A Better World by Design

Transcription

A Better World
by Design
Mohawk Industries, Inc.
2009 Sustainability Report
Sustainability 2009
A Better World Starts Here
In your home. At your workplace. Our commitment
to creating a better world starts with your world –
the one that you share with those closest to you every
day. From providing safe and sustainable products
to conducting our business ethically and responsibly,
our priorities begin with meeting the needs and
concerns of those who choose to make our products
a part of their daily lives.
2010 Mohawk Industries, Inc. All rights reserved.
www.mohawksustainability.com
Sustainability 2009
Leading Around the World…
Malaysia
Hardwood Flooring
We were among the first to create an engineered wood
product from the Hevea tree, which is plantation grown
for latex from which rubber-related products are made.
By also utilizing the tree for wood flooring, we prevent
the burning of these trees after sap extraction and have
a renewable resource for our hardwood business.
Belgium and France
Chicago, Illinois
LEED® Showroom
Our commercial carpeting showroom is one of the few
Merchandise Mart showrooms LEED® (Leadership in
Energy and Environmental Design) Gold certified by the
U.S. Green Building Council®.
Boilers
Laminate flooring and other wood-based panel manufacturing
facilities use wood waste as biomass fuel for process heating
in factories. In 2009, we used more than 320 million pounds
of biomass for fuel.
Mt. Gilead, North Carolina
Mexico
Tile
Our Monterrey facility, our largest tile facility manufacturing
40 percent of all tile we produce, recovers and reuses
100 percent of its process wastewater.
Laminate Core Boards
Our Mt. Gilead laminate board plant is located next door to
a large wood processing plant, whose waste materials
supply 60-70 percent of the wood used in our boards. The
remaining 30-40 percent of our materials are also sourced
as pre-consumer recycled materials.
Summerville, Georgia
PET Recycling Plant
Our PET recycling facility processes approximately 20 percent
of all plastic beverage and food containers collected in North
America and recycles them into carpet fibers – this amounts
to more than three billion PET water bottles annually.
New Zealand
Wool
Kent, Washington
Distribution Network
State-of-the-art software systems and our participation in the
EPA’s SmartWay® program ensure that our vast North American
distribution network links 54 distribution centers and over
28,000 customers in a fuel-efficient manner.
Belgium
Flaxboard
Since the 1960’s, Unilin has manufactured flaxboard, a specialty
board used in furniture and doors, which is composed of flax
shives, a by-product of the linen industry. This natural, renewable
plant fiber is harvested locally in the Flanders area of Belgium.
Mohawk is among the largest users of New Zealand wool, one of
the most sustainable of all carpet and rug materials. It comes from
grass-fed sheep, which are shorn every nine to twelve months,
making it rapidly renewable. Once its useful life is over, wool
is completely biodegradable and can serve as a plant nutrient.
www.mohawksustainability.com Sustainability 2009
We Are Committed to Making a
Difference Everywhere We Step
As the world’s largest flooring company, Mohawk is committed to setting the industry standard
for sustainable products and practices. It’s a leadership position that is not new for us; in fact,
we have been integrating sustainability into our business for many years. The pace of this
integration, however, has accelerated significantly in recent years as we have sought to
meet customers’ increased demand for sustainable products and our business’ need for
more sustainable processes.
Both residential and commercial customers possess a heightened and growing awareness
for the environmental health of the places in which they live and work. Customers want safe
materials in their homes and they want to make environmentally responsible purchasing
decisions. Our ability to satisfy these criteria is a real and growing competitive advantage.
Another accelerator of sustainability in recent years has been the flooring industry’s
severe and prolonged downturn that began in 2006. While we have long known through
experience that saving resources saves dollars, prolonged adversity has forced us to look
repeatedly at doing more with less. In the process, we have developed a renewed sense of
potential for resource conservation, waste management and operational efficiency.
While some of the investment required to realize this potential has been delayed
due to the economy, Mohawk is more committed than ever to manufacturing and
product innovations that make both business and environmental sense.
Despite the tough marketplace of 2009, we achieved several important
benchmarks – the establishment of an enterprise-level sustainability function
led by a chief sustainability officer; the development and commitment to a set
of 2020 sustainability goals; the publication of this report, our inaugural effort
towards a more transparent reporting process; and the further employee
engagement in our sustainability initiatives.
Though the pace of economic recovery remains challenging to predict, we
look forward to building upon these accomplishments in 2010 and beyond.
We move forward with a solid foundation, yet with an awareness of those areas
in which we can and will improve. Mohawk is committed to contributing
new environmentally friendly products that help create better places for
people to live and work and operational innovations that help create a
better planet for everyone – all by design.
Jeffrey Lorberbaum
Chairman and Chief Executive Officer
Creating a Better World by Design
There is a good chance that you have come across a Mohawk product in the course of your daily life. It may
be at home in a plush carpeted bedroom or at your child’s school in a brightly tiled classroom, or perhaps on
a gleaming hardwood foyer of an office that you frequent. Wherever you and Mohawk might meet, you
should know that Mohawk takes the responsibility of being a part of your daily life seriously. We are
committed to manufacturing our products in an increasingly sustainable manner and to designing
products that help to create safe and healthy, beautiful and functional environments for your world.
Corporate Profile
Sustainability
Strategy
Governance
Our Company: Who We Are
Mohawk Industries is one of the foremost manufacturers and distributors of residential and commercial
flooring in the world. We enjoy leading market positions across multiple flooring categories, including
carpet, ceramic tile, stone, wood and rugs in the United States and laminate in the U.S. and Europe.
Mohawk dates its roots to the 1800’s when it became one of the first American carpet manufacturers.
Today, the Company is headquartered in Calhoun, Georgia with operations on three continents.
Mohawk® is one of the oldest flooring
brands and one of the largest carpet
suppliers in the world. Residential
collections include Aladdin®, Horizon®,
WundaWeve® and Karastan® brands.
Our commercial division, The Mohawk
Group, encompasses a family of four
brands – Karastan® Commercial, Lees®,
Bigelow® and Durkan® – each targeted to
specific market sectors. The Mohawk
brand also extends to hard surfaces,
including ceramic tile, laminate and
hardwood flooring, and to carpet cushion
and floor care products. In addition,
our Mohawk Home division is the largest
supplier of rugs and mats in the North
American market. Mohawk facilities
include more than 55 manufacturing
plants and more than 50 distribution
warehouses in the United States.
For more information please visit our
websites at: www.mohawkflooring.com
and www.themohawkgroup.com.
Dal-Tile is the largest manufacturer and
distributor of ceramic tile and natural
stone in North America. Its products
are marketed under the Daltile and
American Olean brands, serving both
the commercial and residential segments.
The Daltile brand is available through
more than 250 company-operated sales
service centers in the U.S. and in Canada,
while the American Olean brand is
available through independent distributors. Both brands are also distributed
through the leading home improvement
retailers. Dal-Tile’s vertically integrated
operations include seven manufacturing
facilities in the U.S. and one in Mexico.
For more information please visit
our websites at: www.daltile.com
and www.americanolean.com.
Unilin is one of the world’s leading
suppliers of premium laminate and hardwood flooring through its Quick-Step®
brand and the leader in product
innovation and installation techniques
with a strong portfolio of intellectual
property rights. Unilin laminate flooring
is distributed through retailers and
distributors in North America and
Europe. Also in Europe, product groups
include roofing systems and other wood
products (chipboard, flaxboard and
melamine-covered board) for construction, cabinet and furniture markets. The
Unilin segment also includes Columbia
and Century, leading North American
hardwood flooring brands with vertically
integrated operations. The Unilin division
operates 11 manufacturing plants in
Europe, five in the United States and
two in Asia.
