2012 Corporate Responsibility Report

Transcription

Good Choices
You make them for your life.
We make them for our business.
2012
Corporate
Responsibility &
Sustainability
Report
ABOUT THIS REPORT
We are pleased to present Mohawk Industries’ fourth annual Corporate Responsibility &
Sustainability Report. We have prepared this report using the Global Reporting Initiative
(GRI) 3.1 guidelines and are reporting at a B+ application level. Much like our financial
reporting process, Mohawk Industries engages a third party to audit and verify the content
of publicly issued reports. Accordingly, we have commissioned FIRA to provide “Moderate
Assurance” to the web-based and PDF versions of this report. Please see page 56 for the
FIRA assurance statement.
The reporting period for this year’s report is the 2012 calendar year, which is also our fiscal
year. Content is limited to the products and operations of Mohawk Industries and its wholly
owned subsidiaries. Since the publication of our 2011 Sustainability Report, we have closed
two facilities and acquired three businesses. These acquisitions are noted in the report but
will not be included in the metrics of the report for a period of up to three years.
Beyond these acquisitions and plant closings, there have been no other significant changes
regarding the size, structure and ownership of our Company during the reporting period.
Our process for defining the content of this report is closely aligned with our sustainability
vision and strategic approach that encompasses process, products and people. In evaluating
content, we sought to include data and metrics that were measurable, accurate and verifiable,
primarily through invoice records and systems data.
CONTENTS
COMPANY
pg. 1
PEOPLE
pg. 23
APPROACH
pg. 11
GREEN
PRODUCTS
pg. 36
GOOD NEWS
pg. 16
GOALS &
PROGRESS
pg. 51
COMPANY
We are the world’s leading flooring company
with a portfolio of market-leading brands.
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Mohawk Industries, Inc. | 2012 Corporate Responsibility & Sustainability Report
COMPANY
A Business Built on Good Choices
As one of the world’s foremost manufacturers and distributors of flooring, we strive to make good choices as we create
fashionable and sustainable products that enhance the spaces where people live and work. We enjoy leading market positions
across multiple flooring categories, including carpet, ceramic tile, natural stone, wood and rugs in the United States and ceramic
and laminate in the U.S., Europe and Russia.
Our vertically integrated operations allow us to control almost every phase of flooring manufacturing, resulting in products with
better performance, more sustainable features and easier care. In addition, end-to-end integration delivers business advantages
such as quality control, cost management and raw material integrity.
Mohawk’s roots date to the 1800s, when we were one of the first carpet manufacturers in the United States. Today, we are a
publicly traded $5.8 billion global enterprise, comprised of three business segments, Mohawk, Dal-Tile and Unilin. Headquartered
in Calhoun, Georgia, we employ more than 25,000 people around the world.
Mohawk
Mohawk® is one of the premier flooring brands and one of the largest carpet suppliers in the
world, with a portfolio of products that also includes ceramic tile, laminate and hardwood
flooring, carpet cushion, rugs and mats, and floor care products. Mohawk offers both
residential and commercial flooring under the Karastan®, Lees®, Bigelow®, Durkan® and
Mohawk Home® brands.
Learn more about Mohawk residential flooring products: www.mohawkflooring.com
Mohawk commercial flooring products: www.themohawkgroup.com
Mohawk rugs: www.mohawkhome.com
Dal-Tile
Dal-Tile is the largest manufacturer, distributor and marketer of ceramic tile and natural
stone in North America. Dal-Tile products serve both commercial and residential markets
under the Daltile®, American Olean® and Marazzi brands.
Learn more about Daltile: www.daltile.com
American Olean: www.americanolean.com
UNILIN
Unilin is one of the world’s leading suppliers of premium laminate and hardwood flooring.
In Europe, an expanded Unilin product line also includes roofing systems, insulation boards
and other wood products for the construction, cabinet and furniture markets. In addition,
Unilin is the leader in product innovation and installation techniques, with a strong portfolio
of intellectual property rights. Unilin products are available under the Quick-Step®, Columbia®,
Century®, didit™ Click Furniture and Pergo® brands.
Learn more about Unilin: www.unilin.com
Quick-Step: www.quickstep.com
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COMPANY
Good Choices Around the Globe
Over the past decade, Mohawk Industries has grown from a North American carpet company to one of the largest flooring
companies in the world, competing across multiple product categories in dozens of countries. We continue to expand into both
emerging and more established markets where we can leverage our strengths to sustain profitable growth for our shareholders.
United States
We enjoy leadership positions in carpet, tile, laminate, hardwood, and rugs and mats in
the nearly $18 billion U.S. flooring market. Our vertically integrated operations distribute
products through all channels in both the residential and commercial sectors.
Mexico
Dal-Tile’s two plants in Mexico, one of the largest and fastest-growing tile markets in
the world, have enabled us to increase production and expand our offering of designs,
sizes and price points.
Europe
Our acquisitions of Pergo and Marazzi, combined with our existing Quick-Step® brand,
provide us with the leading laminate, hardwood and ceramic tile flooring brands in
Europe. The recent addition of Belgian panel board manufacturer, Spano, also extends
our capabilities in the board market.
Russia
Quick-Step continues to be the laminate market leader in Russia, supported by our new
production plant there, while our addition of Marazzi, the Russian leader in ceramic tile,
allows us to expand our presence in this fast-growing flooring market.
Australia and Malaysia
We are the only national laminate and hardwood distributor in Australia, a position that
allows us to better serve local consumers. Through our hardwood manufacturing facility
in Malaysia we are able to source product for the Australian market directly.
Emerging Markets
Joint ventures with a vertically integrated forest products company in Brazil, a laminate
distribution company in India and a vertically integrated tile company in China have allowed
us to establish a presence in these important emerging markets.
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COMPANY
Financial Highlights
A comprehensive financial review of our business can be found in our 2012 10-K filing with the
Securities and Exchange Commission.
For years ended December 31
Adjusted
Net Earnings(a)
Adjusted
Operating Income(a)
Net Sales
(in billions)
(in millions)
(in millions)
$7.49
$345
$398
$262
$202
$5.64 $5.79
2011
2012 2012(b)
2011
Adjusted Earnings
Per Share(a)
$3.78
$2.92
2011
2012
2012
2011
2012
Total Assets
(in billions)
$6.2
2011
$6.3
2012
(a) The non-GAAP measure “Adjusted Operating Income” is used to compare operating results. Management uses the information to review results, excluding items that
are not necessarily indicative of ongoing results. Reconciliation to the most comparable GAAP measures can be found at www.mohawkind.com and in Annex A of the
2013 Proxy Statement.
(b) Represents 2012 on a Pro-Forma basis with management estimates of Marazzi, Pergo and Spano.
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COMPANY
CEO Message
A Strategy of Good
and Responsible Choices
Our success as a company is defined by the choices that we
make every day. Many are routine, often mundane; others can
have a profound and long-term impact on our performance.
Some choices are fully informed ones, but others must be
based solely on our best assumptions and instincts. Regardless
of the circumstances, our stakeholders should know that
Mohawk always strives to make the responsible choice. And
that’s not always easy.
I’m especially mindful of how hard it is, at times, to make
good and responsible decisions given the recent business
cycle. During a prolonged, multi-year industry downturn, we
were faced with difficult decisions daily: Do we close this plant
to benefit the business, but cost valued employees their jobs in
the process? Do we invest scarce capital in product innovation,
knowing it could be years before we see the return in sales growth?
In these and other cases, the responsible decision was always
the one that carefully considered and weighed the long-term
impact and best interests of all our stakeholders – the essence
of what a truly sustainable business is all about.
Today, as the flooring industry is gaining momentum once
more, we know we made many positive and responsible
choices. Our focus on asset optimization, process improvement and product innovation – all while carefully conserving
capital – has enabled us to emerge from the downturn in
a position of strength, to begin aggressively expanding our
business again and to ultimately sustain profitable growth.
This, in turn, enables us to pursue even more good choices,
such as investments in training for our people or more
efficient equipment that requires less energy, or R&D to
discover the next renewable product input.
Business Expansion Resumes
Thanks to improving industry conditions and solid execution
by our organization, we were able to report profitable growth
across all of our business units during 2012. We put our
strong liquidity and balance sheet to work by acquiring three
new businesses that expand our global footprint and build
on our leading position in the tile and laminate categories.
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Mohawk has a long and successful record of integrating new
businesses, and much of our attention in the coming year will
be focused on this process. As always, we have completed
a significant amount of due diligence to ensure a thorough
understanding of the strategic, operational and financial risks
and opportunities associated with each of these businesses.
All three have built leadership positions in their respective
markets and share standards similar to our own for responsible
business practices such as product quality, environmental
stewardship and ethical conduct.
Product Innovation & Sustainability
Product innovation also has been a continuing priority
during the past 12 months across all of our business units.
We’ve especially been pleased to leverage the technology of
our proprietary SmartStrand® fiber into a next-generation
product, SmartStrand® Silk™, which takes softness to a new
level in the carpet category. It is worth noting that SmartStrand
has been one of the most successful and sustainable innovations in our history, thanks to being made in part from
COMPANY
CEO Message
Flooring More of the World
Acquisitions have long been a major part of Mohawk’s
strategy for expansion into both new product
categories and new geographic markets. At the end
of 2012, we announced the acquisition of three new
businesses – Pergo, Marazzi and Spano. Each of
these represents a new opportunity for us, while
complementing our existing businesses.
The purchase of Pergo, the most widely recognized
name in laminate in both the U.S. and Europe,
strengthens our leadership in that category. In the
U.S., Pergo is distributed primarily in the home center
channel, complementing our Quick-Step® brand’s
strength in the specialty-flooring distribution network.
Pergo’s most significant market position in Europe
is in the Nordic region, which allows us to broaden
our laminate distribution from Western Europe into
that area. Another significant advantage is Pergo’s
experience in laminate flooring technology, with
unique patents on design and installation methods
that enhance Unilin’s leading patent portfolio.
The addition of Marazzi has made us the global
leader in ceramic tile, which continues to be the
world’s most popular flooring. Marazzi has a long
history of product innovation and design sophistication, with products that include glazed ceramic
and porcelain, technical tile, color-body porcelain
and crystallized porcelain. Marazzi products are
sold in more than 100 countries.
Belgian panel board manufacturer Spano was our
third recent acquisition. Spano manufactures and
distributes chip and melamine board used to
produce furniture and building products. With
facilities located close to Unilin and a complementary business, we will be able to modernize
high-cost assets, broaden our product offering
and create a more competitive business model.
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renewable plant resources. Nothing furthers the cause for
environmentally friendly products in the marketplace more
than a successful product, and we’re proud that SmartStrand
can help tell that story.
Looking ahead, our commitment to product innovation will
remain as strong as ever and include a focus on products
with sustainable attributes, which are important to many
segments of our customer base. Such products can help to
distinguish us from the competition and often help solve
business challenges such as finding alternatives to petroleum
and chemical inputs, as well as their accompanying price
volatility, in carpet manufacturing.
Great innovation, of course, requires substantial investments
of both talent and dollars. This is why talent development and
cost discipline will continue to be strategic priorities for us. The
latter not only can help us direct funds toward important R&D
work, but also aligns well with our efforts to work toward our
2020 sustainability goals around resource conservation.
We are optimistic that the strengthening economic conditions
in the U.S. will continue and are enthusiastic about the longterm potential of the flooring industry around the world.
Though North America and Europe will account for the
majority of our sales in the foreseeable future, we are excited
to begin exploring opportunities in newer markets such as
Russia, China, Brazil and India. An expanding global footprint
brings with it an expanding scope of responsibilities. We
recognize the increasingly diverse nature of our business and
the complexities that accompany it. By continuing to make
business decisions based on the best long-term interests
of our stakeholders, we are confident that the good and
responsible choice will always win with us. Thanks for your
continued support of Mohawk Industries.
Sincerely,
Jeffrey Lorberbaum
Chairman and Chief Executive Officer
COMPANY
BOARD OF DIRECTORS
From Left to Right: Joseph A. Onorato, W. Christopher Wellborn, Phyllis O. Bonanno*, Frans G. De Cock, Richard C. III, Jeffrey S. Lorberbaum,
Karen A. Smith Bogart, Bruce C. Bruckmann, John F. Fiedler, David L. Kolb*
Karen A. Smith Bogart (2)
President of Pacific Tributes, Inc.
(a start-up firm providing web-based
printing services)
Age 55
John F. Fiedler (2)
Former Chairman and Chief Executive
Officer of BorgWarner, Inc.
(a manufacturer of automotive parts)
Age 74
Joseph A. Onorato (1)(2)
Former Chief Financial Officer of
Echlin, Inc. (a manufacturer of
automotive parts)
Age 64
Phyllis O. Bonanno* (3)
Former President and Chief Executive
Officer of International Trade Solutions,
Inc. (an international trade consulting firm)
Age 70
Richard C. Ill (1)
Chairman of Triumph Group, Inc.
(a public, international aviation
services company)
Age 69
W. Christopher Wellborn
President and Chief Operating Officer
Age 57
Bruce C. Bruckmann (1)(3)
Managing Director of Bruckmann,
Rosser, Sherrill & Co. L.L.C.
(a venture capital firm)
Age 59
David L. Kolb* (3)
Former Chairman and Chief Executive
Officer of Mohawk Industries, Inc.
Age 74
Frans G. De Cock
Former President of Unilin
Age 70
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(1) Audit Committee
(2) Compensation Committee
(3)Nominating and Corporate
Governance Committee
*Retired May 8, 2013
Jeffrey S. Lorberbaum
Chairman and Chief Executive Officer
Age 58
COMPANY
Executive officers
Jeffrey S. Lorberbaum
Chairman and Chief Executive
Age 58
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W. Christopher Wellborn
President and Chief Operating
Age 57
Brian M. Carson
President – Mohawk Flooring
Age 48
Frank H. Boykin
Vice President – Finance and Chief
Financial Officer
Age 57
Bernard P. Thiers
President – Unilin
Age 57
James F. Brunk
Corporate Controller and
Chief Accounting Officer
Age 47
John C. Turner, Jr.
