RT-CH-130a.1 - Energy Use by Source

ENERGY MANAGEMENT REPORTS TO BOARD OF DIRECTORS

The Milliken Board of Directors holds the highest level of direct oversight of the company's strategy, including energy management. The board meets five times per year, with one meeting dedicated entirely to reviewing strategy, including our sustainability strategy. Our board provides oversight of the company strategy including our 2025 Sustainability Goals, which include GHG emission reduction targets and renewable energy targets. The board receives management reports and makes decisions as part of its oversight of the company's sustainability strategy including GHG emission targets and other related metrics

ENERGY MANAGEMENT REPORTS TO SENIOR MANAGEMENT

Management of our Planet Goals is led by our Executive Vice President of Operations, who oversees the alignment of business objectives with operational performance. Our Executive Vice President of Operations also ensures adequate resources and support are provided to achieve our goals and monitor progress. Our environmental, health, and safety and sustainability functions at the corporate, divisional, and regional levels play a key role in providing guidance, training, and tools for implementing our Planet Goals, including energy management. These functions provide performance analytics, project management, and tools to help operational leaders at our facilities monitor and improve plant environmental performance. 

ENERGY DATA AND ANALYTICS

Milliken uses an enterprise-wide sustainability data platform to collect environmental metrics, create performance analytics, and report internally and externally, all in a controlled manner. All forms of operational energy use are collected on the platform, allowing for careful control and calculation of scope 1 and scope 2 greenhouse gas emissions. The platform also provides facilities and leaders with data and analytics to manage and progress our energy and emissions commitments. 

ENERGY MANAGEMENT SYSTEM 

More than 60% of our manufacturing sites and our corporate headquarters hold third-party certifications for their environmental management systems. Twenty-seven Milliken sites are ISO 14001 certified, helping us align our environmental objectives and key performance indicators with an enterprise environmental management system. Three sites are ISO 50001 certified, guiding us to energy efficiency through energy management systems. Periodic reviews of our environmental management system by management with responsibility for environmental activities are conducted to ensure its continuing suitability and effectiveness in meeting the requirements of our Environmental Policy and ISO certification standards. The management review includes analysis of the results of key environmental measures that indicate the effectiveness of the environmental management system. 

MILLIKEN PERFORMANCE SYSTEM CONTRIBUTES TO ENERGY MANAGEMENT

Milliken's “operational excellence” is a methodology that embraces leadership principles and problem-solving tools to create sustainable organizational improvement. The Milliken Performance System is how we activate operational excellence and is based on zero-loss thinking and looking at our processes and strategies to uncover imperfections, drive out waste, and continually improve. In 2023, the Milliken Performance System was used to improve efficiency at our Johnston, New Holland, and Two Rivers Textile Plants. A cross-functional team worked across these plants to address a leading quality issue that was creating machine downtime and scrap. Through a focused improvement project, the team was able to increase process efficiency by 12% while decreasing the machine stop level by 52%.