MATERIALITY

ENTITIES

All of Masco’s business units are wholly owned, directly or indirectly, except for Hansgrohe SE, and are included in both this CSR and financial reports. Masco owns 68 percent of Hansgrohe SE.

DEFINING REPORT CONTENT

To prioritize the issues of most importance to our stakeholders, we hired a third-party consultant to assist the SSC in assessing disclosure topics.

Our assessment focused on identifying, prioritizing, and validating aspects from the following key sources: Masco’s own documents on its sustainability strategy; feedback from Masco’s SSC, SSC Working and Advisory Groups, and employees; feedback directly from stakeholders; initiatives from recognized industry organizations such as the Sustainability Accounting Standards Board, Global Reporting Initiative, Carbon Disclosure Project and the United Nations; documentation on the views of our stakeholders, including North American reporting authorities and surveys of U.S. environmental attitudes; and findings from peer benchmarking studies. In addition, specific comments and suggestions from stakeholders regarding our 2009-2010 CSR report have been influential in determining the structure and content of this report.

From the content determined to be significant, we then identified the subset of content that would be appropriate to report, such as content with available data and without competitive risk. Finally, for each topic, we determined the boundary of applicability. For example, when considering volatile organic compounds (VOCs) in regard to chemicals in our products, our boundary included relevant companies such as Behr Process, but not most of our other companies.

MATERIAL ASPECTS AND BOUNDARIES

Following is a list of all material aspects Masco identified in the process of defining its 2015 CSR content, organized to align with the categories of the Global Reporting Initiative:

Economic

  • Economic performance

Environment

  • Sustainable products and services
  • Energy
  • Materials
  • Water
  • Biodiversity
  • Emissions
  • Effluents and waste

Social

  • Community engagement
  • Occupational health and safety
  • Training and education

This report provides a detailed summary of the sustainability performance and practices of Masco and its consolidated operating businesses as of December 31, 2015. Masco owns 68 percent of Hansgrohe SE, and the information from Hangrohe’s operations is included in this report. In addition, Hansgrohe has produced its own Sustainability Report covering its facilities. The most recent Hansgrohe Sustainability Report is available in English (www.hansgrohe.com) and German (www.hansgrohe.de).

SIGNIFICANT CHANGES

While Masco's Organizational profile changed in 2015 with the spin off of our Installation and Other Services businesses, this report does not contain any significant changes in scope, boundary or measurement as compared to 2009-2010 CSR. This report does not contain a restatement of information relating to Masco's major financial indicators and environmental data.

STAKEHOLDER ENGAGEMENT

GROUPS

Our stakeholder groups, as of December 31, 2015, include the following:

  • Employees – Masco and its business units had approximately 25,000 employees in 35 countries, approximately 60 percent of whom worked in the United States.

  • Investors – Masco is a publicly-traded company and had approximately 4,000 shareholders of record as of December 31, 2015.

  • Customers – Our customers include home center retailers, other retailers, dealers, distributors and homebuilders. Our largest customer is The Home Depot, which represents approximately 33 percent of our consolidated 2015 net sales.

  • Consumers – The ultimate consumers of our goods include builders, contractors, designers, installers and homeowners.

  • Communities – Masco’s principal North American facilities consist of 46 manufacturing facilities and 27 distribution and warehouse facilities, and its principal facilities outside North America consists of 20 manufacturing facilities and 23 distribution and warehouse facilities. Community involvement and good citizenship are important parts of the Masco corporate culture. Through the Masco Foundation, the Company has demonstrated its commitment to a variety of arts, cultural and housing-based organizations, such as Habitat for Humanity, serving the communities in which its companies and employees reside.

  • Suppliers – Masco buys raw materials and parts for its products from a wide range of supplier companies around the world.

SELECTION

Masco views its business–first and foremost–as one that serves its stakeholders. From our customers to our business partners to our employees, we know our financial and corporate sustainability performance depends on establishing good relationships with those we serve and rely on in the communities in which we work and live. We believe in engaging with all of our stakeholders honestly, respectfully and with integrity. Our stakeholder groups have been identified through a number of processes, namely feedback from Masco’s SSC, SSC Working and Advisory Groups, and employees, feedback directly from stakeholders, studies from recognized industry organizations, and evaluation of peer benchmark studies.

APPROACH

We routinely seek input on what we make and sell, and how we operate internally and externally through employee surveys, shareholder meetings, market research and customer satisfaction analyses. The qualitative market research studies we conduct typically include questions related to the importance of sustainability to customer buying decisions.

Our approach has been to respond to various investors, highly-respected nongovernmental organization and advocacy group inquiries for information. We also believe that our Corporate Sustainability Report is an effective method for providing meaningful communications with our stakeholders about our sustainability practices. In addition, Masco interfaces regularly with sustainability executives from other companies. This has enabled peer review and learning within a network of trusted professionals. We also engage in sustainability best-practice exchanges with other companies.

Masco’s suppliers are engaged through our enterprise-wide Supplier Business Practices Policy and audit process, and each Masco business unit has one or more managers or groups responsible for ensuring employee engagement in their respective organizations.

Through executive interviews, online bulletin boards and focus groups, Masco seeks to connect with its customers and build a two-way conversation. This conversation is enabled by a corporate Customer Satisfaction Index initiative across our North American business units that continually captures, evaluates and reports on how our channel customers, consumers, designers and installers perceive our product offerings. Our business units undertake qualitative and quantitative “Voice of Customer” market research to guide their development efforts for new products focused on the needs of their customers.

CONCERNS

This report pays special attention to the topics of greatest concern to our principal stakeholders. These topics include innovative and sustainable products and energy usage.

REPORT PROFILE

REPORTING PERIOD

This Corporate Sustainability Report (CSR) focuses on Masco’s corporate governance, reporting approach, and economic, social and environmental performance during 2015.

EXTERNAL ASSURANCE

External report assurance was not sought for this report.

DATE OF PREVIOUS REPORT

Our most recent report was published in 2010.

REPORTING CYCLE

This report is planned to be published biennially.

REPORT CONTACT

Masco encourages feedback on its Corporate Sustainability Report. If you would like to comment on the report, please e-mail us at sustainabilityreport@mascohq.com. Additional information about Masco, our business units and brands is available on our website at www.masco.com and in our 2015 Annual Report, which is also available on our website.