President – Dal-Tile
Age 44
COMPANY
Governance & Ethics
Governance
Ethics
Mohawk Industries is a publicly traded company listed on the
New York Stock Exchange under the ticker symbol “MHK.”
We make the following materials available to the public on
our website at www.mohawkind.com.
• Board of Directors and Executive Officer listing
• Board committee charters
• Contact information for Board members
• Corporate governance guidelines
• Privacy policy
• Related person transaction policy
• Standards of conduct and business ethics
Honesty, integrity and transparency are critical to sustaining
any organization. All of our employees, officers and directors
are expected to adhere to our Code of Conduct that demands
integrity and a high standard of ethics. We continue to
re-examine our ethics policies and procedures to ensure
that we are managing the demands of global expansion.
In addition, our 10-K and Proxy filings with the Securities and
Exchange Commission are accessible through the Investor
Information section of the corporate website.
Executive Compensation
Senior management and executives are compensated
for performance on key indicators that include social and
environmental metrics. Our Board of Directors is not
compensated on these performance indicators. The Board
appraises its own performance through self-assessment and
committee evaluation. More information about executive and
board compensation is available in our 2013 Proxy filing.
Risk Management
We identify risks and opportunities faced by our business and
recommend strategies to address these challenges. The
Company’s Risk Management Department identifies and
assesses its risks around the world, minimizing their financial
impact through an optimal combination of loss prevention,
assumption, control and transfer. In addition, we assess and
manage environmental, safety, operations and other risks,
as described throughout this report.
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Unethical behavior, including any type of corruption, is not
tolerated within the organization. We also have policies
in place throughout our global operations to deter anticompetitive behavior. As our Standards of Conduct and
Ethics state succinctly, “Mohawk is committed to doing
what is right and deterring wrongdoing.”
Currently, all of our business units are analyzed for corruption
risks. We have identified those employees who are most at risk
for encountering circumstances that require sound ethical
judgment. In 2012, 22 percent of our global workforce was
trained in our anti-corruption policies and procedures. These
employees are trained, based on the nature of their job
responsibilities, to understand the potential for corruption
to occur. In addition, these individuals complete an ethics/
corruption survey as part of their annual review. Finally, our
audit team regularly reviews accounting records for evidence
of corruption.
Mohawk Industries does not receive any significant financial
assistance from local, state or federal government entities.
We do not lobby on behalf of our own business operations,
nor does the Company make financial contributions to
political candidates. Mohawk employees may make individual
contributions to political candidates. On occasion, Mohawk
does participate in industry lobbying and public policy
development efforts.
COMPANY
supply chain
We expect our commitments to operational excellence, ethical
conduct and respect for individual rights to be shared by all
of our suppliers. To this end, we maintain a Supplier Code of
Conduct (which can be viewed at http://mohawkind.com/pdf/
mohawk_industries _Supplier_Code_of_Conduct.pdf) to
ensure that materials incorporated into Mohawk products
comply with laws and requirements, including our own
principles of social responsibility.
The Code, which we have enhanced as we have expanded
globally, clearly outlines our expectations, consistent with
International Labour Organization standards, with regard to
the prohibition of child labor, forced compulsory labor, the
maintenance of workplaces free of coercion and harassment,
the responsibility to provide employees with a safe and
healthy workplace, and respect for the rights of employees
to organize and bargain collectively. The Code also communicates that suppliers are expected to meet requirements
applicable to human trafficking and slavery that are in
accordance with the California Transparency in Supply Chains
Act of 2010 (SB 657).
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Adherence to applicable laws, regulations and standards is a
condition for doing business with Mohawk, and compliance
extends to suppliers’ subcontractors. The Mohawk Supplier
Code of Conduct is being implemented for Mohawk worldwide.
We conduct assessments of select new and existing suppliers
to verify compliance with the Code. These include supplier
questionnaires, management meetings and facility audits,
which may be attended by Mohawk staff or third parties.
We do not currently retain a third-party verifier, but reserve
the right to retain one, and require suppliers to agree to
third-party verification.
We provide training to employees and management who
are responsible for the implementation, management and
enforcement of our Supplier Code of Conduct. Should we
discover a Code violation, we promptly address the issue
with the supplier and require correction of the issue. Our
internal accountability controls include unannounced audits
to verify correction and compliance and the potential for
termination of the supplier relationship for failure to
remedy the violation.
APPROACH
Our approach to social and environmental responsibility
focuses on products, processes and people.
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APPROACH
A message from our chief sustainability officer
easier-to-attain tasks have been accomplished in the early
years. Future progress is likely to require more complex,
often more expansive solutions that may present tough
resource allocation decisions – decisions that we’re fully
prepared to evaluate in a manner that balances business
and environmental sense.
Recent Progress
Across the entire organization, 2012 was a tremendous year
of progress in safety improvements. From a week of informative activities at Unilin’s European plants to the implementation
of a new risk-reduction tool in North American operations,
we’re engaged in a wide variety of creative and effective
initiatives to keep safety awareness at a high level and to
ensure that we send our people home in good shape
every day.
In 2009, we made the business decision to formalize our
sustainability function. Four years later, that good choice is
delivering good results and steady progress on a variety of
fronts for Mohawk and its stakeholders.
Certainly the most quantifiable progress is work against our
2020 goals to reduce energy, emission, water and waste-tolandfill intensities by 25 percent each by 2020. As you can read
in this report, we continue to realize sustained gains toward
each of these goals through behavioral change, process
improvement and capital investments in more efficient
equipment. We’ve also worked hard to improve measurement
and reporting of our progress. Though we have encountered
challenges in the past, this latest reporting period shows
that we have made significant strides toward more robust,
standardized and transparent data collection.
Equally as important and encouraging, our collected data
shows that through 2012 we remain on track to realize each
goal by 2020. As is so often the case, many of the simpler,
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Training is critical to safety excellence as well as other areas.
We continue to strengthen training and development programs
at all levels of the organization. We are pleased to report
that these programs have been recognized for the eighth
consecutive year as among the best in the United States
by Training magazine. For the third consecutive year, this
publication has ranked Mohawk in the top ten out of their
Top 125 companies.
Beyond our walls, Mohawk’s businesses and people continue
to support good causes and communities. At the most
local of levels, our people volunteer and contribute in countless
ways and constantly impress with their generosity. At a strategic
business level, we are increasingly aligning our support around
core business strengths. This enables us not only to do more,
but also to do it better and with more positive impact.
An Expanding Sphere of Responsibility
With a sustained rebound in the global flooring market,
Mohawk has resumed its focus on business expansion, and
with that comes new opportunities and challenges, as well
as additional responsibilities. In recent years, we’ve opened
new plants in Russia and Mexico, restructured operations in
Malaysia, acquired a business in Australia and invested in joint
ventures in China and Brazil. In early 2013, we acquired and
are now integrating three Europe-based companies.
APPROACH
A message from our chief sustainability officer (continued)
Just over a decade ago our operations were entirely in North
America, with much of our manufacturing limited to the
southeastern region of the U.S. Today, we do business in
markets that vary widely in terms of customer needs, labor
practices and environmental compliance. By leveraging the
systems and standards we have honed in North America, and
combining them with an approach flexible enough to meet
the unique needs of each local market, we are confident in
our ability to effectively manage the new responsibilities that
accompany growth.
We expect to continue to deploy the sustainability strategy that
has worked well for us to date. This strategy utilizes a threepronged approach that combines process, products and
people. The process component largely involves minimizing the
environmental impact of our manufacturing and distribution
operations through resource conservation and waste reduction.
Our product strategy works to ensure that we are offering
products across every flooring category that utilize either
recycled or renewable inputs. We seek to hold our organization
and our suppliers accountable for ensuring that products
are manufactured in a responsible manner – one that
respects both the labor behind them and the environment
around them.
Finally, we believe every aspect of our business benefits
when we engage positively with people who are stakeholders
in our success – customers, employees and surrounding
communities, to name a few. Our intent is always to be a
fair employer, an ethical business partner and an active
corporate citizen.
Good Choices Going Forward
We’re gratified that our good choices and progress are
apparent not only to those of us inside the Company,
but outside as well. Newsweek, once again, ranked Mohawk
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Sustainability Governance
The responsibility for ensuring the execution of
our sustainability strategy involves management
interaction at the highest levels of our Company.
The Chief Sustainability Officer, who also heads an
operating division of the Company, oversees the
development of long-term strategy and chairs the
Sustainability Council. The Sustainability Council
coordinates the implementation of strategy and
comprises the President of Mohawk Industries,
who also is a Company Director, the Presidents
of our three business segments and the Global
Director of Sustainability. The Board of Directors
receives updates from the Chief Sustainability
Officer on a regular basis.
the highest among flooring manufacturers in its annual
green company survey, while the Southeastern Corporate
Sustainability Rankings placed us third among Georgia
companies in their 2012 rankings. There is much more to
be accomplished for sure, but I’d like to personally thank
every Mohawk employee who has helped us achieve so
much so fast. It is your enthusiasm, your ideas and your
actions that will help to ensure that good choices and real
progress continue to be made.
Sincerely,
William B. Kilbride
Chief Sustainability Officer
APPROACH
Stakeholder Engagement
Continuous dialogue is an inherent part of Mohawk’s
relationship with the constituencies in which we are most
invested, namely customers, employees and shareholders.
Across every Mohawk division, we view our retail and dealer
customers as mutually beneficial business partners, and good
partnerships are dependent upon good two-way communication. We inform our customers through many channels –
our sales force, product literature and training programs,
to name a few. Our sales and marketing organization, for
example, consists of a direct sales force that receives input
and feedback from customers on a daily basis. In addition,
we use more formal processes such as Mohawk Flooring’s
quarterly “Voice of the Customer” satisfaction surveys that
track and analyze customer sentiment on operations, product,
price, service and marketing. The goal is to keep in touch
constantly with the dynamics of our retail partners’ business
trends and to get ahead of any potential issues before a
problem develops.
One way we monitor emerging trends is through the type of
information that customers seek from us during the purchasing
process. We know that sustainability is increasingly important
to our commercial customers, for example, because they want
to know more about product inputs as they relate to recycled
and/or renewable content, as well as details about our own
environmental footprint and sustainable solutions to their
flooring needs.
We also are finding new ways to employ social media such as
Facebook, Twitter, LinkedIn and Pinterest to provide real-time
dialogue between our Company and our employees, customers
and consumers. Mohawk Home, for example, has posted
photos of new rug styles and designs on its Facebook page
and solicited comments. The result is immediate, unrestricted
and candid input from consumers that we can use to further
inform product development. Through all of our information
sharing, we protect the privacy of our clients and never reveal
customer-related information. Privacy policies are available
on all Mohawk websites.
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We also have deployed a number of programs to keep
employees connected to the Company and each other. For
example, we launched a new human resources information
system that enables employees to not only receive important
communications from the Company on a 24/7 basis, but also
it provides tools for employees to share information and
best practices on a variety of topics.
Consistent and transparent financial reporting is the foundation
for maintaining communication between Mohawk and its
shareholders. As a publicly traded company, we report our
financial performance on a quarterly and annual basis. We
go beyond compliance-oriented reports to ensure that our
shareholders also understand our strategy and the dynamics
driving our performance. These insights are communicated
in the form of quarterly conference calls between senior
management and investors and analysts.
Beyond these constituencies, our stakeholders are people,
groups, organizations or systems that affect or can be affected
by our Company. This includes communities, suppliers, governments, the media, non-governmental organizations (NGOs)
and reporting agencies. As our sustainability strategy continues
to evolve, we communicate regularly with these groups to
listen and further understand their needs and expectations.
This feedback, in turn, helps us to develop our own strategies,
policies and processes.
APPROACH
Awards & Affiliations
Awards
Manufacturing
• North American Laminate Flooring Association Company
of the Year
Product/Customer
• Hospitality industry HD+A Green Plus Award for
SmartStrand® Contract
• Floor Covering Weekly 2012 GreenStep Product Honoree
for Quick-Step®
• Kohl’s Sustainability Most Improved Award
• Interzum Award – Intelligent Material and Design 2013
for Uni-Snapper
• Floor Covering Weekly Dealers’ Choice for carpet, rugs,
laminate, ceramic
• Floor Covering News Award of Excellence for carpet,
laminate, ceramic
•N
ational Floor Trends Readers’ Choice for SmartStrand Contract
• ROOMY Award for SmartStrand
• House Beautiful Gold Award (UK) for Quick-Step
• Contract Flooring Journal Award for Best Laminate Flooring
Product – Quick-Step
• Interior Design Best of Year Finalist for Wild Corners
by Durkan
• Interiors & Sources Readers’ Choice Winner for East
Meets West by Durkan
• Ultron Doc Awards 2012 for Metro Wanderer
Corporate
• Southeastern Corporate Sustainability Rankings –
Top 3 in Georgia, Top 15 in the Southeast
• Council of Supply Chain Management Professionals’
2012 Supply Chain Innovation Award
• Liberty Mutual Gold Safety Award
• Newsweek’s top 500 U.S. large “green” companies list
• Expansión magazine’s Top Company 2012, “The Place
Everyone Wants to Work” for Dal-Tile Mexico, Monterrey
• CRF Institute’s Top Employer for Unilin
Industry Affiliations
Mohawk participates in and is affiliated with numerous
industry trade organizations.
