Knauf UK & Ireland Sustainability Report 2021

KNAUF UK & IRELAND SUSTAINABILITY REPORT 2021

© Knauf UK & Ireland Sustainability Report 20212|52 GO CONTENTSTABLETOOF Why Sustainability Matters to Knauf What We Are Doing Differently This Year and SustainabilityStakeholdersWhyGovernance at Knauf Knauf History Covid During 2021 Strategic Priorities Our PeoplePlanetImplementationStrategyMark Social Value Our HealthPeopleand Safety Developing People Supporting our Staff GenderWellbeingPay Gap Employee Engagement ApprenticeshipsTraining Contents 1413121110987653 24232221201918171615 3029282726 31 403938373635343332 42 484746454443 49 Community Days Charity Engagement/Donations Crash ProcurementBouncebackCharityCharity Planet Aiming for Carbon Zero Carbon Footprint for Haulage Zero Carbon Task Force Cycle to Work Scheme Waste, Water & Emissions Recycled Packaging Circular ProductsRecycledEconomyContent Prosperity ProductComplianceSustainabilty Information Promoting UNSustainabilitySustainabilityManufacturingTrainingChampionsSustainableDevelopment Goals (SDGs) Sustainability Targets 2020-2022

The People, Planet, Prosperity strategy allows us to measure performance, and ensure progression.

• We will put people and communities first • Achieve zero carbon • Deliver a circular economy • Maintain a sustainable supply chain

Image on left of: Ian Stokes, Managing Director Knauf UK & Ireland

Sustainability is not a nice to have, but an essential part of the way we live and work. But what does that really mean to Knauf? Knauf is a family business, and being a sustainable business is a natural way of working, demonstrated through our corporate values of: menschlichkeit, partnership, entrepreneurship and commitment. In 2021 we increased awareness of sustainability in our business in order to safeguard our ability to operate in the long term. Knauf UK and Ireland’s approach to sustainability is structured around three themes: People, Planet and Prosperity.

What does this mean?

Behaving sustainably has never been so important to our planet. In 2020, for the first time in the history of the World Economic Forum’s global risk assessment, climate change and related environmental issues were the top five risks in terms of likelihood.

Knauf

As part of Knauf’s Global Sustainability Goals, Knauf are taking great steps to meet the demands of the market and understand what our customers expect. In 2021, we gained 3rd party accreditation by Planet Mark for our Carbon Footprint and Social Value.

Knauf has been measuring its carbon footprint for some time but has never had it verified by an external organisation, such as Planet Mark. The company has also never previously measured its social value. This extra layer of evaluation adds value to the measures the company is taking. It also allows Knauf to demonstrate to its customers its commitment to measuring and lowering its carbon footprint, increasing its social value and contributing to the UN Sustainable Development Goals.

Sustainability Report 2021

Why Sustainability Matters to Knauf - a Message from our MD

How is Knauf reducing its carbon footprint?

Planet Mark’s findings will help set our sustainability strategy moving forwards, underpinning our message of Building For The World We Live In. Ian ManagingStokes Director

The United Nations Sustainable Development Goals

Social Value measures the positive value Knauf creates for the economy, communities, and society. This includes how we look after our people, local communities, donations, where we buy from and our environmental impacts. Social Value is becoming increasingly important to Knauf’s clients, and through our certification with Planet Mark, we now has a baseline from which to improve year on year.

The United Nations Sustainable Development Goals (SDGs) are a universal call to action to end poverty, protect the planet and improve the lives and prospects of everyone, everywhere. Knauf’s Planet Mark certification demonstrates how we are already contributing to five of these goals. For example, Knauf has protected one acre of Peruvian rainforest with UK charity Cool Earth, and contributed to the educational charity, the Eden Project. Our aim is to contribute to further goals. Stronger together Knauf has a strong focus on internal communication and education to help embed sustainability throughout the business. In 2021 we established a Sustainability Champions Group, a Circular Economy Task Force and a Carbon Zero Task Force to help integrate sustainability into all aspects of everyday business. We are also educating everyone in the business on how they can contribute to reducing our carbon footprint to help achieve our sustainability goals. We are encouraging staff to add value to society, for example by using the three paid volunteer days that every staff member is allowed each year to volunteer and support a charitable organization. In 2021 we gained Environmental Product Declarations (EPDs) for our UK produced plasterboards, a big step in meeting the demands of our customers.

Knauf has measured the carbon associated with its buildings, travel, waste, water and procurement for 2021. Knauf has a 2020-2022 target of 3% carbon reduction to reach carbon zero by 2050. However, we are hoping to achieve a higher annual reduction as new technologies become available. What does social value mean?

Knauf Sustainability Report 2021

Knauf UK & Ireland Sustainability Report 2021 What We Are Doing Differently This Year and Why • The 2021 report uses a dataset for January to December 2021. • Knauf UK & Ireland has entered a new phase of integrating sustainability into its working practices. In 2021 we had our carbon footprint and social value verified by a third party for the first time. • For this reason our report this year looks a bit different from our scorecard of previous years. • This report is designed to give you the high level information you need at a glance, with the opportunity to delve deeper for more detail. • Knauf operates to BS EN ISO 9001, BS EN ISO 14001, BS ISO 45001, ISO 50001 and BRE BES 6001 standards covering quality, environmental, health & safety and Sustainability respectively. • This report includes the mandatory reporting requirements stipulated by ISO 14064-1. (Hover over image to enlarge) © Knauf UK & Ireland Sustainability Report 20215|52 GO CONTENTSTABLETOOF

