Publication of ESG Strategy Report

21 May 2021

Headlam Group plc

('Headlam' or the 'Company')

Publication of ESG Strategy Report

Headlam (LSE: HEAD), Europe's leading floorcoverings distributor, has today published an Environmental, Social and Governance ('ESG') Strategy Report, which is now available on its website (https://www.headlam.com/environmental-social-and-governance-esg/esg-report/esg-strategy-report/).

Overview

Conducting business responsibly, and developing an increasingly sophisticated and concerted approach to ESG issues, is a strategic necessity to maintain relevance and resilience in the long-term. Accordingly, the ESG Strategy Report, which is being published for the first time, sets out the Company's initial focuses and broader ambitions in sustainability and ESG.

The Company's overarching strategy is to support sustainability in the floorcoverings industry by engagement and example, and to ensure that it is well-positioned to take advantage of future market dynamics.

After consultation with both internal and external stakeholders, the Company established and disclosed in its 2020 Annual Report the ESG issues most material to itself and its stakeholder partners, namely:

These issues form the basis of the Company's ESG Strategy over the medium-term, and initiatives and key performance indicators have been introduced in respect of each of them to establish a roadmap of actions and progress. This builds upon the wide array of practices already ongoing within the business, as detailed in the 2020 Annual Report.

Progress Updates

The Company will provide a bi-annual update on its progress, with the next update being published in November 2021. Subsequent to that, alongside the 2021 Annual Report, the Company will publish a full-form ESG Report aligned with both the Task Force on Climate-related Financial Disclosures ('TCFD') and the Sustainability Accounting Standards Board ('SASB') as per the Financial Reporting Council's recommendations.

Enquiries:

Notes for Editors:

Headlam is Europe's leading floorcoverings distributor, providing the channel between suppliers and trade customers of floorcoverings.

Headlam works with suppliers across the globe manufacturing a diverse range of floorcovering products, and provides them with a cost efficient and effective route to market for their products into the highly fragmented customer base. Alongside long-established processing and distribution expertise, suppliers benefit from Headlam's marketing and customer servicing into the most extensive customer base.

To maximise customer reach, Headlam operates 66 businesses across the UK and Continental Europe (France, and the Netherlands). Each business operates under its own trade brand and utilises individual sales teams while being supported by the Company's network and centralised resources.

The Company's customer base covers both the residential and commercial sectors, with the principal customer groups being independent retailers and smaller flooring contractors alongside other groups such as larger retailers, housebuilders, specifiers, and local authorities.

Headlam is focused on providing customers with a market-leading service through:

www.headlam.com