• 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 Postconsumer Plastic Recyclers
• Bureau of Normalization
• Carpet America Recovery Effort
• Carpet and Rug Institute
• Ceramic Tile Institute of America
• Council of Educational Facility Planners International
• European Producers of Laminate Flooring
• Fedustria (Federation of the Textile, Wood and
Furniture Industries)
• Forest Stewardship Council
• Green Building Certification Institute
• Institut Bauen und Umwelt (Institute for Construction
and Environment)
• International Facility Management Association
15
• International Interior Design Association
• International Masonry Institute
• Manufactured Housing Institute
• Marble Institute of America
• Marketing Leadership Council
• Mason Contractors Association of America
• National Association for PET Container Resources
• National Association of Floor Covering Distributors
• National Association of the Remodeling Industry
• National Council of the Housing Industry
• National Kitchen & Bath Association
• National Spa & Pool Institute
• National Wood Flooring Association
• North American Laminate Flooring Association
• Programme for the Endorsement of Forest
Certification schemes
• Southeast Recycling Development Council
• Technisch Centrum van der Houtnijverheid
(Technical Center of Wood Technology)
• Tile Council of North America
• U.S. Green Building Council
• World Floor Covering Association
Good NEWS
From advances in employee safety to innovations in product
sustainability, see what’s making news at Mohawk.
16
GOOD NEWS
Foundation: Small Towns, Large Impact
A siren’s wail brings mixed emotions for residents of Glasgow,
Virginia. There is concern, of course, for the possibly sick or
injured who are likely known throughout this town of just
1,100 people. But, there also is relief that Glasgow now has
emergency services that were once lacking. Many miles to the
west, in Roanoke, Alabama, the need was not for emergency
services, but for a safe place where children could gather
after school to participate in sports and the arts, receive
tutoring and get involved in positive activities. Though
the needs of these two small towns were very different, a
solution was found through the same source – the Mohawk
Carpet Foundation.
The Foundation’s commitment to the people of Glasgow and
Roanoke embodies its mission to support non-profit organizations that benefit Mohawk employees and their families
in communities where we operate manufacturing plants.
Glasgow is the home of our Lees Carpet facility, the largest
employer in town. Foundation support here has provided
the Volunteer Fire Department and Glasgow Lifesaving and
Rescue Crew with the critical equipment and safety gear
17
required to keep the entire community – including many who
are members of the Mohawk family – healthy and safe. In the
slightly larger town of Roanoke, Alabama, home to a carpet
backing facility, funds from the Foundation support the rural
area’s essential Boys and Girls Club of East Central Alabama.
“Before the Foundation awards grants, we want to understand
the needs of a community and how we can help meet those
needs,” explains Robert Webb, Senior Director, Mohawk Public
Affairs and Corporate Communication. “We support organizations whose services impact a significant and diverse
population in their communities and that have a proven
track record of delivering results.”
Created by Company management and granted non-profit
status in 1990, the Foundation continues to be funded solely
through the Company. Among the organization’s most significant annual grants are donations to United Way chapters,
Boys and Girls Clubs, American Cancer Society Relays for
Life, and groups that support children and adults who are
victims of abuse.
GOOD NEWS
Veterans: A Home of Their Own
The often severe struggles wounded veterans encounter when
they return home from war have been widely documented.
Many are still recovering physically and emotionally as they
try to find a job or a home or transition back to civilian life.
Simply by doing what we do best – providing flooring that
creates beautiful and functional spaces – we are doing our
part to ensure that these returning heroes have welcoming
homes to return to, giving them one less thing to worry about.
Leading this invaluable service is Operation FINALLY HOME
(OFH), a non-profit organization that delivers custom-designed,
mortgage-free homes for America’s war wounded and spouses
of the fallen. Founded by the Bay Area Builders Association
in Texas, OFH partners with corporate sponsors, builder
associations, builders, developers, individual contributors and
volunteers to build houses across the country. As a flooring
provider for OFH, we are contributing a foundation on which
veterans can rebuild their lives.
As Marine Staff Sgt. Vincent Gizzarelli explains, “I planned on
doing 20 years or more in the Marine Corps. It was a career
for me.” But a traumatic brain injury in Iraq in 2004 changed
his career plans and his life forever.
While Vincent and his wife Jamie learned to cope with his
injuries, and problems related to them, they still were able
to look beyond their own pain. The couple took in three
young boys, brothers from an abusive situation. The boys,
along with Vincent and Jamie, now live in a home designed
just for them by OFH.
“The families we deal with are used to sacrificing. They’re
service members. They’re not used to asking for anything,”
explains Dan Vargas, OFH Executive Director. “The biggest
thing we hear is ‘I don’t deserve this. There’s someone in
greater need than me.’ That’s how we know we know we
picked the right family.”
We first learned of OFH from Iraqi war veteran J. R. Martinez,
who is a former resident of north Georgia where our carpet
operations are based. The Dancing with the Stars winner and
motivational speaker also is the OFH spokesman.
Our involvement has made us an advocate for the organization,
as well. We introduced one of our clients, Classica Homes, to
their work. A Charlotte, North Carolina, custom builder and
Mohawk Commercial customer, Classica Homes has committed
to building a home with OFH for a veteran in Charlotte.
“We couldn’t ask for a better partner than a thoroughly
all-American brand like Mohawk,” says Daniel Varga, OFH
Executive Director. “We are especially grateful to Mohawk
for helping provide the interior foundation these families
will appreciate as they reboot their lives.”
18
GOOD NEWS
SmartStrand®: The Smart Choice
Nothing breeds success like success. SmartStrand, one of
our most successful and most sustainable products ever,
is proving the old adage to still be true, as it leverages its
success into new markets and next-generation carpet.
SmartStrand carpet starts with DuPont™ Sorona®, a breakthrough in polymer science. Specifically, 37 percent of Sorona
is derived from corn sugars, a sustainable raw material, rather
than the petroleum-based ingredients in most other carpets.
Not only is Sorona renewably sourced, but also requires
30 percent less energy to produce and emits 63 percent
fewer greenhouse gases during production than an equal
amount of nylon 6 polymers. In fact, every seven square
yards of SmartStrand carpet produced saves enough energy
to equal approximately one gallon of gas.
But sustainability alone does not sell carpet. We also engineered
comfort – the primary feature customers look for in carpet –
extraordinary durability and unprecedented stain resistance
into SmartStrand. The combination has made it number
one in consumer satisfaction among purchasers of nylon,
polyester or triexta carpet.
The success of SmartStrand has led to the development of
the revolutionary SmartStrand® Silk™. This next-generation
carpet combines an entirely new category of luxurious softness
with the sustainability and durability of the original. Premium
SmartStrand Silk is engineered from a new yarn with three
times the amount of finely refined fiber found in ordinary soft
nylon carpets, for an unprecedented level of soft, plush comfort.
With the success of our SmartStrand residential carpet, it
was only natural to extend the brand to our commercial
line, where our customers are actively looking for products
with excellent durability and more sustainable attributes.
We offer 15 styles of SmartStrand Contract modular and
broadloom carpet, each of which provides superior stain
resistance, unmatched design flexibility and unsurpassed
colorfastness – all with one-of-a-kind environmental advantages – features that have made it very well-received in the
commercial market.
19
GOOD NEWS
Safety: a cultural change across the continent
Human crash-test dummies and firefighters don’t often appear
in a manufacturing facility – unless it’s the setting for an action
movie – but last fall they could be seen across Unilin’s European
plants as the company held its first Safety Week.
While safety at Unilin’s European facilities has always been a
priority, managers and workers alike recognized that more
could be done to make safety awareness an even greater part
of everyday Unilin culture. Working independently, Unilin’s
Health, Safety and Environment (HSE) Department and the
European Works Council (the trade union members at Unilin)
hit on the idea of safety training across all of Unilin Europe
at the same time.
“We knew we had to highlight safety in a positive way,” explains
Frank Meire, Chief Sustainability Officer, Unilin Group, about
Safety Week activities. “We had to make it fun and interesting.
We wanted to raise safety awareness in a positive atmosphere
and keep it there.”
The two groups merged their ideas to plan the first Unilin
Safety Week, held in November 2012. They put together an
exciting and varied mix of programs, including such workplace essentials as machinery safety training, first aid and
personal protective equipment use. These were combined
with interactive safety activities, including a crash test simulator
20
ride to demonstrate the importance of seat belt use and a
spectacular fire-safety program that allowed employees to
experience and put out a real fire.
“Our intention was to have a variety of programs, to cover
a wide range of subjects to interest everyone,” says Meire.
Safety Week was a success by a number of measures. The
mix of programs and prize incentives encouraged close to
90 percent of employees across facilities in Belgium, France
and the Netherlands to participate in at least one activity. Both
safety awareness and accident-prevention activities increased
and have remained higher following Safety Week. A sustained
increase in work accident investigations, job safety analyses,
notification of unsafe situations, regular safety meetings and
other activities has been recorded. In addition, the innovative
program was nominated for an EU Good Practice Award, which
recognizes initiatives that promote health and safety at work.
Most importantly, a heightened focus on safety resulted in a
35 percent decrease in accident frequency during 2012 over
2011, and a similar decrease in accident severity.
To build on the success of last year, Unilin will deploy a new
initiative in 2013, coordinated across all facilities, including
those in Russia, the United States and Malaysia.
GOOD NEWS
Energy Efficiency: Building to Zero
There were two requirements for a second-story living space built above this office. First, the space had to be energy efficient. Second, construction had to be
completed with minimum disruption to the physical therapy practice below. Using Unilin panels for the addition’s walls and roof, an energy-efficient space was
achieved in just five days.
One of the challenges facing European Union (EU) builders
today is figuring out how to construct nearly zero-energy
houses with the beauty, livability and features that make a
house a home. The EU has mandated that by 2020 new homes
and other structures will have to be built as nearly zero-energy
buildings (nZEB), meaning that the homes must consume
almost no energy. Unilin panels can help keep buildings
well-insulated and airtight, while meeting structural and
aesthetic needs and providing a solution to the challenges
these regulations bring.
Unilin’s all-in-one roofing panels are self-supporting, insulated
and finished on the inside. Using these panels, a roof can be
made weather tight in just one day as compared to a traditional
roofing system – with its separate roof support, insulation,
drywall and roof sheathing – that can require up to three weeks.
Unilin’s SW Plus is one such product for insulating pitched and
other roofs in a more efficient, effective, airtight manner, while
taking up a minimum of inside space. The lightweight, easyto-install panels combine a load-bearing support structure,
21
high-performing insulation and a choice of interior finishes
into one product that helps a new home reach nZEB status.
While regulations cover only new construction at this time,
renovating existing homes to make them more energy
efficient also can help meet European climate goals and save
homeowners energy, time and money.
Unilin’s retrofit product, RenoClick Univision, is one effective
renovation solution. The small, lightweight boards feature a
white, impact-resistant finish, perfect for installing in attics
to help transform what may have been dark storage space
into a bright, insulated room. Using RenoClick mounting clips,
the panels fit securely under the existing roof structure.
“We are constantly innovating at Unilin to develop products
that can help our customers meet the challenge of making
homes energy efficient,” says Frank Meire, Chief Sustainability
Officer, Unilin Group. “At the same time, our products
help to ensure homes are attractive, comfortable and
structurally sound.”
GOOD NEWS
Manufacturing: Making Gains in Sustainability
Nestled in the foothills of the Blue Ridge Mountains where
the James and Maury rivers intersect, our commercial carpet
plant has been a manufacturing pioneer since the Glasgow,
Virginia, facility first began operations in 1935. Throughout
its nearly 80-year history, the plant has evolved to meet the
needs of an ever-changing industry. Today, the facility continues to be not just a model of manufacturing excellence,
but also a model of environmental sustainability.
One of the biggest environmental challenges for the carpet
industry is decreasing the amount of water used in dye
processes, which are the most water-intensive part of manufacturing. At our Glasgow plant, we have implemented two
new processes that use much less water than the traditional,
water-intensive knit-de-knit dyeing process, while delivering
the same color quality. We began the transition to these new
processes – solution and space dyeing – in 2009. Since that
time, we have reduced water intensity – the amount of water
needed to produce one square yard of carpet – by almost
20 percent.
Process changes also have brought energy and emissions
reductions, but the largest amount of progress in this area
has come from converting boilers from coal to natural gas.
Greenhouse gas emissions decreased almost 9 percent and
energy intensity declined by more than 4 percent between
2009, when we began the conversion, and late 2012 when it
was completed.
We also have been able to implement process changes to
reduce our impact on the delicate ecosystem that surrounds
our plant. Several years ago, plant engineers began modifying
the entire yarn dyeing system to reduce the discharge of
22
nitrogen and phosphorous. As a result, nitrogen and
phosphorus levels have dropped significantly.
Not only have our processes become more sustainable, but
our products are more sustainable as well. For example, we
have significantly decreased the use of raw materials and
increased the amount of post-industrial waste in our carpet
tile backing without any adverse effect on the performance
of the carpet or the backing.
These process and product changes that reduce our
environmental impact are just a few examples of our ongoing
commitment to the manufacture of quality carpet that is
produced in a more sustainable manner. It is a commitment
that sustains the Glasgow plant and that has kept the facility
at the forefront of the commercial carpet industry for more
than 75 years.
PEOPLE
We are committed to programs and initiatives that increase
workforce engagement and strengthen our communities.
23
OUR PEOPLE
Workforce Profile
Talent is our most valuable asset. Our people drive our
business success through their ability to innovate products
that maximize our potential in the marketplace and to innovate processes that maximize our profitability. Accordingly,
we have a responsibility to drive the success of our people
by listening to their input, protecting them on the job and
providing them with the necessary tools and resources to
optimize their performance.
We realize the value of having a workforce that reflects the
diverse marketplaces we serve and the increasingly global
nature of our operations. Hence, we foster a culture of
acceptance and fairness. We view diversity and inclusion
as more than demographic metrics. Our workforce encompasses a multitude of viewpoints, skills, strengths and life
experiences. Each person brings unique attributes to our
organization that makes us stronger collectively.
Non-discriminatory policies and practices are in place to
ensure that our equal opportunity approach is enforced.
