Climate-Positive Future
Mohawk is committed to being part of the climate change solution through the implementation of decarbonization strategies across our business. Our approach is grounded in strong sustainability governance and focuses on reducing the environmental impact of our operations—including improving energy efficiency, diversifying our energy mix toward alternative and renewable sources, and reducing emissions from our transportation fleet. In 2025, Mohawk increased its use of wind and solar power by 43% year over year, building on this strategy.
Guiding this work is Mohawk’s sustainability governance structure. Our CEO, Board of Directors and Governance Committee, together with an Executive Stewardship Council of senior leaders, set the Company’s sustainability strategy and goals, while our multi-business Planet Council helps align business decisions with those goals across the enterprise. Mohawk’s prior climate target—a 25% reduction in Scope 1 and Scope 2 GHG emissions intensity by 2025, against a 2010 baseline—was exceeded, achieving a 36% reduction. Building on that progress, Mohawk has established a successor goal: reduce absolute Scope 1 and Scope 2 GHG emissions by 20% by 2030, from a 2021 baseline.
We continue to track material Scope 3 GHG emissions across our value chain using methodologies consistent with the GHG Protocol, focusing on the categories most relevant to Mohawk’s operations and products. In 2025, Scope 3 emissions totaled approximately 8.6 million mtCO2e, with purchased goods and services (55.5%), upstream transportation (13.2%) and processing of sold goods (9.9%) representing the largest sources. Now in our fourth year of reporting Scope 3 emissions, we continue to enhance data quality and coverage across priority categories and to engage suppliers to better understand emissions drivers and identify reduction opportunities. Mohawk does not currently maintain an enterprise-wide Scope 3 emissions reduction target, but we continue to evaluate the appropriateness of future targets as data quality improves and supplier engagement expands.
We recognize the importance of identifying, assessing and mitigating climate-related impacts, risks and opportunities to help ensure business continuity and resilience. Each year, we publish disclosures aligned with the Task Force on Climate-related Financial Disclosures (TCFD) framework, alongside our GRI and ISSB-aligned reporting, to provide investors, regulators and other stakeholders with information to analyze our climate-related risks and opportunities.
Climate Risk Assessment
Mohawk’s approach to climate-related risk is grounded in perpetual evaluation and integration with overall business decision-making. The Company assesses climate-related impacts, risks and opportunities across its global operations and relevant areas of the value chain and incorporates these considerations into its enterprise risk management process. Oversight is provided by Mohawk’s Board of Directors, with executive-level accountability led by the Executive Stewardship Council. This work is informed by the Company’s Double Materiality Assessment (DMA), which brings together stakeholder input, management expertise and data-driven analysis; climate change—covering both energy and mitigation—is identified as a Tier 1, double-material topic for Mohawk.
In anticipation of Australia’s mandatory climate reporting requirements, Mohawk Flooring Oceania undertook a comprehensive climate risks and opportunities assessment across its Australian and New Zealand operations, filing its first climate-related report for Australia in early 2026. The report, which covered the 2025 calendar year, was prepared with the support of centralized Mohawk data capabilities and was subject to third-party independent assurance, strengthening our governance, internal controls and preparedness as mandatory climate disclosure requirements expand globally.
Among the risks we continue to monitor, the cost and availability of energy remains a key area of focus given Mohawk’s energy-intensive manufacturing footprint. We continue to pursue energy efficiency improvements, diversify our energy mix—including expanding biomass use where operationally viable—and make targeted investments such as the Casiglie spray dryer upgrade at Marazzi, which reduced natural gas consumption by approximately 700,000 m³ and avoided an estimated 1,400 tonnes of CO2 emissions.
On the opportunity side, Mohawk continues to view waste and product circularity as an important area of value creation. Our product recovery programs around the globe give post-consumer flooring a second life by channeling material into recycling streams that would otherwise be unavailable to most consumers and contractors. We also support industry-wide efforts—including long-standing participation in the Carpet America Recovery Effort (CARE)—to strengthen collection infrastructure and expand end-of-life solutions across the flooring industry.