SuppliersRegulatorsInvestorsInsurers Finance NeighboursCustomersProvidersEmployeesLocalCommunitites Knauf UK & Ireland Sustainability Report 2021 Stakeholders Being a sustainable business, means connecting meaningfully with our stakeholders—the people who influence and are impacted by our choices - namely: Directors Throughout the report you will see examples of how we engage with our stakeholders. Stakeholder engagement is a key area of focus moving forward. © Knauf UK & Ireland Sustainability Report 20216|52 GO CONTENTSTABLETOOF

Sustainability Governance at Knauf Knauf UK & Ireland Sustainability Report 2021 Jörg Kampmeyer General PartnerRegionalGlobal Jan Ellringmann Member of the Group Management Committee Nanna Rigenstrup Strategic Marketing Director UK & Ireland Ian Stokes Managing Director Emma Delaney HR & DirectorSustainability Lucy Hall Sustainability Leader © Knauf UK & Ireland Sustainability Report 20217|52 GO CONTENTSTABLETOOF

The Company’s headquarters in the UK is in Sittingbourne (Kent). Constructed in 1988, the Sittingbourne Plasterboard Plant was up and running from a greenfield site to working factory in less than twelve months. The production system, which was engineered and designed using the most modern manufacturing technologies, enables the production of Knauf’s superior quality Standard and High Performance Plasterboards, Foil-backed Plasterboards and Insulating FollowingLaminates.the success of the Sittingbourne Plant, construction on a second UK Plasterboard manufacturing facility commenced in 1990. Based on the banks of the River Humber, the Immingham Plasterboard Plant services the North of England, Scotland and the Irish market. Built to the same modern technical specification as the Sittingbourne Plant, Immingham also has the capability to produce the complete range of Knauf Plasterboards, Insulating Laminates and Foilbacked Plasterboards.

Knauf History

Sustainability Report 2021 © Knauf UK & Ireland Sustainability Report 20218|52 GO CONTENTSTABLETOOF

Knauf UK and Ireland

Knauf is a synonym for gypsum – among construction experts and enthusiasts. This proverbial association of a building material with a manufacturer’s name is not just coincidence. It is the result of decades of hard work and consistently high quality.

Today Knauf is one of the world’s leading manufacturers of modern insulation materials, drylining systems, plasters and accessories, thermal insulation composite systems, paints, floor screed, floor systems, and construction equipment and tools. With more than 300 production facilities and sales organisations in over 90 countries, 40,000 employees worldwide, and sales of 12.5 billion Euro (in 2021), the Knauf Group is without doubt one of the big players on the market –in Europe, the USA, South America, Russia, Asia, Africa, and Australia.

Knauf

The fact is, if you say Knauf, you mean dependability. Our group of companies had comparably humble beginnings. Specifically the family company was established in 1932, when brothers Alfons and Karl Knauf secured the mining rights to gypsum deposits in the Schengen community (Obermosel) in Germany. Courage, determination, and business savvy were the reasons that only a year later Knauf established its first gypsum factory in Perl (Moselle) – laying the foundation for what would later be the Knauf Group.

The global pandemic still affected us in 2021, but thankfully the impact was minimal. operated throughout 2021 and implemented and maintained homeworking for those that were able.

Knauf UK & Ireland Sustainability Report 2021 Covid During 2021

We

Knauf UK & Ireland Sustainability Report 2021 Sustainability at Knauf – Strategic Priorities Knauf is dedicated to a sustainable future. Through collaboration and innovation we are working to: Achieve zero carbon Maintain a sustainable supply chain Deliver a circular economy Put people and communities first At Knauf, we Build for the world we live in © Knauf UK & Ireland Sustainability Report 202110|52 GO CONTENTSTABLETOOF

Knauf UK & Ireland Sustainability Report 2021 Sustainability at Knauf - Our Strategy People Knauf aims to have a positive effect on the people and communities we interact with. Planet Knauf is focused upon moving to a net zero carbon business and improving the circularity of our products. Prosperity Knauf endeavours to maintain a sustainable business for us and our supply chain. © Knauf UK & Ireland Sustainability Report 202111|52 GO CONTENTSTABLETOOF

Dedicated sustainability leader Planet Mark certification Circular economy task force All Staff to undergo Sustainability InductionPresentations and training Sustainability part of RecruitmentSustainabilityprocessChampions Maintaining ISO and BES standards Regional and global focus Implementation – how are we becoming a more sustainable business? Knauf UK & Ireland Sustainability Report 2021 Zero carbon task force © Knauf UK & Ireland Sustainability Report 202112|52 GO CONTENTSTABLETOOF

This is to certify that Knauf has achieved the Planet Mark by reporting its carbon footprint and engaging its stakeholders. Year 1. 123,846.2 tCO2e Total carbon footprint. 286.0 tCO2e Total carbon footprint per employee. are committed to reducing our carbon emissions yearly so that together we can all halt climate change. We engage our employees and wider stakeholders to unlock their talent and knowledge to drive year on year progress in sustainability. Development

FTE433employees.

