Carlisle Incorporated : Annual Report

NET ZERO

2022

DRIVING TO NET ZERO

2022 ANNUAL REPORT

2022 at a Glance

$6.6B $1.6B $20.01 $534M $3.1B

record revenue, surpassing

$5 and $6 billion for the first

time in Carlisle's history

record adjusted EBITDA*

record adjusted diluted earnings per share*

returned to shareholders in the form of dividends and share repurchases

Total 5-year capital deployment through capital expenditures, dividends, and share repurchases, exceeding our Vision 2025 goal

*Refer to page 24 for a reconciliation of non-GAAP financial measures to related GAAP financial measures

To Our Shareholders

"Our mission is to deliver products that improve the energy efficiency of buildings, reduce emissions in our value stream, and reduce the volume of construction materials in landfills as we work to achieve Net-Zero" GHG emissions by 2050.

and investing in and developing exceptional talent - during our ongoing pivot to more of a Building Products focus.

In 2022, Carlisle:

• Generated record sales of $6.6 billion,

adjusted EBITDA of $1.6 billion and

adjusted diluted EPS of $20.01

• Enhanced our pivot to a more Building

Products focus with the launch of a new

segment structure: Construction Materials

(CCM) and Weatherproofing Technologies

(CWT)

• Increased our dividend for the 46th

In 2022, Carlisle reached its 105th year of continuous operations. During this time, we have worked diligently to deliver value to all of our stakeholders. Today, that drive is embodied in our continuous improvement culture, which was the catalyst for Carlisle's commitment to achieving Net Zero in our operations by 2050. To Carlisle, it's not about maintaining the status quo, but seeking continuous improvement every day. Each and every moment we strive to be more efficient, to do more with less, and to be better as a company - all for the benefit of our shareholders, employees, and communities in which we live and work.

It is this commitment to continuous improvement, along with a passion for success and strong resilience, that enabled the team to deliver record results in 2022.

As we move into our second century of operations, we are applying these same attributes to our efforts to do our part in improving our environment. Building operations globally contribute as much as 30% of annual greenhouse gas (GHG) emissions. As a significant supplier of energy efficient building products and solutions, Carlisle is positioned to combat these emissions, aligning with the

world's energy saving needs. Simply put, Carlisle is in the business of reducing energy consumption, which not only lowers GHG emissions but lowers operating costs for building and homeowners.

The Carlisle of 2022 and beyond will continue to embrace our century-long legacy of responsible stewardship. Our mission is to deliver products that improve the energy efficiency of buildings, reduce emissions in our value stream, and reduce the volume

of construction materials in landfills. Taken together, this focus will support our commitment to achieving Net Zero in our operations by 2050.

In support of our Net-Zero goals, Carlisle has proposed near-term GHG reduction targets through the Science Based Targets Initiative (SBTi). The SBTi is an independent body based in the U.K. that works in conjunction with the United Nations to help guide companies to establish emission reduction initiatives using science-based targets. Our near-term GHG reduction targets are to reduce scope 1 and 2 emissions by 38%, and reduce scope 3 GHG emissions 48% per pound produced by 2030.

While the announcement of Carlisle's commitment to achieve Net Zero by 2050 is another significant milestone on our Environmental Social Governance (ESG) journey, it is consistent with what we do and what we have always done. We understand the path to Net Zero cannot happen overnight as it requires substantial effort from our supply chain partners and will also depend on significant changes to global energy infrastructure. With Carlisle's employees engaged and momentum growing, we are confident Carlisle can make a meaningful contribution to creating a more sustainable future for us all.

Shifting to other highlights, our strategic plan, Vision 2025, has continued to provide Carlisle with the clarity of mission to keep us on course during the difficult operating conditions of the past few years.

Because of our progress on Vision 2025 and the commitment of our employees to our success, I am extremely pleased to confirm we have met our objective to deliver in excess of $15 of GAAP EPS three years in advance of our target.

Carlisle will continue to apply the levers of Vision 2025 - driving organic revenue growth, leveraging that growth with the Carlisle Operating System (COS), transforming our portfolio through synergistic acquisitions

and strategic divestitures, deploying capital in a disciplined and ROI-focused manner,

consecutive year, an increase of 39% and

our largest in over 25 years

• Issued a broad-based equity grant to

employees, the third such grant in the past

13 years

• Maintained our commitment to offering

industry-leading benefits by holding

healthcare costs for employees flat for the

4th consecutive year

• Was named one of Newsweek's Most

Responsible Companies in both 2022 and

2023

As I now enter my eighth year as CEO, I am as enthusiastic for Carlisle's future as I was when I took the role. This enthusiasm is founded on the performance of our exceptional teams, our culture of delivering excellent results, our entrepreneurial and decentralized management philosophy, and solid underlying demand for our products. With significant interest building in Carlisle's sustainable solutions driven by rising energy costs and sustainability trends, we are optimistic for 2023 and beyond.

Thank you for taking the time to read about Carlisle's 2022 highlights and we look forward to updating you on our progress in the future.