For more information please visit
our websites at: www.unilin.com
and www.quickstep.com.
Our Business Strategy for Growth
During the past two decades, Mohawk has evolved from a
leading North American carpet manufacturer into a global
flooring company. This evolution reflects the Company’s
commitment to constantly keep pace with consumer flooring preferences. Today, Mohawk’s product portfolio covers
the market – extending across all flooring categories, styles
and price points in order to satisfy the needs and tastes of
consumers, builders and designers creating beautiful spaces.
Our operating strategy is based on vertically integrated
operations in which we control both the forward and backward
functions associated with product manufacturing and
distribution. In our soft surface businesses, we control
manufacturing for our broadloom product line, carpet pad
and carpet backing, as well as providing fiber extrusion for
much of our capacity requirements. We also manufacture the
majority of our wood, laminate and ceramic tile products.
In North America, we manage a distribution network of
transportation, warehousing and logistics assets. This infrastructure enables us to realize considerable economies of scale
and resources in order to distribute our products efficiently
to more than 28,000 customers that include independent
specialty stores, home centers and contractors.
Acquisitions have played an important role in Mohawk’s
growth and category expansion. During the past 20 years, we
have completed more than 20 acquisitions, including Dal-Tile
(2002), Unilin (2005) and the Columbia wood flooring
business (2007).
A complete overview of Mohawk, its operating segments,
manufacturing processes and marketing programs can be
found in the Company’s annual 10-K SEC filing.
2010 Mohawk Industries, Inc.
Inc. All
Allrights
rightsreserved.
reserved.
By Design: Hardwood brings the warmth of nature into the
home for a polished look.
Corporate Profile:
Economic Indicators
Financial Highlights (in thousands, except per share data)
Years Ended December 31,
2009
Income statement data:
Net sales $5,344,024
Gross profit 1,232,230
Adjusted operating income (a) 300,741
Adjusted earnings per share (a)
$
2.24
Balance sheet data:
Cash and cash equivalents
$ 531,458
Receivables, net 673,931
Inventories 892,981
Total current assets 2,359,000
Property, plant and equipment, net 1,791,412
Goodwill and intangibles (a) 2,196,470
Total assets (a) $ 6,391,446
Accounts payable and accrued expenses $ 831,115
Total current liabilities 884,022
Long-term debt (including current portion) 1,854,479
Total equity 3,234,282
Total liabilities and equity $ 6,391,446
Cash flow data:
Net cash provided by operating activities $ 672,205
Depreciation and amortization 303,004
Capital expenditures 108,925
Acquisitions 5,924
Working capital (b) $ 1,474,978
Changes in debt (103,558)
The year 2009 consolidated financial statements and management’s discussion and analysis of financial condition and results of operations are provided in the
Company’s 2010 Proxy Statement under Appendix A.
(a) In 2009, the Company recorded pre-tax charges related to: discontinued carpet tiles of $133,492, business restructurings of $61,725 and $61,794 related to unusually
high raw material costs incurred in the latter part of 2008, flowing through cost of sales in the first quarter of 2009.
(b) Working capital defined as current assets less current liabilities.
Mohawk Industries closed nine manufacturing and 17 sales or distribution sites in 2009.
Additional Mohawk Industries financial information can be found in the investor information section of our website at www.mohawkind.com.
Our Sustainability Strategy
for a Better World
Sustainability permeates all aspects of Mohawk’s operations and
organization. We view sustainability as a strategic business imperative
dedicated to providing our customers and consumers with safe and
environmentally friendly flooring products. We strongly seek to
implement sustainable business initiatives that have a quantifiable
return, as we believe such initiatives offer the best opportunity to
realize a significant impact and lasting success.
Our sustainability practices go back several decades as we integrated
resource conservation into our manufacturing operations. A major
milestone occurred in 1999 when Mohawk purchased a bottle recycling
plant in Summerville, Georgia. Over the past decade, billions and
billions of bottles have been recycled into carpet fibers.
In 2009, Mohawk moved to more formally institutionalize its
sustainability strategy through the appointment of a corporate sustainability function. As Chief Sustainability Officer, I lead the Company’s
Sustainability Council, which is comprised of the president of Mohawk
Industries (who also serves as a director of the Company), the presidents
of our four operating divisions and our Global Director of Sustainability.
I report personally to the Company’s Board of Directors on the Council’s
plans and progress every quarter.
Our first priority has involved setting baseline environmental
metrics and goals. This work is leading to investments in data management systems that will enable more accurate and transparent reporting
tools going forward so that we can track our progress accordingly. A next
important step will be to further engage our employees and integrate
our supply chain partners into our sustainability initiatives.
We recognize the challenges and considerable work that lie ahead of
us, but are excited about the opportunities that Mohawk has to create a
better world for all of us. I look forward to updating you on our progress.
In addition to his duties as Chief Sustainability Officer,
Mr. Kilbride serves as president of Mohawk Home.
William B. Kilbride
Chief Sustainability Officer
Our Sustainability
Strategy for a Better World
Vision and Strategies
Stakeholder Engagement
Our sustainability vision encompasses a three-pronged
strategic approach that focuses on our processes, our
products and our people. Initially our goals are more environmental in nature because of the critical nature of that
component. Our intention throughout all of our endeavors
is to maximize our shareholder and stakeholder value.
Our process strategy is focused on optimizing energy
consumption and seeking innovative energy alternatives;
minimizing the amount of water used to conduct our business and creating innovative ways of reclaiming water that
is used; and, maximizing reuse and recycling of process waste
in order to reduce waste to landfill.
Our product strategy seeks to maximize the amount of
recycled or renewable content in all products. Going forward,
we will work to hold our suppliers increasingly to the highest
business and ethical standards in order to ensure that all
imported or domestically sourced products are manufactured
using fair labor standards and are packaged with re-use or
recycling in mind. We are also committed to developing
processes that will make it easier for customers to recycle
products at the end of their useful lives.
Our people strategy promises to employ fair labor
practices and encourages involvement between our
employees and the communities in which they live and work.
Likewise, as a company, we work to be a good corporate
citizen by actively supporting and participating in these
communities and those organizations that positively impact
our employees.
Mohawk is committed to listening, learning from and
considering the perspectives and needs of those stakeholders
with whom we interact in the course of business and as a
corporate citizen. Our stakeholders are people, groups,
organizations or systems that affect or can be affected by our
Company. These include shareholders, customers, employees,
communities, consumer end-users, suppliers, governments,
the media, non-governmental organizations (NGOs) and
reporting agencies. We have conducted a thorough stakeholder analysis, including personal interviews, in order to
better understand the needs of these groups.
Our engagement with each stakeholder differs and, in some
cases, is continuing to be defined. As we pursue our sustainability vision, we intend to further develop our relationship
with each group of stakeholders. Current examples of how we
are engaging select stakeholder groups include:
• Shareholders – quarterly and annual financial reporting.
• Employees – regular and ongoing direct communication
and engagement.
• Customers – sustainable products and practices that
meet the needs of our customers, as well as providing
tools to educate consumer end-users of these products.
• NGOs – annual sustainability reporting.
• Government – participation and support for programs
such as the Department of Energy’s Save Energy Now
and the Environmental Protection Agency’s SmartWaySM.
Mohawk also participates in and is affiliated with
numerous industry trade organizations.
