Tarkett : 2023 CSR Report

2023

Corporate Social

• Environmental Responsibility Report

Tarkett at a glance

A world leader in flooring and sports surface solutions

For over 140 years now, we commit every day to the design of great spaces. For Tarkett, this means putting people and planet first, caring about the environment and the health of present and future generations incorporated by our Tarkett Human-Conscious Design® approach.

It is our holistic way of doing business, capable of marrying the specific expectations of each of our customers with the profound challenges of protecting our planet, reducing our carbon footprint and changing the game with circular economy. Working together with our partners, we deliver safer and healthier spaces in which people can reach their full potential. By joining forces, we build a stronger foundation - one we can all stand firmly on, for generations to come. Together we are building the Way to Better Floors.

A BROAD RANGE OF SOLUTIONS

We offer to our customers one of the largest portfolios of flooring and sports surface solutions, and we share with our customers our expertise in multiple market segments.

Vinyl

Linoleum

Carpet

Wood

Laminate

Rubber & Accessories

Artificial Turf

Athletic Tracks

The cover image of the 2023 CSR report represents LVT (Luxury Vinyl Tiles) "iD Click Ultimate 70 Chatillon Oak NATURAL". It contains an average of 20% recycled content and is 100% recyclable through the Tarkett ReStart® program.

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TARKETT WORLDWIDE

CONSCIOUS CHOICES.

FOR PEOPLE AND PLANET.

Tarkett Human-Conscious Design® is our pledge to stand with present and future generations.

To create flooring and sports surfaces that are good for people

and for the planet. And to do it every day. We deliver on this through three commitments:

• • • Deep human understanding.
  • Conscious choices. For people and planet.
• With all our stakeholders. Every step of the way.

Eco-design by appling Cradle to Cradle® principles

Comply with the 10 United Nations principles

Contribute to the Sustainable Development Goals defined by the United Nations

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Tarkett in figures

Tarkett is listed on Euronext Paris (compartment B, ISIN: FR0004188670, ticker: TKTT).

*Tarkett Participation, Société Investissement Deconinck (SID), Expansion 17 S.C.A. and Global Performance 17 S.C.A. (the latter two companies being part of the Wendel group) as well as the members of the Company's Supervisory Board linked to the Deconinck family have been acting in concert vis-à-vis the Company since the simplified tender offer for Tarkett shares implemented in 2021. Section 7.3 presents a detailed breakdown of the Company's shareholding structure.

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Governance

Supervisory Board

The Supervisory Board is composed of 13 members of which 3 independent members, 2 members representing the employees and 2 observers.

Éric La Bonnardière	Didier Deconinck	Marine Charles	Julien Deconinck	Nicolas Deconinck
Chairman	Vice-Chairman	Member since 2023	Member since 2014	Member since 2015
Member since 2015	Member since 2001

Françoise Leroy	Tina Mayn	Didier Michaud-Daniel	Sabine Roux de Bézieux	Caroline Tith		Philippe Willion
Member* since 2013	Member since 2023	Member* since 2019	Member* since 2017	Member** since 2021	Member** since 2024
	Audit, Risks and	Appointments, Compensation	CSR & Innovation Committee:
	Compliance Committee:	and Governance Committee:
	-	Françoise Leroy (President)*	-	Didier Michaud-Daniel (President)*	- Sabine Roux de Bézieux (President)*
	- Sabine Roux de Bézieux*	-	Nicolas Deconinck		-	Nicolas Deconinck
	-	Julien Deconinck	-	Françoise Leroy*		-	Tina Mayn

Bernard André Deconinck	Claude Ehlinger
Observer	Observer

* Independent

** Member representing the employees appointed by the Tarkett Economic and Social Committee.

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Governance

Executive Management Committee

The Group Executive Committee is led by Fabrice Barthélemy, Chief Executive Officer (CEO). This international and entrepreneurial team is composed of experienced leaders who share the Group's interest and values, while ensuring operational agility through a decentralized organization.