We will consider any individual for any position for which
he or she is qualified and can perform the essential job
functions. In the United States, we actively recruit women
and minorities through targeted outreach efforts.
Mohawk counted 24,891 full-time and 184 part-time
employees globally as of December 31, 2012, compared to
25,984 at year-end 2011. Women comprise 31 percent, or
one-third, of our worldwide workforce. Our total turnover
for 2012 was 19 percent. The number of temporary contract
employees is less than 1 percent of our total workforce.
We define our workforce by two types of employment
categories. There are 16,708 employees who are classified
as craft, operator or service workers and 8,367 employees
who are classified as management, technicians, sales or
administrative staff.
To this end, we are an equal opportunity employer that does
not discriminate on the basis of race, religion, gender, national
origin, age, marital status, sexual orientation, or disability.
24
OUR PEOPLE
Workforce Profile
2012 Employee turnover
2012 Estimated New Hires
By Gender
Female
Male
1,3895.54%
3,39113.52%
By Gender
Female698
Male2,700
By Age Group
66+
47–65
31–46
18–30
930.37%
1,0954.37%
1,5596.22%
2,0338.11%
By Age Group
66+78
47–65678
31–46918
18–301,724
By Region
United States
Mexico
Europe/Russia
Asia
3,215
12.82%
1,3475.37%
2000.80%
180.07%
By Region
United States
1,784
Mexico224
Europe/Russia1,361
Asia29
By Type
Voluntary
Involuntary
2,55410.19%
2,2268.88%
Turnover was calculated using the total employee rate of
25,984 as of 12/31/12.
Europe/
Russia
Mexico
65+
Asia
18-30
U.S.
2012 Total
Workforce
by Region
47-65
2012 Total
Workforce by
Age Group
31-46
● U.S.: 18,352
● Mexico: 3,623
25
● Europe/Russia: 2,291
● Asia: 809
● 18-30: 4,944
● 31-46: 10,666
● 47-65: 9,137
● 65+: 328
OUR PEOPLE
Safety
Through safety-leadership programs, employee engagement
and well-defined processes and procedures, we are working
to improve safety at all of our facilities every day. Our commitment to continuous safety improvement is founded on our
culture of prevention, where everyone takes responsibility for
safety and works toward our goal of zero injuries or illnesses.
Our safety initiatives are led by an Executive Safety Leadership
Team that has established safety leadership accountability,
has developed a common corporate structure and metrics,
shares ideas and information across business units, and acts
globally while allowing flexibility for each local operation to
implement rapid, cost-effective safety solutions. In addition,
formal joint management-worker safety and health committees represent more than 75 percent of our employees.
New Initiatives
The development of tools needed to measure and document
safety has been a focus of the past year at Dal-Tile, as we
work toward Occupational Health and Safety Assessment
Specification (OHSAS) 18001 certification. OHSAS 18001
is a health and safety standard against which organizations
can be assessed and certified. Central to the standard are
strong, documented safety policies and procedures. To help
meet these standards, new safety documents were rolled out
to all Dal-Tile facilities in 2012 to ensure sites are following the
same policies and procedures.
Additional safety programs and initiatives across the Company
include the continued use of employee safety perception
surveys, regional reviews of employee safety teams and the
development of Key Performance Indicator (KPI) safety
scorecards for tracking safety-related behaviors and activities.
In addition, Dal-Tile continues to lead the Marble Institute of
America’s safety committee, which is an industry organization
that Dal-Tile helped establish with the goal of increasing safety,
not just at Mohawk, but also throughout the industry.
Logistics Safety
Mohawk Industries’ Logistics network is made up of warehouse
and distribution employees who ensure our products and
materials arrive at the right place at the right time. In 2012,
Liberty Mutual Insurance recognized this team with the Gold
Safety Award for its exemplary safety record. “Our drivers
are the true recipients of this award,” says Shane Wilson,
26
Manager of Logistics Safety and Compliance for Mohawk
Industries. “They embraced our safety programs and initiatives, ensuring our success out on the road.” This award
recognizes outstanding safety efforts in the operation of
commercial motor vehicles from 2006 to 2012. During this
period, our annual claims count went down from 244 to 100,
the result of initiatives such as improvements in fleet safety
programs and procedures, implementation of Liberty Mutual’s
Decision Driving program, annual in-vehicle check rides for
all full-time drivers and proactive fleet management.
Lost Time and Recordable Incident Rates
3.0
2.85
2.27
2.4
2.47
1.87
2.05
0.63
0.58
0.67
2009
2010
2011
1.99
1.8
1.2
0.6 0.34
0.0
2007
0.42
2008
● Recordable Incident Rate
0.46
2012
● Lost Time Incident Rate
Mohawk utilizes the U.S. standard for incident case clarification as specified
in 29 CFR 1904 in order to maintain a consistent and viable means of case
classification on a global basis.
In addition to increasing the safety of our employees, this
superior safety record provides financial benefits by lowering
premiums. As a result, our annual claims expense, which
peaked in 2006 at $5.5 million, has averaged less than
$0.5 million over the past three years.
Our safety record in logistics is due in large part to the
13 northwest Georgia drivers who were recognized in 2012
by Mohawk for achieving more than a decade of safe driving.
In addition to the long-term achievements of these individuals,
approximately 95 percent of our local drivers received awards
for sustained driving safety.
OUR PEOPLE
Safety
“That 13 drivers have maintained safe driving records for a
decade or more is an outstanding accomplishment and a
tribute to these individuals and to the persistent emphasis
on safety here at Mohawk,” explains Bill Gaskill, Department
of Transportation Compliance Manager with the Mohawk
Fleet Safety Department.
Safety Achievements
A number of our sites realized significant safety achievements
in 2012. The Georgia Association of Manufacturers recognized
32 of our soft-surface facilities with safety awards. Our Unilin
plant in Thomasville, North Carolina, maintained its OSHA
SHARP status, as a company that is committed to employee
health and safety, while Dal-Tile’s El Paso, Texas, facility was
recertified with Occupational Safety and Health Administration
(OSHA) Voluntary Protection Program Star status.
Several facilities received internal awards for safety success.
The Safety Edge program recognized our Glasgow, Virginia,
facility and the Antioch Tufting department in Dalton, Georgia,
for strong safety programs and training, a continuous focus
on improvement and a culture where safety is an inherent
part of every process.
Oak River North Extrusion in Bennettsville, South Carolina,
celebrated a year without a recordable injury, a significant
milestone for an extrusion facility that operates 24 hours per
day. The extrusion process is comprised of many specialized
tasks requiring intense focus and detailed safety precautions.
Though we are pleased with these achievements, we realize
there is an ongoing need for safety improvements and
continually look for new ways to motivate and engage our
employees to be the safest in the industry.
27
Pushing Safety to the Next Level
The continuous pursuit of innovative and engaging
safety programs is essential to achieving and
maintaining the safest possible workforce. In
2012, Mohawk Flooring and Dal-Tile initiated
the R3 (Residual Risk Reduction) process, a
proven risk-reduction tool, to push safety
goals to the next level.
“R3 provides a multi-dimensional process through
which facilities can not only make improvements
on safety and safety training, but also track and
analyze those improvements at every level,”
explains Bill Powell, Mohawk Flooring Health
and Safety Director.
R3 has been introduced in Mohawk Flooring
facilities in northwest Georgia, North Carolina,
South Carolina and Virginia, and at our Dal-Tile
sites. The program includes an intensified focus
on such safety points as analysis of jobs and
tasks, involvement of employees closest to the
risk, examination of systems, identification of
hazards and existing controls, determination of
risk level and more.
To further develop the R3 program, Mohawk
Flooring conducted the First Annual North Georgia
R3 Regional Meeting in March 2012. Fifteen R3
teams from the North Georgia Region participated
in the program, sharing information about their
R3 projects.
OUR PEOPLE
Employee Relations
Labor Standards
We strive to be an exemplary employer. We believe that
people perform their best when they are treated with a
high level of personal dignity and respect. We also believe
that we offer competitive wages and salaries to all employees
relative to the local labor market. We operate in full compliance
with all material applicable labor, health and safety regulations.
We also uphold all International Labour Organization (ILO)
labor standards.
Our intent is always to follow and uphold customary practices
and local market regulations as they relate to the rights of
workers to decide whether to enter into collective bargaining
representation. We also believe that open, direct and constructive dialogue between workers and management is the
most effective way to reach mutually agreeable solutions to
workplace issues. Accordingly, we encourage direct contact
between our employees and management.
28
We have collective bargaining agreements with 26.3 percent
of our employees, the majority of whom are employed in our
Mexican, European and Asian manufacturing operations.
Most of our U.S. employees are not party to any collective
bargaining agreement. Additionally, we have not experienced
any strikes or work stoppages in the U.S., Mexico or Malaysia
for over 20 years. We believe that our relations with our
employees are good.
In the United States, the federal WARN Act establishes that
companies must notify employees 60 days prior to the closing
of a facility or a significant reduction in a facility’s workforce.
In Mexico, the notice periods for operational changes are
based on agreements with the union representatives at the
facility. In Europe, the notice periods for operational changes
are based on the collective bargaining agreements and/or
legislation. Once the Company ratifies this agreement, its
content is binding for all manufacturing employees, regardless of whether they individually opt for membership in the
OUR PEOPLE
Employee Relations
union or not. In Malaysia, according to the Employment Act of
1955, companies operating there must submit any operational
changes, including shutdown, retrenchment or redundancy,
to the Labor Department no later than 30 days prior to the
action. In the event an agreement has different requirements,
we will abide by those requirements.
Human Rights
We support the premise that all people deserve a life with
freedom and dignity, which is conducive to their physical,
mental, social and spiritual welfare. We recognize that challenges to these principles are present in certain regions of
the world where human rights have not progressed to the
same standards as those we support. When our business
extends into these regions, we are particularly sensitive
to the potential for transgressions and are committed to
combating them.
We prohibit the use of all forms of child labor or forced labor,
including indentured labor, bond labor, military labor or slave
labor, at all of our locations, domestic and international. We
29
have policies in place throughout our global operations to
ensure that these types of labor are not utilized. We also have
procedures in place for our people to report complaints and
grievances, should there be a question about labor practices.
Mohawk adheres to minimum age provisions of applicable
laws and regulations in the areas where we do business. Our
prohibition of child labor is consistent with ILO standards.
We have found no significant risk for incidents of child labor
or risk of forced or compulsory labor in our operations
around the world. Our processes include required legal
documentation for age verification, and, when appropriate
due to widespread fraudulent practices, we also require
physical examinations by a certified health professional.
Since our last Sustainability Report was published – and in
2012 overall – there have been zero claims of discrimination
filed against Mohawk by individuals who are identified as
members of indigenous people in the regions around the
world where we operate.
OUR PEOPLE
Training & Development
The development of talent to drive innovation is a strategic
imperative for us that goes far beyond product innovation. Our
goal is to build an innovative culture in which we constantly
look at every aspect of our business, both individually and
collectively, in new ways.
Professional development is an inherent part of our informal
and relationship-driven culture. Our employees are open to
learning from their peers, comfortable exchanging institutional
knowledge and willing to change when new and better
practices are introduced. This informal education is an
invaluable driver of innovation.
Across our Company we also offer training linked to specific
business objectives in order to bring clear focus and value
to the endeavor. A combination of classroom and online
programs ensures that employees at all levels have the
opportunity to develop new skills that will enhance both
their personal and professional lives.
A robust Learning Management System (LMS) helps us to
better address the training challenges associated with global
expansion. This growth is resulting in an employee population
with many native languages and cultural differences spread
across a broad geographic footprint and with varying levels
of accessibility to classroom and online learning. The LMS
includes language packs and a user-friendly platform to
maximize the efficiency and reach of online training.
30
In 2012, we leveraged the LMS to launch the Red Carpet
Experience, our new hire orientation program in the United
States. This program transforms orientation from an intensive
one-day experience to a series of self-directed, online modules
that delivers new hire information in easy-to-process sections.
By ensuring all new hires receive the information they need
in an engaging, blended learning environment that tests their
understanding, we have seen a significant rise in the number
of employees who successfully transition from new hires to
full-time employees.
Our commitment to professional training was recognized in
2012 by Training magazine. We placed eighth in the Top 125
ranking, which recognizes outstanding training programs at
every level throughout an organization and how they are
linked to strategic goals and business priorities. 2012 marks
Mohawk’s eighth consecutive appearance in the Top 125 and
our third year in the top ten.
“Mohawk is the only flooring company to ever achieve such a
high ranking,” explains Amanda Arnwine, Mohawk’s Director
of Corporate Learning. “It’s a point of great pride that our
training is seen as world-class by training experts.”
Executive Development
The development of bench strength in all areas of the
organization also is a strategic priority. Mohawk relies on the
leadership academy concept to support its comprehensive
OUR PEOPLE
Training & Development
succession plan. Our NextExec program provides a consistent
development tool that ensures well-prepared, ready-now
successors for our senior management team and extends
across the enterprise, seeking U.S., Mexican, European
and Asian leaders as possible candidates for rotational
assignments and training opportunities. Collectively, these
programs help to ensure career advancement opportunities
for our people and a competitive talent edge for our business
at every level.
Sales Academy
Sales methods and approaches have changed over the past
few years as the economy has cycled from robust to recession
to improving and as technology has delivered new sales tools.
Our commercial carpet business launched its Sales Academy
to ensure our sales force has the skills and tools it needs
to improve performance and gain market share across all
economic conditions. Through a combination of classroom
and eLearning, the academy covers such key business drivers
as tracking sales trends by customer and geography, understanding the competitive advantages of our products and
developing problem-solving skills that add value to the sales
force/retailer relationship.
2012 Training Hours by Position
Employment Type
Sales/Clerical Tech/Manufacturing 25.36
26.77
While we provide an overview of training hours by position, it is Mohawk’s
belief that training occurs at a much higher rate across the Company than
reported because not all training is tracked.
