A Message from our President and CEO

2019 Sustainability Report

CSR 2019

To Our Stakeholders

At Carlisle, we view Environmental, Social and Governance (ESG) practices as a normal part of our culture. During our 102-year history we have always sought to treat our employees fairly, respect the communities in which we operate, and put forth our best effort to ensure we remain a responsible business partner. Through our Center-Led framework, supported by our continuous improvement culture, we diligently seek new ways to make progress; Sustainability is no exception. The enthusiasm for and engagement around these topics from our more than 16,000 employees around the globe has been inspirational, and we look forward to another one hundred years of responsible stewardship.

While the ESG reporting landscape evolves with competing standards, multiple rating agencies and a myriad of reporting tools, we continue our long tradition of impactful, sustainable action. 2019 will be marked as the year in which Carlisle complemented our stewardship with enhanced ESG reporting

We began by reinforcing our commitment to ESG by creating the position of Director of Sustainability which reports directly to the President and Chief Executive Officer. To guide our sustainability reporting strategy, we conducted a company-wide audit of our current ESG practices to identify areas where we could enhance reporting and improve data gathering processes. Finally, we created an ESG steering committee made up of key executive officers to provide oversite and accountability for reporting ESG efforts at Carlisle

We take pride in sharing our story about the ongoing sustainability efforts Carlisle employees put forth every day. Here are a few highlights from our team:

  • Carlisle joined the CEO Action for Diversity & Inclusion™, whose mission is to rally the business community to advance Diversity and Inclusion (D&I) within the workplace by working collectively across organizations and sectors.
  • Employee safety remains a top priority at Carlisle. Our factories are among the safest in manufacturing. We comply and adhere to all applicable legal and regulatory requirements including standards from ISO, OSHA, and the EPA, among others.
  • Carlisle’s partnership with American Forests has resulted in the planting of more than 180,000 trees in areas impacted by wildfires
  • Our philanthropic commitment is focused on four areas of community engagement: civility, veterans, education, and mental health services. One great example is Carlisle’s partnership with the Headstrong Organization which provides mental health services to veterans.

As we deliver the objectives of Vision 2025, Carlisle remains steadfast in our commitment to ESG and another century of responsible stewardship.

Thank you for taking time to learn about our sustainability efforts and progress, and we encourage you to stay engaged as we continue our culture of continuous improvement.

Sincerely,
Chris Koch
President and Chief Executive Officer

Carlisle’s Commitment to Diversity & Inclusion

CEO Action for Diversity & Inclusion™ bus stop at Carlisle's headquarters in Scottsdale, Arizona.

In May 2018, Carlisle joined the CEO Action for Diversity & Inclusion™, a growing coalition of more than 900 CEOs of major corporations pledging to advance diversity and inclusion in the workplace. By signing on to this commitment, Carlisle is pledging to take action to cultivate a workplace where diverse perspectives and experiences are welcomed and respected. CEO Action for Diversity & Inclusion™ is cultivating a new type of ecosystem centered around collaboration and sharing.

Increasing Diversity in Senior Leadership Roles — Over the last 3 years, Carlisle has achieved an 8 percentage point improvement in the representation of women in senior leadership roles. This has largely been achieved by demanding a diverse candidate pool for senior leadership openings. Furthermore, we have set a target to achieve 25% representation by the end of 2020.

Delivering D&I Awareness & Unconscious Bias Training — D&I awareness and unconscious bias training was instituted as key a component of our leadership development programs. This training helps inform leaders of biases and provides a forum for them to explore how Carlisle can strengthen our culture of inclusion by addressing and breaking down biases.

Implementing Tools and Processes to Ensure Pay Equity — After implementing our first Human Capital Management System covering our U.S. businesses, we are now able to better analyze pay trends and drill down to determine root causes of pay equity gaps. We are committed to diligently reviewing and resolving each discrepancy to ensure that compensation for our employees is equal across genders for comparable work, experience, and performance. We are committed to ensuring pay equity and remaining ahead of the national average.

