A Message from Our Chairman and CEO, Jeffrey S. Lorberbaum
We are excited to share our strategies and metrics, which reflect how we are building a better future for our customers, employees, stakeholders and the planet.
Sustainability is a key component of our business strategy and a core value for the thousands of men and women who make, sell and deliver our products. Within Mohawk, sustainability is not a stand-alone department or a separate function—it is integrated into all we do. Our philosophy is simple: doing what is good is also good for our business. Each year, our ESG report details the progress behind our efforts.
During the past year, we have worked diligently on achieving our primary 2025 environmental goals and have driven significant improvements in each area:
Scope 1 & 2 GHG Emissions Intensity
Water Withdrawal Intensity
For years, we have prioritized being a part of the climate solution, and we were gratified to be recognized by USA Today as one of America’s most impactful large businesses. We have reduced our carbon footprint through actions that also benefit our bottom line, reinforcing that sustainable practices enhance business results. We have invested in renewable energy production—wind, solar, biomass—on four continents, which reduces our reliance on fossil fuels and lowers our energy costs. We have taken actions around the globe to reduce energy consumption in our operations as well as fuel consumption in our trucking fleets. To lower emissions, we have consistently increased the amount of recycled content in our products, as an alternative to virgin material.
Our products are an important feature in countless homes and public spaces in 170 countries, and they connect us with millions of people. We have a responsibility to all of them to deliver superior style, performance and value as well as sustainable choices. Consumers, particularly Millennials and Gen Z, are increasingly seeking sustainable products in all aspects of their lives. We see this in the transition to electric vehicles, and it is impacting building materials, as well. This is particularly important for the wood we use in our parquet and laminate flooring, chipboards and panels. By using recycled and reclaimed wood, Mohawk keeps the carbon sequestered in the wood fiber by extending the life cycle of the material.
Our ability to deliver innovative products, enhanced manufacturing and superior logistics rests with the thousands of talented men and women who share our commitment to continuously improve—they are the foundation of our success! All of our choices related to people are based on a simple principle: respect.”
Mohawk is the world’s largest ceramic tile manufacturer, and almost all of our tile collections include recycled content. Throughout the Company, we are applying closed-loop manufacturing to minimize our waste streams by either repurposing material into new products or identifying businesses that can upcycle it. We recycle billions of plastic bottles into polyester carpet to provide sustainable options in addition to offering bio-based SmartStrand and renewably sourced wool collections.
Our ability to deliver innovative products, enhanced manufacturing and superior logistics rests with the thousands of talented men and women who share our commitment to continuously improve—they are the foundation of our success! All of our choices related to people are based on a simple principle: respect. That is why we provide training to create career opportunities, invest in safety and health resources and ensure that the workplace is fair and equitable for everyone. For the sixteenth consecutive year, Mohawk’s world‑class employee development initiatives were ranked among the world’s top corporate programs by Training magazine. Some of the most critical training we offer are the courses focused on employee safety. In 2022, we made additional progress in reducing our recordable incident rate, which is now 20 percent lower than baseline. We continue to develop additional safety resources and engage employees at all levels in these initiatives as we work toward our 2025 goal.
Our investments in health care accessibility are also yielding results. Our Healthy Life Centers have made a significant impact in quality of life by helping our employees control chronic conditions. Aggregate data illustrates that we are moving the needle on group health, which is no small feat. These men and women have taken the actions necessary to lead healthier lives once they gained access to resources to guide their decisions and manage their needs. We value all of the people who work at Mohawk, and we are committed to maintaining workplaces where everyone can fulfill their potential and deliver their best results.
We work to be a good citizen in every community in which we operate, which includes taking actions to reduce environmental risks as well as creating excellent career opportunities that support local prosperity. We and our employees work with local nonprofit organizations to improve the quality of life in our communities both through donations and volunteering. We have also developed local partnerships to ensure our workforce mirrors our communities, and 45 percent of our U.S. workforce is comprised of Black, Indigenous and other People of Color. By training internal candidates and recruiting talented new hires, we are also growing our ranks of female leaders, which is now at 25 percent. The internship and apprenticeship programs we have developed in collaboration with high schools, vocational schools and colleges are critically important to maintaining a healthy talent pipeline as we build the workforce of the future.
Throughout our ESG report, we share the actions we are taking to improve our business and enhance how we impact the planet and the people with whom we share it. We continue to adapt to a changing world, and we are listening to and learning from our stakeholders around the world to build a brighter future. I appreciate your interest in Mohawk and your support of our ESG initiatives.
Jeffrey S. Lorberbaum
Chairman and CEO