Sustainable5

Goals. We recognise that transparent communication is essential for transformational change and we quantifiably contribute to 5 SDGs Reporting Boundary: Dublin Warehouse (Unit 87 Dublin D24 WR85), Immingham Factory (96 Kings Road, Immingham, DN40 1QS), Sittingbourne Factory (Kemsley Fields Business park, Sittingbourne, ME9 8SR) Emission Sources: Electricity, T&D Losses, Natural Gas, Other fuels, Water, Waste, Paper, Business Travel Reporting Period: 01 Jan 2021 31 Dec 2021 planetmark.com/member/knauf The Planet Mark theplanetmark Location Total£262,295Total294.5Total127,530.3basedtCO2ecarbonfootprint.tCO2ecarbonfootprintperemployee.MarketbasedSocialValue. • • • THANK YOU © Knauf UK & Ireland Sustainability Report 202113|52 GO CONTENTSTABLETOOF

We

Knauf UK & Ireland Sustainability Report 2021 Planet Mark – measuring Carbon Footprint & Social Value We are delighted that our 2021 data has been verified and certified by Planet Mark for the first time, giving us a baseline from which to measure our performance and improvements. We achieved £262,295 in social value and emitted 123,846.2tC02e. For an energy hungry business like ours, we are committed to finding new sources of energy that can reduce our carbon footprint. Our focus is to improve our processes to reduce our current footprint, whilst working alongside industry experts to determine the future green fuel that will enable us to become carbon zero. We also supported the Eden Project and Cool Earth through this partnership. We are Planet Mark Certified Valid to: 31 March 2023 Empowering change for a brighter future. The Planet Mark is a sustainability certification for every type of organisation, for products and real estate. Our certification recognises continuous improvement, encourages action and builds an empowered community of like minded individuals who make a world of difference. CommunicateMeasureEngage

Knauf UK & Ireland Sustainability Report 2021 The Interwoven Pillars of Sustainability – People Knauf strives to have a positive effect on the people and communities we interact with. For more details look at: Social Value Our People Health and Safety Compliance Leader - Richard Gibbons Support Wellbeing Gender Pay Gap Employee Engagement Training Apprenticeships Community Days Charity Engagement/Donations Crash Charity Bounceback Charity Procurement © Knauf UK & Ireland Sustainability Report 202114|52 GO CONTENTSTABLETOOF

Knauf UK & Ireland Sustainability Report 2021 Social Value We had our social value verified by Planet Mark for the first time in 2021. Using a social value matrix, we sent evidence to be verified of how we had contributed to social value in the areas of people, community and volunteering, donations, procurement and environmental impacts. We now have a great baseline on which to improve and make social value a core value. © Knauf UK & Ireland Sustainability Report 202115|52 GO CONTENTSTABLETOOF

Knauf UK & Ireland Sustainability Report 2021 Our People Our employees are the heart of our operation and the force behind everything we do. We try hard to make sure we do right by them, every step of the way, from the start, to the end of their career at Knauf. But employees are not the only people we consider when doing business. We also like to ensure that we give back to charities and communities through offering volunteering days, and supporting a range of charities through fundraising activities. Health & Safety Equality, Diversity and Inclusion Mental Health Campaigns Real Living ProcurementDonationsCommunityTrainingCharityEmployeeGenderWellbeing programmeswagePayGapEngagementengagementdays © Knauf UK & Ireland Sustainability Report 202116|52 GO CONTENTSTABLETOOF

Knauf UK & Ireland Sustainability Report 2021 Health and Safety At Knauf we believe that Safety is the Foundation on Which We Build Business In 2021 we set stretching targets to increase incident reporting - an activity key to improving safety culture and engagement - and to reduce accidents. To support this activity we delivered almost 1,500 hours of health and safety training ranging from Fire Awareness to Manual Handling. All targets were achieved, with a 44% increase in incident reports, an 8% reduction in injuries and a 40% reduction in non-injury accidents. A great result by colleagues across the business. Incidents Reported 20202021 +44% Accidents 20202021 -8% -40% Accidents with Injury Other Accidents © Knauf UK & Ireland Sustainability Report 202117|52 GO CONTENTSTABLETOOF

Developing People

Compliance Leader - Richard Gibbons

In September 2021 Richard Gibbons was internally promoted to the role Compliance Leader, with responsibility for all aspects of legal and regulatory compliance including the areas of Health, Safety, Quality, Environment and Energy. Richard graduated in Electrical Engineering from the University of Leeds in 1992 and has been with Knauf for 28 years, holding previous roles of Engineering Manager and Quality & Business Systems Manager at our Immingham factory. Richard brings his operational knowledge of Health & Safety in a plasterboard manufacturing environment and a passion for great systems and processes to this new role.

Knauf Sustainability Report 2021

UK & Ireland

In September 2021 Knauf appointed Lucy Hall as Sustainability Leader. Lucy was brought in to partner with all areas of the business from manufacturing to sales to develop a robust sustainability strategy and to further embed sustainability into Knauf’s values. Lucy previously held the role of Head of Sustainability for a main contractor and has a wealth of experience and awards in the areas of sustainability and innovation. Her expertise will help Knauf to advance its sustainability agenda at a time when product manufacturers are shouldering increasing environmental responsibility.

Discussing her new role, Lucy commented: “The emergence of a new global attitude towards sustainability is encouraging and it’s important we don’t lose that momentum. I’m passionate about maximising the potential for more sustainable ways of operating within the construction sector and am excited about helping Knauf effect those changes.”

In 2021 Knauf took a positive step to split the roles of Sustainability and Compliance to allow a greater focus on each of these important areas.

Sustainability Lead Appointment - Lucy Hall

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Equality, Diversity and Inclusion Training issued 119 certificates for equality, diversity and inclusion training, which equates to 146 hrs of learning. Mental health Campaigns We provided an on-site counsellor, trained mental health first aiders and made Mental Health Awareness E-learning available to all employees.

