1. Behind the Green Green Building Claims and Your Business Dr. Robert J. Hrubes Senior Vice President, Scientific Certification Systems Presented to: National Green Builders Products Expo May 29, 2009

2.  Provides global leadership in third-party environmental and sustainability certification, auditing, testing and standards development  25 years of experience  Programs span a wide cross- section of industries and recognize achievements in green building, product manufacturing, forestry, retail, agricultural production, fisheries and energy.  150+ staff, auditors and affiliates worldwide Scientific Certification Systems A few of our clients

3. Sample of Programs Offered

4. What are “Green” Claims?  Public or private assertion/claim incorporating some sort of environmental (and, more recently, social) attribute  Rapidly becoming ubiquitous, almost literally involving every sector of business-to-business and retail commerce  As “green” lacks a universal definition, it can mean anything

5. Meaningful “Green” Terms  Recycled content  Readily biodegradable  Low VOCs  Energy efficient  Water efficient  Sourced from well-managed forests  Organic

6. Less Meaningful “Green” Terms  All Natural  Naturally Derived  Non-Polluting  Ozone Friendly  Forest Friendly  Environmentally Friendly  Earth Friendly  Nature’s Friend  Anything “friendly”  Enviro-effective  No Chemicals  Garden Safe  Green Solution

7. What About “Sustainability”?  Essentially, “sustainable” has become a term equivalent to “green” and subject to the same pitfalls  Its origins are in sustained yield management of biotic systems such as fisheries and forests  Now:

8.  Sustainable forestry  Sustainable agriculture  Sustainable tourism  Sustainable development  Sustainable communities  Sustainable golf courses  Sustainable mining  Sustainable luxury

9. Green Certification – Instantly! “If you look for GREEN things, if you really care for environmental change, global warming, greenhouse gases, recycling, CO2 emissions, climate change, compact fluorescent lights (CFL), compost, Al Gore, this certification is for you. Get your Free GREEN Certificate today and be part of this fast growing community!”

10. Bottom Line: Caveat Emptor

11. Expansion of Green Building

12. Even in Down Economy, Green Building Grows  LEED-specified projects increased 50% from 2006-2008  In 2005, 13 U.S. state governments had implemented green building initiatives  By 2008, 31 states had implemented green building initiatives

13. Federal Government Incentives  Energy Economic Stabilization Act of 2008 passes tax credits to homeowners and builders of energy-efficient buildings  Incentives for purchasers of window, door and roof products that demonstrate improved environmental performance

14. Contractors Choose Green Products  Thermal and moisture protection  Doors and windows  Wood and plastics Source: McGraw-Hill, Commercial & Institutional Green Building SmartMarket Report, 2009 Percentage

15. How Can I Promote My Business’ Environmental Story?

16. Types of Environmental Claims  First-Party – self proclaimed, as in material safety data sheets or marketing materials  Second-Party – involves a trade association or outside consulting firm in setting a standard and verifying claims  Third-Party – verified by an independent body

17. Credible Environmental Claims are:  Factual – basis for the claim is transparent (standards-based or science-based)  Significant – real environmental benefits that are substantial, without hidden tradeoffs  Progressive – encourages continuous improvement  Independently verified

18. Third-Party Certification Provides:  Corroborated and measurable environmental and social benefits  Opportunities for improvement, pathways toward greater sustainability  Independent review to guide truthful advertising  Most credible claims

19. Benefits of Third-Party Certification  Strengthen corporate reputation, build brand value  Potentially increase market share and/or shareholder investment  Potentially increase profits through value-added premiums  Improve employee morale

20. Examples of Third-Party Certifications

21. Example: Trusted Third-Party Certification Forest Stewardship Council (FSC)  Voluntary, internationally recognized forest management standards  Developed by consensus, multi-stakeholder process  Supports biodiversity, protects high conservation value forests, provides for human benefits, ensures long-term timber supplies  Certificates holders must be audited annually  Certification bodies must be accredited and audited annually

22. Example: Trusted Third-Party Certification FSC certification follows the supply chain:  Forest Management certification  Chain-of-Custody (CoC) certification tracks wood from forest to end-use customer  Currently expanding to address new issues in forestry including carbon sequestration and controlled wood  Included in USGBC LEED program (MR-7)

23. Example: SCS Indoor Advantage™ Gold  Certification program for interior building materials, furnishings and finishes  Imposes the toughest limitations on indoor air emissions in the building products sector  Program requirements: Uses the health-based exposure limits required by State of California for school children Provides greater environmental accountability than any other indoor air quality certification program. Certified products comply with: Collaborative for High Performance Schools (CHPS); California 01350 Special Environmental Requirements; BIFMA X7.1 Low-Emitting Furniture; and LEED EQ 4.1, 4.2, and 4.5

24. Example: Recycled Content  For wood, plastics, metals, fibers and more  Pre-consumer and/or post-consumer recycled content percentage is calculated based on factory data, site visit and, in some cases, lab testing  Certified products comply with: LEED MR credits; can be used toward NSF-140 Sustainable Carpet Assessment

25. Retail Programs with Third-Party Support  Retailers create their own eco-label brands or seek evaluation and/or enhancement of an existing in-house program  Provide meaningful product information and solutions so that customers can make more environmentally conscientious purchases  Turn commitments to sustainability and social responsibility into marketable brands and services

26. Be Skeptical. Look Behind the Label. Image source: BSR, Food and Agriculture Industry Trends Report, October 2007  Is there a certification standard and is it rigorous?  Is the audit protocol transparent?  Will hidden or undisclosed tradeoffs more than offset the environmental attribute?  Is it truly an independent, third-party program?

27. What Lies Ahead for Green Claims and Environmental Certification?

28. Considering the Full Life-Cycle and Addressing Tradeoffs Image Source: BSR, Food and Agriculture Industry Trends Report, October 2007  Environmental impacts from entire chain of custody — producers, distributors, importers, brokers, retailers  Social responsibility  Packaging  Energy use in production, packaging, processing, and transport  Carbon footprint  Product quality and safety

29. Questions?

30. Contact SCS  Forestry, FSC, Chain-of Custody and Carbon Offsets Dr. Robert J. Hrubes, rhrubes@scscertified.com 510.452.8007 rhrubes@scscertified.com  Recycled Content Samantha Poblitz, spoblitz@scscertified.com 510.452.8050spoblitz@scscertified.com  The Home Depot Eco Options Product Review Bill Christopher, bchristopher@scscertified.com 510.452.8025bchristopher@scscertified.com  Media Rebecca Graham, rgraham@scscertified.com 510.452.8020rgraham@scscertified.com www.SCScertified.com