Industry Affiliations and Awards
Industry Affiliations
American Institute of Architects
American Society of Interior Designers
American Society of Landscape Architects
Assisted Living Federation of America
Association of Luxury Suite Directors
Association of Pool & Spa Professionals
Association of Post-Consumer Plastic Recyclers
Belgian Institute for Normalisation
Carpet and Rug Institute
Ceramic Tile Institute of America
Council of Educational Facility Planners International
European Producers of Laminate Flooring
Federation of the Textile, Wood and Furniture Industries
Forest Stewardship Council
Green Building Certification Institute
International Facility Management Association
International Interior Design Association
International Masonry Institute
Institut Bauen und Umwelt
(Institute for Construction and Environment)
Manufactured Housing Institute
Marble Institute of America
Marketing Leadership Council
Masonry Contractors Association of America
National Association of Floor Covering Distributors
National Association of the Remodeling Industry
National Council of the Housing Industry
National Kitchen & Bath Association
National Pool and Spa Institute
National Wood Flooring Association
North American Laminate Flooring Association
Programme for the Endorsement of
Forest Certification Schemes
Southeast Recycling Development Council
Technisch Centrum der Houtnijverheid
(Technical Center of Wood Technology)
Tile Council of North America
World Floor Covering Association
U.S. Green Building Council
Awards
• The U.S. General Services Administration bestowed its
Evergreen Award, which recognizes efforts in recycling,
affirmative procurement and waste reduction, on Mohawk
in 2003 and 2007.
• The Society of Plastic Engineers recognized Mohawk with
its Recycling Award in 2008.
• Mohawk was the inaugural recipient of Wal-Mart’s Vendor
Sustainability Award in 2008.
• SmartStrand® with DuPont™ Sorona®, a renewable fiber
used in Mohawk carpeting, was the 2009 recipient of
Floor Covering Weekly’s GreenStep Award.
• CARE named Mohawk its Large Recycler of the Year in
2009. CARE stands for Carpet America Recovery Effort,
a joint industry-government effort to increase the amount
of recycling and reuse of post-consumer carpet and reduce
the amount of waste carpet going to landfills.
• Newsweek named Mohawk one of its 500 Greenest
Companies in 2009.
Our Commitment to
Accountable Governance
Mohawk Industries is a publicly traded company listed
on the New York Stock Exchange (ticker symbol “MHK”).
The Company makes the following materials available
to the public on its website and through its SEC filings at
www.mohawkind.com:
• Board of Directors and executive officers listing
• Board committee charters
• Contact information for Board members
• Corporate governance guidelines
• Executive compensation
• Privacy policy
• Related person transaction policy
• Standards of conduct and business ethics
Mohawk is committed to open and transparent corporate
governance. In addition, all Company employees, officers
and directors are expected to adhere to a code of conduct
that demands integrity and a high standard of ethics. As the
Code states succinctly, “Mohawk is committed to doing what
is right and deterring wrongdoing.”
Mohawk Industries does not receive any significant
financial assistance from local, state or federal government
entities. The Company does not lobby on behalf of its own
business operations. On occasion, Mohawk does participate
in industry lobbying and public policy development efforts.
In addition, all financial reports and SEC filings made
by the Company are available in the investor information
section of its website at www.mohawkind.com.
www.mohawksustainability.com 10
Sustainability 2009
A Better World Through
Safe and Sustainable Products
Mohawk covers the market with a wide variety of f looring products that span multiple categories,
including carpet, ceramic tile, laminate and hardwood surfaces. Our portfolio proudly boasts hundreds
of environmentally friendly products today. It’s a number we intend to grow thanks to life cycle analysis
and ongoing research and development that will lead to even more safe and sustainable products.
All Mohawk products are marketed and labeled to comply with the standards set by the Federal Trade
Commission and other regulatory agencies.
Residential Carpet
Commercial Carpet
Tile
Laminate
Hardwood
Rugs
Cushion
Building Materials
Sustainability 2009
Products: Residential Carpet
Mohawk is one of the world’s largest manufacturers of tufted and woven carpet. We manufacture and
market carpet for the home through our Aladdin, Horizon, WundaWeve and Karastan collections.
EverStrand®C
Our staple polyester carpet fiber is made from 100 percent post-consumer
recycled material – PET soda bottles to be exact. Roughly one in five bottles
recycled in North America – over three billion annually – find new life as fiber
for Mohawk carpeting.
SmartStrand® with DuPont™ Sorona®*
This exclusive Mohawk fiber is made in part from corn sugar, a renewable
resource. Sorona® polymers require 30 percent less energy to produce than
nylon 6 and reduce greenhouse gas by 63 percent. Put in perspective, every
seven yards of SmartStrand® with DuPont™ Sorona® manufactured is the energy
equivalent of saving one gallon of gasoline.
*DuPont TM and Sorona® are registered trademarks or trademarks of DuPont or its affiliates
and are licensed to Mohawk.
Woven Wool
Karastan wool carpets are made from fiber that originates from New Zealand
sheep. They are shorn every nine to twelve months, which makes their wool
among the most sustainable of flooring materials.
By Design: We offer thousands of carpet choices to fit every
budget, every style and every function in your home.
2 2010 Mohawk Industries, Inc. All rights reserved.
Sustainability 2009
Products: Commercial Carpet
The Mohawk Group is one of North America’s leading suppliers of commercial carpet and carpet tile products,
which are marketed under the Karastan Commercial, Lees, Bigelow and Durkan Hospitality brands.
NSF-140 Certified
The Mohawk Group offers a complete selection of carpet products that meet
the most comprehensive multi-attribute sustainable carpet standard known as
NSF 140. This standard is the first ANSI-approved, non-proprietary carpet standard
for evaluating environmentally preferable building materials. Additionally, an
online LEED® calculator is offered to assist architects, interior designers and
flooring contractors.
Carpet Tile
Integrated Cushion ThermobondTM (ICTTM RC) is a premium modular backing
system engineered for superior performance. ICTTM RC carpet tile products
contain a minimum of 35 percent pre-consumer recycled content and have
been third-party certified under the NSF 140 Sustainable Carpet Assessment
Standard at the Gold level. They are produced in an ISO 14001 facility and are
recyclable through Mohawk’s carpet recycling program known as ReCover.
These attributes help contribute toward recycled content and innovation credits
for the LEED® rating system of USGBC®.
Colorstrand®
Colorstrand is a branded 100 percent solution dyed nylon fiber engineered for
commercial applications. The fully integrated manufacturing process requires
no additional water for dyeing the yarn. Colorstrand Solution Dyed Nylon fibers
also contain 25 percent pre-consumer recycled content, which helps meet USGBC®
LEED criteria for recycled content credit. This environmental claim declaration
has been third-party certified by Underwriters Laboratory.
By Design: Enduring beauty and quality are requisites for commercial
carpet that meets the demands of high-traffic spaces.
Sustainability 2009
Products: Tile
Mohawk is the largest supplier of ceramic tile in North America through our Dal-Tile, American Olean and Mohawk brands.
Ceramic Tile
Ceramic tile is manufactured from plentiful inorganic raw materials, such as clay,
talc, sand and water. Even so, Dal-Tile minimizes consumption of these natural
materials by using recycled materials to the maximum extent possible in 97 percent
of our manufactured products. These recycled materials come from our own
industrial processes, as well as external ones. Recycled content only serves to
add to the environmentally friendly nature of ceramic tile. It is among the most
durable of building and flooring materials, often lasting for hundreds of years. Also
noteworthy, since the inert raw materials used to make ceramic tile come from
the earth, they integrate well into the environment at the end of their useful life.
Porcelain Tile
Dal-Tile is focused on new product innovation to find even more ways to utilize
recycled content. For example, all Dal-Tile manufactured porcelain floor tile
products currently contain over 50 percent recycled materials content, with
some having over 60 percent and including post-consumer recycled materials.
Ongoing R&D is expected to lead to more innovations in recycled content for tile
products in the near future, particularly in the ability to incorporate post-consumer
recycled materials into more product lines.
