Material issues definitions

Defining priority sustainability issues at Armstrong World Industries

To complement our materiality analysis, the definitions for our material issues are included below for reference:

Air emissions/quality – Reducing air emissions, including nitrogen oxides, sulfur oxides and other significant air emissions

Biodiversity loss – Reducing our company's impact on nature

Changes in how people live and work – Changes in how buildings are used for working, living or playing due to societal shifts

Chemicals of concern – Reducing or eliminating the use of red list chemicals of concern within manufacturing processes in order to protect workers, communities and users or products

Circular economy/recycled inputs – Designing products and services that eliminate waste and pollution, keeping products and materials in use and regenerating natural systems

Climate change – Minimizing our company’s energy and carbon footprint and adapting the company's operations and products in order to meet climate change challenges for manufacturing, supply chain and customer needs

Community engagement – Investing in community suppliers and/or charitable organizations, including employee volunteering and fundraising, and enabling greater positive cohesion between company and community stakeholders

Conflict Minerals – Eliminating the use of minerals that are sourced from conflict zones and/or upholding human rights standards in the supply chain where minerals are potentially sourced from areas of conflict

Corporate governance – Fulfilling the responsibilities of our Board of Directors in directing and controlling a company, including the implementation and oversight of environmental, social and governance (ESG) issues, such as Board composition, independence, remuneration, shareholder rights and enterprise risk management

Digital transformation/ digitalization – Innovating the company's operations and products to a more digital, automated or smart environment

Diversity and inclusion, equal opportunity – Recruiting and retaining a diverse workforce — including diversity of race, sex, ethnicity, age, gender and gender identity, sexual orientation, religion, disability, veteran status and socioeconomic background — to benefit from a wide range of talents, skills, and experiences that reflect customers’ needs and stimulate innovation

Economic performance – Creating economic value for our company’s stakeholders, which include shareholders, employees, customers, suppliers, and others

Employee health, safety and wellness – Providing a safe, secure and healthy work environment for employees and encouraging activities that allow them to live a healthy and balanced lifestyle

Engagement and transparency – The engagements, partnerships, transparency and reporting needed to achieve sustainability objectives

Environmental management – Implementing the system for summarizing, monitoring, reporting, developing and executing our company's environmental policies

Ethical behavior – Following the values and policies set out for our company to behave ethically, including compliance with laws, anti-corruption and bribery, anti-competitive behavior, paying fair share of taxes, and conducting political engagement/lobbying transparently

Forest conservation – Sourcing wood and pulp inputs for products from sources that protect forest biodiversity, including but not limited to the use of certifications

Healthy and sustainable products (including product transparency) – Offering products and product innovations that meet the needs of customers in terms of health and environmental attributes and transparently offering detailed information empowering customers to choose appropriate products for their needs (e.g., air quality, acoustics)

Human rights – Ensuring that the basic rights and freedoms of employees are respected (for human rights in the supply chain, see responsible supply chain)

Indirect economic impacts – Addressing the monetary and/or non-monetary consequences to local communities and regional economies related to the flow of money from our company to its stakeholders

Infectious diseases – Adjusting to the effects of infectious diseases, such as COVID-19, including operational impacts as well as long term strategy and innovation

Labor/Management relations – Managing interactions between employees as represented by labor unions and Armstrong World Industries

Responsible materials – Optimizing companies' use of materials and reducing or eliminating the use of hazardous materials

Responsible supply chain – Taking responsibility for suppliers' human rights and environmental performance and ensuring that suppliers are treated fairly and supported in meeting the ethical standards set out by our company

Talent attraction and retention – Recruiting, hiring, developing, retaining and otherwise creating positive working conditions for employees to thrive

Waste management/waste and effluents – Managing wastes responsibly throughout operations

Water and effluents/water efficiency/sourcing – Reducing the amount of water withdrawn and consumed and minimizing discharges of effluents to water