Employee Evaluation
Evaluation and review also is an important component of
continuous improvement and professional development.
The manner and frequency of our evaluation and communication with employees about their performance varies by
type of position and geographic region. Generally, all salaried
Mohawk employees throughout the world receive regular
performance and career development reviews. For hourly
employees, plant management determines the most
constructive manner in which to evaluate performance
based on operational processes in the plant, as well as
customary practices in certain regions of the world.
Customer Service
Essential to growing sales and increasing market share is a
superior customer service team with the skills to handle easy
calls well and to maximize the potential of difficult calls. We
have completed a reorganization of the customer service
function and implemented new training to develop a superior
team with increased levels of performance. Customer service
now has groups dedicated to standard order processing,
specialists who contact dormant accounts, product experts
who answer non-order-related questions and expediters who
assist with problem orders. Training ensures understanding
of the distinct new roles and metrics for success. The result
has been improvements in job satisfaction, order accuracy,
sales revenue and more.
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OUR PEOPLE
Health & Wellness
An increased participation in our wellness programs and
reduced healthcare costs are among the trends that
demonstrate our investments in preventive care are
working for our employees and business.
In North America, on-site Healthy Life Centers (HLC) at our
largest facilities are the centerpiece of our wellness initiatives.
These centers provide acute care, chronic disease management,
preventive exams, pediatrics, no-cost employee-medication
programs, mobile mammogram screenings, wellness coaching
and integrated care coordination with primary care physicians.
The majority of our HLCs are part of our carpet and rug
operations in Georgia, but we also have two Dallas-area
HLCs for our Dal-Tile and Unilin employees. In addition, our
Dal-Tile facility in Monterrey, Mexico, has managed a successful
on-site health clinic for more than 25 years.
Overall, our wellness initiatives have decreased the cost for
treating chronic conditions by 15 percent and increased the
medication compliance for individuals with chronic conditions.
From 2011 to 2012, HLC visits increased 85 percent, and
preventive care increased 16 percent. Though these results
are impressive, the continued improvement in the health
and lives of our employees is even more valuable.
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All of our locations have seen an increase in participation
and in the overall health of participants. In our four Georgia
locations, members of our exercise and nutrition classes
lost a combined 8,500 pounds in 2012. In Dallas, the new
HLCs had 2,600 visits and hosted monthly lunch-and-learn
events. A measure of success at the Mexico clinic has been
the steadily declining absentee rate.
Employee Benefits
In addition to our wellness centers, we offer to U.S. employees
a comprehensive set of insurance, retirement and other
benefits for which we pay all or part of the cost. These benefits
are available to any employee who works 20 or more hours
a week, whether hourly or salary-based, and who has worked
for the Company for at least 90 days. Among the benefits
that we offer:
• Consumer-centric medical and pharmacy plan, plus
dental and vision options
• A Company-matched 401(k) retirement savings plan
• Short- and long-term disability insurance
• Life insurance, critical illness and accident plans
• Paid holidays and vacation
• Tuition reimbursement
Our benefits programs outside of the U.S. vary according to
country, local market standards and employment contracts.
OUR PEOPLE
Community
We have a long history of commitment to the communities
in which we operate and that our employees call home. In
recent years, we have aligned our corporate philanthropic
efforts with causes through which we can leverage our
strengths and core capabilities.
Housing Initiatives
Organizations that provide homes for those in need offer a
natural tie-in with our flooring businesses. We are proud to be
a flooring partner for Operation Finally Home, a non-profit
organization that provides mortgage-free homes to wounded
veterans or spouses of the fallen. Builders and building product
manufacturers provide 100 percent of the donations required
to build the homes, which are custom designed to meet the
particular physical needs of individual veterans. We provided
all flooring for eight homes in 2012 and are continuing our
sponsorship in 2013.
Our training vision sometimes extends beyond the
walls of Mohawk. In northwest Georgia, where much
of our carpet manufacturing takes place, we have a
vested interest in ensuring that a skilled workforce
is available. Through a partnership with Northwest
Georgia Technical College, we have played a role in
the development of two new career academies in
Gordon and Whitfield counties. These career academies provide students with an opportunity to build
the vocational skills necessary to find meaningful
employment with local businesses, including carpet
manufacturers. The programs include courses in
such fields as electronics, industrial technology,
fluid mechanics and mechatronics.
We have supported the academies in myriad ways,
from fundraising efforts for technical laboratory
equipment to helping develop the curriculum to
serving as board members. In addition, we began
offering internships, mentoring and job recruitment
opportunities when the career academies opened
in early 2013.
In addition, Dal-Tile partnered with ABC (Affordable. Buildable.
Certified.) Green Home and Habitat for Humanity for the
design and construction of an affordable, entry-level, certified
green home. Again, Dal-Tile donated an assortment of stylish
and sustainable floor and wall tile for the home. The project
was completed in October 2012 at the Orange County Great
Park in Irvine, California, and donated to Habitat for Humanity
to be given to a disabled veteran.
Mohawk Flooring and Mohawk Home have supported Habitat
Atlanta since 2009 through the donation of carpet and pad. In
2012, we provided carpet, pad and vinyl, along with Welcome
Home Rug Kits, for approximately 45 homes.
Partnering for Technical Education
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Dal-Tile also supports housing for veterans through Craftsman’s
House United program and a Habitat for Humanity program.
In 2012 Dal-Tile donated an assortment of floor and wall tiles
for a House United home that was built in two sections, one
in Tampa, Florida, during the Republican National Convention,
the other in Charlotte, North Carolina, during the Democratic
National Convention. The two halves were united in Charlotte
following that convention and donated to a veteran.
Unilin Information Systems (IS) employees in Kortrijk, Belgium,
used their annual team meeting in 2012 as a day of service.
The group renovated a building for the non-profit association
De Poort vzw, voor wonen en werk, an organization that helps
those in need find rental housing, to use as an office. The
team installed donated Unilin products, including Quick-Step®
laminate and didit™ Click Furniture. In addition to helping the
organization, the team used the opportunity to become
more familiar with the products they support every day at
the IS level in order to better serve their own customers.
Disease Prevention & Research
We also have found ways to involve our customers and our
products in supporting disease research in a meaningful
way. Two long-time initiatives that allow us to leverage our
products to increase our impact are Specify for a Cure® and
Decorate for the Cure®, programs of Susan G. Komen for the
Cure®, to benefit breast cancer research. Through Decorate for
the Cure we donate a portion of all Mohawk SmartCushion™
and Karastan KaraStep Reserve™ cushion sales to Komen.
Decorate for the Cure has raised more than $100,000 since
OUR PEOPLE
Community
June 2011, and we expect to contribute an additional $200,000
by the end of 2014. Specify for a Cure makes donations to
Komen when commercial customers specify select carpet
styles. Since Mohawk Industries first partnered with Komen
in 2001, the partnership has contributed $4.2 million
through 2012.
direct effect on our financial and operating performance. We
collaborate with government and community leaders to
identify ways in which our business and the surrounding
community can work together to enhance the local quality
of life as well as the business climate.
“These are great programs for a worthy cause,” says David
Duncan, Senior Vice President of Marketing – Mohawk and
Karastan. “They have given us an opportunity to work with
our customers, whose overwhelming support has been
essential to the programs’ success.”
In the event we must exit a community through the closure of
a facility, we work with local and state Department of Labor
officials to identify career opportunities for those employees
who will be losing their jobs. We also work closely with the
community to find a buyer for the facility with the goal of
helping to create new economic opportunities.
Economic Impact
As we open new facilities around the world, we are more
mindful than ever that our business and the communities in
which we operate have mutual interests and goals. Strong
communities help to sustain a strong workforce, which has a
As we continue to expand around the world, we recognize
our growing responsibility to be good corporate citizens. We
are committed to expanding in a responsible manner and to
working with our stakeholders to improve the quality of life
in all our communities.
Northwest Georgia Healthcare Partnership
Mohawk employees participated in the Bill Gregory Healthcare Classic, a road race and wellness
fair, to benefit the Northwest Georgia Healthcare Partnership. Proceeds from the event go
toward nutrition, exercise and healthcare education in North Georgia communities.
Cross Plains Community Partner
The third annual Mohawk-sponsored Grizzly Trail Run featured 41 employees running in the 5k
to benefit Cross Plains Community Partner, a non-profit organization that provides day support
to adults with developmental disabilities in North Georgia.
Pancreatic Cancer
North Georgia Mohawk employees participated in a variety of fund-raising efforts to benefit the
Pancreatic Cancer Action Network, an organization that advances pancreatic cancer research.
Breast Cancer Awareness
The 2012 “Pink Fridays” T-shirt campaign raised $4,000 for breast cancer research through
the sale of shirts by Mohawk, Dal-Tile and Unilin employees.
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OUR PEOPLE
Community
Wear Red for Heart Disease
Employees at a number of Mohawk facilities wore red on February 3, 2012, in support of the
American Heart Association’s Go Red for Women initiative to raise awareness of the incidence
of heart disease among women.
Rimington Trophy Award to fight Cystic Fibrosis
Dal-Tile sponsored the 2012 Rimington Trophy, an award that honors the nation’s most
outstanding collegiate football center. The trophy is awarded annually by the Boomer Esiason
Foundation, which works to raise money, heighten education and awareness of cystic fibrosis,
and provide a better quality of life for those affected by the disease.
Angel Tree
More than 100 children and adults received Christmas gifts from Dal-Tile employees
through the 2012 Angel Tree program. The program supports families in need throughout
the Dallas area.
Coat, Shoe, Supply Drive
Coats, shoes and other supplies were donated by Dal-Tile employees to students in two
schools in the Dallas area. This ongoing program makes a difference in the lives of a number of
students each year.
Easter Baskets
Each year for more than 20 years Dal-Tile employees have provided 60 Easter baskets filled
with toys to hospitalized children at Children’s Medical Center in Dallas, Texas.
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GREEN PRODUCTS
Our portfolio includes many products with sustainable
attributes, such as renewable and recycled inputs.
36
GREEN PRODUCTS
Green Materials
Mohawk’s portfolio is filled with products that contain post-consumer and industrial waste, or that
originate from renewable resources. Take a look at some of the surprising ways our products reduce
our impact on the environment, while helping people create beautiful homes.
PRODUCTS
plants
The fibers in our SmartStrand® carpet are made from DuPont™ Sorona® – its key ingredient is a rapidly renewable
plant-sourced sugar.
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Tires
Wool
We buy more than 29 million pounds of recycled crumb
rubber – the equivalent of 1.45 million rubber tires –
each year to create beautiful door mats.
This natural fiber in Karastan® wool rugs absorbs
indoor air contaminants to improve air quality and
create healthier living environments.
GREEN PRODUCTS
Green Materials
Foam
Recycled Materials
Over 1 billion pounds of foam trim has been diverted
from landfills and used to create Mohawk carpet
cushion since 2005.
More than 98 percent of our ceramic tile products contain
post-industrial recycled materials. Of those products,
47 percent also contain post-consumer content.
Glass
Wood Waste
Many of our tile products contain recycled glass.
In 2012 alone, one of our plants recycled nearly
5 million pounds of glass into select tile products.
Our laminate is created with as much as 74 percent
recycled content and installed with our chemical-free
Uniclic® installation system, so that it has no adverse
effect on indoor air quality.
Natural Ingredients
Plastic Bottles
Formulated from all-natural ingredients, our floor cleaners are sustainable, biodegradable, pet- and people-safe
and have earned recognition as a U.S. Environmental
Protection Agency Design for the Environment product.
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We recycle approximately 3 billion plastic soda bottles
each year to manufacture our EverStrand™ carpet and
other home products.
GREEN PRODUCTS
Green @ Every Step
As a fully integrated flooring manufacturer, we are able to innovate processes at every step of
a product’s life cycle, a unique approach that looks not just at what we make but how we make it.
step 1: raw materials
Renewable, sustainably harvested or recycled materials are used in many of our
products. We produce flooring from post-consumer recycled waste such as PET
soda bottles, rubber tires, plastic bottle caps, glass and more. Our hardwood comes
from sustainably harvested timber; laminate is created from 74 percent pre-consumer,
post-industrial wood waste; while more than 98 percent of Dal-Tile’s manufactured
products contain recycled materials. We also have achieved an industry first with our
SmartStrand® carpet, the first carpet made with a renewably sourced polymer.
Step 2: Manufacturing
We continually assess our manufacturing processes to find ways to use less water
and energy, reduce emissions and keep more waste out of landfills. In our ceramic
division, for example, five of our nine tile manufacturing plants recover and re-use
100 percent of their process wastewater. Our U.S. laminate facilities recycle scrap
wood into chipboard products or sell it to a third party. Finally, we manufacture
our flooring to be durable and long lasting, which keeps it on your floors and out
of landfills.
Step 3: Distribution
Our logistics team, which manages one of the largest warehousing and distribution
networks in the industry, has become a driver of sustainability. This energy-intensive
area offers myriad opportunities for generating efficiencies. We have implemented
energy-saving programs such as route optimization, the use of liquefied natural gas
(LNG) trucks in California and the installation of a fuel filling station at our Calhoun,
Georgia, headquarters. We continue to seek out and implement best practices in
transportation to get our products to market in the most efficient ways possible.
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GREEN PRODUCTS
Green @ Every Step
Step 4: Marketing
We are increasing our use of online tools to make it easier for our customers and
consumers to choose the right products, while reducing our use of paper and the
production of product samples. QR codes on our in-store samples and displays, for
example, drive consumers to our website for product information, allowing us to
reduce our reliance on printed materials. Our suite of interactive tools for commercial
customers allows them to deliver a variety of design and environmental options to
their customers virtually and to make changes instantly if needed.