Sustainability

Carlisle has enjoyed a long history of responsible and sustainable practices. Embedded in our culture is a drive for continuous improvement, efficiency and waste reduction. Several of our factories are zero waste, zero emissions facilities. The following examples highlight our sustainable legacy:

Carlisle Companies' Solar Installations

CCM established the Sustainable Roofing and Waterproof Alliance (SRWA) in 2007 to align product development with architects and engineers. Among the products to emerge from the SRWA is Carlisle’s Miradrain system which provides for rooftop vegetation, creating additional insulative and therapeutic values. Since 2012 these systems have retained 2.8 million gallons of water during peak rainfall saturation periods.

Tire fill is a polyurethane liquid that is pumped into pneumatic tires to replace air with a resilient, synthetic elastomer core that eliminates dangerous and costly tire flats on off-the-road (OTR) equipment. Approximately half of the tire fill installed in North America is used by original equipment manufacturers (OEMs). Tires filled with Carlisle’s Tyrfil™ product last 20-30% longer than air filled or solid tires, can be retreaded as many as four times without sacrificing performance, and are permanently flat-proofed. In 2005, after more than two years of research and development with our OEM customers, Carlisle’s Tire Fill Systems introduced the OE Belt Drive Recycler System which mixes up to 40% content of engineered recycled rubber crumb derived from scrap tires with virgin tire fill. Since introduction in 2005, Carlisle’s tire fill and recycling systems have prevented more than 150 million pounds of used tire fill from entering landfills.

Carlisle’s Tire Fill Systems has partnered with American Forests, the nation’s longest running non-profit conservation organization, as part of a long-standing collaboration to replant thousands of new trees in our nation’s most devastated fire zones. This year, as part of its signature “One Tote, One Tree” sustainability campaign, Carlisle and its customers and dealers will specifically assist with the reforestation of the El Dorado National Forest located in Northern California. To date more than 180,000 trees have been planted as part of the ‘One Tote, One Tree” program.

The EPA estimates about 50% of the 330 million tires sold in the U.S. each year are recycled. Carlisle’s Ultimate RB plant recycles used tires into a diverse array of new products, including: rubber flooring, tiles, mats, and EPDM granules for athletic surfaces. Since 1985 we have recycled more than 1.3 billion pounds of tires. Today, Ultimate RB is one of the largest and most technically advanced tire recyclers in the world with the ability to make quality products that contain up to 96% post-consumer waste while keeping 75 million pounds of tires out of landfills every year.

2019 saw a major Carlisle production milestone: Carlisle produced 25 billion square feet of ethylene propylene diene monomer (EPDM) single ply roofing membrane since our first installation on the Chicago O’Hare International Airport in 1961. Through innovation and stewardship, we continue to find ways to minimize waste sent to landfills. Over the past five years, Carlisle has diverted over 32,000 tons of cured and uncured EPDM “scrap” from landfills by reintroducing scrap into the production stream.

Safety

Safety

Keeping our employees and communities safe has been a top priority for one hundred years; we expect our employees to leave each day in the same condition they arrive. Carlisle is continuously striving to provide safer, healthier work environments. Through COS, we have launched “The Path to Zero,” an initiative to drive our incident rate to zero. Ongoing safety training, reporting of near misses to identify areas to improve, and a safety-first culture help drive our safety results, including an incident rate dropping from 2.15 to 1.04 from 2014 to 2019, well below industry standards for all of our businesses.

Community

Community & Development

Elevate Phoenix and Carlisle Companies participate in a Day of Service

Carlisle is committed to four areas of community engagement: civility, veterans, education, and mental health services. In 2019, our partnership with Headstrong entered its second full year. Headstrong is dedicated to healing the hidden wounds of war by providing a confidential, cost-free, and frictionless mental health care treatment for military veterans and their families that works. in partnership with Weill Cornell Medical College, one of the nation’s leading mental healthcare centers, Headstrong developed an effective, individually tailored and comprehensive treatment program for post-traumatic stress disorder and related military trauma.

