 and n a cradle-t-gate life cycle assessment (LCA) f the prductin f stne wl. Energy cnsumptin fr heating, ventilatin and air cnditining is significantly reduced when using ROCKWOOL Grup's insulatin materials. Thus, less CO2 is ennitted than withut insulatin. As the emissins saved in cnnectin with using insulatin exceed the emissins frm prducing insulatin, ROCKWOOL Grup prducts reduce the impact n ur clinnate when heating, ventilating r air cnditining ur buildings. The ptential emissins savings have been estimated by calculating the insulatin capability fr selected prducts when used in new buildings as well as fr refurbishment. Fr the ROCKWOOL Grup, the sld annunt in 2016 f selected cntributing building insulatin segments will lead t ptential emissin savings crrespnding t estimated 155 millin tns f CO2- equivalents when assuming a prduct lifespan fr building insulatin f 50 years. When cmparing ptential estimated CO2 emissins savings f sld vlumes in 2016 t sld vlumes in 2015, the savings frm building insulatin have gne dwn slightly. Explanatins fr this include but are nt limited t differences in thicknesses f sld prducts and variatins in sales f prducts cuntry by cuntry. The ROCKWOOL Grup's 2016 prductin f stne wl materials fr building insulatin prduct segments led t emissins f estimated 2.1 millin tns f CO2-equivalents. Cmpared t 2015, this is a 30% red uctin, which is due t a change in scpe since emissins frm stne wl prducts withut insulatin purpse, such as Grdan and Rckfn prducts, have been taken ut f the calculatin. The change in scpe accunts fr the entire reductin in emissins frm prductin f stne wl insulatin prducts. The abve calculatin is based n a number f assumptins. ROCKWOOL Internatinal A/S has applied a cnservative apprach when making these assumptins. As a result, actual savings may be higher than ind icated by the calculatin. ROCKWOOL Internatinal A/S has engaged PricewaterhuseCpers (PwC) t prvide limited assurance n the calculatins as reprted in the limited assurance reprt. During the assurance prcess, PwC has had access t internal data as well as underlying dcumentatin fr calculatins and assumptins made. PwC's limited assurance reprt is included at the end f this paper. GROUP ROCKWOOL Internatinal A/S, Hvedgaden 584, DK-2640 Hedehusene, Denmark T: (+45) E: inf@rockwool.cm

2 Frewrd ROCKWOOL Internatinal A/S has calculated the CO2 emissins frm the ROCKWOOL Grup's prductin f building insulatin prducts sld in 2016 as well as the ptential CO2 emissins savings frm using the same prduct segments. CO2 emissins frm the prductin f stne wl materials fr building insulatin thrughut the Grup are calculated based n cnslidated ttal sld vlunnes f tns stne wl in 2016 and n a cradle-t-gate life cycle assessment (LCA) f the prductin f stne wl. The LCA was carried ut acrss 22 factries accrding t the 3rd party verified "Rules fr Life Cycle Assessments / Envirnmental Prduct Declaratins fr ROCKWOOL Grup prducts" and the underlying LCA mdel described in the rules, accrding t ISO 14025: 2010, and EN 15804: 2012+A1:2013, and in additin per EN serves as the Prduct Categry Rule. Energy cnsumptin fr heating, ventilatin and air cnditining is significantly reduced when using ROCKWOOL Grup's insulatin materials. Thus, less CO2 is emitted than withut insulatin. As the emissins saved in cnnectin with using insulatin exceed the emissins frm prducing insulatin, the ROCKWOOL Grup prducts reduce the impact n ur climate when heating, ventilating r air cnditining ur buildings. Scpe and assumptins made The emissin calculatin is based n the sales f stne wl in All ROCKWOOL Grup peratinal cmpanies have reprted actual sales f building insulatin prducts. CO2 emissins frm ROCKWOOL Grup's stne wl prductin fr building insulatin are calculated based n plant specific life cycle assessnnents and n 3rd party reviewed assumptins. The assessment includes direct as well as indirect emissins and is based n cnservative estimates in case f data gaps. The psitive ptential carbn savings have been calculated n selective sales segments significantly cntributing t energy savings. The sales have been gruped int fur segments: 1. Building Envelpe, excluding flat rf New buildings 2. Building Envelpe, excluding flat rf Refurbishment 3. Flat Rf New buildings 4. Flat Rf Refurbishment The sale f stne wl prducts fr ther purpses than insulatin is cnsidered t have n (r little) Impact n the ptential CO2 emissins savings. Thus, emissins frm prductin are nt included either. ROCKWOOL Internatinal A/S, Hvedgaden 584, DK-2640 Hedehusene, Denmark T: (+45) E: inf@rockwool.cm