Step 5: Installation
Installation is another area where we have made great strides in reducing the
environmental impact of our products and services. For example, we have reduced
the chemicals used in many of our carpet adhesives, including zero-VOC NuSpraylok™,
for commercial carpet tiles, that minimizes impact on air quality. In addition, Quick-Step®
laminate and some of our engineered hardwood feature the Uniclic® patented glue-less
installation that eliminates the addition of VOCs for healthier indoor air.
Step 6: Recycling
Many of our products are manufactured to be recyclable at the end of their lives.
Our Quick-Step® laminate with Uniclic® installation technology can be uninstalled
and reinstalled up to three times in another room of your home or in another space
entirely. Our ReCover carpet reclamation program for commercial and residential
customers keeps carpet out of landfills. With just a phone call, we will arrange for
the removal, pickup and delivery to a processor of any type of carpet, regardless of
whether we manufactured it.
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GREEN PRODUCTS
Commercial Tools
Building and décor products are in big demand among
commercial customers, particularly those who are pursuing
Leadership in Energy and Environmental Design (LEED)
certification from the U.S. Green Building Council. Our suite
of web-based, interactive tools enables our customers to
more quickly share accurate designs and environmental
information with their customers, while reducing the use of
paper and physical samples.
“For our customers and dealers, service is critical,” explains
Michel Vermette, Senior Vice President – Mohawk Commercial.
“Our goal is to provide them with industry-leading tools to
get their projects finished quickly, efficiently, stylishly and
sustainably. We will continue to innovate our online services
to meet their ever-evolving needs.”
Our LEED Plus Calculator is a timesaver for customers going
through the environmental product specification process. With
it, architects and designers can search any carpet across a
variety of environmental ratings systems, including LEED, CHPS,
GGHC and LABS 21. In addition, LEED credit points for each
carpet type can be found, along with a map that shows the
distance between a manufacturing facility and building location,
so that locally sourced products can be identified. Finally, an
ecoScorecard™ for each product lists environmental characteristics and certifications in an easy-to-download chart. Dal-Tile
and American Olean also have websites dedicated to providing
LEED information. Customers can get details of recycled
materials’ content, manufacturing locations, distances from
projects, regional materials’ value, and obtain a product
specific certification letter for their project. Certification
letters were obtained online by customers for over 2,210
building projects during the full year of 2012.
One of our newest tools, ecoScorecard Building Information
Models (BIM), integrates our Drag and Fly™ product images
with Autodesk® Revit® and Trimble® SketchUp to provide
project-ready, 3-D renderings enabled with environmental
data. Architects and designers can search, select, evaluate
and document the environmental impact of their flooring
choices at the point of design, all in one step.
Another tool, the industry-first DesignFLEX Visualizer, allows
designers to create and demonstrate any of the thousands
of unique installations possible with our innovative State of
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Mind modular carpet collection. This interactive tool also eases
the specification process by maximizing design accuracy.
The Mohawk Group catalog app for the iPad allows designers
and architects to search our comprehensive commercial
product catalog on demand, order product samples and
email product ideas to colleagues and clients. Not only does
this app provide customers with instant access to a wide
range of product information, but it also helps reduce the
amount of paper used for print catalogs.
Because online tools will not replace a physical sample in
every instance, we offer a sample take-back program for
commercial customers. A return-mail bag ships with our
samples so that they can be returned to us when no longer
needed. We are able to re-use more than 85 percent of the
sample folders that are returned, keeping these materials out
of landfills.
Finally, the success of our iPad app led us to look for additional
ways to use this tool. In 2012, we provided our commercial
sales organization with iPads and the proprietary sales
automation tool, Navigator. Navigator is giving our sales
force the ability to be more responsive to customers while
further reducing our use of paper.
GREEN PRODUCTS
Certifications & Claims
There’s a lot of green in the world today. Green products and green claims have become ubiquitous in many product categories.
With so many manufacturers making sustainability claims about their products, how do consumers find the environmental
attributes they seek? And how can they be sure the claims that manufacturers make about green products are true?
Certifications are a useful way to help customers sort through these claims. We only make product claims that can be
independently verified by third-party auditors so that consumers can be confident they are receiving the value for which
they are paying. We intentionally seek out meaningful, transparent assurance, often from organizations consumers already
recognize, such as Underwriters Laboratories (UL), the global independent safety science organization that has been around
since 1894.
We also include our verified environmental claims on our marketing materials, deck boards and other merchandising and
point-of-sale materials so that customers can easily find products with the green attributes they seek. These independent
third-party certifications mean that many of our products meet the criteria required for installation by well-respected green
organizations such as the U.S. Green Building Council – which certifies LEED buildings – the Collaborative for High Performance Schools and the Green Guide for Health Care.
Mohawk products that carry the following certifications have been independently verified as products that reduce impact on
the environment:
CARPET & Rugs
NSF 140 is the first U.S. national commercial carpet sustainability certification based on life
cycle assessment principles. We offer a number of NSF 140 certified products.
Underwriters Laboratories provides Environmental Claim Validation to verify the recycled
content of products such as EverStrand™ and Wear-Dated® Revive™ carpets.
Carpet and Rug Institute (CRI) Green Label and Green Label Plus certify that our complete
line of carpeting, as well as products such as SmartCushion™ will not adversely affect indoor
air quality.
U.S. EPA Design for the Environment certifies that our cleaning products are formulated
from ingredients that are the safest possible for individual health and the environment.
GREENGUARD Indoor Air Quality certifies that products designed for use indoors, such as
our Eco Cushion mats, meet strict chemical emissions limits.
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GREEN PRODUCTS
Certifications & Claims
Laminate/Hardwood
FloorScore® certifies that hardwood and laminate flooring, such as our Mohawk®, Quick-Step®
and Columbia® brands, meet strict indoor air quality standards.
California Air Resources Board (CARB) Phase 2 certification ensures hardwood or laminate
flooring, such as our Columbia® hardwood, meets strict formaldehyde emissions standards.
North American Laminate Flooring Association (NALFA®) certification ensures laminate
flooring meets demanding performance standards.
Environmental Product Declaration (EPD) is a life cycle analysis-based tool to communicate
the environmental performance of a product, such as our Quick-Step® laminate.
Appalachian Hardwood Manufacturers, Inc. (AHMI) has verified data from the U.S. Forest
Service that Appalachian Hardwood Territory timber is harvested sustainably. We use AHMI
timber in our Columbia® hardwood flooring.
Forest Stewardship Council (FSC) certification ensures products such as our select sourced
engineered wood flooring are manufactured using timber from responsibly managed sources.
Tile
Green Squared® certification ensures tile and tile installation materials are environmentally
preferable, based on American National Standards Institute (ANSI) specifications, which, in turn,
are based on life cycle analysis principles. All tile products manufactured by Dal-Tile in the U.S,
and Monterrey, Mexico, are Green Squared certified, with the exception of two lines of quarry tile
products that are being reformulated and will achieve certification in 2013.
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GREEN PRODUCTS
Product Responsibility
Our business depends on our meeting the needs of our
customers with safe, high-quality products for their homes
or businesses. As such, we intentionally design our products
to meet or exceed all health, safety and quality standards,
as well as local, state and federal laws. This is more than just
a good business decision. It also is good for our customers
and is the right thing to do.
We also employ life cycle analysis to better understand the
complete impact of our products. In Europe, for example,
Unilin is implementing an Environmental Product Declaration
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program for all of its products sold in European Union
markets. When possible, we also take steps to simplify
product installation methods in order to eliminate any
potential negative impacts on users. Unilin’s patented
Uniclic® technology, which offers easy installation with no
glue or other chemicals, is an example of this effort.
We will continue to make our products using ever more
responsible methods and materials in order to protect the
health and safety of our customers, ensure the quality they
expect and reduce the impact on our environment.
GREEN PRODUCTS
Residential Carpet
Our sustainable carpets, cushion and cleaning products offer beautiful and healthy choices you can
feel good about having in your home.
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SmartStrand®
SmartStrand® Silk™
EverStrand®
This revolutionary carpet is made
with DuPont™ Sorona®, a renewably sourced polymer made with
37 percent corn sugar. SmartStrand
fibers require 30 percent less
energy to manufacture and reduce
CO2 emissions by 63 percent, as
compared to nylon 6 fiber.
This luxuriously soft product line
is an extension of our successful
SmartStrand carpet. In addition to
renewably sourced fiber content,
SmartStrand Silk delivers unmatched
softness, superior performance,
durability and built-in stain protection
for exceptionally long product life.
The carpet fiber in the EverStrand
family of carpets is made from
100 percent post-consumer
recycled PET plastic soda bottles.
As a result, EverStrand carpets,
which have earned environmental
claim validation by Underwriters
Laboratories, minimize consumption
of petrochemical resources.
Karastan® Wool
SmartCushion™
FloorCare Essentials™
Sheep, which are shorn every nine to
twelve months, are the sustainable
and renewable source for Karastan
wool carpets. In addition, all Karastan
wool is Clean Air Certified and has
the ability to remove contaminants
from indoor air, making homes
healthier.
SmartCushion, made from recycled
foam trimmings, enhances both the
feel and performance of our already
exceptional carpet. It contains 90
percent post-industrial material,
insulates to improve room energy
efficiency and is a CRI Green Label
product for improved air quality.
With a portion of sales benefitting
breast cancer research through
Susan G. Komen for the Cure®,
SmartCushion is now smarter
than ever.
Our non-toxic, soap-free, pet- and
people-safe carpet cleaners are
made of all natural ingredients
and have earned recognition as
U.S. Environmental Protection Agency
“Design for the Environment”
products.
GREEN PRODUCTS
Commercial Carpet
As one of the world’s largest suppliers of commercial carpet and carpet tile products, Mohawk Group
offers the styles, colors, sustainability features and value points for a wide range of commercial projects.
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SmartStrand® Contract
NSF 140
EcoFlex® NXT
This carpet is made with DuPont™
Sorona®, a renewably sourced polymer
that requires 30 percent less energy
to manufacture and reduces CO2
emissions by 63 percent, as compared
to nylon 6 fiber. In addition, it is made
with 37 percent renewable ingredients,
provides superior stain resistance,
a luxurious feel and unmatched
design flexibility.
NSF 140 is the most widely respected
multi-attribute standard for carpet
sustainability. We are proud to offer
a broad array of Silver, Gold and
Platinum NSF 140-certified products.
We use a life cycle analysis, verified
by a third party, to measure and
ensure alignment with NSF 140
standards in categories such as
recycled content and energy
consumption.
A model of sustainable design,
EcoFlex NXT is a PVC-free backing
that is up to 40 percent lighter than
similar PVC products, making it easier
to install and less expensive to ship.
It also incorporates a minimum of
35 percent pre-consumer recycled
content and is certified at the Gold
level under the NSF 140 standards.
Colorstrand®
Unibond Flex™
Duracolor®
This 100 percent solution-dyed
nylon fiber boasts third-partycertified, 25 percent pre-consumer
recycled content that meets USGBC
LEED criteria, and products tufted
with Colorstrand are CRI Green
Label Plus® certified for VOC
emissions. With the quality to
perform in most commercial
spaces, Colorstrand delivers
both lasting beauty and value.
This patented construction tufts
carpet fiber through primary and
secondary backings at the same
time, creating a single layer with
superior durability. Certified at
the NSF 140 Platinum level, these
carpets contain up to 16 percent
post-consumer recycled content,
based on total product weight, and
are CRI Green Label Plus certified.
Duracolor® fiber is made using a
technology developed by Mohawk.
This process makes already durable
nylon also resistant to acid-based
stains, which represent the vast
majority of stains impacting the
marketplace. Stains are removed
with just water, thus reducing cost,
eliminating chemicals and making
a smaller environmental impact.
GREEN PRODUCTS
TILE
We offer a vast array of tile colors, textures and patterns with a variety of sustainable attributes for
indoor and outdoor residential or commercial projects.
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Ceramic
Porcelain
100% VOC Free
We use recycled materials from
internal and external industrial
processes in 98 percent of the
ceramic tile products that we
manufacture to minimize consumption of virgin materials. In several
of our ceramic tile facilities we re-use
100 percent of the water from
manufacturing processes so that
it is never discharged as waste.
Large-format porcelain floor tile
products manufactured at our
Muskogee, Oklahoma, facility
currently contain over 47 percent
recycled materials content, with some
having over 55 percent, including
post-consumer recycled materials.
The kiln-firing process used to make
tile results in products that are
100 percent VOC free. This attribute
allows LEED, CHPS and other green
building rating systems to provide
our tile with a low-emissions credit
without the additional testing
required of other products.
Levaro™
Salcedo™
Travertine offers a classic look, having
been used in some of the world’s
greatest structures. Its beauty is
timeless, with natural tones and
unique patterns. Levaro’s Reveal
Imaging™ technology brings to life
the beautiful look of travertine to
every design with incredible color,
detail and veining that is uniquely
produced on every tile. Levaro
by Daltile is manufactured using
both post- and pre-consumer
recycled content.
This American Olean line of
coordinating floor, wall and mosaic
ceramic tile is created using both
post- and pre-consumer recycled
materials. The use of Reveal Imaging™
technology delivers tile that mimics
the look of natural stone in easy-tomaintain ceramic.
Green Squared®
Certification
Green Squared certification has
been achieved by virtually all Daltile
products and provides third-party
verification of conformance with
ANSI A138.1, the national standard
for sustainable tile products. It is
a whole-product, multi-attribute
standard, based on life cycle assessment principles that document
that the product and process
meet strict environmental and
social criteria.
GREEN PRODUCTS
Laminate
Laminate flooring, combined with our patented Uniclic® installation system, is unmatched for beauty,
durability and sustainability.
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Laminate
FloorScore®
Uniclic® Installation System
Our nature-inspired laminates mimic
the look of fine hardwood, natural
stone or ceramic tile in an eco-friendly
flooring created with as much as
74 percent pre-consumer recycled
content.
FloorScore certifies that
laminate flooring, such as our
U.S.-manufactured Mohawk® and
Quick-Step® brands, meet strict
indoor air quality standards.