D. Christian Koch

Chair, President and Chief Executive Officer

March 1, 2023

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CARLISLE 2022 ANNUAL REPORT

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CARLISLE 2022 ANNUAL REPORT

Driving to Net Zero

To better understand our GHG emissions data, Carlisle conducted detailed surveys of our scope 1, 2, and 3 emissions that will guide our actions in the coming years to achieve our Net-Zero commitment. In addition to Energy Conservation Measures in our operations, we are engaged with our value chain partners to develop products with reduced GHG emissions.

Leading the Way with Our Sustainability Mission

Along with the elevation of the sustainability position to a Vice President role, Carlisle formally began our process of moving towards a Net-Zero commitment. That journey entailed establishing Carlisle's Environmental Sustainability Policy, which prescribed the collection of consumption data from our more than 175 operating facilities across the globe. Data for water, electricity, gas, and hazardous waste were collected to establish baselines for future efficiency targets. Finally, we gathered and reviewed thousands of data points to understand Carlisle's scope 1, 2, and 3 emissions. After four years of research, we announced our Net-Zero commitment in December 2022.

Recognizing the Design and Construction of Buildings is Changing

Carlisle continues to be a leader in the commercial roofing space. We recognize that buildings are evolving and their improved energy efficiency is pivotal to the world meeting our environmental goals. With many product and service innovations underway, Carlisle is positioned to address trends impacting the building space such as product circularity, energy conservation, localization, emerging material technologies, construction labor efficiency, evolving building use, technology proliferation, and job site transformation. In addition, COS and our culture of continuous improvement will allow deeper technology

Recently installed LED lighting in our Nogales, Mexico CIT facility

integration alongside gains in operational efficiency and product quality.

Continuing to Convert Our Facilities to LED Lighting

Enhancing Our Energy Management Processes

By 2030, Carlisle commits	Carlisle commits to reducing
to reducing scope 1 & 2	scope 3 GHG emissions by
GHG emissions by
38%	48%
from a 2021 base year by:	per pound produced by 2030 through:
• Installing LED lighting and optimizing	• Transitioning to more bio-based
HVAC systems at our manufacturing plants	feedstocks
• Increasing solar generation at our facilities	• Transitioning to low emission blowing
• Transitioning to low emission process fuels	agents
• Upgrading our fleet to electric vehicles

To date, 43 out of 87 facilities covering approximately 49% of our total footprint have been converted to LED lighting with motion sensors. This has resulted in savings of more than 8 million kilowatt hours annually, reducing greenhouse gas emissions by 3,300 metric tons.

Carlisle is committed to qualifying all of our manufacturing sites to the ISO 14001 standard, which sets out the requirements for an environmental management system, by the end of 2025. In 2022, we continued to make progress by qualifying an additional 11 sites to the ISO 14001 standard. Our total across the globe is 19, which is 23% of our facilities.

We also are committed to converting our facilities to ISO 50001, which elevates energy efficiency levels to a higher level. To date, 6 of our facilities are certified to the ISO 50001 standard. Through ISO 50001, we will continue to refine and elevate our energy efficiency initiatives to promote best energy practices and improve overall energy performance.

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CARLISLE 2022 ANNUAL REPORT

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CARLISLE 2022 ANNUAL REPORT

We are transitioning our sales fleet of over 600 vehicles and our forklift fleet of approximately 620 to electric versions, thereby reducing the emissions of our fleet operations. To date, Carlisle has deployed over 130 electric forklifts and 40 electric vehicles, with additional deliveries expected throughout 2023.

Optimizing Freight and

Material Transportation

In 2022, Carlisle launched a project to study and create a pathway for better optimization of our shipping carbon footprint. The COS and CCM teams studied order entry patterns, operations schedules, customer demand, and logistics, all with the goal of maximizing the efficiency of shipping product.

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when it opens in Q2 2023.

LEED Platinum certification "

Converting our Vehicle Fleet and Forklifts to Electric Power

MO is on track to achieve

Our new state-of-the-artpolyiso plant in Sikeston,

Driving to Net Zero

Construction of our new polyiso manufacturing facility in Sikeston, MO

Building a LEED Platinum

Polyiso Facility

In 2021, Carlisle broke ground on our ninth polyiso manufacturing facility in Sikeston, MO. The new facility is being constructed in accordance with the latest advancements in LEED building standards and green building

principles, and is on track to achieve LEED Platinum certification.

With its central location, the Sikeston facility	"
will both reduce the carbon footprint of
Carlisle's supply chain and improve lead times
for customers. At this facility, Carlisle will
manufacture energy efficient polyiso insulation,
which reduces cooling and heating costs for
buildings and in turn, reduces a building's
carbon footprint. This facility will become
operational in 2023.
Increasing Our Solar Power
Generation
Carlisle's latest installation was in
Waltershausen, Germany. The photovoltaic
system is expected to generate as much as
30% of the site's electricity and reduce GHG
emissions by nearly 250 metric tons per year.
Carlisle will continue to invest in renewable
energy sources as part of our energy
conservation measures.

Our continued conversion to electric fleets will result in fewer emissions

CCM has seen greater shipping efficiency and a smaller carbon footprint

	Carlisle's new plant in Waltershausen features rooftop solar panels that will reduce GHGs by almost 250 metric tons a year
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CARLISLE 2022 ANNUAL REPORT