3 ROCKWOOL Internatinal A/S has applied the fllwing assumptins thrughut the ptential savings calculatin: Fr building insulatin, sales are included fr Eurpe, Nrth America and Russia when calculating CO2 savings fr each segment. Fr building insulatin sld utside Eurpe, Nrth America and Russia, where the ptential psitive cntributin n CO2 savings frm prduct use is unknwn, n estimated CO2-savings have been included. Heat lss calculatins are based n U-values fr rfs and walls (the ability f a rf r wall t islate) used unifrmly n all sales; It has been taken int accunt that sld materials can be used fr bth new buildings and fr refurbishment; The lifespan f building insulatin is fixed at 50 years, althugh several surces indicate 75 years r mre; Based n ROCKWOOL Internatinal A/S' experience, the cnservative estimate that 3% f the sld materials will g t waste during the installatin prcess was chsen; Heating degree days (last 5 year average, where available) are included in the calculatin at cuntry level. Changes t scpe and assumptins applied in 2016 Fr 2016, ROCKWOOL Internatinal has decided t exclude emissins frm the prductin f stne wl prducts withut an insulatin purpse. This includes Rckfn, Grdan, Rckpanel, RckDelta, RMO (ROCKWOOL Marine & Offshre), OEM (Other Equipment Manufactured), Fire Prtectin, Partitin walls (Fire & Sund), Internal dry lining and intermediate flrs. ROCKWOOL Internatinal A/S, Hvedgaden 584, DK-2640 Hedehusene, Denmark T: (+45) E: inf@rockwool.cm

4 Methdlgy The ROCKWOOL Grup's CO2 emissins in 2016 are calculated based n cradle-t-gate life cycle assessment f the stne wl prducts that are als part f the savings calculatins. This LCA was carried ut in by Gerg Schbner, wh is an emplyee f ROCKWOOL Internatinal A/S. The ROCKWOOL Grup cnstantly receives requests frm custmers t share Envirnmental Prduct Declaratins (EPDs) fr prducts. Thse EPDs are calculated accrding t the standard EN "Sustainability f cnstructin wrks. Envirnmental prduct declaratins. Cre rules fr the prduct categry f cnstructin prducts". The detailed knwledge frm these prduct specific LCA effrts is used in this crprate wide effrt as well. CO2 emissins are calculated separately fr building insulatin materials. The cradle-t-grave LCA rules, input data surces and calculatin mdel have been reviewed by LCA expert Jane Anderssn, principal cnsultant at Thinkstep. CO2 emissins frm building insulatin The CO2 emissins pertaining t sales f stne wl fr insulatin in 2016 (in tns) are calculated by multiplying the sld stne wl with the CO2 emissin factr per tn stne wl. General assumptins made In rder t calculate the ptential savings during use f the stne wl insulatin prducts, the energy savings are estimated based n characteristics f the prducts sld. Data t evaluate energy savings: tns sld (market data) m2 insulated at a specific thickness (using the heat transitin resistance called the R- value) Lifespan per applicatin area Energy savings calculated as the difference between heat lss with and withut insulatin. Waste during installatin f building insulatin is estimated t 3%. ROCKWOOL Internatinal A/S, Hvedgaden 584, DK-2640 Hedehusene, Denmark T: (+45) E: inf@rockwool.cm