Fabrice Barthélemy	Eric Daliere	Slavoljub Martinovic	Stanislav Mitrović
CEO	President of Tarkett North	President of Tarkett EMEA &	President of Eastern Europe &
	America and Tarkett Sports	LATAM	APAC

Raphaël Bauer	Eline Cormont-Girardey	Séverine Grosjean	Arnaud Marquis	Carine Vinardi	Hervé Legrand
Chief Financial Officer	Group General	EVP Group Human Resources	Chief Sustainability	Group R&D	Group Chief Information Officer
	Counsel	& Communication	& Innovation Officer	and Operations EVP	(CIO)

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A word from the CEO

• I am particularly proud that we are the only flooring and sports surfaces manufacturer this year at CDP to reach such a high level of performance. This demonstrates our environmental leadership and our ability to build the right climate strategy which translates into concrete actions."

Fabrice Barthélemy, CEO

Our ambition is clear: become the easiest, the most innovative and the most sustainable flooring and sports surfaces company to work for, and to work with. In 2023, we implemented key initiatives for our people, our customers, and the environment.

Empower our high performing teams, to deliver on the promise

The safety of our workforce remains our number one commitment. We continually strengthen our safety culture through assessments, procedures, action plans and training. While we must continue to improve, I recognize the efforts and actions being taken which will help us achieve our ultimate target of reducing the recordable accident frequency rate down to 1.0 by 2025.

The engagement of our teams is another key commitment. The record participation of 89% to our biannual Employee Feedback Survey in 2023 provided us with meaningful feedback. To make Tarkett a great place to work, we continued fostering diversity and inclusion while empowering our teams. Our annual Diversity and Inclusion week is a great testimonial of our commitment towards a diverse and inclusive workplace. In 2023, women held 29% of manager positions, strongly progressing towards our 2025 target of 30%.

Offer our customers a best-in-class experience with innovative products and services

We are constantly looking to help our customers, distributors, installers, architects, designers, and end- users address their own challenges in an easy and effective manner:

• We propose flooring products with lower carbon footprints compared to average equivalent products in the industry, such as our new Desso carpet tile collections, our Johnsonite rubber tile, or our iQ Natural homogeneous vinyl.
• We launched in 2023 the Green Building Cards in EMEA, sharing the sustainability attributes of our collections and promoting our circular selections, which help our customers achieve green building certification.

Lead with sustainability

Sustainability is a key pillar of our ImpacT2027 strategy.

• In 2023, our climate targets have been approved by the Science Based Targets initiative (SBTi).
• We trained 700 employees from marketing, sales and sustainability on our sustainability manifesto "The way to better floors" to facilitate customer and supplier dialogue.
• We are reducing our greenhouse gas emissions by 30% by 2030 across our whole value chain (encompassing scope 1, 2, and 3 emissions)1, which includes tripling the use of recycled materials by 2030 to 30% (vs 10% in 2018).

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To this end, we:

• Optimize energy consumption at our plants and implement renewable energy solutions, such as solar panels, biomass boilers, or renewable electricity contracts. In 2023, we launched a project to further decrease greenhouse gas (GHG) emissions Scope 1 and 2 of our 15 most emissive plants. Globally, we continued to reduce our Scope 1 & 2 GHG emissions from our manufacturing operations in 2023 (-47% vs 2019).
• Increase the share of closed-loop and open-loop recycled materials, reaching 18% in 2023 (+1% vs 2022).
• Recycle post-installation and post-use flooring through our Restart® take-back and recycling program and artificial turf through a dedicated infill take-back program in North America, which was strengthened by opening a new regeneration facility in Pennsylvania (USA).

Overall, our Scope 3 value chain emissions2 have continued to decrease in 2023 (-14% vs. 2019). These commitments and efforts have been externally recognized. Tarkett has joined the list of companies recognized as one of Europe's Climate Leaders, established by Financial Times and Statista; and we were rated at leadership level "A-" score for Climate Change disclosure by the CDP. On this topic, I am particularly proud that we are the only flooring and sports surfaces manufacturer this year at CDP to reach such a high level of performance. This demonstrates our environmental leadership and our ability to build the right climate strategy which translates into concrete actions.

