Risk Management

The Board of Directors provides oversight of the financial, operational, legal and other business risks to the Company on an ongoing basis. The Company faces a number of risks, including economic, climate related, financial, cybersecurity, legal and regulatory risks and others.

The Company’s leadership team is responsible for the day-to-day management of risks, while the Board, as a whole and through its committees, has responsibility for the oversight of risk management. In its risk oversight role, the Board is responsible for satisfying itself that the Company’s risk management processes are adequate and functioning as designed.

We maintain strong governance practices and oversight through continuous review of sustainability matters and relevance to business strategy with our ESG Executive Council, which reports to the Board and the Board’s Nominating and Corporate Governance Committee (NCGC) on the implementation of sustainability due diligence and the results and effectiveness of sustainability policies, actions, metrics and targets, as well as any other sustainability-related concerns that may arise and would require their attention. For further information, see Mohawk’s NCGC Charter. In addition, the Board’s Audit Committee (AC) has responsibility for risk oversight, including risk assessments related to sustainability and climate-related risks, to the extent such matters are not within the purview of discussion by the NCGC. For further information, see Mohawk’s AC Charter.