5 Sales have been gruped int fur segments with sub-segments: 1. Building Envelpe, excluding flat rf New buildings Building Envelpe System hlders 2. Building Envelpe, excluding flat rf Refurbishment Building Envelpe Ventilated Facades Building Envelpe Pitched rf Building Envelpe Lft Granulate Building Envelpe Hrizntal lft, rlls & slabs Building Envelpe Cavity walls Building Envelpe Internal dry lining Building Envelpe Timber frame Building Envelpe GBI Multi-purpse 3. Flat Rf New buildings Flat Rf Cncrete deck 4. Flat Rf Refurbishment Flat Rf Steel deck/metal rf Flat Rf Industrial walls Fr segments 1-4, ROCKWOOL Internatinal A/S has made specific assumptins due t differences in building regulatins, regarding insulatin thickness per market (befre/after), R-value and number f heating degree days as well as regarding waste and prduct lifespan. When calculating the crrespnding amunt f CO2 emissins savings fr building insulatin prducts, ROCKWOOL Internatinal A/S has used average EU data n heat prductin t estimate the CO2 cnversin factr. Due t a lack f statistics, we have applied a cnservative estimate, which can be refined when imprved statistics becme available. Next the energy savings calculated abve are cnverted int crrespnding CO2 emissins savings by multiplying the energy saving in MWh with the crrespnding cnversin factr (tn CO2 equivalents./mwh). Finally, calculated data n energy savings are multiplied with estimated cnversin factrs t deternnine the ptential reductin in CO2 emissin frm insulatin. ROCKWOOL Internatinal A/S, Hvedgaden 584, DK-2640 Hedehusene, Denmark T: (+45) E: inf@rockwool.cm

6 Cnclusins The 2016 prductin f ROCKWOOL building insulatin prducts led t CO2 emissins f estimated 2.1 millin tns. Thereby, emissins frm prductin f stne wl building insulatin prducts have drpped 30% cmpared t 2015, which is caused by the change in reprting scpe where emissins frm nninsulatin prducts are n lnger included. The ptential emissins savings have been estimated by calculating the insulatin capability fr selected prducts cmpared t a baseline withut any insulatin. Fr the ROCKWOOL Grup, the sld amunt in 2016 f building insulatin prducts will lead t ptential estimated emissin savings crrespnding t 155 millin tns f CO2-equivalents when assuming a prduct lifespan fr building insulatin f 50 years. Thereby, ptential emissins savings frm building insulatin have drpped slightly cmpared t 2015 due t a multitude f market variatins in prducts sld. The results presented in this reprt demnstrate that insulatin is a necessity fr the develpment f a sustainable sciety with lw CO2 emissins fr buildings. Hedehusene, 17 May 2017 ROCKWOOL Internatinal A/S chbner (gerg.schner@rckwl.cm ROCKWOOL Internatinal A/S, Hvedgaden 584, DK-2640 Hedehusene, Denmark T: (+45) E: inf@rockwool.cm

