Governance B - Role of Management

Describe management's role in assessing and managing climate-related risks and opportunities:

Description of Chief Executive Officer (CEO) role in assessing and managing climate-related risks and opportunities:

Our CEO has overall management responsibility for the company and works closely with our Executive Vice President of Operations and SVP, Chief Legal Counsel on our sustainability strategies. Milliken has policies, procedures, data collection systems, and monthly meetings for monitoring climate-related issues. Our climate-related goals and targets are reviewed regularly by our CEO.

Description of Chief Financial Officer (CFO) role in assessing and managing climate-related risks and opportunities:

Our Chief Financial Officer oversees our global finance operations. Our CFO reports directly to the CEO. Milliken has policies, procedures, data collection systems, and regular meetings for monitoring climate-related issues with our CFO. A member of our CFO's finance team matrix reports into our sustainability enabler function. Our climate goal performance is reviewed regularly by our CFO.

Descriptions of our Chief Legal Officer and Executive Vice President of Operations roles in assessing and managing climate-related risks and opportunities:

Our Senior Vice President, Chief Legal Officer and Corporate Secretary has overall executive management responsibility for Milliken's sustainability enabler function and works closely with our Executive Vice President of Operations for oversight and management of our sustainability goals and strategy. Our SVP, Chief Legal Officer and Corporate Secretary and Executive Vice President, Operations report directly to the CEO. Milliken has policies, procedures, data collection systems, and monthly meetings for monitoring climate-related issues with our Chief Legal Officer and Executive Vice President, Operations.

 

Description of the role of our sustainability enabler function in assessing and managing climate-related risks and opportunities:

Day-to-day climate-related responsibilities, including assessing impacts, risks and opportunities, have been assigned to the sustainability enbabler function. The enabler's executive sponsor is our Senior Vice President and Chief Legal Officer, reporting directly to the CEO. The sustainability enabler function or the CEO reports to the Board, or a committee of the Board, on sustainability at least four times per year. The sustainability enabler function reports 12 times per year to the Senior Leadership Team, which includes the senior executives who lead one or more of our twelve 2025 Sustainability Goals, against which progress is reported publicly in Milliken's annual Sustainability Report, as well as the divisional leads and CEO. The sustainability enabler function works closely with the Enterprise Risk Management Steering Committee (consisting of our Chief Financial Officer and Chief Legal Officer) to align our climate risk assessment with our enterprise risk assessment. In addition, Milliken's new capital expenditure projects are reviewed for impacts to our scope 1 and scope 2 GHG emissions. Milliken's leadership compensation is based, in part, on successful performance of our sustainability strategy, including our GHG emissions reductions targets and renewable energy targets.

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