By Design: From beautiful kitchens to sophisticated
restaurants, it is hard to top the versatility of tile.
Sustainability 2009
Products: Laminate
Mohawk is a leading supplier of laminate flooring in North America and Europe through our Quick-Step and
Mohawk laminate brands.
Recycled Materials
We recycle over one billion pounds of wood annually to make the core boards
used in laminate flooring. In the U.S., this flooring, on average, contains 74 percent
pre-consumer recycled material. Our laminates qualify as Environmentally
Preferred Products (EPP) due to their high level of pre-consumer recycled content.
Uniclic® Technology
All of our laminate floors feature Uniclic technology. This patented system
eliminates the needs for glues or other adhesives, making installations faster
and easier. Boards easily slip together, at an angle, or slide together with a
snap. The Unifix™ tool also allows for individual planks to be easily removed
and replaced if necessary without having to replace the entire floor.
By Design: Inspired by nature, laminate offers an often more
affordable and functional alternative to hardwood flooring.
2 2010 Mohawk Industries, Inc. All rights reserved.
Sustainability 2009
Products: Hardwood
Mohawk is a leading supplier of hardwood flooring in North America through
our Mohawk, Columbia and Century brands.
PureBond®*
Our unique engineered hardwood manufacturing process eliminates the
addition of unnecessary formaldehyde into the finished product. As a result,
PureBond® technology meets Phase II formaldehyde emission standards set
by the California Air Resources Board (CARB) for composite wood products
and is FloorScore®-certified for low emissions.
*PureBond is a registered trademark of Columbia Forest Products, Inc. in the U.S. and
other countries and is used under license.
Reclaimed Wood
Thanks to the growing deconstruction and salvage industries, we are able to
reclaim wood from torn-down buildings and structures. A second life as flooring
for this 100 percent post-consumer recycled wood means less material in
landfills, as well as reduced harvesting of new wood and the accompanying
energy use required to manufacture flooring.
FSC and AHMI Certifications
We source some FSC-certified hardwood flooring and most Columbia and
Century Flooring hardwood products are Appalachian Hardwood Manufacturing,
Inc. (AHMI) Verified Sustainable. The AHMI has verified data from the U.S. Forest
Service that timber harvested from the 65.4-million-acre Appalachian timber
resource in the Eastern United States is able to meet present needs without
compromising those of future generations.
By Design: Craftsmanship and wood selection combine
to create a wide variety of hardwood options for homes.
Sustainability 2009
Products: Rugs
Mohawk Home is the largest supplier of rugs and mats in the United States.
Products range from luxurious Karastan area rugs to practical Mohawk Home rugs and bath mats.
Welcome Mats
In 2009, we diverted over 18 million pounds of rubber tires – one of the largest
and most hazardous types of post-consumer waste from landfills – and brought
them to homes as designer doormats. Put another way, that represents enough
tires to outfit 225,000 cars. The face or image area is also made with 100 percent
post-consumer recycled plastic bottles.
Natural Fibers
Wool and cotton are among the oldest floor covering staples in the world.
Karastan wool woven rugs are luxurious, durable and most importantly, sustainable.
The wool originates on the farms of New Zealand, where sheep shorn every nine
to twelve months provide a source of highly renewable material. When our wool
rugs eventually wear out, the wool is completely biodegradable and returns to the
earth as an essential plant nutrient. Our cotton bath rugs come from a fiber that
is natural, renewable and recyclable. Their unmatched absorbency, plush feel and
effortless care make this an easy eco-conscious choice for a bathroom.
Recycled Fibers
One out of every five plastic bottles recycled in the U.S. is recycled by Mohawk.
That’s over three billion bottles. EverStrand® is made from 100 percent postconsumer face fiber making a truly unique product in the floor covering industry
today. These rugs provide brilliant color clarity, exceptional stain resistance,
superior durability and most importantly, they respect the environment. You can
trust the way they look, love the way they feel and have complete assurance in
their natural resistance to stains and spills.
By Design: Rugs can create an aesthetically pleasing
contrast between two flooring surfaces.
Sustainability 2009
Products: Cushion
As one of the world’s largest manufacturers of tufted and woven
carpet, Mohawk also offers carpet cushion products.
Rebond Cushion
These carpet cushions utilize at least 90 percent pre-consumer recycled
materials. We purchase excess foam from furniture and mattress manufacturers,
as well as our own internal materials, to make rebond padding. This process
diverted over 120 million pounds of foam from landfills in 2009.
Synthetic Cushion
Our synthetic cushion requires very little virgin material since approximately
90 percent of material comes from pre-consumer waste that is converted into
raw materials. Much of this material comes from our own production facilities.
In 2009, we converted 14 million pounds of waste into quality underlayment
for all types of carpet.
By Design: Cushioning enhances both the feel and
performance of carpet.
Sustainability 2009
Products: Building Materials
In addition to laminate and hardwood flooring, Mohawk’s Unilin business also manufactures and
markets chipboard and roofing systems.
Flaxboard
The flax plant has been used as a fiber source for thousands of years. Today,
Unilin uses flax shives, a by-product of the linen industry, as the raw material for
flaxboard, making it a highly sustainable product. Shives are dried, glued and
pressed into flaxboard, which is primarily used as a filler material for doors and
as a veneer material for furniture components. Flaxboard also is lightweight,
which makes it an ideal packaging material.
Chipboards
Unilin chipboard is comprised of at least 80 percent pre- and post-consumer
materials. We recycle wood remnants from wood processing operations, such
as scrap from saw and shredding mills. The boards also contain recycled
wood from packaging materials, house demolition and old furniture. Chipboard
serves primarily as base material for boards used in furniture manufacturing.
Insulated Roof Panels
Unilin Insulated Sandwich Roof Panels are designed to provide insulation and
structural support to slate and tiled roofs in domestic or commercial buildings.
These panels help to achieve improved thermal efficiency by utilizing a source
of wood wool insulation.
Sustainability 2009
Resource Conservation
As the industry leader and a 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 waste to
landfill – to improve upon by 25 percent each by 2020. Our actions and progress will be guided through
measurement and analysis of our total environmental impact and documented through intensity-based
performance goals that will be calculated on net sales for the period. Mohawk bases measurements,
definitions and reporting structure on the Global Reporting Initiative (GRI) protocols.
Energy
Water
Waste
GHG Emissions
Sustainability 2009
Energy Reduction:
No Stone Unturned
MDF board manufacturing. Unilin generates nearly all of this
energy through boilers that burn bio-mass materials found on
site, such as bark, sander dust, saw trimmings, reject board
and reject fiber. The success of these processes in Europe is
prompting other Unilin facilities to study the feasibility of
bio-fuels as well as other renewable energy options.
Mohawk also works with federal agencies and local utilities
to develop strategies and tactics for energy usage. Our Phelps
Road manufacturing site, for example, modifies its operating
hours to align its energy use with off-peak hours to help utility
companies operate more efficiently.
Minimizing energy consumption across our operations has
long been a key business and environmental strategy at
Mohawk Industries. As a vertically integrated manufacturer,
our energy demand is high; yet our vertical integration also
means that we have more opportunities to control and reduce
our energy footprint. To this end, our strategy is defined by
reducing the energy intensity of our manufacturing processes
via proven technologies, innovating solutions that transform
how we use energy in those operations, and engaging employees to create a culture of energy conservation. These activities
are intended to reduce our energy intensity over the next decade
to improve financial performance, as well as our environmental
footprint in the communities we operate. As we work toward
these improvements, we also will be investing in an energy
sustainability management solution that will enhance our
ability to capture consumption data and the integrity of
our reporting processes.
