Commitment

Sustainability at Owens Corning is a core business strategy. Our company embraces the increasingly recognized definition of sustainability as meeting the needs of the present without compromising the future.

Our approach to sustainability balances economic growth, environmental stewardship and social progress. We believe that this strategy energizes our people, creates growth opportunities for our customers and drives value for our shareholders.

The following report explains our progress in 2008. The essential success factors underlying our progress include: engaged employees who understand and embrace our goals; a strong portfolio of sustainability projects that are properly resourced with people and dollars; and proprietary innovations that transform our products and processes.

In 2008, we further improved the safety of our operations, contributing to a reduced injury rate of 77 percent since 2002. Half of our facilities were injury free in 2008. We accomplished this while successfully integrating the 2007 acquisition of the Saint-Gobain reinforcements and composite fabrics businesses, which expanded our business on a global basis. We are proud of this progress, but there is more to do -- our goal is zero injuries.

We must do our part to reduce energy use and greenhouse gas emissions to address climate change. We are committed to meeting our own reduction targets in our operations. In addition, our products and services deliver solutions to our customers and stakeholders by reducing fossil fuel energy use and enabling renewable energy options.

Despite the operational challenges associated with aligning our production with reduced global demand, we improved the resource use and environmental emissions of our operations in 2008. Since 2002, we have reduced our energy intensity by 17 percent. In 2009 we will convert our North American foam facilities to an innovative blowing agent technology that reduces global warming potential, and resulting greenhouse gas emissions, by more than 70 percent.

Our cross-functional footprint-reduction teams are focused on continuous improvement. We have a strong pipeline of ideas to further reduce our consumption of energy and water, and reduce our waste and emissions.

We have dedicated resources to increase the use of insulation products. Insulation provides a compelling answer to the world’s need for cost effective energy and greenhouse gas reductions.

We are also committed to advancing our composites technologies and accelerating our growth in the wind energy sector. We can help our customers improve the cost competitiveness of this valuable source of renewable energy.

At Owens Corning, we believe that sustainability is good business.

Michael H. Thaman
Chairman and Chief Executive Officer