IUPUI CEO Alliance Sustainable Business Strategy by George Bandy Jr.

"Humanity has the ability to make development sustainable--to ensure that it meets the needs of the present without compromising the ability of future generations to meet their own needs." World Commission on Environment and Development, Brundtland Commission what is sustainability?

A System Perspective Emphasizes: Principles rather than details Shared framework and a common language Focusing “upstream” Necessary (non-negotiable) system conditions

Science Principles Matter and energy cannot be created or destroyed (the Conservation Law) Matter and energy tend to spread spontaneously (2nd Law of Thermodynamics) Biological and economic value (quality) is in concentration and structure of matter (What we consume) Green cells are essentially the only net producer of concentration and structure (Photosynthesis)

The Concept of the Funnel Decline of Living Systems Margin for Action Population x Affluence x Technology

1.substances from the earth ’ s crust must not systematically increase in nature. 2.substances produced by society must not systematically increase in nature. 3.the physical basis for productivity and diversity of nature must not be systematically diminished. 4.we must be fair and efficient in meeting basic human needs. The Natural Step what is sustainability?

HOW THE JOURNEY BEGAN Ray Anderson Ray’s Epiphany ˜ August 31, 1994 Today, key driver of: ˜ Competitive advantage ˜ Innovation ˜ Workforce engagement

GLOBAL LEADER Market Share Analysis All Competitors 70% Interface 30% InterfaceFLOR / BentleyPrinceStreet / Heuga Brands/FLOR

DIVERSE PRODUCTS & SERVICES. Services 2% Broadloom 14% Fabrics 20% Modular 64% CATEGORY SALES BREAKDOWN InterfaceFLOR Bentley Prince Street InterfaceFabric (SOLD) Strategic Flooring Services FLOR (residential) 2006 estimated revenue $1.4 Billion

HEUGA: CARPET TILE THEN. Interface/Heuga Installation

 Contract Customers Receive a 20% Discount  Order Online With Discount Code at RESIDENTIAL EMPLOYEE PURCHASE PROGRAM.

GLOBAL LOCATIONS. Using InterfaceFLOR global network reduces cost and lead time issues vs. shipping overseas from US competitors.

GLOBAL MANUFACTURING LOCATIONS. Note: Tile plant in Georgia & Fabric Plant in Maine are members of U.S Environmental Protection Agency’s National Environmental Performance Tracking Program.

THE MARKET. Custom product website. IMAGE HERE

THE MARKET. Inspired Online Design Tool. IMAGE HERE

INNOVATIVE PRODUCT IDEAS.

Old Model vs. New Model of Environmentalism Doom & Gloom

Old Model vs. New Model of Environmentalism Positive vision of the future Sustainability as business opportunity No compromises

The Interface Vision IMAGE HERE “To be the first company that, by its deeds, shows the entire industrial world what Sustainability is in all its dimensions: people, process, product, place and profits – by 2020 – and in doing so we will become restorative through the power of influence.”

IMAGE HERE

INTERFACE’S SUSTAINABILITY PROGRAMS. LEED Cool Blue ReEntry Cool Commute Cool Carpet Climate Neutral Think Local Act Global Brazil & India

The Interface Model Seven Fronts of Mt. Sustainability IMAGE HERE Eliminate waste 2.Eliminate harmful emissions 3.Use only renewable energy 4.Create closed loop processes 5.Resource efficient transportation 6.Integrate sustainability into the culture 7.Pioneer new business models for sustainability

~ Reduced solid waste to landfill by 70% since 1996 ~ $336 million in waste savings since 1994 Front 1: Zero Waste 1

Sample Return Program 2005: over 55,000 samples were returned 2006: 90,163 samples returned SIMs In 2006, 8,000 SIM prints sent Conserving > 2,000 gal of oil Keeping 20,000 lbs carpet out of landfill Front 1: Zero Waste 1 1 Carpet sample=1 Qt oil

