1. Interface

2. Perspectives on Decision Making
March 30, 2006 Wendy Porter, Director Environmental Management

3. Interface Inc. World leader in carpet tile manufacturing
Eighteen manufacturing facilities on four continents; sales in over 100 countries
Markets include commercial interiors, automotive, healthcare, hospitality, and residential

4. Interface, Inc. - Then Founded in 1975 by Ray Anderson
Traditional Southern Businessman
Manufacturer of Textiles
Carpet Tile – World Leader
Fabrics
Broadloom Carpet
Modeled the “First Industrial Revolution”
Take – Make – Waste
Commitment to Compliance – others make the value judgments for what is acceptable

5. Interface Inc. - Now World Leader In Modular Carpet Tile Manufacturing
$850 Million in Sales
18 manufacturing facilities in seven countries
Broadloom Carpet and Fabrics

6. Interface Inc. - Now Recognized leader in Sustainable Manufacturing
We are on a journey – we have not yet arrived
Sustainability is a dynamic process which enables ALL people to realize their potential and to improve their quality of life in ways that simultaneously protect and enhance the Earth’s support systems.

7. Ray Anderson
Founded the company by borrowing $50,000 from family and friends
Traditional Southern Businessman of his time
Profit driven
Volume driven
Commitment to Compliance
Asked to provide the company’s environmental vision to compliance staff
Did not know what to say other than – comply with existing laws and regulations – bothered him
Significant change of course for Interface. Company that was largely profit focused, needed to change its business model to become “sustainability” focused – with financial sustainability just one of the prongs. To be successful, Ray knew that he would need to change all elements of the company’s business. How did Interface embark on this change, what has been our lessons learned, and how does that relate to EPA?

8. Ray Anderson
Received Paul Hawken’s book – “The Ecology of Commerce” – read the book during a family vacation
Epiphany – “Spear in the Chest”
Chartered the course to become the first sustainable enterprise by the year 2020
Openly and publicly committed to the journey
Affects all aspects of how we do business and at all levels in the organization
Integrated into all positions and responsibilities, not a task group.
Significant change of course for Interface. Company that was largely profit focused, needed to change its business model to become “sustainability” focused – with financial sustainability just one of the prongs. To be successful, Ray knew that he would need to change all elements of the company’s business. How did Interface embark on this change, what has been our lessons learned, and how does that relate to you?

9. Our Compass Eliminate waste Benign emissions Renewable energy
Closing the loop
Resource efficient transportation
Sensitivity hook-up
Redesigning commerce

10. Guiding Coalition- Eco Dream Team
Paul Hawkins
Amory Lovins
Hunter Lovins
Janine Benyus
Bill Browning
Robert Fox
John Picard
Jonathon Porritt
Daniel Quinn
Dr. Karl Henrik Robert
Walter Stahel
Fox is architect. Browning is building engineer and architect – environmental design.
John Picard is one of the preeminent Energy, Technology, Telecommunications and Real Estate infrastructure advisors in North America and Asia and the founder of e2.
Jonathon Porritt is a regular columnist for BBC Wildlife Magazine, NFU Countryside Magazine and the Gloucestershire Echo. Mr. Porritt's numerous appearances on television and radio, countless public lectures and many hard-hitting articles in newspapers and magazines have made him probably the best known "green" in Britain today.
Daniel Quinn is best known as the author of Ishmael, the novel that in 1991 won the Turner Tomorrow Fellowship, established to encourage authors to seek "creative and positive solutions to global problems."
Professor Karl-Henrik Robèrt, M.D., Ph.D., is one of Sweden's foremost cancer scientists who, in 1989, initiated an environmental movement called "The Natural Step."
Stahel regularly lectures at universities and conferences in Europe, Japan and the USA on subjects ranging from tools such as eco-design, risk management and loss prevention. His research focuses on strategies and policies for a more sustainable development, and the insurability of risks as the 'natural' borderline between State and the market economy.

11. Interface’s Guiding Coalition
Internal Global Sustainability Council
Reviews definition, metrics, progress
Wrestles with complex and evolving issues
Ensures consistency across the organization
Advises Senior Management
Comprised of regulatory, scientists, manufacturing, sales, marketing, legal, manufacturing, purchasing, human resources, financial people from all across the company

12. Making the Case for Change
Made the business case for sustainable manufacturing
Introduced the concept of “Natural Capital”
Identified the cost of “waste” to the business and the environment
Utilized compelling global measures of environmental degradation dating to the start of the industrial revolution

13. Making the Case for Change
Tied the measures to Interface’s environmental footprint
Identified the opportunity to “Do Well by Doing Good”
Capitalized on the ability to differentiate the product in the market place
Engaged each employee on a personal, emotional level

