Strategy A - Short, Medium, and Long Term Climate Risks

Climate-related risks and opportunities identified over short-term (0-3 years)

(1) Decreased revenues due to reduced demand for products and services- Customer expectations are changing rapidly. In the past two years, the market has seen an increase in carbon-related commitments in verticals within which Milliken operates. This includes commitments to decarbonizing supply chains, and commitments to the deselection of suppliers and certain product groups. To evaluate the risks associated with changing customer preferences, Milliken assessed the performance of key competitors on CDP as well as the status of customer SBTi commitments and their supply chain climate goals. There is a risk to the company if Milliken is not able to compete with customers on sustainability or meet customer expectations on carbon-related commitments and achievements.

(2) Emerging regulation and carbon pricing mechanisms- Milliken sells products in the European Union. The EU has proposed a Carbon Border Adjustment Mechanism (CBAM) to take effect from January 2026, which would tax certain categories of products sold within the EU. As currently proposed, chemicals are one of the sectors that may fall within the purview of CBAM in the future.

(3) Access to new markets- For many of Milliken's customers, Scope 3 GHG emissions represent the most significant portion of their GHG emissions. Milliken anticipates GHG reduction commitments

and consumer preferences will drive demand for products with lower emissions intensity. For example, some Milliken products are well-positioned since they can offer lower GHG emissions per unit than alternatives. Work is already being done, for example, on recycled content, including recycled resin(s), which can have lower associated GHG emissions. Milliken already offers products with recycled content.

In addition working towards increasing the recycled content of products, Milliken is also exploring other ways to achieve less carbon-intensive and carbon neutral products. To analyze the environmental and carbon benefit of raw material choices, Milliken will expand the use of life cycle assessments (LCAs). LCAs give Milliken a quantitative value of a material's carbon impact and allow us to compare raw material and supplier options. This process uses supplier and material-specific LCA data. Milliken engages certain suppliers and requests product-specific LCA-based carbon data in a format that Milliken can integrate into our own LCA models. This process enables Milliken to

make informed sourcing decisions and reduce the embodied carbon of certain products. In some industries, such as commercial flooring, Milliken has been asked by customers to disclose our product's carbon footprint. In some businesses more than others, we are prepared to show customers that our products have a lower embodied carbon value than competing products. We are expanding our product carbon footprint strategy in order to drive our product strategies. Milliken expects the trend for product carbon footprint data to continue and sees opportunities to expand market share based on lower embodied carbon products.

Climate-related risks and opportunities identified over medium-term (3-10 years)

(1) Increased direct costs- As a manufacturing company, Milliken's businesses rely on the use of certain high-emission raw materials (e.g., fossil-fuel based inputs such as nylon). These raw materials are often targeted in country-level carbon taxation schemes. This analysis assessed Milliken's raw material risk exposure to carbon pricing today through carbon tax or emissions trading schemes based on vendor country. Each vendor country was assigned a carbon tax risk rating from 1 to 5; where 1 corresponds to no emissions trading scheme or carbon tax in place and 5 corresponds to ETS and carbon tax implemented or scheduled (as per the World Bank Carbon Pricing Dashboard). Materials Milliken purchases from countries rated as a 5 were identified as most at-risk of being taxed externally. Assuming the cost pressure is passed to the customer, this could result in

higher direct costs for Milliken.

(2) Use of lower-emissions sources of energy- In 2022, Milliken accomplished our 2025 goal of reducing indexed scope 1 and 2 greenhouse gas emissions by 25% by successfully implementing emission reduction projects, expanding renewable energy, and utilizing carbon credits. For example, we have eliminated coal as a primary fuel source at our Blacksburg, South Carolina campus by

investing in cogeneration capabilities that produce both steam and electricity. Milliken currently purchases RECs and carbon credits to reduce the impacts of some of the Company's non-renewable, fossil-fuel based energy. The Company is also continuing to expand the use of renewables and in 2022 we surpassed our 2025 goal of increasing renewable electricity usage to 100,000 MWh/year. These strategic actions limit our exposure to uncertainty in the market and reduce the implications of future carbon pressures. Additionally, these efforts are critical on the path to achieving the reductions necessary for our SBTi-validated near-term and long-term Net-Zero targets.

Climate-related risks and opportunities identified over long-term (Greater than 10 years)

(1) Enhanced emissions- reporting obligations- We identified a long-term risk from potential decreased revenues through lost access to current and emerging markets based on compliance with enhanced and evolving emissions-reporting regulations. This risk is informed by existing market signals and regulations in drafts. To mitigate this risk, Milliken engages in reporting preparedness assessments and product-level data improvement strategies.