Water savings Exited energy intensive printing process in 1998 Water intake per square meter is down 87% since 1996 Today no wastewater leaves manufacturing area No environmental permits are needed ˜ Big cost savings! Front 1: Zero Waste 1 1 Carpet sample=1 Qt oil 50 gallons/sq yd 0.9 gallons/sq yd versus

INNOVATIVE PRODUCTS INSPIRED BY NATURE How does nature create random beauty? 1

Entropy – inspired by nature Each tile is slightly different in pattern & color Typical i2 installation waste: 1.5% Typical broadloom installation waste: 8-12% 1 Reduced installation waste Reduced manufacturing waste No attic stock, no storage space needed

The Interface Model Seven Fronts of Mt. Sustainability IMAGE HERE Eliminate waste 2.Eliminate harmful emissions 3.Use only renewable energy 4.Create closed loop processes 5.Resource efficient transportation 6.Integrate sustainability into the culture 7.Pioneer new business models for sustainability

COOL CARPET TM Carpet Tile GHG Emissions = ??? Manufacturing Use & Maintenance Transportation Return and Reuse Raw material extraction Carpet Tile 35 lbs

COOL CARPET TM The Only Climate Neutral Carpet Offering Reductions & Offsets (Solution) Total Life Cycle GHG Emissions (Problem)

Carpet that Cools the Planet 35 lbs COOL CARPET TM Carpet that Cools the Planet

177 tons Carbon Offsets 177 tons GHG Emissions COOL CARPET TM 10,000 sq yds = 177 tons GHGs = 21 households’ electricity use for 1 year! Carpet that Cools the Planet

The Interface Model Seven Fronts of Mt. Sustainability IMAGE HERE Eliminate waste 2.Eliminate harmful emissions 3.Use only renewable energy 4.Create closed loop processes 5.Resource efficient transportation 6.Integrate sustainability into the culture 7.Pioneer new business models for sustainability

Front 2: Benign Emissions Landfill gas is fueling manufacturing processes at LaGrange, GA facility 3 Front 3: Renewable Energy

The Interface Model Seven Fronts of Mt. Sustainability IMAGE HERE Eliminate waste 2.Eliminate harmful emissions 3.Use only renewable energy 4.Create closed loop processes 5.Resource efficient transportation 6.Integrate sustainability into the culture 7.Pioneer new business models for sustainability

Front 4: Close the Loop ReEntry Program Interface has diverted more than 103 million lbs of carpet since

Carpet shipped back to LaGrange, Georgia 2.Full carpet tile is ground up, fiber and backing 3.Agglomerator converts material to pellets Front 4: Close the Loop ReEntry Program

“Cool Blue Food” sprinkled onto conveyor belt 5.Pellets heated until they ‘ooze’ 6.Backing cured and face fiber added

The Interface Model Seven Fronts of Mt. Sustainability IMAGE HERE Eliminate waste 2.Eliminate harmful emissions 3.Use only renewable energy 4.Create closed loop processes 5.Resource efficient transportation 6.Integrate sustainability into the culture 7.Pioneer new business models for sustainability

Interface Business Travel Since 1997 ~ 136 million miles ~ Emitting 30,000 tons of greenhouse gas emissions Front 5: Resource Efficient Transportation 5

Greenhouse Gas Emissions Offset through “Trees for Travel” ~ Planted over 75,000 trees since 1997 Front 5: Resource Efficient Transportation 5

The Cool Fuel™ program offsets CO 2 from company car fuel purchases ˜ To date: offset 7,000 tons CO 2 Cool Co 2 mmute offsets GHG emissions from employee commuting ˜ 10,000 trees planted, 416 employees EPA SmartWay Transport Charter Partner, to reduce emissions from ground freight Front 5: Resource Efficient Transportation 5

Partnership with Subaru Subaru will sponsor the planting of thousands of trees through AMERICAN FORESTS’ Global ReLeaf program, making the operation of the vehicles “climate neutral” for the first 60,000 miles. The Subaru plant was the first auto assembly plant to achieve zero landfill status. Front 5: Resource Efficient Transportation 5

