There are many shades of green. Each of us brings our own shade of green to the effort. Together, we can make the world a better place.

What is Sustainability? “Meeting the needs of the present, without compromising the ability of future generations to meet their own needs.”

National’s History We aren’t new to this! Our parent company has a rich heritage of stewardship and compliance Historically we have been very modest

President Thomas Habig, 1970: “Many were aware of the problems of the environment years before it became a popular crusade of the now conscious public. It makes us proud that we were one of those who recognized the need for improvement and took action… We plan to continue in our own small way, to help make our communities a better place to live and work.”

From the Kimball International Guiding Principles “The environment is our home. We will be leaders in not only protecting but enhancing our world.” to present

Our Corporate Recycling Efforts Long history of burning sawdust and wood scraps as a clean-burning fuel Corporate Recycling Center diverts 5 million pounds of waste material per year from landfills Waste finds a new life in fencing, automotive insulation, animal bedding, tack boards, recycled cardboard, etc. Over 65 types of materials are recycled company-wide

Other Corporate Efforts Extensive history of forestry work Over the years we have planted over half a million tree seedlings on our own lands Trees for Tomorrow program: we have distributed over 362,000 tree seedlings Lean Manufacturing which identifies and eliminates waste Commitment to LEED Buildings Transportation efficiencies

National’s Sustainability Statement “We aim to create lasting stakeholder value through responsible growth and deep commitment to the well-being of future generations.” “We cherish the earth’s natural resources, and hold sustainability and environmental protection as our key priorities.”

Our Sustainability Commitments and Position Statements Product Stewardship Offer environmentally friendly products that meet the needs of our customers and the markets we serve Regulatory Compliance Comply with all applicable environmental laws and regulations within our operations Environmental Preservation Protect our valuable natural resources through the reduction, reuse and recycling of materials, reduction of emissions and reduction of impact to climate change

Our Sustainability Commitments and Position Statements Green Building Development Use sustainable building development practices to improve building performance and reduce the environmental impact Social Accountability Support local needs and provide education in regard to sustainability in communities where our employees live and work Economic Responsibility Provide shareholders an attractive return by protecting our social and physical environment

Sustainability: People Environmental Communication Sustainability Brochure Corporate Responsibility (CSR) Report Ongoing topic as our journey continues Community Involvement Adopt-a-Street Relay for Life Trees For Tomorrow Member of U.S. Green Building Council (USGBC); national and local levels Other outreach programs

Sustainability: Product Indoor Air Quality (IAQ) Refers to the content of interior air that could affect an occupant’s health and comfort Indoor Advantage ™ certification Certified Wood Credible guarantee that wood based products originate from an environmentally responsible source Forest Stewardship Council (FSC) certification

Sustainability: Product BIFMA e3 Sustainability Standard Certification All encompassing, published Summer ’08 Elements include material and energy use, greenhouse gas impacts and eco-system considerations level ™ certification awarded by a third party: SCS Design for Environment (DfE) Program Integrates environmental attributes into the design of our products Built into National’s Product Development Process

Sustainability: Product Recycled Materials Casegood products: recycled material content of over 82% Wide array of 100% recycled polyester upholstery options and reduced environmental impact upholstery options Ongoing work to increase recycled material content Rapidly Renewable Materials Materials harvested within ten years Exploring possibilities

Sustainability: Product Sustainable Packaging Pack that maximizes the use of recycled material Healthy and safe for individuals Average recycled content of our casegoods pack is 60%, while our seating pack is 50% Our packaging is 100% recyclable Life Cycle Assessment Addresses the environmental impacts from the entire life cycle of the product Multiple LCA methodologies exist We have conducted an LCA on veneer casegood series finished with IntegraClear, additional series coming soon

Sustainability: Product Chemicals of Concern Reduction Chemicals that are potentially harmful to the environment and/or individuals Numerous lists exist We are determining most appropriate list and developing our plan for identification and reduction

Sustainability: Facilities Environmental Management System An EMS includes planning activities, processes and resources for developing, implementing and maintaining the environmental policy ISO certification at all National manufacturing facilities Regulatory Compliance EPA Requirements Goal: no non-compliances Annual internal audits at all facilities for compliance

Sustainability: Facilities Ecosystem Impact Ecosystem: collection of living things and the environment in which they live Ours: water, air and earth Goal: minimize harmful impacts on our ecosystem Establishing baselines for these harmful impacts and setting goals for reduction. i.e. water usage reduction

Sustainability: Facilities Green House Gas (GHG) Emissions Gases in the atmosphere which reduce the loss of heat into space; therefore contribute to global temperatures through the Greenhouse Effect Most common Greenhouse Gas: Carbon Dioxide (CO 2 ) We have identified the level of GHG emissions for all of our facilities A plan to reduce these emissions is in place Green Buildings Our focus: environmentally sound construction and maintenance of facilities Commitment to achieve LEED (Leadership in Energy and Environmental Design) certification for new facilities or major renovations

Sustainability: Facilities Green Buildings National’s LEED Facilities Jasper, IN Showroom - Gold Chicago, IL Showroom – Silver Jasper R&D Team rooms – Certified New York Showroom – Certified Orange County, CA Showroom – Certified

Sustainability: Facilities Green Buildings Potential LEED credit areas for National products: MR Credit 2.1 and 2.2 – Construction Waste Management MR Credit 4.1 and 4.2 – Recycled Content MR Credit 5.1 – Regional Materials MR Credit 7.0 – Certified Wood EQ Credit Low Emitting Materials EQ Credit 6.1 – Lighting EA Credit Lighting Green Procurement Procure components and materials that have least environmental impact Partner with existing suppliers to help us reach our environmental objectives

Sustainability: Transportation Environmental Partnerships and Programs Part of the IN Dept of Environmental Management Voluntary Idling Program for Cleaner Air since 2005 Reduction in corporate fleet idling by approximately 25% EPA SmartWay Transport Partner SmartWay: collaboration between EPA and Freight Industry to increase energy efficiency while reducing greenhouse gas emissions Our score was the highest a company can receive

Sustainability: Transportation Fleet Emission Reduction Strategies Reduce weight of trucks, trailers Increase aerodynamics of trucks, trailers Fuel Conservation Training for all Drivers Distribution Optimization Smart space optimization of trailers Efficient route planning

Sustainability: Transportation Warehouse Facilities Sustainability Initiatives Lighting Management Guidelines High efficiency lighting fixtures Temperature Management Guidelines Increase use of high efficiency HVAC systems Electric powered squeeze lifts vs. gas

We don’t have all the answers… Just as we all share this world, we share the journey through it. Working together, we can leave it a better place. Each of us brings our own shade of green to the effort. Together, we can make it beautiful.