We

Knauf UK & Ireland Sustainability Report 2021 Supporting our Staff Real Living Wage We are proud to commit to pay above the living wage to our employees. See the image on the left of this page for our Living Wage Statement.

Wellbeing

Our employees’ safety and wellbeing is at the heart of how we do business. We had focused wellbeing weeks looking at financial, physical and mental wellbeing. We pride ourselves on having an on-site counsellor, mental health first aiders and mental health champions throughout the business. Everyone is encouraged to partake in mental health awareness training. Throughout Covid we held online sessions in how to cope in the new working environment, balancing home life and work commitments, including how to keep children entertained and support with home schooling. We provide discounts to gyms, medical assistance – Westfield health and access to an online 24/7 GP surgery.

Knauf UK & Ireland Sustainability Report 2021

Bonus Gap 2021 saw a bonus paid to all employees as a recognition of everyone’s efforts in the unprecedented times. In previous years, our Bonus Gap has shown a minus figure, showing that it was only females in the high/highest pay quartiles entitled to a bonus, compared to the majority of men across all quartiles.

To be reviewed and possibly addressed, to benchmark the salaries/comp package of all females in the lower pay quartiles that are not at present entitled to a bonus, this would distribute the bonus evenly between male and female, plus show positively in our scores in comparison to the economy and other manufacturing organisations.

Knauf UK & Ireland Sustainability Report 2021 Gender Pay Gap in 2021

2021. We

Gender FemaleMale Bonus Pay Gap (%) MaleFemale Trend Year % gap 2021 4.1 2020 6.4 Gender Pay Gap

This year demonstrates again the positive improvements Knauf have made, both historically and in still face low numbers of women across Knauf and the Industry, however this report does show the positive improvements made in our median gender gap where we have addressed pay equality in 2020/21.

This year’s score shows the even distribution of the bonus being paid, where all received this across all quartiles.

Knauf UK & Ireland Sustainability Report 2021 Employee Engagement We have surveyed our engagement for the past 4 years most recently using the globally recognized Gallup Survey – with almost 90% participation and an improved score year on year we aim to improve our engagement and encourage honest and open discussion creating a positive working environment that our people feel trusted and empowered to be part of. 20212020 Gallup Employee Survey Participation © Knauf UK & Ireland Sustainability Report 202122|52 GO CONTENTSTABLETOOF

Knauf UK & Ireland Sustainability Report 2021 Training We support our employees with a large variety of training, from mental health awareness training, technical training, apprentices studying, pre-retirement workshops, equality training, sustainability training. In 2021 144 staff received sustainability inductions Our apprentices received the following training during 2021: Qualification Institution HND Mid Kent College HNC North Kent College Level 6 Diploma SPA Professional Level 5 Diploma CIPS Certificate Level Kaplan Financial Level 8 Award Loughbrough University “Sustainability is one of the biggest topics in our industry at the minute and is at the front of all our customer’s minds. An induction into this world of Knauf was invaluable. Finding out the details of what Knauf are working towards to make us more sustainable and being able to have a single point of contact to go to for myself as a colleague and also a customer is a huge benefit.”

Jon Watts National

Client Development Manager UK & Ireland © Knauf UK & Ireland Sustainability Report 202123|52 GO CONTENTSTABLETOOF

Knauf UK & Ireland Sustainability Report 2021 Apprenticeships In 2021 we had 6 apprentices: Name: Kate Gray Location: Admin Office (one day per week at Mid Kent College) Job Title: Finance Apprentice Standard: Assistant Accountant – Level 3 Line Manager: Jennifer Colwell Name: Archie Bodiam Location: 1st Year – IPS International Job Title: Multi-Skilled Engineering Apprentice Standard: Maintenance and Engineer ing Operations – Level 3 Line Manager: Andy Searle Name: Taylor Wilding Location: Immingham Warehouse Job Title: Warehouse & Supply Chain Apprentice Standard: Supply Chain Practitioner –Level 3 Line Manager: Rachel Smith Name: Sarah Olusola Location: Admin Office (one day per week at Mid Kent College) Job Title: HR Support Apprentice Standard: HR Support – Level 3 Line Manager: Rachel Chester Name: Dan Humphries Location: 1st Year – IPS Job Title: Multi-Skilled Engineering Apprentice Standard: Maintenance and Engineer ing Operations – Level 3 Line Manager: Andy Searle Name: Jacob Byatt Location: 1st Year – HETA Training Academy Job Title: Mechanical Engineering Apprentice Standard: Maintenance and Engineer ing Operations – Level 3 Line Manager: Julian Marshall © Knauf UK & Ireland Sustainability Report 202124|52 GO CONTENTSTABLETOOF

Knauf UK & Ireland Sustainability Report 2021 Apprenticeships We are proud of our apprenticeship scheme, but even prouder when one of our apprentices, Sam Hatcher, was a finalist in the regional apprenticeship awards: (Hover over image to enlarge) © Knauf UK & Ireland Sustainability Report 202125|52 GO CONTENTSTABLETOOF

Steve continued “I certainly think it enhances my connection to the Company, not every business does this – it’s certainly the first company I’ve been part of that does it.”

& Ireland Sustainability

Steve Morris, SAP Consultant for Knauf, has been utilising these volunteer days for several years, initially helping seniors improve their IT skills. Steve would visit a retirement home to help the residents there keep up with the ever changing technological landscape.