14. Global Achievements
Waste avoidance of an aggregate of $299 Million since 1995
Renewable energy (thermal and electrical) climbed to 13%
3 photovoltaic sites
6 facilities with certified green electricity
Introduction of first carpet tile made from 100% post consumer carpet tiles

15. Global Metric Achievements
52% reduction in green house gas emissions
Water use reductions of 81% in modular carpet, 41% in broadloom carpet
Terratex Brand development – fastest growing fabric brand in commercial interiors
Introduction of Cool Carpet™-climate neutral carpeting

16. Global Metric Achievements
Bio-based fiber development and market introduction
Re-entry program for recovered and recycled carpet tiles
ReSKU program development for recovered and reused fabric
Non-directional carpet tile
Guaranteed carpet tile match so you can replace just the tiles worn or damaged

17. Guilford Solid Waste Reduction

18. Understanding and adopting sustainable business practices requires a new awareness of the world; the whole world, its natural systems and all of its species. It requires a deeper understanding of how the Earth works, and how man's processes affect nature's delicate balance.

19. Culture Change at Interface
The changes that have occurred at Interface are monumental – they challenged the very nature of who we are, what we do, how we do it, and how it is valued in our marketplace
Our changes are not done – if we are to reach our vision

20. Culture Change at Interface
Understanding and adopting sustainable business practices requires a new awareness of the world; the whole world, its natural systems and all of its species. It requires a deeper understanding of how the Earth works, and how man's processes affect nature's delicate balance.

21. Culture Change at Interface
Each choice we make has a "cost." True cost is a combination of the economic, social and environmental costs set against the offsetting benefits associated with each choice that we make.

22. Historical Decision Making
Must Do’s, Required, Legal Obligations
Profitability
ROA, ROI, Free Cash Flow, etc
Strategic Investment/Expansion
Market potential

23. Current Decision Making
Sustainability – three legged stool
Financial
Environmental
Social
Without all three legs, the stool falls
Foundation in the “Natural Step”:
Nature is not subjected to increasing concentration of substances extracted from the earth’s crust
Nature is not subjected to increasing concentration of substances created by society
Nature is not subjected to degradation by physical means
Basic human needs are met worldwide

24. Sustainable Decision Making
Definition for Financial has been expanded to include:
Cost of “waste” (labor, rework, off quality, materialization, scrap, inspection, packaging, transportation, etc)
Cost of non-renewable energy
Cost of non-renewable and/or recyclable materials
Added component associated with Risk
Environmental risk
Social risk

25. Sustainable Decision Making
Found the nexus where environmental and financial sustainability intersect
Created value in the marketplace for environmental and social sustainability
Wall street
Customers
Consumers
Public
Communities

26. Examples Cool Carpet (Climate Neutral) Green-e Certified Fabric
100% Recycled Polyester Fabric
Compostable biobased Fabrics
Landfill Gas
Entropy Carpet
Weave II HVAC
Dye and Chemical Protocol

27. What Does This Mean to You?
You need to decide
How has your role been influenced by the first industrial revolution?
How could that role be changed in a sustainability focused world? How can you better support a sustainability focused world?
Change is significant
Our managers, accountants, maintenance personnel, janitorial, etc will all tell you how significant a change it is……..
How can you take the information you have and find the nexus with societal practices and values? How can you help make the case for change?

28. You’re all right, the world is wrong? Right?
Why Change?
You’re all right, the world is wrong?
Right?

29. Management Challenges in the Next Decade
We are not moving fast enough to ward off the consequences of our continued assault on nature– we need to make more progress faster if we are to reverse the trends
What is keeping you from acting faster?
How can you support the actions of others?

30. Management Challenges in the Next Decade
Goods-to-Market time is shortening – can the existing regulatory structure keep up with the speed of market innovation?
What is slowing down the availability and use of the information that you have or provide?
Market forces can and will shape change
How can you take advantage of market forces

31. Management Challenges in the Next Decade
Traditional “Command and Control” approaches are a disincentive for innovation – de-motivates employees; de-motivates companies
Need to capitalize on the 1% that is leading the pack to spur continued innovation and improvement
What can you do to reward, encourage, support that 1% while pulling up the laggards by the boot straps?

32. Management Challenges in the Next Decade
Need to think “outside of the box” to accomplish meaningful change - question everything about the way it has always been – how is your information used? How could it be used? What limits are placed on the work that you do?
Information is essential to progress on sustainability – there is a vacuum for credible information and resources to help the “consumer” and small and large businesses succeed
How can you help?

33. We are on a Journey We started our Journey twelve years ago……..
We are proud of our accomplishments, but humbled by the challenges yet ahead
Learn about our progress, priorities, and challenges at

34. We Welcome You to the Journey