Renewable forms of energy have been one of our most
promising energy management solutions to date. At our Unilin
plants in Europe, biofuels meet the large amounts of thermal
energy required for the drying and press phases of particle and
Energy Intensities
in estimated Megawatt hours/net sales
2009 – 0.973
2012(e) – 0.907
2020 GOAL – 0.730
2015(e) – 0.840
Goal
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 over the next 10 years. We will achieve this goal through
energy use optimization, including proven technologies,
process innovation and employee engagement.
Sustainability 2009
Water Conservation:
Progress and Potential
As a result, Unilin’s offices in Wielsbeke are able to capture
rainwater in a one-million-liter tank to supply all of its
sanitary water. Unilin intends to add another 750,000-liter
tank in the near future. At our Mohawk bottle recycling plant
in Georgia, projects to capture and recycle grey water are
underway and new water conservation initiatives are being
investigated as well.
Though we have made significant progress in water
conservation, we intend to realize the potential for even more.
As part of this effort, we will invest in the data collection and
analysis tools necessary to help us better monitor, manage
and report water conservation initiatives.
Perhaps because it is always there when we turn the tap, water
is often overlooked or undervalued as a finite natural resource.
The truth could not be more opposite. As the earth’s population
continues to increase, the strain on fresh water resources
increases as well.
At Mohawk, we understand the critical need to manage
the intense demands on the world’s supply of fresh water. We
also are very much aware that flooring manufacturing –
particularly carpet, rugs and tile – is a very water-intensive
undertaking. The ability to manage our water intake from
all sources, as well as the water we discharge, is paramount
to our success across all business units.
We continue to make significant improvement in the
amount of water that we use in our processes annually. These
annual improvements have combined to yield significant
reductions. This achievement has come from a variety of
sources. In our Mohawk Flooring Group alone, we have
achieved a 50 percent reduction in water use since 2005.
Within our Dal-Tile organization, four of our eight
manufacturing plants recover and reuse 100 percent of their
process waste water. Belgium enjoys a wet, rainy climate.
Water Intensities
in estimated 1,000 gallons/net sales
2008 – 0.507
2009 – 0.476
2012(e) – 0.456
2020 GOAL – 0.380
2015(e) – 0.437
Goal
We have made great strides in reducing the amount of
water used in our manufacturing processes since 1995.
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.
Sustainability 2009
Waste Diversion:
Industry Leadership at Work
Waste to Landfill Intensities
in estimated tons/net sales
2009 – 0.0186
2012(e) – 0.0174
2020 GOAL – 0.0140
Mohawk’s material diversion efforts and achievements are
something we are very proud of. We divert more than three
billion pounds of material annually. Our recycling of PET
soda bottles, rubber tires, glass, wood and lumber are well
documented, but these post-consumer materials are just the
start of waste management initiatives. We direct yarn waste
into synthetic padding applications. All cardboard is recycled
into other paper or cardboard boxes. Even wooden pallets
are used until beyond repair and then grouped to become
core material for particle board or gardening materials.
Since 2006, our Waste Stream Management (WSM)
group has been implementing these programs. Their success
in educating and uniting recycling efforts across all Mohawk
facilities is impressive. Today, an inventory and shipping
computer system is in use at 70 warehouses in which 139
recyclable items have been identified. More than 100 different
companies purchase these materials. WSM has plans to
spread this initiative to Unilin and Dal-Tile and to focus
more intently on reusing our own pre-consumer waste in
the production of our floor covering products.
2015(e) – 0.0161
Goal
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. We will continue to increase our recycling
rates and our re-use initiatives in order to further lower
our total landfill intensity by 25 percent as compared to
2009 levels.
Sustainability 2009
GHG Emissions Reduction:
A Function of Greater Efficiency
the energy intensity of our plants. Accordingly, we believe
it is appropriate to closely link our GHG and energy
reduction goals. These goals will be achieved through
capital investments in proven energy reduction technologies, as well as implementation of solutions
and practices designed to transform how we manage
greenhouse gases within our operations. We also will
utilize renewable energy sources, such as those
currently in use in our European Unilin operations,
as appropriate.
Greenhouse Gas Intensities
We are committed to the reduction of our greenhouse
gas emissions. In the spirit of “measurement drives
management,” we are working to improve our data
collection methodology for both energy consumption and
GHG emissions to ensure ongoing reduction progress
and transparent reporting. Currently, our GHG intensity
performance measurements are tied only to our direct
and indirect energy consumption.
By the fourth quarter of 2010, we plan to deploy an
energy sustainability management solution to more
effectively measure process emissions and to improve
the accuracy of our energy consumption data. Our goal
is to fully report both Scope 1 and Scope 2 CO2 emissions
by 2011. Once we have achieved this goal, our next step
will be to develop the metrics needed for Scope 3, which
includes our supply chain. At that time, we should be
in a position to present a more complete representation
of the overall carbon-based footprint of our Company
and its products.
As with many product manufacturing companies,
our carbon-related emissions intensity largely reflects
in metric ton CO2 equivalents*/net sales
2009 – 0.347
2012(e) – 0.324
2020 GOAL – 0.261
2015(e) – 0.300
*Calculated from fuel use
*and electricity by stationary
*sources only
Goal
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 use
of renewable or alternative energy sources as appropriate.
Sustainability 2009
Support for Each Other
While our products certainly set us apart from others in the marketplace, we believe our real competitive
edge comes down to the quality of our people and their relationships with our customers. This explains our
strong commitment to investing in the safety, well-being and professional development of our employees
and the communities in which they live and work.
Employees
Community
Customers
Sustainability 2009
Our Employees:
A Fair Workplace for Everyone
Diversity & Inclusion
Labor & Management Relations
Mohawk believes that a strong workforce is a diverse and
inclusive one, where everyone has the opportunity to grow
professionally and personally. We seek out a myriad of skills,
talents, experiences and backgrounds that will help Mohawk
grow and ultimately reflect the wide variety of end-users for
our products. As such, Mohawk adheres to an equal employment opportunity policy that does not discriminate on the
basis of race, color, religion, gender, natural origin, age,
marital status or disability. Simply put, we consider any
individual for any position for which he or she is qualified
and can perform.
In addition to recruiting through traditional media
advertising channels, we turn to more niche-oriented
channels to recruit women and minorities. These channels
include websites such as LatPro.com, womenforhire.com
and diversity.com, as well as newspapers that serve minority
communities. Many of our recruitment ads are bilingual.
We also work with numerous organizations such as the
NAACP and the Urban League to direct qualified applicants
our way, and we have built relationships with historically
African-American colleges and educational institutions with
strong Latino outreach programs. Mohawk also sponsors
such programs as the Georgia Women of Achievement and
those that highlight the role of women in the history of the
carpet industry.
Mohawk had 27,400 employees as of December 31, 2009.
A discussion outlining collective bargaining agreements
between the Company and employees can be found on page 9
of the Company’s 2009 10-K SEC filing, which can be
accessed via the Company’s website at www.mohawkind.com.
Region
Employees by Region
total)
(27,400 total)
U.S. – 21,500
Mexico – 3,100
Europe – 2,100
Malaysia – 600
Canada – 100
We believe that we offer all employees competitive
wages and salaries relative to the local labor market. The
Company operates in full compliance with the applicable
wage, work hour, overtime and benefits laws. Mohawk
prohibits the use of all forms of forced labor, including
indentured labor, bonded labor, military labor or slave labor
at all of its locations, domestic and international. Further,
Mohawk adheres to minimum age provisions of applicable
laws and regulations in the areas where the Company does
business. Our prohibition of child labor is consistent with
International Labor Organization standards.