Steve described what these volunteer days consist of, which for the RSPB is generally helping maintain local habitats to allow wildlife to flourish in the area. This can range from clearing shrubbery, cutting out undergrowth and making it easier for birds that nest in the ground to find somewhere to nest.

The importance of charity and volunteering has been accentuated over the last eighteen months. Knauf has recognised this importance for a long time, which is why the Company allows employees up to three paid days per year to volunteer and support a charitable organisation.

We offer 3 days a year for staff to support charities and community projects close to their hearts. Due to Covid, 2021 uptake was low, but we still achieved: 56 hrs Knauf Community Days paid in 2021 Helping wildlife and local communities...

Steve has since decided to volunteer with the RSPB after being inspired by his daughter as she prepared to take part in the Duke of Edinburgh scheme. He explains “My daughter did a couple of sessions with the RSPB and, after hearing about her experience, I decided to volunteer with them also. It’s a really feel-good activity, I’m very grateful to have the opportunity to do this every year.”

Steve goes on to explain the personal benefits he gains from utilising the volunteering days: “I find the volunteering days to be excellent from a worklife balance perspective. Clearly the Company sees the benefit in it as the allowance for volunteering days has gone up from 1 per year to 3 per year whilst I’ve been working here.”

Knauf UK Report 2021 Community Days

Our new Give As You Earn Scheme opened in July 2021 – and in the first year £5090 in donations were taken through pay deductions We have been supporting the construction industry charity CRASH since 1998 as a corporate patron We have been supporting the social enterprise and charity providing skills training in prisons, Bounceback, since 2015.

Charity Engagement/Donations

Knauf UK & Ireland Sustainability Report 2021

Knauf UK & Ireland Sustainability Report 2021 Crash Charity CRASH helps homelessness charities and hospices with life changing building projects. CRASH unites the power of the industry to be a force for good by: • Sourcing pro bono professional expertise • Sourcing free or discounted construction products • Awarding cash grants Thanks to Knauf, CRASH has helped 34 homelessness and hospice projects during April 2021 - March 2022. Corporate Patron since 1998 www.crash.org.uk Creating places that care for people © Knauf UK & Ireland Sustainability Report 202128|52 GO CONTENTSTABLETOOF

UK & Ireland Sustainability Report 2021 © Knauf UK & Ireland Sustainability Report 202129|52 GO CONTENTSTABLETOOF

Knauf has supported Bounceback since 2015 when they partnered with a number of companies to create a state of the art training facility in Brixton Prison. Bounceback is a charity that works in prisons to train inmates in skills they can use when they leave. Knauf helped to design the first training centre in Brixton prison in 2015, assisting at open days and providing installation guidelines for various drylining techniques. It continues its support with donations of materials every year up to a value of £25,000. In 2021 materials with a value of £1936 were donated – this was much lower than normal due to covid restrictions in prisons. The specific investment of materials by Knauf and the provision of logistics services by Encon have made the centre possible. “It is amazing what can be done when everyone comes together to make something happen,” said Fran Findlater, CEO of Bounce Back. “The need for skills in the construction industry means that the number of potential employees in prison presents a great https://www.bouncebackproject.com/opportunity.”

Knauf

Bounceback Charity

Knauf UK & Ireland Sustainability Report 2021

Procurement

We are delighted to support the Royal British Legion Industries from whom we purchase FSC wood pallets and other items. Our contract also helps RBLI deliver its support to veterans and others with disabilities across the UK. 100% of our procurement contracts include commitments to ethical employment practices in the local and global supply chain. However, working with our supply chain on sustainability issues is something we are keen to do a lot more of in the future. Read more about our work with RBLI here.

Knauf UK & Ireland Sustainability Report 2021 The Interwoven Pillars of Sustainability – Planet Knauf is focused on moving to a zero carbon business and improving the circularity of our products. For more details look at: Aiming for Zero Carbon Carbon Footprint for Haulage Zero Carbon Task Force Cycle to Work Scheme Waste, Water & Emissions Recycled Packaging Circular Economy Recycled Content Products © Knauf UK & Ireland Sustainability Report 202131|52 GO CONTENTSTABLETOOF

Aiming for Carbon Zero disclosed and audited our carbon footprint for 2021 with Planet Mark. Each year we are committed to achieve a minimum 2.5% reduction, whilst aiming for 5%, allowing for the increase in scope 3 measurement to be included. Our 2020-22 commitment is 3% reduction in our carbon footprint.

Knauf UK & Ireland Sustainability Report 2021

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We

Knauf UK & Ireland Sustainability Report 2021 Carbon Footprint for Haulage We continue to recongise the high level of savings made by our hauliers, through the consistent use of vehicle telematics and driver performance charts, a high level of driver training, persistent methods of minimising fuel consumption such as an increased emphasis on trailer tyre pressures, and smart witness cameras to monitor our transport for quality and safety. Haulage Carbon Emissions Average Load Size Average Delivery Distance (kgCO2e/Tonne Delivered) (Km)(Tonnes) 20212020 8.328.70 20212020 247.50255.1820212020 25.7125.37 Haulage is an area where we are working closely with our supply chain and hope to report some big improvements for 2022. © Knauf UK & Ireland Sustainability Report 202133|52 GO CONTENTSTABLETOOF