7 pwc Independent Practitiner's Limited Assurance Reprt n the CO2 emissins frm ROCKWOOL Grup's prductin f insulatin sld in 2016 and ptential CO2 emissins savings frm use f the same selected prduct segments T the stakehlders f ROCKWOOL Grup We have been engaged by ROCKWOOL Internatinal A/S t btain limited assurance n the CO2 emissins frm ROCKWOOL Grup's prductin f building insulatin sld in 2016 and ptential CO2 emissins savings frm use f the same selected prduct segments. While the 2016 emissins f CO2 frm prductin f stne wl prducts fr building insulatin purpses amunted t estimated 2.1 millin tns, the savings frm prducts sld in 2016 as building insulatin may lead t ptential emissins savings f estimated 155 millin tns in the lifespan f the prducts. The ptential emissins savings have been estimated based n the insulatin capability fr selected prducts. Management's respnsibility Management f ROCKWOOL Internatinal A/S is respnsible fr deciding n suitable criteria, assumptins and estimatins applied in the calculatin f the CO2 emissins and ptential carbn savings frm using the prducts. Furthermre, Management is respnsible fr the preparatin f the CO2 emissins statement f ROCKWOOL Grup's ttal stne wl prductin fr insulatin in 2016 and fr estimating ptential carbn savings f selected prducts is in accrdance with the stated criteria and described methdlgy. The respnsibility includes the design, implementatin and maintenance f internal cntrl relevant t the preparatin that such infrmatin is free f material misstatements, whether due t fraud r errr. The CO2 emissins frm ROCKWOOL Grup's ttal stne wl prductin fr building insulatin in 2016 and ptential carbn savings f selected prducts cntains defined criteria including reprting scpe, assumptins and estimatins made as well as a descriptin f the applied methdlgy. Carbn emissins quantificatin is subject t inherent uncertainty because f incmplete scientific knwledge used t determine emissins factrs and the values needed t cmbine emissins f different gases. Our Independence and Quality Cntrl We have cmplied with the Cde f Ethics fr Prfessinal Accuntants issued by the Internatinal Ethics Standards Bard fr Accuntants, which includes independence and ther requirements funded n fundamental principles f integrity, bjectivity, prfessinal cmpetence and due care, cnfidentiality and prfessinal behavir. PwC applies Internatinal Standard n Quality Cntrl i and accrdingly maintains a cmprehensive system f quality cntrl including dcumented plicies and prcedures regarding cmpliance with ethical requirements, prfessinal standards and applicable legal and regulatry requirements. Our respnsibility Our respnsibility is t express a limited assurance cnclusin n the CO2 emissins frm ROCK- WOOL Grup's prductin f building insulatin sld in 2016 and ptential CO2 emissins savings frm use f the same prduct segments based n the prcedures we have perfrmed and the evidence we have btained. We cnducted ur limited assurance engagement in accrdance with Internatinal Standards n Assurance Engagements 3000, Assurance Engagements ther than Audits r Reviews f Histrical Financial Infrmatin (ISAE 3000). The standard is issued by the Internatinal Auditing and Assurance Standards Bard, and requires that we plan and perfrm this engagement t btain limited assurance whether the subject matter is free frm material misstatement. A multidisciplinary team including assurance practitiners and engineers cnducted this engagement. PricewaterhuseCpers Statsautriseret Revisinspartnerselskab, CVR N Strandvejen 44, DK-2900 Hellerup T: , F: ,

8 pwc A limited assurance engagement undertaken in accrdance with ISAE 3000 invlves assessing the suitability in the circumstances f ROCKWOOL Internatinal A/S and the use f defined criteria and methdlgy as the basis fr the preparatin f CO2 emissins frm ROCKWOOL Grup's prductin f insulatin sld in 2016 and ptential CO2 emissins savings. In additin, it invlves assessing the risks f material misstatement whether due t fraud r errr, respnding t the assessed risks as necessary in the circumstances, and evaluating the verall presentatin. The prcedures we perfrmed were based n ur prfessinal judgment and cmprised inquiries regarding applied registratin systems and prcedures, assessment f calculatins, assumptins and estimatins, and assessment f underlying dcumentatin. During ur wrk, we have cnducted interviews and shw me-meetings with key individuals at ROCKWOOL Internatinal A/S respnsible fr sales and prductin data registratin, prduct Life Cycle Assessments, prduct specific data as well as fr cnslidatin and calculatins. In additin, during the interviews, we have traced applied cnversin and standard factrs t independent surces and assessed whether estimatins in general are unbiased and cnservative in nature when used in the calculatins. A limited assurance engagement is substantially less in scpe than a reasnable assurance engagement in relatin t bth the risk assessment prcedures, including an understanding f internal cntrl, and the prcedures perfrmed in respnse t the assessed risks. Cnsequently, the level f assurance btained in a limited assurance engagement is substantially lwer than the assurance that wuld have been btained had we perfrmed a reasnable assurance engagement. Accrdingly, we express a limited assurance cnclusin. Limited review cnclusin Based n ur wrk, nthing has cme t ur attentin causing us nt t believe that the CO2 emissins frm ROCKWOOL Grup's prductin f insulatin sld in 2016 and ptential CO2 emissins savings frm use f the same selected prduct segments has been prepared, in all material respects, in accrdance with the stated criteria and methdlgy. Hellerup, 17 May 2017 PricewaterhuseCpers Statsautriseret Revisinspartnerselskab TrbexfJénsen 5tatqa4hrised public accuntant ens Pultz Pedersen M.Sc.(eng.) 2 f 2