This patented technology uses
a glue-less and chemical-free
system for fast, easy installation
with no adverse impact on indoor
air quality.
Laminate Cleaners
didit™ Click
Furniture Collection
Formulated from all-natural
ingredients, our cleaners are
sustainable, biodegradable and
have earned recognition as a
U.S. Environmental Protection
Agency “Design for the Environment”
product.
This line of assemble-yourself
chipboard furniture uses Uniclic®
technology, which means no bolts,
screws, nails or other fittings are
used in its assembly, thereby
saving resources.
GREEN PRODUCTS
wood
Our domestic and international hardwood flooring products are both stylish and environmentally
sound, with sustainable options to complement any décor.
Strand Woven Bamboo
Twice as hard as oak, this
exceptionally durable and longlasting flooring is made from one
of the fastest-growing plants on
earth, which makes it an ideal
renewable resource. Our bamboo
flooring also is FloorScore® certified,
which means it meets strict indoor
air quality standards.
PureBond®
Engineered Wood
Our engineered wood products are
manufactured using PureBond technology that eliminates formaldehyde
adhesives, a source of VOC emissions
that can adversely impact indoor air
quality. They also are FloorScore
certified, which means they meet
strict indoor air quality standards.
Reclaimed Wood
Our Reclaimed Hardwood Flooring
from dismantled buildings keeps
wood out of landfills and brings
it into today’s homes to provide
antique natural beauty.
*PureBond® is a registered trademark
of Columbia Forest Products, Inc. in the
U.S. and other countries and is used
under license.
49
Uniclic®
Installation System
Hardwood Floor Cleaners
Forest Stewardship
Council® Certified
This patented technology uses a
glue-less and chemical-free system
for fast, easy installation with no
adverse impact on indoor air quality.
Made from all natural, biodegradable
ingredients, our hardwood floor
care products help to sustain the
long life of hardwood flooring.
Six styles of our select sourced
engineered wood products are
certified to Forest Stewardship
Council standards, which means
they are manufactured using timber
from responsibly managed sources.
GREEN PRODUCTS
Rugs & Mats
Mohawk Home is the largest supplier of rugs and mats in the United States, with products ranging from
luxurious renewable wool Karastan® rugs to practical mats made from recycled rubber.
50
Infinity Series Recycled
Rubber Mats
Sustainable Fibers
Comfort Mat
Many of our rugs are made from
highly sustainable resources such
as renewable sheep-shorn wool,
found in our Karastan® rugs, and
EverStrand® fiber, which is the only
100 percent post-consumer recycled
material rug fiber in the industry.
This polyurethane foam cushion
mat is produced with more than
50 percent natural resources,
including soybean oil, to lessen
dependence on petrochemicals.
The face of the product consists
of 100 percent recycled polyester.
We have introduced two-color
flock into our classic 100 percent
recycled rubber base. The result
is a mat that conserves natural
resources and is more fashionable
than ever.
Eco Cushion Mat
Envirovinyl Walk-off Mats
Grand Terrace Mats
Made in part with renewable
bio-materials such as soybeans, this
mat is certified as a GREENGUARD®
Indoor Air Quality product. It also
resists the growth of harmful mold,
mildew, fungus and bacteria. At the
end of its product life, Eco Cushion
is completely recyclable.
We have improved the traditional
PVC vinyl backing previously used
in our walk-off mats by removing
phthalates and adding up to 50
percent recycled post-industrial
materials.
A synthetic alternative to coir mats,
this collection of mats boasts 100
percent recycled rubber backing
laminated to a needle-punch
polypropylene face to provide
great product weight, value and
performance.
GOALS & PROGRESS
We continue to make steady progress toward our goals for
energy, emissions, water and waste-to-landfill reductions.
51
GOALS & PROGRESS
Energy & Emissions
Energy Intensity
GHG Intensity
(in MWh/net sales)
0.975
(in metric tonnes/net sales)
0.985
0.927
0.900
0.285
0.287
0.271
0.261
2009*
2010
2011
2012
0.213
0.731
2009*
2010
2011
2012
2020
*Intensity goal baseline year.
Optimizing our overall energy consumption while also seeking
alternative, economical, cleaner-burning fuels is the best
course to increase our bottom line and decrease our carbon
footprint at the same time. As a vertically integrated manufacturer, we have ample opportunities to do both.
In the process of measuring our 2012 performance, we
discovered that our 2011 energy and GHG performance had
been over-reported due to the inclusion of Scope 3 emissions.
The 2011 data also did not include self-generated biomass
sources from our European operations. As a result, the 2011
numbers have been restated in this year’s report. In addition,
we are now calculating energy savings on a normalized basis
in 2012 rather than on an absolute basis as in previous years.
This change provides a more accurate picture of how we are
conserving energy while also growing the business.
Our strategy primarily targets reductions in the energy
intensity of manufacturing and distribution processes via
proven technologies and innovative solutions that transform
energy use in our operations. In the process, we also are
able to reduce our emissions intensity.
From 2011 to 2012, we were particularly pleased with our
energy and emissions reductions, given an increase in manufacturing during the year as the industry began to recover.
Energy intensities fell nearly 3 percent, while GHG intensity
dropped 3.7 percent. This performance demonstrates that
we are growing our business in a more efficient manner and
reducing our carbon footprint simultaneously.
52
2020
A project to replace obsolete, high-energy-consuming plant
lighting at our Dal-Tile plant in Lewisport, Kentucky, is an
example of our energy and emission-reduction strategy at
work. The previous lighting system included 374 outdated
metal halide lamps that used an average of 168,633 watts at
a cost of more than $66,000 annually. New higher-efficiency
lights not only reduce energy consumption, but also offer
better plant illumination. With this project, the plant will cut
energy costs in half and reduce greenhouse gas emissions
by nearly 2 million pounds each year.
GOALS & PROGRESS
Energy & Emissions
947.34K
315.84K
5.63K
615.10K
159.65K
6.73M
2012 Energy
Consumption
by Source*
2012 Total
GHG Emissions**
2012 Energy
Savings
(in metric tonnes)
(in gigajoules)
(in gigajoules)
897.01K
10.37M
375.92K
Direct
● Natural Gas: 10.37M
● Fuel Oil: 947.34K
● Coal: 315.84K
Indirect
● Electricity: 6.73M
● Productivity Improvements/Manufacturing
Capacity Rationalization: 375.92K
● Energy CapEx Investments: 159.65K
● Low-/No-Cost Energy Improvements: 5.63K
● Total Indirect GHG Emissions: 897.01K
● Total Direct GHG Emissions: 615.10K
*In addition to direct and indirect energy consumption, we also measured 2.897 million gigajoules related to biomass.
**In addition to direct and indirect GHG emissions, we measured 433,646 metric tonnes of GHG emissions related to biomass sources. Product and refrigerant
emissions are excluded from our metrics.
With one of the industry’s largest distribution systems,
transportation represents a significant area of energy and
emissions reduction potential. An ongoing project of our
logistics team is to increase the miles per gallon (MPG) of
our trucking fleet, which in turn reduces the fleet’s carbon
footprint. The team has implemented several upgrades that
are positively impacting fuel economy. These include:
• battery-operated, energy-efficient NITE system air
conditioners, so tractor engines can be turned off during
sleep breaks, even in very hot climates.
• enhanced fleet communications to monitor individual truck
performance on a daily basis, so that MPG solutions can
be tailored to each truck and driver.
• lower engine RPMs and decreased transmission ratios to
drive at the same speed but increase MPG.
• new aerodynamic packages, including rounded corners on
the trucks and skirting to cover fuel tanks and the bottom
of the trailers to reduce drag.
53
These initiatives, along with other refinements, have resulted
in a 17 percent increase in overall MPG between 2005 and
2012 and a reduction in carbon emissions of approximately
7 million pounds since 2007.
Other emissions initiatives in 2012 included switching from
coal to natural gas at our Glasgow, Virginia, carpet facility.
This project will reduce our GHG emissions by more than
12 million pounds annually.
In addition, we realized a more than 4 percent reduction in
energy intensity at our Glasgow plant since 2009. Learn more
about the Glasgow plant’s commitment to sustainability in the
feature story, Manufacturing: Making Gains in Sustainability.
We also have implemented changes in manufacturing
processes at carpet facilities in Dalton and Rome, Georgia, to
curb our use of electricity at these facilities and performed
a boiler upgrade at a second Dalton plant, which resulted
in reduced natural gas consumption.
GOALS & PROGRESS
water
Water management and conservation are essential actions
for us, given the increasing scarcity of this natural resource
and the relatively large amount of water required in the
manufacture of carpet, rugs and tile.
Water Intensity
(in mga/net sales)
0.618
0.636
0.592
2008* 2009
2010
0.569
2011
0.508
2012
0.464
2020
1.47M
1.74M
0.18M
2012 Water
Withdrawal
by Source
(in cubic meters
per year)
● Municipal Water Supplies: 7.74M
● Surface Water: 1.74M
● Groundwater: 1.47M
● Industrial: 0.18M
7.74M
We have a solid track record in water reduction and continue
to seek ways at all of our facilities to reduce reliance on fresh
water sources. In our ceramic division, for example, five of our
nine tile manufacturing plants recover and re-use 100 percent
of their process wastewater. Our operations have reduced
overall water use by more than 30 percent, or nearly
1.3 billion gallons since 2008, through the introduction
of water reclamation technologies and the implementation
of other best practices.
Setting the standard for responsible water use in commercial
carpet manufacturing is our facility in Glasgow, Virginia.
Upgrades to the facility’s dyeing processes have brought
about a transition from water-intensive knit-deknit yarn
dyeing to solution and space dyeing. These new processes
deliver the same color quality with much less water use,
and have lowered water intensity at the plant by more than
19 percent since 2009.
A prime example of our commitment to water reduction can
be found at our bath rug manufacturing plant in Georgia, a
location where we continue to make significant progress.
Because our bath rugs can be manufactured in more than
1,000 different color and texture combinations, the dyeing
processes are water intensive. We completed technology
and automation upgrades to these processes in 2011 that
allow us to better control water use and deliver substantial
savings. In 2012 alone we reduced water use by 59 million
gallons and steam production by 660 million pounds at a
cost savings of $650,000. A second dye-process improvement
at another facility has reduced fresh water use by more than
52 million gallons annually. This upgrade allows the use of
recycled water from extractor seals in a wash process on
the dye line.
These measures and others combined to improve our water
intensity by nearly 11 percent from 2011 to 2012. As with
all of our reporting, we continue to strengthen data stream
processes. In doing so, we found errors in past years’ reporting
and have rectified these errors in this year’s data.
54
GOALS & PROGRESS
Waste
2012 Total waste by type
Waste to Landﬁll Intensity
(in tons/net sales)
.0186
.0177
.0156
2009*
2010
2011
.0144
2012
Non-Hazardous Wastes*
Hazardous Wastes**
597,819
3,682
Total
601,501545,333
2020
*Non-hazardous wastes disposed of directly by the reporting
organization or directly confirmed.
**Information on disposal of hazardous wastes provided by the
waste contractor.
2012 Total waste by disposal method
At Mohawk, we look at waste as both a challenge and an
opportunity. We are challenged to find ever more sustainable
ways to reduce waste, while at the same time recognizing
the opportunity to transform waste into something of value.
Our capabilities for such are well-developed, but more
opportunities remain.
From 2011 to 2012, we realized a more than 7 percent
decrease in waste-to-landfill intensity, which resulted in
a 5 percent decrease in tons of waste to landfill, or 9.4 million pounds.
Mohawk Home’s tufted rug facility in Calhoun, Georgia, reached
a milestone in 2012, becoming the first Mohawk facility to achieve
zero-waste-to-landfill status. This significant journey began when
Waste Stream Management (WSM), our internal team that
coordinates many of our recycle and re-use efforts, collaborated
with plant management on ways to minimize manufacturing
waste. Their solutions have included the recovery and internal
re-use of fiber waste, the sale of packaging waste and more.
Widespread employee involvement expanded the program
beyond manufacturing waste to deliver an increase in responsible waste management throughout the plant. The number
of recycling bins for bottles and cans increased; people began
bringing lunches in reusable, Company-provided containers;
541,994
3,339
.0140
55
TonsTonnes
TonsTonnes
Recycling
498,502451,951
Incineration
19,41217,599
Biomass used internally as fuel 259,264 235,053
Landfill
83,587
75,782
Total
860,765780,385
and a partnership with a local middle school was formed to
find a recycle stream for chip bags. Many of these initiatives
are being replicated across the Company. In fact, our rug
plant in Calhoun also achieved zero-waste status in 2012.
Achievements such as these helped Mohawk Home cut
landfill costs by 33 percent in 2012 over 2011.
Following the lead of these two plants, we anticipate more of
our facilities will move closer to zero-waste-to-landfill status
in the coming years.
Another recent waste initiative saved the Mohawk GHB
warehouse in Calhoun, Georgia, nearly $100,000 in the second half of 2012. GHB warehouse employees designed new
ways to consolidate orders for shipping that reduced the use
of wood pallets by 200 per month. In addition, they devised
a method of recycling cardboard into the end caps of wood
molding containers that resulted in the elimination of
purchased end caps, a reduction in cardboard waste and
stronger, more professional wood moldings packaging.
GOALS & PROGRESS
Fira Assurance Statement
For the full statement, including scope, our methodology, work undertaken, disclaimers and description of accomplishments
and opportunities for improvement, please see http://www.fira.nl/files/mohawksustainability/MHKstatement2012report.pdf.
Mohawk has commissioned FIRA to provide external assurance on its 2012 web-based and pdf Sustainability Report. Web
pages that are verified by FIRA carry the following statement at the bottom of the page:
The content of this page has been assured by FIRA. Please click logo for assurance statement.