Knauf UK & Ireland Sustainability Report 2021 Zero Carbon Task Force • Plants making changes to reduce gas consumption • Electric charging points in plants • Plan to introduce salary sacrifice electric car scheme • Plan to replace diesel company cars with hybrid and electric • Immingham plant working with Zero Carbon Humber carbon engagement Home − Zero Carbon Humber • Collaboration with University of Kent on feasibility of new technologies for Sittingbourne and Immingham This task force was Set up to address the requirements for reducing our carbon emissions to reach carbon zero by 2050. © Knauf UK & Ireland Sustainability Report 202134|52 GO CONTENTSTABLETOOF

Knauf UK & Ireland Sustainability Report 2021 Cycle to Work Scheme Cycle to Work scheme offered with 17 applications for new bikes in 2021, value £13904.00. We are encouraging staff to cycle to work by offering the cycle to work scheme. © Knauf UK & Ireland Sustainability Report 202135|52 GO CONTENTSTABLETOOF

Knauf UK & Ireland Sustainability Report 2021 Waste, Water & Emissions Over the past 3 years Knauf has faced the challenge of a significant change to a key raw material - the gypsum which forms the core of our plasterboards. This change has affected recipes and in the short term increased the amount out water used to make our product but we are now returning to more normal water use and are committed to the continued reduced use of this valuable resource. Waste Production - Immingham and Sittingbourne Year Waste to Landfill (Kgs of waste per tonne production output) Gypsum Waste Reprocessed back to Plasterboard (Waste in tonnes) 2019 8.6 43,316 2020 1.15 67,039 2021 1.05 64,515 While changes to raw materials have had an impact on waste levels, our ratio of waste to landfill continues to reduce. This is in part due to improvements in our waste management processes introduced in 2021. The use of recycled gypsum as a sustainable raw material continues to be a key focus area for the business. Water Usage - Immingham and Sittingbourne (litres / tonne production output) Year groundwaterControlled use Mains water use 2019 268 361 2020 258 391 2021 288 364 © Knauf UK & Ireland Sustainability Report 202136|52 GO CONTENTSTABLETOOF

In 2021

Knauf UK & Ireland Sustainability Report 2021

Recycled Packaging we focused our efforts on moving to recycled packaging, becoming the first in our industry in the UK to do so. Some of our Ready-Mixed jointing product packaging now contains a minimum of 30% recycled content, and we’re working to improve the rest.

• Circular

Having products that have recycled content and can be recycled is high on our agenda. Plasterboard is already one of the products. But there is lots more to be done, and in 2021 we set up a taskforce to focus on the following areas: Designing for waste minimisation – in talks with clients on new door and window designs; developing waste tool Feasibility study underway for increasing the % of recycled content of our board - Started updating packaging with minimum of 30% recycled content – some ready-mixed jointing packaging already available Economy and sustainable products is part of our R&D and new product development process management – looking at production wheel improvements in plants and better ways to work with waste management companies & sites

Knauf UK & Ireland Sustainability Report 2021 Circular Economy

•

• Packaging

• Waste

•

Our Environmental Product Declarations (EPD’s) show the recycled content in the table of contents information. 7% of the core material and 100% of the paper outer were recycled content in 2021 for Plasterboard. Therefore, the overall post-consumer recycled content varies slightly with board thickness, from about 8.5% for the thickest boards up to around 12% for the thinnest. Increasing our recycled content is a complex area that we are undertaking studies on to determine the most sustainable solution.

Recycled Content for Knauf Plasterboard © Knauf UK & Ireland Sustainability Report 202139|52 GO CONTENTSTABLETOOF

Knauf UK & Ireland Sustainability Report 2021

Recycled Content

Knauf Products

To help our customers build for the world they live in, it is important to Knauf that our products are designed and manufactured sustainably, as well as contributing to the efficiency and safety of the building.

With the majority of our products being made from gypsum, they naturally lend themselves to being more sustainable as it is naturally recyclabale, notoxic and has fire-resistant properties. Here we discuss some of the benefits of our products in more detail:

Airless Finish

An alternative to traditional gypsum plastering, Airless Finish offers wellbeing benefits to the applicators who no longer have to suffer from musculoskeletal problems associated with traditional methods, and with trace silica in the crushed marble formulation. Working at height risks are also reduced, as some ceilings can be sprayed from ground level. The product is ready-mixed and has a total net reduction of water involved, and the finished product is virtually VOC free (<0.1%).

Acoustic Ceilings Made from gypsum, including up to 30% recycled gypsum content, Knauf’s acoustic ceiling and wall boards and tiles portfolio offers excellent acoustic performance to increase indoor comfort, with good acoustics attributed to health and productivity benefits. Recyclable at the end of their life, the products are circular in nature, as well as most being A2 fire rated. With certified indoor climate for indoor pollutants, the acoustic range is a breath of fresh air.

UK & Ireland Sustainability Report 2021

Innovation in light-weight building materials is key to reducing our impact on the planet, innovation leads to a cleaner, safer workspace and improves efficiencies whether building within timber frame, light steel frame or volumetric technology. Knauf invests in training to upskill the labour force to ensure a smooth transition to new ways of working utilising MMC and realising the sustainability benefits they bring.

Knauf’s engagement with modern methods of construction (MMC) and offsite technology is not new, Knauf has collaborated with several key partners to bring sustainable solutions to the build process, helping to utilise resources through increased productivity with higher levels of consistent performance, greatly reducing water usage and material waste in the factory environment when compared to on site traditional methods.

Made to last, the durable and strong dry-screed flooring from Knauf is an alternative to wet-screed where water is introduced to the build. A lightweight recyclable solution, Knauf flooring can offer acoustic properties, alongside the highest certification of low-VOC emitting EMICODE range of adhesives. With high thermal conductivity, the boards work efficiently with underfloor heating.