Sustainability 2009
Our Employees:
A Safe and Healthy Workforce
Health & Wellness
Mohawk offers benefits that help employees care for their own
health, their families’ health, provide financial protection and
save for the future. Mohawk pays all or part of the cost for most
benefits and employees are eligible for most benefits after
90 days of employment. Any employee of Mohawk Industries
who works more than 20 hours per week, regardless of whether
their compensation is hourly or salary based, is eligible to
receive certain company benefits. Among the benefits that we
offer are health insurance, including prescription, dental
and vision plans, a company-matched 401k retirement savings
plan, short and long-term disability, life insurance and critical
illness plans, paid holidays and vacations and a tuition
reimbursement program.
Mohawk provides both classroom and online learning
programs that provide information and instruction about
healthier living. Additionally, Mohawk provides on-site clinics
at many locations and staffs them with both healthcare
professionals and healthy life coaches to address potentially
debilitating conditions such as diabetes, high blood pressure
and high cholesterol. Through these programs, Mohawk
expresses its commitment to its people’s health and wellness.
Safety
At Mohawk, safety is equal in importance to quality, production
and cost management. Working safely is a personal responsibility
for all our employees and as an employer, our commitment
encompasses training and education, continuous improvement,
implementation of best practices and the aggressive investigation and remediation of any safety failure.
We believe our commitment is paying dividends. In the
U.S., for example, our Dal-Tile site in El Paso, Texas has achieved
OSHA VPP Star Site status, meaning it has attained injury
and illness rates at or below their respective industries’ national
average. And while we recognize the need for more improvement in the safety metrics for our European operations,
initiatives underway since 2008 have already reduced the
total recordable incident rate by 17 percent and the lost
workday rate by 24 percent. Today, European operations
are implementing an aggressive risk analysis and revision of
all machinery and installations in accordance with European
Safety Standards, and they are mandating regular observation,
communication and training programs that keep safety front
and center.
2009 Safety Incident Rates*
Location
Total Recordable
Incident Rate
Lost Workday
Incident Rate
Asia
2.04
0.89
Europe
11.54
4.79
North America
1.90
0.35
Total Company
2.47
0.63
*In order to maintain a consistent and viable means of case classification, Mohawk
Industries utilizes the U.S. Standard for incident reporting specified in 29 CFR 1904.
Both our health and safety programs are implemented and
monitored in five areas: management systems and leadership,
occupational health and industrial hygiene, safety and accident
prevention, fire protection and asset risk management and
emergency preparedness and management systems.
Sustainability 2009
Our Employees:
Investing in Careers
Training
Mohawk has a long history of providing personal and
professional growth opportunities for the men and women
who drive our success. We offer a variety of training and
development courses in both classroom and virtual settings.
This blended approach has enabled Mohawk to rank as high
as ninth in Training magazine’s annual listing of Top 125
training organizations.
Ongoing initiatives include analytical methods of
training implementation in manufacturing that help improve
consistency, quality and safety, while also reducing the time
necessary for new employees to reach full productivity. Online
skills training in software and general business helps to ensure
that administrative employees possess an ever-evolving
knowledge base. Mohawk also offers leadership training to
identify future business leaders. The NextExec program provides
a consistent development tool that delivers well-prepared,
ready-now successors for Mohawk’s senior leadership team.
Collectively, these programs help to ensure career advancement opportunities for our people and a competitive talent
edge for our business – from the plant floor to the sales force
to the executive office.
Annual Per-Person Training Hours by Job Category*
Production/Line Employees
41.1
Administration/Support Staff
34.9
Sales/Account Management
13.4
Manager/Professional Employees
15.5
*U.S. and Canada only
Sustainability 2009
Our Communities:
Better Places to Live and Work
Mohawk’s definition of sustainability extends beyond the environment
to include finding ways to help sustain the communities in which we
live and work. We especially seek to find ways in which we can link
our business with the needs of organizations that make a difference
in people’s lives. Our work with the Susan G. Komen for the Cure is
a great example. Through our “Specify for a Cure” program, we donate
25 cents per square yard of selected carpet that is specified, registered
and sold in the commercial market. To date, this program has raised
nearly $3.7 million in the fight against breast cancer.
Habitat for Humanity is another great cause that is closely linked
to our products. Both Mohawk and Habitat share a common goal – to
create healthy and safe homes for families. Along with affordable homes,
Habitat has become a leader in green building through EarthCraft
and other programs. Our portfolio of sustainable products and commitment to better living make Habitat a natural cause for Mohawk
and its employees to support through both products and sweat equity.
Mohawk teams have worked on several different community builds
around the country.
Looking forward, we intend to increase our presence in
community green building projects. We have committed, for example,
to partner with DuPont to rebuild homes in Greensburg, Kansas, where
tornadoes devastated the entire town in 2007. The town’s master recovery plan is based on rebuilding a safer, more sustainable community.
Closer to our own homes, the Mohawk Carpet Foundation,
established in 1992, is the primary vehicle to support non-profit organizations in the small towns in which we operate manufacturing facilities.
Because of the communities’ size, our support can significantly impact
the quality of life for employees and their families. The Foundation has
focused its giving on significant areas that can make a meaningful
difference to future growth and development such as community
building, healthcare, education, public safety, youth and adolescent
development, arts and culture, and leadership cultivation. Recent
grants have included the purchase of a new engine and equipment
for the Glasgow, Virginia, volunteer fire department; the building of
a pavilion for the Boys & Girls Clubs of Whitfield County, Georgia;
and the construction of Habitat for Humanity homes in Laurinburg,
North Carolina and Roanoke, Alabama.
Sustainability 2009
Our Customers:
Partners in Sustainability
Mohawk’s more than 28,000 customers play an important role
in educating end users about the environmental value of our
products. Therefore, we are an industry leader in customer
education and product knowledge programs. We are also
committed to sampling, packaging, marketing and certifying
our products in sustainable ways. Through close contact with
customers, company surveys and participation in industry
organizations, we continuously assess and improve our abilities
in these areas.
Education
Mohawk University is the industry’s premier training program,
offering several hundred classes annually in dozens of U.S. and
Canadian cities to more than 2,500 Mohawk-aligned flooring
retailers. Training includes classes, online sessions, resource
library materials and an annual convention. One seven-hour
course held in 20 cities during 2009 taught retailers how to
promote sustainable flooring products while also growing
their business.
The Mohawk Group, our commercial carpet division, has
been approved as an education provider for the Green Building
Certification Institute. Through innovative continuing education
courses, architects and designers can earn credits to maintain
their professional certifications.
Sampling and Packaging
Samples are a seemingly small aspect of our operations, but can
add a significant footprint given the sheer volume of our flooring
business. We have created new sample vehicles that are lighter
and use less materials, plus implemented new digital tools to
reduce the need for physical samples.
SMART (Sustainable Materials and Responsible
Technologies) Book is a unique sample vehicle used by
Mohawk’s commercial carpet division. This technology reduces
the amount of carpet used for each sample, the overall size
and weight of the holders and the overall number of samples
produced. Creative photography allows the end user to see more
product and how it will be used in real world applications.
The success of this program has led the residential team to
begin investigating digital technology for sampling and
merchandising as well.
Our digital marketing teams have implemented online
product galleries and room visualizer tools to help users
better narrow down their product selections. The Mohawk
Group developed “Drag and Fly” which uses high-resolution
carpet tile imagery that is light balanced, color corrected
and properly scaled with realistic pattern repeats for modular
carpet installations. This instantaneous tool makes the user’s
rendering job faster, more accurate and more sustainable
since there is no need to ship samples.
Proper packaging is essential to the merchandising and
shipping of our products. We always look for ways to reduce
the amount of waste incurred in shipping, as well as at the
customer level. Mohawk Home, our rug division, currently
uses 100 percent recyclable and biodegradable rug bags in
the warehouses for shipping and storage. They have also
successfully implemented customer partnerships aimed at
reducing the total use of corrugated cardboard through the
use of recyclable shipping bags.