Conclusion
Based on the undertaken work, we conclude that the claims and information portrayed in The Report are reliable. We commend
Mohawk on a thorough approach leading to GRI B+.
Accomplishments and Recommendations
We have seen progress in a number of areas. For 2012, Mohawk has significantly improved its data collection, and has verified
and corrected historical data. We also commend Mohawk on their continuous efforts to improve their environmental footprint,
the expansion of the Mohawk certified zero landfill program is a good example. Progress on CSR strategy development and
implementation has been limited. A number of comments from the 2011 statement have been extended.
• Strategic Initiatives & Sustainability Strategy: Mohawk strategic planning is driven by an annual business cycle, including
specific targets, plans and programs. Mohawk has multiple sustainability related initiatives activated across all their organization
as part of this business cycle. Many of them are implemented as isolated initiatives by each business unit. An overarching
framework that could link all this isolated initiatives under a comprehensive corporate strategy could accelerate their effectiveness through the creation of common synergies and also enhance transparency as many of these sustainability initiatives are
currently not disclosed. Integrating CSR topics with enterprise risk management, using total cost of ownership models and
CSR based reviews in business development will feed CSR from bottom up into the regular business cycle
• Management Approach: Mohawk is disclosing a clear sense of direction on all CSR related topics. We recommend to further
refine the management approach disclosing the current state against policy and publish 3-5 year targets for all CSR related topics.
• Stakeholders Engagement: Stakeholder engagement is strongly business focused. We recommend accelerating CSR based
stakeholder engagement by desk research, benchmark studies and active engagement. Stakeholder collaboration can strengthen
the business, especially as the company continuous to move into new geographies.
• Accountability: The roles and responsibilities of the people engaged in the different sustainability activities are scattered all
around the organization (business units, and corporate). Therefore, the accountability for programs, metrics, initiatives, and
resources is sometimes hard to track, and requires time and effort to coordinate. A clear map of sustainability initiatives
accountability can lead to increased efficiency during the implementation and monitoring of activities.
• KPI Management: As data collection is maturing, Mohawk is challenged to continue the journey from data collection to metrics
management. We recommend formalizing KPI management by evaluating sustainability performance based on targets.
• Global Expansion: As the company continues moving into new geographies, we recommend formalizing social risk management
within the due diligence process. Adding a layer of detail, beyond general knowledge and current playbooks, these will allow
management to deal with specific challenges on human rights, labour practice, fair practice and community development.
• CSR Supplier Management: Mohawk can further expedite the implementation of their supplier code of conduct with a
more structured rollout companywide, and monitoring global implementation.
For FIRA,
A.C. de Bruijn
Director FIRA
June 14st, 2013, The Netherlands
56
GOALS & PROGRESS
GRI STANDARD DISCLOSURES
Legend: NA – Not Applicable, NR – Not Reporting, P – Partial, 10-K – Form 10-K, AR – Annual Report, FC – Front Cover, IFC – Inside Front Cover, BC – Back Cover, IBC – Inside Back Cover
Standard Disclosures Part I: Profile Disclosures
1. Strategy and Analysis
Profile
Disclosure
Description
Reported
1.1
Statement from the most senior decision-maker of the organization.
1.2
Description of key impacts, risks, and opportunities.
5-6
5-6, 12-13,
10-K (9-15)
2. Organizational Profile
2.1
Name of the organization.
FC, BC
2.2
Primary brands, products, and/or services.
2.3
Operational structure of the organization, including main divisions, operating companies, subsidiaries,
and joint ventures.
2, 10-K (3-6)
2.4
Location of organization's headquarters.
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.
3, 10-K (2)
2.6
Nature of ownership and legal form.
9,
10-K (FC)
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.
2, 3
2
2-3, 10-K (2)
2, 4
IFC, 5-6,
12-13, 10-K
(19-23)
11
3. Report Parameters
3.1
Reporting period (e.g., fiscal/calendar year) for information provided.
IFC
3.2
Date of most recent previous report (if any).
IFC
3.3
Reporting cycle (annual, biennial, etc.)
IFC
3.4
Contact point for questions regarding the report or its contents.
IBC
3.5
Process for defining report content.
IFC
3.6
Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers).
See GRI Boundary Protocol for further guidance.
IFC
3.7
State any specific limitations on the scope or boundary of the report (see completeness principle for
explanation of scope).
IFC
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.
IFC
3.9
Data measurement techniques and the bases of calculations, including assumptions and techniques underlying
estimations applied to the compilation of the Indicators and other information in the report. Explain any
decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols.
IFC, 12,
52, 54,
FIRA
3.10
Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons
for such re-statement (e.g.,mergers/acquisitions, change of base years/periods, nature of business,
measurement methods).
52, 54
3.11
Significant changes from previous reporting periods in the scope, boundary, or measurement methods
applied in the report.
IFC,
53-55
3.12
Table identifying the location of the Standard Disclosures in the report.
57
3.13
Policy and current practice with regard to seeking external assurance for the report.
IFC
57
GOALS & PROGRESS
STANDARD DISCLOSURES PART I: Profile Disclosures
4. Governance, Commitments, and Engagement
Profile
Disclosure
Description
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.
4.2
Indicate whether the Chair of the highest governance body is also an executive officer.
4.3
For organizations that have a unitary board structure, state the number of members of the highest governance
body that are independent and/or non-executive members.
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to the highest
governance body.
Corporate
Website
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).
9,
Proxy (13)
4.6
Processes in place for the highest governance body to ensure conflicts of interest are avoided.
4.7
Process for determining the composition, qualifications, and expertise of the members of the highest
governance body and its committees, including any consideration of gender and other indicators of diversity.
Proxy (35)
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.
9, 12-13,
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.
9, 13,
Corporate
Website
4.10
Processes for evaluating the highest governance body's own performance, particularly with respect to economic,
environmental, and social performance.
9
4.11
Explanation of whether and how the precautionary approach or principle is addressed by the organization.
9
4.12
Externally developed economic, environmental, and social charters, principles, or other initiatives to which
the organization subscribes or endorses.
IFC, 28
4.13
Memberships in associations (such as industry associations) and/or national/international advocacy organizations
in which the organization: * Has positions in governance bodies; * Participates in projects or committees;
*Provides substantive funding beyond routine membership dues; or * Views membership as strategic.
15
4.14
List of stakeholder groups engaged by the organization.
14
4.15
Basis for identification and selection of stakeholders with whom to engage.
14
4.16
Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.
14
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.
14
58
Reported
9, Corporate
Website
7, 8
7,
Proxy (6)
9, Corporate
Website
GOALS & PROGRESS
STANDARD DISCLOSURES PART II: Performance Indicators
Economic
DMA EC
Disclosure on Management Approach EC
Performance
Indicator
Description
5-6, 12-13,
AR (1-3)
Reported
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.
4,
10-K (12-13)
10-K (9)
10-K (37-38)
9
Market presence
EC5
Range of ratios of standard entry level wage by gender 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 operation.
NR
EC7
Procedures for local hiring and proportion of senior management hired from the local community at locations
of significant operation.
NR
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.
59
18-19, 33-35
5,12-P
GOALS & PROGRESS
Environmental
DMA EN
Disclosure on Management Approach EN
Performance
Indicator
Description
5-6, 12-13,
17, 23,
53-56,
Corporate
Website
Reported
Materials
EN1
Materials used by weight or volume.
NR
EN2
Percentage of materials used that are recycled input materials.
37-38, 39-P
Energy
EN3
Direct energy consumption by primary energy source.
53
EN4
Indirect energy consumption by primary source.
53
EN5
Energy saved due to conservation and efficiency improvements.
EN6
Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in
energy requirements as a result of these initiatives.
EN7
Initiatives to reduce indirect energy consumption and reductions achieved.
NR
EN8
Total water withdrawal by source.
54
EN9
Water sources significantly affected by withdrawal of water.
22-P
EN10
Percentage and total volume of water recycled and reused.
NR
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
53
19, 21, 39-P,
52-53
Water
Biodiversity
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
Emissions, effluents and waste
EN16
Total direct and indirect greenhouse gas emissions by weight.
EN17
Other relevant indirect greenhouse gas emissions by weight.
EN18
Initiatives to reduce greenhouse gas emissions and reductions achieved.
52-53-P
NR
52-53
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.
55
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 percentage of transported waste shipped internationally.
NR
EN25
Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly
affected by the reporting organization's discharges of water and runoff.
NR
60
GOALS & PROGRESS
Environmental
Products and services
EN26
Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.
19, 22,
36-50-P
EN27
Percentage of products sold and their packaging materials that are reclaimed by category.
NR
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with
environmental laws and regulations.
NR
Significant environmental impacts of transporting products and other goods and materials used for the
organization's operations, and transporting members of the workforce.
NR
Total environmental protection expenditures and investments by type.
NR
Compliance
EN28
Transport
EN29
Overall
EN30
Social: Labor Practices and Decent Work
DMA LA
Disclosure on Management Approach LA
Performance
Indicator
Description
9-10, 12-13,
24, 26-32
Reported
Employment
LA1
Total workforce by employment type, employment contract, and region, broken down by gender.
24-25
24-25
LA2
Total number and rate of new employee hires and employee turnover by age group, gender, and region.
LA3
Benefits provided to full-time employees that are not provided to temporary or part-time employees,
by significant locations of operation.
32
LA15
Return to work and retention rates after parental leave, by gender.
NR
Labor/management relations
LA4
Percentage of employees covered by collective bargaining agreements.
LA5
Minimum notice period(s) regarding significant operational changes, including whether it is specified in
collective agreements.
28
28-P
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.
26
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by
region and by gender.
LA8
Education, training, counseling, prevention, and risk-control programs in place to assist workforce members,
their families, or community members regarding serious diseases.
32
LA9
Health and safety topics covered in formal agreements with trade unions.
NR
26-27-P
Training and education
LA10
Average hours of training per year per employee by gender, and by employee category.
LA11
Programs for skills management and lifelong learning that support the continued employability of employees
and assist them in managing career endings.
LA12
Percentage of employees receiving regular performance and career development reviews, by gender.
61
31
30-31-P
31-P
GOALS & PROGRESS
Social: Labor Practices and Decent Work
Diversity and equal opportunity
LA13
Composition of governance bodies and breakdown of employees per employee category according to
gender, age group, minority group membership, and other indicators of diversity.
7, 24-25
Equal remuneration for women and men
LA14
Ratio of basic salary of men to women by employee category, by significant locations of operation.
NR
Social: Human Rights
DMA HR
Disclosure on Management Approach HR
Performance
Indicator
Description
10, 12-13,
24, 28-29
Reported
Investment and procurement practices
HR1
Percentage and total number of significant investment agreements and contracts that include clauses
incorporating human rights concerns, or that have undergone human rights screening.
NR
HR2
Percentage of significant suppliers, contractors and other business partners that have undergone human
rights screening, and actions taken.
10-P
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
Non-discrimination
HR4
Total number of incidents of discrimination and corrective actions taken.
NR
Freedom of association and collective bargaining
HR5
Operations and significant suppliers identified in which the right to exercise freedom of association and
collective bargaining may be violated or at significant risk, and actions taken to support these rights.
NR
Operations and significant suppliers identified as having significant risk for incidents of child labor, and
measures taken to contribute to the effective abolition of child labor.
10, 28-29
Child labor
HR6
Forced and compulsory labor
HR7
Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory
labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.
28-29
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
Indigenous rights
HR9
Total number of incidents of violations involving rights of indigenous people and actions taken.
29
Percentage and total number of operations that have been subject to human rights reviews and/or
impact assessments.
NR
Number of grievances related to human rights filed, addressed and resolved through formal
grievance mechanisms.
NR
Assessment
HR10
Remediation
HR11
62
GOALS & PROGRESS
Social: Society
DMA SO
Disclosure on Management Approach SO
9, 12-13,
33-35
Performance
Indicator
Description
Reported
Local Community
SO1
Percentage of operations with implemented local community engagement, impact assessments, and
development programs.
33-35-P
SO9
Operations with significant potential or actual negative impacts on local communities.
NR
SO10
Prevention and mitigation measures implemented in operations with significant potential or actual negative
impacts on local communities.
NR
Corruption
SO2
Percentage and total number of business units analyzed for risks related to corruption.
SO3
Percentage of employees trained in organization's anti-corruption policies and procedures.
SO4
Actions taken in response to incidents of corruption.
9
9
NR
Public policy
SO5
Public policy positions and participation in public policy development and lobbying.
9
SO6
Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.
9
Anti-competitive behavior
SO7
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and
their outcomes.
10-K (41)
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with
laws and regulations.
10-K (41)
Compliance
SO8
63
GOALS & PROGRESS
Social: Product Responsibility
DMA PR
Disclosure on Management Approach PR
5-6,
12-13, 44
Performance
Indicator
Description
Reported
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
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.
44
PR4
Total number of incidents of non-compliance with regulations and voluntary codes concerning product and
service information and labeling, by type of outcomes.
NR
PR5
Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.
14, 42-43,
44-P
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.
42-P
NR
Customer privacy
PR8
Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.
NR
Monetary value of significant fines for non-compliance with laws and regulations concerning the provision
and use of products and services.
NR
Compliance
PR9
64
Contact Information
Mohawk Industries, Inc.
160 South Industrial Boulevard
Calhoun, Georgia 30701
www.mohawkind.com
Mohawk sustainability
[email protected]
Media Inquiries
[email protected]
‘USGBC®’, ‘LEED®’ and related logos are trademarks owned by the U.S. Green Building Council® and are used with permission.
In alignment with Mohawk’s commitment to sustainability, this report has been printed on paper that is manufactured with
30% post-consumer waste. These forests are certified to a responsibly managed forest management standard.
160 South Industrial Boulevard
Calhoun, Georgia 30701
www.mohawkind.com
www.mohawksustainability.com
© 2013 Mohawk Industries, Inc.

2012 Corporate Responsibility Report

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