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CA Transparency in Supply Chains Act

Under the California Transparency in Supply Chains Act of 2010, retailers and manufacturers that do business in California are required to disclose certain information about their supply chain. The purpose of the California Act is to provide consumers with information regarding the efforts of retailers and manufacturers to ensure that there is no slavery or human trafficking in their supply chains.

USG Corporation, through certain of its subsidiaries, is a leading manufacturer of building materials. USG Corporation does not manufacture goods using slavery or other human trafficking. The vast majority of the products our manufacturing subsidiaries sell in the United States are made by those subsidiaries in our plants located in North America. Our principal products include wallboard and joint compound products sold under the Sheetrock® Brand name as well as cement board, glass mat sheathing for exterior uses, and floor underlayments. We also manufacture ceiling tile and grid in North America for sale in the United States.

Because of the type of products that we manufacture, the raw materials used in the manufacture of our products, and the locations where those products are made, we are confident that our supply chain does not involve slavery, child labor, or other unlawful human trafficking. Although we do not conduct audits or engage in verifications of all our materials suppliers, our standard purchase order requires direct suppliers of materials to warrant that the raw materials or other goods supplied to us are not made using slavery, child labor or other human trafficking. A similar warranty is required for the few products we sell in the U.S. that are made outside North America by third parties. Appropriate supply chain personnel are made aware of the California Transparency in Supply Chains Act and the U.S. Department of Labor's List of Goods Produced by Child Labor or Forced Labor, published in 2018, and the countries and goods identified in the report, to check that list against any raw materials known to be used in manufacturing our products. As a responsible manufacturer, should we have any reason to believe that a raw material supplier were engaging in slavery or other unlawful human trafficking, we would take immediate action.

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