The Interface Model Seven Fronts of Mt. Sustainability IMAGE HERE Eliminate waste 2.Eliminate harmful emissions 3.Use only renewable energy 4.Create closed loop processes 5.Resource efficient transportation 6.Integrate sustainability into the culture 7.Pioneer new business models for sustainability

Front 6: Integrate Sustainability Legacy Projects Annual tradition for Interface sales force Creates culture of social responsibility 6

The Interface Model Seven Fronts of Mt. Sustainability IMAGE HERE Eliminate waste 2.Eliminate harmful emissions 3.Use only renewable energy 4.Create closed loop processes 5.Resource efficient transportation 6.Integrate sustainability into the culture 7.Pioneer new business models for sustainability

Front 7: Redesign Commerce 1 Carpet sample=1 Qt oil IMAGE HERE *Not recommended for installation over existing carpet. TACTILES NEXT GENERATION OF INSTALLATION  Creates a “Floating Floor”  Install over existing floors  Tiles adhere to one another, not the floor  90% Lower Environmental Footprint  Eliminates installation waste 7

Front 7: Redesign Commerce Green buildings 7

Front 7: Redesign Commerce Carpet & LEED 7 MR 4.1 Recycled Content EQ 4.1 Low Emitting Materials: Adhesive EQ 4.3 Low Emitting Materials: Carpet Carpet & Rug Institute’s Green Label Plus MR 6 Rapidly Renewable Materials MR 2.1 Construction Waste Mgt Zero VOCs <50 mg VOCs 18-31% Post-consumer 32-55% Post-industrial vs.

Front 7: Redesign Commerce Green buildings InterfaceFLOR Atlanta Showroom First LEED Commercial Interiors Platinum Rating 7 InterfaceFLOR Shanghai Showroom First LEED Commercial Interiors Gold Rating in China

Front 7: Redesign Commerce Beyond LEED 7 Would you choose a ‘green’ product made in a ‘brown’, polluting factory? LEED doesn’t consider: Performance/durability Reuse, recycling opportunities at end-of-life Sustainable Product certification Impacts on Global Warming Corporate commitment to sustainability Efficiencies in manufacturing: water, emissions, waste, renewable energy ISO 14001, 9001 certification

Highest consensus standard on sustainable carpet Comprehensive measurement 1.Reducing pollutants and energy use 2.Renewable energy 3. Recycled content and bio-based materials 4. Corporate wide environmental and social responsibility commitment 5.Product performance, durability, reuse and reclamation Front 7: Redesign Commerce Industry Standards 7 Sustainable Carpet Assessment Standard

InterfaceFLOR certifications: GlasBacRE: SCS Sustainable Choice Platinum California Platinum GlasBac: SCS Sustainable Choice Gold NexStep: SCS Sustainable Choice Gold 94% of ’05 sales meet standard Front 7: Redesign Commerce Industry Standards 7

FLOOR FOCUS DESIGNER SURVEY. Top 250 Design Firms Front 7: Redesign Commerce

Ray Anderson becomes an unforeseen hero Front 7: Redesign Commerce 7 The World’s Most Socially Responsible Companies “Interface ranked #1 by sustainability experts as fulfilling responsibilities to society better than others.” Announces Top 10 'Green' Companies of 2006 Interface ranks #4 Fast Company HIP scorecard: Generate compelling returns and benefit society Interface ranks #16

Continuing the Journey

The Interface Story and More… IMAGE HERE

CONCLUSION If we’re successful, we’ll spend the rest of our days harvesting yesteryear’s carpets and other petrochemically derived products, and recycling them into new materials; and converting sunlight into energy; with zero scrap going to the landfill and zero emissions into the ecosystem. And we’ll be doing well – very well – by doing good. - Ray C. Anderson

THANK YOU