In implementing our strategic plan, we remain committed to ten principles of the United Nation's Global Compact on human rights, labor, environment, and anti-corruption and our contribution to the UN 2030 Sustainable Development Goals (SDG).

To achieve our ambitious goals, we are facing several challenges along the way:

• We push for transformation, for speed, and we encourage our partners to do the same. This transformation requires everyone to participate.

• Today, not all customers are willing to pay a price premium for lower carbon solutions. Worse, we are competing against imported products that are made with a higher environmental footprint.
• Better regulation will be essential to encourage our customers to return materials at the end of use, rather than going to incineration.

I trust our teams to address these challenges, and to continue to lead our industry transformation. I am truly proud of what we have accomplished together, and I am excited and optimistic about our future.

1. This overall target is split into two SBTi validated targets: Tarkett commits to reduce absolute scope 1 and 2 GHG emissions 50% by 2030 from a 2019 base year; and Tarkett also commits to reduce absolute scope 3 GHG emissions from purchased goods and services and end-of-life treatment of sold products 27.5% within the same timeframe. The targets' boundary includes biogenic land-related emissions and removals from bioenergy feedstocks.
2. Scope 3 GHG emissions from purchased goods and services and end-of-life treatment of sold products, categories which represent more than two thirds of total scope 3 emissions.

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Our Business Model: we want to have a positive impact on our customers, our teams, the planet

Our Inputs: Sustainable Capital

Financial capital

• Listed on Euronext Paris
• Concert Tarkett Participation (90,4%) Free float (9,6%)

Human, social and relationship capital

-	11,700 employees in 45 countries,
	representing more than 50 nationalities
-	Diversified B2B2C clients, present in over
	100 countries (sales forces, showrooms…)
-	Diversified suppliers, from international key
	raw materials suppliers (PVC, plasticizers…)
	to local suppliers
-	Local communities close to our industrial

Mission: Create unique surfaces

that improve people's lives and are good for the planet

Vision: Be the easiest, most innovative and most sustainable flooring and sports surfaces company to work for and with

Our values: Committed - Collaborative - Creative - Caring

Manufacturing capital

• 34 production sites in 20 countries worldwide (Europe, Russia, North America, Serbia, China, Ukraine, Brazil, Mexico, Australia, Turkey, United Arab Emirates)
• 8 recycling centers

Intellectual capital

• 139 patent families active in 42 countries
• 23 R&D labs
• Tarkett Human-Conscious Design®
• Network of internal experts and methodology (World Class Manufacturing, Cradle to Cradle®, Talent Philosophy…)
• Scientific partnerships (universities, Environmental Protection Encouragement Agency - EPEA, suppliers…)

sites

Natural capital

• Energy from renewable and non-renewable sources
• Water
• Renewable (wood, jute, cork, …) and non- renewable (fossil and mineral) raw materials, from recycled and virgin sources

Governance and compliance capital

• Management Board, Supervisory Board and 3 specialized committees (including CSR & Innovation)
• Executive Management committee
• Codes of ethics and conduct
• Whistleblowing procedure
• Code of conduct Securities Markets

Section 3.2.1 in the section on CSR Governance describes how Tarkett is organized to drive change and achieve its CSR objectives

Our Segments:

A recognized expertise in specific segments, in renovation and new construction

Our Solutions:

• comprehensive, innovative and coordinated offer of flooring
  and sport surfaces

Our Channels:

A local service tailored to our different clients and regions

Our Stakeholders:

Our ambition to transition to a low carbon and circular economy through continual dialogue and collaboration with our stakeholders

The principal means of dialogue are described in section 3.5 Stakeholder engagement

- Health & Aged Care	-	Hospitality
-	Education	-	Sports
-	Workplace	-	Residential