UK & Ireland Sustainability Report 2021

Flooring

Offsite and MMC Technology

Knauf Products

Knauf UK & Ireland Sustainability Report 2021 The Interwoven Pillars of Sustainability – Prosperity Knauf endeavours to maintain a sustainable business for ourselves and our supply chain. For more details look at: Compliance Product Sustainability Information Promoting Manufacturing Sustainability Training Sustainability Champions UN Sustainable Development Goals (SDGs) © Knauf UK & Ireland Sustainability Report 202142|52 GO CONTENTSTABLETOOF

ISO 50001 – Energy Management Systems

Knauf UK & Ireland Sustainability Report 2021

Knauf is committed to ensuring the health, safety and wellbeing of our employees and other people who may be affected by our activities, and to the continual improvement of our safe working environment. We will operate a BS EN ISO45001:2018 compliant Health & Safety Management System in order to meet our statutory duties and comply with non-statutory requirements to which we subscribe.

We operate a Quality Management System which complies with the requirements of BS EN ISO9001:2015 that aims to continuously improve the performance of our business to ensure that our products and services conform to all applicable statutory and regulatory requirements as well as national and international business standards.

Knauf UK is committed to achieving continual improvement in its energy performance and operates an energy management system compliant with BS EN ISO 50001:2018 “Energy Management Systems – Requirements with guidance for use”. Our energy policy and associated management system covers energy use and consumption associated with product manufacture, company buildings and workplace vehicles at our Sittingbourne and Immingham production sites.

ISO 9001 – Quality Management System Knauf takes pride in the products and services we provide, and we recognise that the true measure of our quality will always be judged through the eyes of our customers. The confidence that our customers have in our products, services and in our people ultimately defines the success of our business through their continued decisions to purchase from us.

In order to achieve this overall objective, we are committed to operating an Environmental Management System in accordance with BS EN 14001:2015, and to continually improving our environmental performance.

BES 6001 – Responsible Sourcing ofConstruction Products

BES 6001 has been published to enable construction product manufacturers to ensure and then prove that their products have been made with constituent materials that have been responsibly sourced. We achieved Excellent in 2020 and will be audited against our 2021 dataset later in 2022. The standard describes a framework for the organisational governance, supply chain management and environmental and social aspects that must be addressed in order to ensure the responsible sourcing of construction products.

Environmental Management Systems

Knauf recognises that its operations and activities impact on the local and global environment in a number of ways and as such is committed to continually reducing these environmental impacts. Our overall objective is to develop the business having full regard to the environment and taking into account the views of all affected interests.

ISO 45001 – Health & Safety Management System

ISOCompliance14001–

Knauf is seeing a year on year increase in requests for more detailed information about our products. EPD’s are frequently requested to demonstrate the lifecycle of our product. In 2021 we undertook the major task of producing our first EPD’s for the boards that we make in the UK, as well as collating EPD’s for other Knauf products. We also started updating our Product Sustainability Credentials documents to demonstrate how our products contribute to green building certifications such as BREEAM and LEED. Knauf UK & Ireland Sustainability Report 2021 Product Sustainabilty Information Product Sustainability Credentials (PSC) Environmental Product Declaration (EPD) © Knauf UK & Ireland Sustainability Report 202144|52 GO CONTENTSTABLETOOF

HETA Virtual Careers Open Day – April 7th 2021 Knauf UK were invited by HETA (Humberside Engineering Training Association) to speak to over 100 16, 17, and 18 year olds to promote our business via Teams and discuss the upcoming apprenticeship opportunities we had available at our Immingham facility.

Knauf UK & Ireland Sustainability Report 2021 Promoting Manufacturing © Knauf UK & Ireland Sustainability Report 202145|52 GO CONTENTSTABLETOOF

Unfortunately there is a skills gap in our industry as younger people move towards careers away from manufacturing. Knauf offers such a wide variety of career opportunities, and we engage with local educational organisations to promote our business.

In the event, we discussed the benefits that an Apprenticeship offers, and presented four case studies of past/present Knauf apprentices. We also had the opportunity to present what we do as a business and the overall benefits package we could offer the successful candidate (Image on left from pre-covid restrictions)

James Forster (Talent & Engagement Partner)

144 employees undertook sustainability training in the form of an induction in 2021. We currently have Silver membership of the Supply Chain Sustainability School, with whom we are looking to work more closely in the future to expand our employees’ knowledge of the subjects. Knauf UK & Ireland Sustainability Report 2021 Sustainability training © Knauf UK & Ireland Sustainability Report 202146|52 GO CONTENTSTABLETOOF

• We looked at areas across the business such as communication, sharing learning, raising awareness of the issues around sustainability, wellbeing, energy saving at home, in plants and offices.

• On the left is an example of us Identifying high users in the MCC room by looking at specific energy measurements.

Sustainability Champions

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Knauf UK & Ireland Sustainability Report 2021

Our sustainability champions group was set up with volunteers from across the business. This allows a platform for all staff from all levels of the business to raise their ideas and thoughts, with the chance to have projects raised to a company level to make a real difference.

• This group is very much in its infancy and we are excited to carry out great things in 2022!