Marketing and Certification Tools
To fully optimize our environmental footprint, every aspect of
our business must engage in sustainable business practices,
including marketing and communication. We diligently adhere
to all U.S. Federal Trade Commission guidelines relating to
general product labels as well as “green” product claims and
all applicable European legislation for our products sold in
those markets.
Project certifications are becoming increasingly important.
Because the systems can be cumbersome for project managers,
we have created online, certification-related tools to help simplify
the process. The Mohawk Group website includes a LEED®Plus
Calculator. This tool allows our customers to search carpet
products across a multitude of environmental rating systems
including LEED®, CHPS, GGHC, LABS21 and compliance
for all prevalent third-party certifications. Results, suitable
for documentation, are delivered in minutes via a PDF
report. Dal-Tile, American Olean and Mohawk’s residential
flooring group also have LEED® materials available online
along with product-specific certifications letters to ease the
documentation process.
Sustainability 2009
Our Performance:
Setting Goals; Documenting Progress
Profile
This is Mohawk Industries’ inaugural annual Sustainability Report. The reporting period covers
the 2009 calendar year, and content is limited to the products and operations of Mohawk Industries
and its wholly owned subsidiaries. Our process for defining the content of this report was closely
aligned with our sustainability vision and strategic approach. This three-pronged strategy
focuses on process, products and people. The process portion of this strategy, in particular the
environmental aspects, has been our initial priority due to the critical need to begin resource
measurement and management. As our sustainability journey evolves, we will more closely
focus on our efforts on products and people.
Assurance
Mohawk Industries has contracted with FIRA to provide moderate assurance for the metrics and
claims made within this report. In evaluating the report FIRA analyzed the materiality, completeness
and accuracy of the report as related to the Global Reporting Initiative G3 guidelines.
In evaluating content, we sought to include data and metrics that were measurable, accurate
and verifiable, primarily through invoice records and systems data. We also have included content
and discussion of topics that are likely to be relevant to many of our stakeholder readers.
Sustainability 2009
FIRA Assurance Statement
Mohawk has commissioned FIRA to provide ‘Moderate Assurance’ on its 2009 web-based Sustainability Report.
Web pages that are verified by FIRA read as follows: “The content of this web page has been assured by FIRA.
Please click logo for assurance statement.”
The content of this web page has been assured by FIRA. Please click logo for assurance statement.
Conclusion
This year The Report has a strong focus on environmental issues, setting environmental metrics and goals. Mohawk
is already set to accomplish more, expanding on stakeholder engagement and integrating supply chain partners into
sustainability initiatives.
Based on the work undertaken, we conclude that the claims and information portrayed in The Report are reliable.
We commend Mohawk on a thorough approach leading to GRI C+ and appreciate the focus on data quality over quantity.
Accomplishments and Recommendations
Accomplishments and opportunities were presented to executive management:
• Governance: Appointing a Chief Sustainability Officer and sustainability council.
• Stakeholder Engagement and Materiality: Based on value chain expertise and stakeholder engagement, Mohawk
is developing a materiality view on sustainability issues. We encourage Mohawk to further structure key impacts,
risks and opportunities and to seek further collaboration.
• Sustainability Strategy: Mohawk is driving a successful environmental strategy recognized by its customer base.
The Report portrays performance on people, planet and profit, with emphasis on planet. We encourage Mohawk
to further develop 3-5 year sustainability strategies on people topics and supply chain issues.
• KPI Maturity: As quality of data streams vary, Mohawk is challenged in building data systems for a broader base of
material KPIs covering the whole of Mohawk Industries. Specific attention for Greenhouse Gas KPI management
is needed in the sense of the WRI GHG protocol.
For full statement, including scope, our methodology, work undertaken, disclaimers and description of accomplishments and opportunities for improvement please visit http://www.fira.nl/files/mohawksustainability/statement.pdf.
For FIRA,
A.C. de Bruijn
Director FIRA
July 21st, 2010, The Netherlands
Sustainability 2009
GRI Content Index
Strategy and Profile Disclosures
Page
1. Strategy and Analysis
1.1
Strategy and Analysis
1.2
Description of key impacts, risks and opportunities
2, 5, 7
2-P
2. Organizational Profile
2.1
Name of the organization
FC, IBC
2.2
Primary brands, products, and/or services
4, 11-19
2.3
Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures
4,10
2.4
Location of organization’s headquarters
4, IBC
2.5
Number of countries where the organization operates, and names of countries with either major operations or that are specifically
relevant to the sustainability issues covered in the report
4, 10-K
2.6
Nature of ownership and legal form
10, 10-K
2.7
Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries)
2.8
Scale of the reporting organization
2.9
Significant changes during the reporting period regarding size, structure, or ownership
2.10
Awards received in the reporting period
10-K
4, 6
2, 6, 10-K
9
3. Report Parameters
Report Profile
3.1
Reporting period (e.g., fiscal/calendar year) for information provided
FC, 31
3.2
Date of most recent previous report (if any)
2, 31
3.3
Reporting cycle (annual/biennial, etc.)
31
3.4
Contact point for questions regarding the report or its contents
IBC
Report Scope and Boundary
3.5
Process for defining report content
31
3.6
Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers)
31
3.7
Specific limitations on the scope or boundary of the report
NA
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect
comparability from period to period and/or between organizations
NA
3.9
Data measurement techniques and the basis of calculations, including assumptions and techniques underlying estimations applied to
the compilation of the Indicators and other information in the report
3.10
Explanation of the effect of any restatements of information provided in earlier reports, and the reasons for such restatement
(e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods)
NA
3.11
Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report
NA
3.12
Table identifying the location of the Standard Disclosures in the report
31-P
32-38
FC – Front Cover, IBC – Inside Back Cover, NA – Not Applicable, NR – Not Reporting, P – Partial, 10-K – Form 10-K
Sustainability 2009
GRI Content Index
Strategy and Profile Disclosures
Page
Assurance
3.13
Policy and current practice with regard to seeking external assurance for the report. If not included in the assurance report accompanying
the sustainability report, explain the scope and basis of any external assurance provided. Also explain the relationship between the reporting
organization and the assurance provider(s).