• Resilient flooring (vinyl, linoleum…)
• Commercial carpet
• Wood and laminate
• Rubber and accessories
• Artificial turf and athletic tracks
• Distribution, DIY and digital online platforms
• Key accounts, end-users, facility managers
• Specifiers (architects, designers), installers, contractors

-	Customers, architects,	-	Shareholders, investors,
	designers, installers and		creditors and the financial
	end-users		community
-	Employees and other	-	Trade associations, business
	external workers		networks, academic and
-	Suppliers, service		scientific institutions
	providers and business	-	Public authorities,
	partners		intergovernmental and non
			governmental organizations

Section 3.1.3 presents the Group's ambition to place its stakeholders at the heart of its business model, responding to their expectations as well as setting out how Tarkett's strategy and CSR objectives contribute to the UN's Sustainable Development Goals

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and our stakeholders

Our Outputs: sustainable performance despite challenging context

DEMONSTRATING THE RESILIENCE OF TARKETT'S BUSINESS MODEL

€3,363 million	€288 million	8,6%	€23.3 million	€810 million
Net sales	Adjusted EBITDA	Adjusted EBIDTA	Net profit	Remunerations
(4.5% organic growth)		margin (% of net sales)	(Group share)

€93 million

Investments

€45million

Income tax paid

€0.2 million

Support to local communities (Tarkett Cares)

Confirming our solid global positions

3rd largest flooring group worldwide

1.3 million m2 flooring sold daily in over 100 countries

No. 1 in vinyl flooring

Maintaining efforts to protect teams and develop talents

3.28 Recordable Lost Time Accident Frequency

Rate (FR1t) for all employees1

2025 objective: 1.0

1# accidents with lost time < & > 24 hours per million worked hours

of managers are women	of open management positions	39%	employees trained in	96%	of enrolled permanent
29%2025 objective: 30%	65% filled by an internal candidate	last year	employees had a
	2025 objective: 70%				Performance &

Development Review

Safety

Diversity

Internal mobility

Training & Performance

Meeting customer and societal expectations with good materials and healthy spaces

• Assessing raw materials (for health and environmental impacts) according to Cradle to Cradle® (C2C) principles (94%)
• Contributing to well-being through our products: indoor air quality (99% of flooring with low volatile organic compounds emissions), healthy spaces (96% of flooring using phthalate-free plasticizers), comfort (visual, acoustics, installation, maintenance…)
• Selecting raw materials not contributing to resource scarcity (69% - renewable, abundant or recycled)

Supporting a green recovery by responding to the climate emergency and developing a circular economy approach

• Reducing production greenhouse gas emissions to be aligned with The Paris Agreement (-47% scope 1 & 2 vs 2019, 44% renewable energy)
  2030 objective: -50% Scope 1 & 2 GHG emissions vs 2019 & -30% Scope 1+2+3 GHG emissions vs 2019 (where scope 3 relates to purchased goods and end-of-life treatment of products sold)
• Shifting to a circular economy model bringing a positive contribution to climate change, using more recycled materials (~154,000 tons , 18% of raw materials in volumes)
  2030 objective: 30% (in volume) of recycled raw materials
• Recycling our production waste internally and externally
• Collecting flooring via the ReStart® program (~119,000 tons between 2010 and 2023)
• Innovating and eco-designing with new technology for low carbon products that can be disassembled and recycled
• Achieving water savings (-61% m3 vs 2010) by equipping plants with closed loop water systems (69%)

Driving collaboration in the value chain and in communities

• Promoting sustainability in the supply chain ("responsible sourcing program" with 39% of suppliers adhering to our code of conduct or equivalent, Cradle to Cradle® eco-design)
• Sharing our products information with our clients (Material Health Statements - MHS, Environmental Product Declarations - EPD), engaging dialogue at 38 showrooms​
• Supporting local communities through Tarkett Cares and employees' involvement
• Training students and professionals in flooring profession and installation techniques via Tarkett Academy (60,000 people trained from 2012 to 2023)

Section 3.3. on CSR risks and opportunities describes how Tarkett is contributing to addressing global challenges

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