RT-CP-110a.2 - Scope 1 Emissions Management

Recognizing the need for measurable action, Milliken has worked to align our near- and long-term net-zero targets with climate science. Setting science-based targets was the initial, critical, priority in our management approach. Now, we are focused on emission cuts by 2030, prioritizing emission reductions within our control. Carbon credits will not be used to reach our 2030 science-based net-zero targets. 

Primary management of our net-zero strategy is assigned to our corporate sustainability enabler team. The executive sponsor is our Chief Legal Officer and Senior Vice President, reporting directly to the CEO. 

In 2023, Milliken adopted a new methodology for our capital expenditures project request process so that all new project requests are reviewed for greenhouse gas emissions impacts.

Milliken's leadership compensation is based, in part, on successful performance of our sustainability strategy, including our greenhouse gas emissions reductions targets and renewable energy targets.

Milliken has a 2025 Planet Goal to reduce scope 1 and 2 emission intensity (denominator is plant production lbs) by 25% by 2025 as well as an SBTi approved net-zero near-term target to reduce absolute scope 1 and 2 emissions by 50.4% by 2030 and a long-term target to reduce absolute scope 1 and 2 emissions by 90% by 2050 (all targets have a 2018 baseline). In 2024, Milliken achieved 35% reduction on the 2025 Planet Goal and a 42% reduction on the 2030 SBTi approved net-zero target. Target progress has been primarily driven by coal combustion elimination, renewable energy procurement, energy efficiency initiatives and carbon offset purchases (applicable only to the 2025 Planet Goal).

To date, Milliken has invested more than $35 million to decrease scope 1 and 2 emissions, including eliminating coal with the help of cogeneration, increasing energy efficiency with utility and process modernizations, and increasing our use of renewable electricity. Moving forward to 2030, we will focus on renewable energy procurment, energy efficiency, and emerging solutions. Each year, we evaluate climate related transitional risks, including returns on investments in low emission technologies.

Milliken's 2025 Planet Goals and SBTi-approved net-zero targets apply to the entire company, including subsidiaries. Milliken recognizes that product-level decarbonization needs may prioritize business unit or geography action plans and strategies.

Milliken's near- and long-term net-zero targets are approved by the Science Based Target initiative.