31
4. Governance, Commitments, and Engagement
Governance
4.1
Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such
as setting strategy or organizational oversight
10, Proxy
4.2
Indicate whether Chair of the highest governance body is also an executive officer (and, if so, their function within the organization’s
management and the reasons for this arrangement)
10, Proxy
4.3
For organizations that have a unitary board structure, state the number of members of the highest governance body who are independent
and/or non-executive members
10, Proxy
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body
10, Proxy
4.5
Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure
arrangements), and the organization’s performance (including social and environmental performance)
10, Proxy
4.6
Processes in place for the highest governance body to ensure conflicts of interest are avoided
10, Proxy
4.7
Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization’s
strategy on economic, environmental, and social topics
10, Proxy
4.8
Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social
performance and the status of their implementation
10, Corporate
Website
4.9
Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental,
and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards,
codes of conduct, and principles
10, Corporate
Website
4.10
Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and
social performance
10, Corporate
Website
Commitments to External Initiatives
4.11
Explanations of whether and how the precautionary approach or principle is addressed by the organization
NR
4.12
Externally developed economic, environmental, and social charts, principles, or other initiatives to which the organization
subscribes or endorses
NR
4.13
Memberships in associations (such as industry associations) and/or national/international advocacy in relevant organizations
9
Stakeholder Engagement
4.14
List of stakeholder groups engaged by the organization
8
4.15
Basis for identification and selection of stakeholders with whom to engage
8
4.16
Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group
8
4.17
Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key
topics and concerns, including through its reporting
NR
Sustainability 2009
GRI Content Index
Economic Disclosures: Disclosure of Management Approach
Page
Aspect: Economic Performance
EC1
Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other
community investments, retained earnings and payments to capital providers and governments
EC2
Financial implications and other risks and opportunities for the organization’s activities due to climate change
EC3
Coverage of the organization’s defined benefit plan obligations
EC4
Significant financial assistance received from government
6, 10-K
10-K
10-K (12)
10
Aspect: Market Presence
EC5
Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation
NR
EC6
Policy, practices, and proportion of spending on locally based suppliers at significant locations of operations
NR
EC7
Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation
NR
Aspect: Indirect Economic Impacts
EC8
Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or
pro bono engagement
EC9
Understanding and describing significant indirect economic impacts, including the extent of impacts
NR
NR
Environmental Disclosures: Disclosure of Management Approach
Page
Aspect: Materials
EN1
Materials used by weight or volume
NR
EN2
Percentage of materials used that are recycled input materials
NR
Aspect: Energy
EN3
Direct energy consumption by primary energy source
21-P
EN4
Indirect energy consumption by primary source
21-P
EN5
Energy saved due to conservation and efficiency improvements
NR
EN6
Initiatives to provide energy-efficient or renewable energy-based products and services and reductions in energy requirements as a result
21
EN7
Initiatives to reduce indirect energy consumptions and the reductions achieved
21
Aspect: Water
EN8
Total water withdrawal by source
EN9
Water sources significantly affected by withdrawal of water
EN10 Percentage and total volume of water recycled or reused
22-P
NR
NR
Sustainability 2009
GRI Content Index
Environmental Disclosures: Disclosure of Management Approach
Page
Aspect: Biodiversity
EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside
protected areas
NR
EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value
outside protected areas
NR
EN13 Habitats protected or restored
NR
EN14 Strategies, current actions, and future plans for managing impacts on biodiversity
NR
EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of
extinction risk
NR
Aspect: Emissions, Effluents, and Waste
EN16 Total direct and indirect greenhouse gas emissions by weight
24-P
EN17 Other relevant indirect greenhouse gas emissions by weight
NR
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved
24
EN19 Emissions of ozone-depleting substances by weight
NR
EN20 NOx, SOx, and other significant air emissions by type and weight
NR
EN21 Total water discharge by quality and destination
NR
EN22 Total weight of waste by type and disposal method
23-P
EN23 Total number and volume of significant spills
NR
EN24 Weight of transported, imported, exported or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III,
and VIII, and the percentage of transported waste shipped internationally
NR
EN25 Identity, size, protected status, and biodiveristy value of water bodies and related habitats significantly affected by the reporting
organization’s discharges of water and runoff
NR
Aspect: Products and Services
EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation
NR
EN27 Percentage of products sold and their packaging materials that are reclaimed by category
NR
Aspect: Compliance
EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws
and regulations
NR
Aspect: Transport
EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and
transporting members of the workforce
NR
Aspect: Overall
EN30 Total environmental protection expenditures and investments by type
NR
Sustainability 2009
GRI Content Index
Social Disclosure – Labor Practices and Decent Work: Disclosure of Management Approach
Page
Aspect: Employment
LA1
Total workforce by employment type, employment contract, and region
26-P
LA2
Total number and rate of employee turnover by age group, gender, and region
NR
LA3
Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations
27
Aspect: Labor/Management Relations
LA4
Percentage of employees covered
26-P
LA5
Minimum of notice period(s) regarding significant operational changes, including whether it is specified in collective agreements
NR
Aspect: Occupational Health and Safety
LA6
Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and
advise on occupational health and safety programs
NR
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region
LA8
Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community
members regarding serious disease
NR
LA9
Health and safety topics covered in formal agreements with trade unions
NR
27-P
Aspect: Training and Education
LA10 Average hours of training per year per employee category
28-P
LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing
career endings
28
LA12 Percentage of employees receiving regular performance and career development reviews
NR
Aspect: Diversity and Equal Opportunity
LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership
and other indicators of diversity
NR
LA14 Ratio of basic salary of men to women by employment category
NR
Sustainability 2009
GRI Content Index
Social Disclosure – Human Rights: Disclosure of Management Approach
Page
Aspect: Investment and Procurement Practices
HR1
Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human
rights screening
NR
HR2
Percentage of significant suppliers and contractors who have undergone screening on human rights, and actions taken
NR
HR3
Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including
the percentage of employees trained
NR
Aspect: Non-discrimination
HR4
Total number of incidents of discrimination and actions taken
NR
Aspect: Freedom of Association and Collective Bargaining
HR5
Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions
taken to support these rights
NR
Aspect: Child Labor
HR6
Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of
child labor
26
Aspect: Forced and Compulsory Labor
HR7
Operations identified as having significant risk for incidents of forced or compulsory labor, and measures taken to contribute to the
elimination of forced or compulsory labor
26-P
Aspect: Security Practices
HR8
Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are
relevant to operations
NR
Aspect: Indigenous Rights
HR9
Total number of incidents of violations involving rights of indigenous people and actions taken
NR
Sustainability 2009
GRI Content Index
Social Disclosure – Society: Disclosure of Management Approach
Page
Aspect: Community
SO1
Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities,
including entering, operating, and exiting
NR
Aspect: Corruption
SO2
Percentage and total number of business units analyzed for risks related to corruption
NR
SO3
Percentage of employees trained in organization’s anti-corruption policies and procedures
NR
SO4
Actions taken in response to incidents of corruption
NR
Aspect: Public Policy
SO5
Public policy positions and participation in public policy development and lobbying
10
SO6
Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country
NR
Aspect: Anti-competitive Behavior
SO7
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes
NR
Aspect: Compliance
SO8
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations
Social Disclosure – Product Responsibility: Disclosure of Management Approach
NR
Page
Aspect: Customer Health and Safety
PR1
Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant
products and services categories subject to such procedures
NR
PR2
Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and
services during their life cycle, by type of outcomes
NR
Aspect: Product and Service Labeling
PR3
Type of product and service information required by procedures, and percentage of significant products and services subject to such
information requirements
PR4
Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and
labeling, by type of outcomes
PR5
Practices related to customer satisfaction, including results of surveys measuring customer satisfaction
11, 30
NR
30-P
Aspect: Marketing Communications
PR6
Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion,
and sponsorship
PR7
Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including
advertising, promotion, and sponsorship by type of outcomes
30-P
NR
Aspect: Customer Privacy
PR8
Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data
NR
Aspect: Compliance
PR9
Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services
NR
Sustainability 2009
Contact Information
Mohawk Industries, Inc.
160 South Industrial Boulevard
Calhoun, Georgia 30701
www.mohawkind.com
Mohawk Sustainability:
[email protected]
Media Inquiries:
[email protected]
Sustainability 2009
About Mohawk Industries
From our beginning over 130 years ago as a carpet and rug manufacturer,
Mohawk Industries has evolved into one of the world’s leading flooring companies.
Our full line of flooring products includes tufted and woven carpets, rugs, ceramic
tile, laminate, stone, wood, resilient and carpet cushion. We employ approximately
27,400 associates across US, Mexico, Canada, Europe and Malaysia. Mohawk is
headquartered in Calhoun, Georgia and our shares trade on the New York Stock
Exchange under the ticker symbol “MHK.”
‘USGBC®’, ‘LEED’® and related logos are trademarks owned by the U.S. Green Building Council® and are used with permission.
www.mohawksustainability.com IBC
41
160 South Industrial Boulevard
Calhoun, Georgia 30701
www.mohawkind.com

A Better World by Design

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