Knauf UK & Ireland Sustainability Report 2021 UN Sustainable Development Goals (SDGs) Our Planet Mark certification demonstrates our alignment to 5 SDGs: We are working to ensure that in the future we can demonstrate our alignment to even more SDGs, as they become increasingly important to our customers. (Hover over image to enlarge) © Knauf UK & Ireland Sustainability Report 202148|52 GO CONTENTSTABLETOOF

Knauf UK & Ireland Sustainability Report 2021 Sustainability Targets 2020-2022 RefKPI Short Description Metric PerformanceTarget 2020Baseline Full 2021Year 1.1 % of production sites covered by a ‘UKAS’ certified EMS % BaselineMaintain 100 100 1.2a kg of waste to landfill as a proportion of production output kg/tonne Reduce 3% by 2022 1.15 1.05 1.2b Net waste ratio. Ratio of ‘total waste product usage’ to ‘waste to landfill’ Waste used:Waste ratio No target 281.26:1 215.84:1 1.3 Number of convictions for air & water emissions Number BaselineMaintain 0 0 1.4 Stakeholder engagement via website disclosure Yes/No No target Yes Yes 1.5 % of production sites covered by 'UKAS' 9001 % BaselineMaintain 100 100 1.6 % of reported production certified to BES 6001 % BaselineMaintain 100 100 2.1 Energy used in production as a proportion of production output kWh/tonne Reduce 3% by 2022 809.95 825.86 2.1a Energy intensity of production output tonnes:kWh ratio 1:809.95 1:825.86 2.1b Energy intensity of production output £turnover:kWh ratio 1:3.2 1:3.11 2.2 CO2e emissions as a proportion of production output kgC02e/tonne 152.91 155.78 2.2a GHG intensity of production output tonnes : kgCO2e ratio 1:152.91 1:155.78 2.2b GHG intensity of production output £turnover : kgCO2e ratio 1:0.60 1:0.59 2.3a Average delivery distance per load km/load Linked to 2.3d 255.15 247.50 2.3b Tonnes moved by mode % by each mode Linked to 2.3d 100.00 100.00 2.3c Average load for each mode tonne by each mode Linked to 2.3d 25.37 25.71 © Knauf UK & Ireland Sustainability Report 202149|52 GO CONTENTSTABLETOOF

Knauf UK & Ireland Sustainability Report 2021 Sustainability Targets 2020-2022 RefKPI Short Description Metric PerformanceTarget 2020Baseline Full 2021Year 2.3d Haulage CO2e emissions as a proportion of production output (sales) kgCO2e per tonne Reduce 3% by 2022 8.70 8.32 3.1c Recycled content within product % Utilise maximum 30.55 13.65 3.2a Mains water use as a proportion of production output litres/tonne Reach optimim 390.83 363.76 3.2b Controlled groundwater use as a proportion of production output litres/tonne Reach optimim 258.10 288.21 3.2c Mains water intensity of production output tonnes:litresProduction ratio Reach optimim 1:390.83 1:363.76 3.2d Controlled groundwater Intensity of production output tonnes:litresProduction ratio Reach optimim 1:258.10 1:288.21 3.3 % of relevant production sites that have action plans % BaselineMaintain 100 100 4.1a Reportable Injuries per 1m hours ‘direct employees’ hoursNumber/million Zero Harmreduce LTIR for employees 0.00 1.19 4.1b Lost time injuries for ‘direct employees’ per 1m hours hoursNumber/million 3.07 6.01 4.2a % of employees covered by UKAS ISO9001/ISO 14001/OHSAS 45001 % BaselineMaintain 100 100 4.2b % of employees covered by environmental and H&S management systems % BaselineMaintain 100 100 4.3 % of relevant production sites with community liaison activities % BaselineMaintain 100 100 4.3a Number of community complaints Complaints per production tonne BaselineMaintain 0 0 4.3b Charitable donations £ No target £7,055. £7,380 © Knauf UK & Ireland Sustainability Report 202150|52 GO CONTENTSTABLETOOF

Direct emissions in relation to production are shown as ‘Natural gas, Gas oil and LPG (Scope 1)’. Indirect emissions in relation to production are shown as ‘Electricity (Scope 2)’. Transport emissions in relation to production (i.e. Knauf ‘Gate to client’ haulage of product) are shown under KPI’s 2.3a to 2.3d.

Direct and indirect emissions by GHG source (expressed as CO2e) 2021 calendar year Electricity 16.468 kgCO2e per tonne Natural gas 137.365 kgCO2e per tonne Gas oil (i.e. known as Red Diesel or Gas Oil) 1.06519 kgCO2e per tonne 0.99483 kgCO2e per tonne

Knauf UK & Ireland Sustainability Report 2021 Sustainability Targets 2020-2022

Detail of ‘Boundaries’ Production processes in relation to ‘Plasterboard (laminated and non-laminated) and Gypsum powders’.

LPG

Customer Service UK: 0800 521 050 Eire: 01 cservice@knauf.com4620739 Technical Service Live Webchat 09:00 (excludingtechnical-uk@knauf.com-17:00PublicHolidays) Literature UK: 03700 613 700 Eire: +44 3700 613 700 ADDRESSES KemsleyKnauf Fields Business Park TheD24DublinTallaght87KnaufKentSittingbourneME98SRBroomhillRoad24WR85informationgiveninthispublication is believed to be current and accurate as at the date of publication, but no warranty, express or implied is given. Updates will not be automatically issued. © Copyright Knauf 2022 Website knauf.ieknauf.co.uk Email technical-uk@knauf.com SOCIAL MEDIA Knauf@Knauf_UKKnaufUKUK& Ireland @Knauf_UK Contact Details For any queries about this report please contact: Lucy SustainabilityHall lucy.hall@knauf.comLeader

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