James Hardie Industries : FY22 Sustainability Report

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Building

Sustainable

Communities

FY 2022

jameshardie.com

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Sustainability Report

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About this report

This is James Hardie's second sustainability report. It covers our sustainability performance and progress for FY22 across our global operations and highlights our future priorities.

It has been prepared in accordance with the GRI Standards: Core option.

As our sustainability program progresses, we are committed to aligning with best-practice reporting standards and frameworks, including those set forth by Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD). All monetary figures are in US dollars unless otherwise indicated.

Sustainability Report | FY 2022

About James Hardie

James Hardie Industries plc is the world's #1 producer and marketer of high-performance fiber cement siding and fiber gypsum building solutions. Our company culture is built on providing a foundation of "Zero Harm," creating a positive impact in communities, and delivering environmentally responsible and innovative solutions to customers.

In business for more than 130 years, James Hardie successfully uses innovation to drive market value. Our products are made from natural and sustainable raw materials, delivering endless design possibilities to consumers. We manufacture a variety of patterned profiles and surface finishes for a range of applications, including siding, trim, soffit lining, internal linings, walls, facades, floors and tile underlay for use in residential, commercial and industrial applications.

#1	130+ years
producer of high-performance	James Hardie has been
fiber cement products	delivering innovative solutions

We manufacture and distribute our products and accessories globally for use in new residential construction, manufactured housing, renovations and extensions, as well as a variety of commercial and industrial applications. Headquartered in Ireland, James Hardie employs a diverse global workforce of approximately 5,000 employees across operations in North America, Europe, Australia, New Zealand and the Philippines. In the fiscal year ending 31 March 2022 (FY22), James Hardie generated more than $3.6 billion in net sales and more than $621 million in net income.

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01 Overview 02 Building Better Systems 03 Building Community 04 Building Value 05 Building Our Foundation 06 Appendix

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T A B L E O F C O N T E N T S

01 Overview		04 Building Value
A message from the CEO	5		Consumer feedback drives innovation	21
Operations overview	6		Our product lifecycle	22
Our pillars	7		Impacting our local economies	23
FY22 highlights	8
Honors and accolades	9
		05 Building Our Foundation
02 Building Better Systems			Our stakeholders and material topics	25
		Governance and ethics	26
Teamwork through HMOS	11		Climate disclosure update	27
Eliminating coal	12		Management approach	28
Water-saving technologies	13
Recycling and reusing waste	14
Safety	15	06	Appendix
			ESG data summary	32
03 Building Community			GRI index	37
		SASB index	41
Inclusion and diversity	17
Empowering our employees	18
Benefiting our local communities	19

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01 Overview

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A M E S S A G E F R O M T H E C E O

O U R P I L L A R S

H O N O R S A N D A C C O L A D E S

O P E R A T I O N S O V E R V I E W

F Y 2 2 H I G H L I G H T S

Sustainability Report | FY 2022

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1. message from the CEO

Fiscal year 2022 was a significant year of growth for James Hardie. We grew our company and our workforce despite the macro-economic disruptions occurring all around us, including: inflation, supply chain disruptions and labor shortages. We stayed true to our mission of sustainability by expanding our portfolio of durable, high-value products that help shape more resilient communities.

On the environmental front, we continue to make progress toward our goals of reducing our greenhouse gas emissions intensity and minimizing our use of water and materials. In our Asia Pacific region we are now coal free with the installation of new gas boilers in our Carole Park Australia plant. Asia Pacific joins our North American region as a coal-free region as we continue our commitment to transition away from coal. Our processes for water reuse and recycling are being standardized as the result of cross-functional teamwork and sharing of best practices across all regions. We are using new technologies to reduce our impact on local water sources, which ultimately benefits the communities where we operate. Our waste takeback program in Europe is one example of incorporating recycled materials into our products and reducing, and in some cases eliminating, manufacturing waste to landfills.

The well-being of our employees is a non-negotiable value at James Hardie, and we strengthened our safety culture of Zero Harm in FY22. When our data showed an upward trend in incidents reported, our agile and proactive team planned and executed a full-day Safety Reset in our North American operations. This included all employees ranging from manufacturing and R&D

to sales and marketing. Production was shut down to engage all employees on safety to better understand concerns and identify opportunities to improve. The result is a safer work environment and improved employee safety training. Our upgraded safety policy is now standardized globally and applies

to all employees, contractors and visitors to our facilities.

In FY22, we grew our employee culture of inclusion and diversity. We enhanced our diverse leadership team with new executive-level hires. Our Employee Resource Groups (ERGs) expanded with the launch of our Asian Pacific Network (ASPAN). Our mission is to support our employees through a company culture of inclusion, equity, belonging and professional development.

In addition to supporting our employees, we positively impact people in our local communities. To help hurricane victims in the Southern and Midwestern U.S., in FY22 we donated building materials to Habitat for Humanity and emergency relief funds to the American Red Cross. We also contributed funds and materials to help rebuild homes in Germany when flooding caused the country's most expensive natural disaster. And in Northern Australia, we are donating materials to help build an Aboriginal art

and culture center to support victims of domestic violence.

As we continue to report our sustainability progress, we are pleased to announce we hired our first Chief Sustainability Officer, Jill Kolling. The new vice president level position demonstrates our commitment to improving our ESG (Environment, Social and Governance) impacts and accountability across our global operations.

We also moved forward following a leadership change made by our Board of Directors. The change affirmed James Hardie's commitment to our employees and to our corporate values. Industry and stakeholder feedback was positive, citing the strength of our board, our corporate ethics and our Code of Conduct.

At James Hardie, we engage and listen to our employees, our consumers and all our stakeholders to guide our business. In the years to come, we plan to further grow our company and our innovative product portfolio with the goal of building stronger sustainable communities.

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01 Overview 02 Building Better Systems 03 Building Community 04 Building Value 05 Building Our Foundation 06 Appendix