Euro C2C Carpet Chains Project Marco van Bergen, Desso BV

Brief background Carpets 80% Sports Systems 20% Business Carpets 50% Hospitality, Aviation, Marine 9% Consumer Carpets 21% Sports Systems 20% 2009 Figures -% of total business turnover (incl. Enia Carpet NL Holding BV)

Eco-Efficiency Making a difference with Eco Efficiency All textile waste is recycled back into other industrial processes. CO2 emissions have been reduced by 41% since 2008, at our production facilities in Waalwijk, the Netherlands and Dendermonde, Belgium. DESSO uses 100% renewable electricity (hydropower) in our production locations in Waalwijk, the Netherlands and in Dendermonde, Belgium. At DESSO’s main production facility in Dendermonde a daily 1043 m3 of water is processed by the water treatment plant, totaling 265.000 m3 annually. In Dendermonde, waste water is also purified by biological treatment and a special ozone purification. Ozonised waste water is reused in production, saving 12% groundwater.

DESSO goes a step further with Eco Effectiveness = Cradle to Cradle® DESSO has signed a partnership agreement with the Environmental Protection Encouragement Agency (EPEA). By doing so, DESSO has become the first carpet manufacturer in EMEA to adopt Cradle to Cradle® design. This marks DESSO‘s radical decision to move beyond ‘mere’ sustainability in producing its carpets and artificial grass. EcoBase® SoundMaster AirMaster®

Cradle to Cradle® What is Cradle to Cradle®? Cradle to Cradle® takes its inspiration from nature, where recycling is universal – where everything is reborn again and again in a perpetual cycle of re-use. Everything in nature provides essentially the building blocks and nutrients of the next generation. In the Cradle to Cradle® principles, products are made from known components that are easy to disassemble, in order to create new products (= up-cycling) in both the biological and technical cycles.

Status of Cradle to Cradle® Implementation 2010 Phase-out plans in place for non-approved ingredients rated as unacceptable according to Cradle to Cradle® principles Product development for technical nutrient carpet Cradle to Cradle® product certification process implemented and several products certified Reach 35% purchased renewable energy for processing and manufacturing Take BackTM programme implemented with key partners Significant progress in the set-up of a true recycling concept 2011 - 2020 Reach 50% use of post-customer products for new carpets Reach 100% purchased renewable energy for processing and manufacturing Factory effluent water is cleaner than the water it is discharged into Establish unique, tailored take-back and recycling systems Implement Cradle to Cradle® supply-chain management All DESSO carpets are designed according the Cradle to Cradle® principles All materials and process inputs come from renewable or recycled sources All materials are capable of returning safely to either biological or technical cycles All stages in the product life cycle actively support the reuse or recycle of materials at the highest possible level of quality

Take Back™ Within the Cradle to Cradle® concept, it is vital that every part of our carpets and carpet tiles will be completely integrated into a technical or biological cycle. Currently our products are used as secondary fuel in the cement industry, and the stabilizer (chalk) is used as raw material to produce cement. While carpets may be recyclable, it is vital to ensure that the recycling actually takes place. Under our Cradle to Cradle® commitment, we have introduced our Take Back™ programme where we collect used carpets from our customers, thus ensuring that they can be properly reprocessed.

Take Back™ DESSO offers international collection of used carpets. Including all types of carpet, irrespective of brand and type - with the exception of carpets containing PVC. PVC is not considered suitable for reuse according to the Cradle to Cradle® principles. Collected carpet will be processed by the Refinity® Plant or used as secondary fuel within the cement industry. Within the scope of the DESSO Take Back™ programme, logistic and recycling processes will continue to be further optimised.

Refinity® DESSO has developed an innovative separation technique, called Refinity®. This process makes it possible to separate the yarn from the backing. The PA-6 yarn will be processed into the building block for new PA-6 by a partner company The bitumen from the backing is recycled in roofing and road construction With the launch of the Cradle to Cradle® Silver certified EcoBase® backing, DESSO is making a significant step in its Cradle to Cradle® strategy. Because of the innovative composition of this backing, EcoBase® can be fully recycled in DESSO’s own production process after separation. The result: a closed technical cycle.

Environmental protection potential The annual contract carpet consumption in the EU is over 400Kt/year, and a substantial amount thereof is either sent to landfill or incineration. To safeguard these ‘nutrients’, DESSO has set itself the target to take back and process 4% of this amount annually by 2013. DESSO is committed to take back at least 16Kt/year carpet waste from the market. 50% of this amount will be dispatched to material recycling in the DESSO Refinity® Pilot Plant. This will reduce the need for virgin materials by 8Kt/year, with the other 8Kt/year being derived from landfill.

Environmental protection potential DESSO’s innovative and dedicated approach is anticipated to overcome the barriers of low volumes or high exploitation costs, and its Cradle to Cradle® strategy ensures that all activities have ecological and economic benefits. For DESSO, the funding from the European Union plays a key role in helping to accelerate this process.

DESSO’s Funding History of its Take BackTM and Refinity® programme DESSO’s own funding covers most of the cost In general all business ideas, innovations and improvements are funded by DESSO ‘s own resources PKE Beauty Contest (Platform Chain efficiency) (2009-2010) For our Cradle2Cradle® and take back activities we obtained a small grant of the Dutch authorities in order to work on the business plan. Major questions addressed were: A mayor part of the carpet waste is currently incinerated in the cement industry, why change? Because important feedstock is lost! Technical feasibility check. The attitude in the sector was sceptical because of earlier unsuccessful experiences like Recam, CRE and CRN. Why try again what failed in the past? Because it is the future of the industry! DESSO has a firm drive towards results and decided to start without sceptical actors and only with motivated stakeholders. Eco-Innovation CIP grant (2010-2012) We obtained an Eco-innovation CIP grant in June 2010

Problem Analysis Accessing Further Funding DESSO was able to access Eco-Innovation funding and is very grateful for this support Desso will seek funding opportunities for further detailed recycling of carpet fluff. Supporting the build of new Refinity® plants in other EU countries. DESSO’s focus will remain on eco-effectiveness based on own resources and entrepreneurship. Recycling valuable material from carpet waste can be hampered seriously by land filling and WTE of floor covering waste, which is still a common practice in many EU countries. In our view, the EU should have common rules for the management of this kind of wastes (ban land filling floor covering wastes!) and also install Tax mechanisms to stimulate material recycling over waste to energy.

Main conclusions Main conclusions arising from the case study Sustainability at DESSO is not mere altruism: sustainability with substance brought business. Return on investments in sustainability aspects mostly takes longer than normally is acceptable in the business. Eco-Innovation funding overcomes such financial barriers. Due to new technology/new raw materials (specialty rather them commodity) products are often more expensive in the beginning, over time with R&D and increased sales, prices will go down.