In 2018 we expanded our local outreach in the Phoenix area by partnering with Elevate Phoenix. This program delivers long-term, life-changing relationships to urban youth in Phoenix. Many urban youths lack a caring adult in their life, leading directly to increased crime, gang and drug activity, and other roadblocks to self-sufficiency. The Elevate Phoenix model has proven effective in changing these trends and transforming lives of Phoenix youth.

In 2019 we began a partnership with UMOM New Day Centers to provide housing expense assistance to Phoenix area veterans in need. This program assists veterans who may not have the financial resources to remain in a customary dwelling by providing apartments at a subsidized rate to prevent possible homelessness.

In March 2020, Carlisle committed $100,000 to the Arizona COVID-19 Community Response Fund in support of the ongoing crisis in the state of Arizona. The Arizona COVID-19 Community Response Fund will support Arizona nonprofit organizations as they respond to the spread of COVID-19. One hundred percent of contributions to this fund will be distributed to nonprofit organizations swiftly as needs arise. The fund will remain flexible as the Arizona Community Foundation works with other philanthropic partners to review the needs in the community and support the gaps not provided by state or federal relief funding. Priorities of the fund are: food security, childcare, education support, healthcare and eldercare.

In addition to the above Carlisle corporate programs, all our business units are involved in their local communities providing resources to address local challenges. Our employees take great pride in identifying and working toward solutions that benefit the communities in which we operate.




Employee Engagement and Development

Talent acquisition and retention are critical drivers to delivering the goals of Vision 2025. A trained, diverse, and inspired workforce is integral to delivering value to our stakeholders. We begin with a recruiting process that reaches a wide array of potential employees and includes the engagement of specialized, diverse recruiting firms such as The Standard Diversity Network, Jobs4Women.net, Asian American Jobsite, African American Jobsite, and many others. We also partner with over 40 universities in the United States and several outside the U.S., recruiting for full-time, internships and co-oppositions from the communities in which we work. In addition, we engage many of these universities in collaborative R&D and training efforts. Finally, each business segment works with high schools and trade schools around the world to educate young people about and attract them to manufacturing careers.

Once a candidate is selected, our on-boarding and bi-annual review process helps align the employee’s goals and aspirations with those of Carlisle. Additional training and education options help employees prepare for roles with increasing job responsibility throughout their career with Carlisle. High potential employees are nominated by their respective managers to enter one of our leadership development programs. Leadership development is essential to our growth in Vision 2025. Only a strong team and deep bench will drive success in our second century of operations. At Carlisle, our internal leadership development programs support the evolution of a next generation of talented leaders from early in career to executive leadership in a well-coordinated progression with the aim of filling open positions through promotion.

Carlisle Leadership Program Introduction

Our flagship leadership program, the Carlisle Leadership Summit (CLS), is intended to identify and prepare our top fifty employees for senior leadership roles.

The Carlisle Leadership Program (CLP) developed in association with the Kelley School of Business of Indiana University, is a program for Senior Manager or Director level employees, who are leading teams and demonstrating future potential for senior leadership roles. This program develops business and leadership skills in both applied and classroom environments.

Most recently, we launched Carlisle Leadership Foundations (CLF) for skilled functional or technical individual contributors who have recently advanced or are expected to advance to their first leadership roles. This program helps these employees to define their own leadership skills to enable their future success.

Carlisle Management Development Program Introduction

The Carlisle Management Development Program (CMDP) was established in 2010 in cooperation with several university MBA programs. The CMDP is a one-year, post-MBA rotational program designed to give an expedited experience for participants in our business segments across multiple functional areas. Participants gain an understanding of who we are at Carlisle and also the functional areas where they may have opportunities in the future.

At Carlisle we believe in the continuous improvement of our employees. All Carlisle employees are encouraged to participate in Kaizen (Continuous Improvement) events. Through these events, employees learn new skills from facilitators, transfer knowledge across functional groups, and develop deeper ties to the company and to each other. The Carlisle Operating System is an important conduit for employee engagement and development. Employees are encouraged to participate in and submit ideas for ongoing Kaizen events. In 2019, all factory employees participated in our Management for Daily Improvement process, covering topics such as safety, quality, delivery, and efficiency—all with the aim of making Carlisle and the work experience better and stronger.