1. Carpet to Coats: Reducing Waste & Helping Humanity Tom Norris, Al Renner, Edward Taylor 1

2. Agenda Abstract: Al Company Profile: Edward Developing TBL Framework: Edward Sustainability Deployment: Tom Outcomes & Impacts: Al Ongoing Sustainability Practices: Edward Challenges & Opportunities: Tom Local & National Impact: Al Audit Instrument:Tom Income Statement: Edward Balance Sheet: Tom 2

3. Abstract Non-profit organization Nylon coats from recycled carpet 5.9 billion lbs carpet discarded 2009 96% in landfills; 4% recycled Markets – charities, govt. agencies, retail Addresses TBL – Planet, People, Profit Start Up Cost $ 3 million 80/20 plan for start up capital 3

4. Company Profile Location Building specifications and cost 6 Business processes Key elements of manufacturing process 4

5. Developing TBL Framework The three founders of Carpet to Coats strongly believe that the true purpose of business extends beyond just making a profit established five functional priorities: – (1) to receive the carpet recycler’s raw materials – (2) to make durable and functional coats – (3) to distribute the final product to various retailers and non-profit organizations – (4) to increase the number of domestic carpet donators – (5) to solicit contributions from public and private investors who want support our business 5

6. Sustainability Deployment Each department will be assigned a liaison responsibility for SMS initiatives (includes outsourced services) Ensure a minimal impact to the environment during all processes Improve internal and external social conditions Bring economic growth to our supplier and the surrounding community 6

7. SMS Environmental 7

8. SMS Social 8

9. SMS Economic Implementing the Environmental and Social aspects will also bring Economic benefit such as: – Employee retention and recruiting Reduces training costs & increase productivity. Passionate employees – Reduced costs of shipping – Increased job opportunities 9

10. SMS Action Plan 10

11. SMS Action Plan (Cont) 11

12. SMS Action Plan (Cont) 12

13. Outcomes & Impacts Operations Personnel Management – Carpet donation on site encourages recycling – Diverting 600,000 lbs of carpet from landfill/year – Package Flow Tech for delivery routes Personnel Management – Lost work time reduced 20% via health & safety – Communicate sustainability commitment to employees – Environmentally friendly admin processes 13

14. Outcomes & Impacts Supplier – Shaw’s Evergreen Nylon Recycling – Evergreen carpet reclamation program – CARE awards for recycling innovation – Has reclaimed 300 million pounds of post- consumer carpet since 2006 Stakeholders – CARE effort has three interlinked goals – Charity customers improve People aspect of TBL 14

15. Ongoing Sustainability Practices Integration into business processes Integration into compensation and performance management Employee buy-in 15

16. Challenges & Opportunities Increased costs upfront & additional costs to maintain sustainability. – Managers examining the workflow for operations Training. – SMS team – Employees must understand our SMS policy, – SMS audit team 16

17. Challenges & Opportunities Employees must be convinced that it is a worthwhile strategy. – Employees must embrace the culture of sustainability Consumer’s preference – Some customers may wonder if the coat is free of undesired material. – consumers tend to view sustainable products high in ethicality, but may think the product lacks the performance of normal produced goods 17

18. Challenges & Opportunities Ahead of any possible environmental legislation passed here or internationally. – Reduced disruptions to business Partnership with Shaw's Evergreen Nylon Recycling will give a strong foundation to implement our own sustainability program. – Their example and experience will certainly give us some key insights for implementing sustainability in the manufacturing industry. 18

19. Challenges & Opportunities Our community used carpet recovery site – Surrounding businesses can donate their used carpet at our location instead of the landfill. – Financially beneficial for them as they can possibly avoid landfill fees. Marketing ability. – Our SMS could enable us to increase sales to federal, state, and/or city services that have a green purchasing initiative. – Retailers that have green conscience customers. 19

20. Local & National Impact Sustainability - Labor & Human Rights – HR policies provide labor rights per United Nations – Clean safe working conditions – Competitive wages & benefits/incentives Sustainability – Environmental Principles – 1 st priority is environmental aspect of TBL – Intergenerational equity via reducing carpet waste stream – Managing economic growth to be green 20

21. Audit Instrument 21

22. Audit Instrument (Cont.) 22

23. Audit Instrument (Cont.) 23

24. Audit Instrument (Cont.) 24

25. 25

26. 26

27. 27

28. 28

29. Questions? 29