A Message From Our Chief Executive Officer

Michael H. Thaman, Chairman and Chief Executive Officer

Sustainability is a core business strategy at Owens Corning.

We define sustainability as meeting the needs of the present without compromising the world that we leave to the future. Along with reflecting our dedication to corporate responsibility, this approach to our business energizes our people, creates growth opportunities for our customers and drives value for our shareholders.

Raising the Bar on Our Commitment to Sustainability

We are focused on achieving continued environmental footprint reductions through employee engagement, capital investments and breakthrough manufacturing technologies. From a 2002 baseline, we set aggressive 10-year footprint reduction goals across seven key areas of resource consumption, waste and air emissions. Three of these goals have already been met. And, we believe that six of the seven will be achieved on time. We are proud of our progress.

Based on this strong performance towards our 2012 goals, we are announcing a new set of 2020 footprint reduction targets in this report. These new goals raise the bar on our commitment to sustainability and reflect our desire to affect change across the supply chain by partnering with our customers and suppliers to deliver sustainable solutions.

Delivering Energy Solutions

Our global operations are devoted to serving customers in two primary business segments: Building Materials and Composite Solutions.

In the building materials arena, Owens Corning is a leading manufacturer of energy-saving insulation. We have also developed solutions to seal the building envelope for improved energy efficiency. These are particularly meaningful pursuits as approximately 40 percent of global energy consumption and associated greenhouse gas emissions emanate from the world's homes and buildings. In addition, we have increased the recycled content in several of our products, increased our use of plant-based materials and initiated an end-of-life shingle recycling program.

Our Composites business is a leading provider of glass reinforcements that provide lightweight alternatives to steel, wood, and aluminum. Owens Corning composites reduce weight in a variety of end products including industrial, consumer and automotive applications. And, our high-performance composites are used to make wind turbine blades that support the growing global demand for low-carbon, renewable energy.

With our significant global investments, we are well-positioned to affect positive change with operations in countries such as China and India, where the demand for fossil fuels is substantial.

Advancing Energy Policy

As a global leader in energy efficiency, we view the advancement of energy policy as both an obligation and an opportunity. In 2010, Owens Corning was honored to join the United Nations Global Compact, the world's largest voluntary corporate responsibility initiative. With its emphasis on sustainability and responsible business practices, the U.N. Global Compact is well-aligned with our company values. It also provides Owens Corning with a strong platform for embracing and enacting good corporate principles in the areas of human rights, labor, environment and anti-corruption.

As a company headquartered in the United States, we are also working alongside domestic leaders to advocate for sound energy policy. The opportunity for improving energy efficiency in homes and commercial buildings is substantial. In the U.S. alone, more than 80 million of the nation's 130 million homes are under-insulated, according to the U.S. Environmental Protection Agency. And the average U.S. household spends more than $2,200 annually on energy bills, with nearly 40 percent of this expense going to pay heating and cooling costs. By increasing energy efficiency in homes and buildings, it is estimated that the United States can save the equivalent of one billion barrels of oil per year, or 2.7 million barrels per day – eliminating the energy equivalent of 30 percent of the U.S.'s crude oil imports.

Given these tremendous opportunities, Owens Corning is proud to be a leading voice in advocating for effective energy efficiency and climate policy in the U.S. and abroad.

Caring for Our Employees & Communities

Sustainability is also about caring for our employees and the communities in which they live and work. Owens Corning provides our people with clear guidance on how to conduct business ethically and comply with all laws through our Code of Business Conduct and Corporate Governance policies. In 2010, we expanded our board charter to reflect increased accountability for sustainable operations and behavior. Collectively, these guidelines reflect our values as a company and are incorporated into the way our employees work every day — with customers, colleagues, suppliers, and the broader public.

Another key dimension of sustainability is caring for our employees through our continued quest for an injury-free workplace. I am immensely proud to report that our rate of injuries improved by 23 percent last year, marking our ninth consecutive year of safety improvement. Over this period, we've reduced the number of injuries by more than 90 percent. The dedication of our global team in pursuing the goal of zero injuries reflects our unwavering commitment to caring for employees.

We are proud of our sustainability achievements in 2010. And, as we transition to our 2020 sustainability goals, we are more committed than ever to continuous improvement in this vital area. To this end, we welcome your comments and suggestions on our sustainability journey. I encourage you to share your thoughts at: sustainability@owenscorning.com.

Together, I believe that we can – and will – make a substantial impact in effectively advancing economic growth along with social progress and environmental stewardship.

Michael H. Thaman
Chairman and Chief Executive Officer