Corporate Social Responsibility
Report2012
It’s a legacy that we build upon every year as we move towards a better tomorrow. It’s also about unbridled respect for nature, people
and communities by putting stewardship into action.
Welcome to the fifth annual report on our progress towards a better tomorrow. Inside you’ll immediately see the importance of
environmental and social responsibility engrained in the National culture. Similar to prior years, our 2012 report is guided by the Global
Reporting Initiative (GRI) Sustainability Reporting Guidelines and the pursuit to make a difference tomorrow by acting responsibly today.
A legacy isn’t merely created by the passing of time; it’s created by putting in the time. A legacy is involvement, caring and making a
difference even when there is no one around to see the resulting impact. At National, we make it personal and promote stewardship at work
and at home. The legacy you leave is driven by a lifestyle embedded with sound behaviors and decision making even when the right thing to
do is often the most challenging to achieve.
We don’t have all the answers; however, that just means we’re going to keep trying to find them in healthy, responsible ways. We’re all on
this journey together and staying on the path, as well as blazing new trails, keeps us headed in the same direction…to a better tomorrow.
At National Office Furniture,we see our legacy as morethan quality office furniture.
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2012 Corporate Social Responsibility Report
Contents
4Our History
6Our People
14Our Products
20Our Facilities and Operations
25Our Transportation
26About National
27GRI Considerations
www.NationalOfficeFurniture.com 3
A Message from Our General ManagerIn our recent leadership development program, Emerge…Learn, Lead, GrowSM, I asked the group, “What could we accomplish if we were all 10% better leaders?” I didn’t ask this question because I think our people aren’t doing a good job or leading well. As a matter of fact, our people are delivering extraordinaryperformances and providing outstanding leadership, so I posed the question to motivate and challenge them to keep getting better in all aspects of the business,including our social and environmental stewardship. What if everyone picked up one more piece of trash, recycled one more aluminum can, refilled a reusable waterbottle, turned off one more light, and so on.
Everyone can understand the magnitude that “one more” could create; however, one more in the wrong direction could be devastating too. That’s why it’s soimportant for companies to be responsible and do the right thing. Which is what we strive to do at National. All of our manufacturing facilities are voluntarymembers of their respective state’s environmental program, along with being certified to international standards such as ISO 14001. Each facility also has anenergetic Safety Team in place. This combination demonstrates the commitment of our company to pursue excellence in sustainability, safety and overall social responsibility.
In 2012, we achieved several milestones such as being named Manufacturer of the Year in the Casegoods Category by the Office Furniture Dealers Alliance (OFDA),and reducing our overall Greenhouse Gas Emissions by 10.13% per metric ton, year over year. We fell a bit short in a few areas; for example, we were not able toreduce the amount of water used to produce a unit. However, we have put actions in place to improve performance going forward.
One of our signature strategies is to create a lifestyle of responsibility at work and at home. In 2012, we implemented a number of programs which support this,such as the Earth Day campaign that put 600 trees in the ground in at-risk forests due to the “earth-friendly” efforts by our employees, including a beach clean-upon Chicago’s North Shore which my wife, Mandy, and I participated in.
Additionally, we identify Significant Environmental Aspects that guide our teams on annual activities. Our Sustainability Council focuses on long-term goals suchas: reducing the use of chemicals of concern, driving down our GHG emissions, and achieving the U.S. Green Building Council’s LEED® Green Building Rating Systemcertification on construction and renovations. The attainment of LEED Silver for our Santa Claus manufacturing facility was an especially meaningfulaccomplishment.
Volatility has become the norm across the globe whether due to financial, governmental, social or environmental forces. In light of this, it is critical thatcompanies achieve their goals responsibly and transparently. Forbes Magazine named our parent company, Kimball International Inc., as one of America’s MostTrustworthy Companies, which is a critical step in the path towards transparency. Plus, our industry recently had a big win when the LEED System recognized theuse of products certified to the level® program under Pilot Credit 80. Our efforts to achieve level 2 or 3 certification for 100% of company manufactured productsbecause it was the right thing to do (this was us doing 10% better 5 years ago) has now positioned us well to be a key provider of level products in LEED projects.In fact, one of our leaders, Mendy Claridge, Director of Sustainability LEED ID+C, in conjunction with the U.S. Green Building Council and our trade association,BIFMA, are delivering presentations to educate facility managers and A&D professionals about how impactful Pilot Credit 80 can be on green building projects.
So, I ask again, “What if we could do 10% better?” or “What if we just did 1% better?” If the responsible action is there, the percentages, no matter how big orsmall, will add up. And that 1% or 10% collectively will yield an incredible impact. Pick up one more piece of litter, let your personality shine and have some funalong the way. That’s what we strive for at National!
Kevin McCoyVice President, General Manager
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2012 Corporate Social Responsibility Report | Our History
What if everyone picked up one more piece?
2012Santa Claus Facility awarded LEED EBcertification - Silver
Atlanta Showroom registered for LEED CI certification
Washington DC Showroom registered forLEED CI certification
Surpassed 1 million hours without a losttime injury
Approved for U.S. EPA’s ComprehensiveProcurement Guideline (CPG) program due to product recycled content
Named Manufacturer of the Year -Casegoods Category by Office FurnitureDealers Alliance (OFDA)
Reduces Greenhouse Gas emissions by10.13% per metric ton year-over-year
Participates in USGBC’s Green Apple Dayof Service by conducting free EnergyAudit at Jasper High School, Jasper, IN
Matches donations of Incentive Tripguests for a total gift of $15,000 toHurricane Sandy relief efforts
Awards $25,000 Gift of Inspiration forEducation to Wright State University,Dayton, OH
Awards $25,000 Gift of Inspiration forHealthcare to Howard Phillips Center forChildren and Families, Orlando, FL
Corporate Recycling Center receivesGovernor’s Award for EnvironmentalExcellence
Fordsville facility accepted into State ofKentucky Excellence in EnvironmentalLeadership (EXCEL)
Planted 600 Arbor Day Foundation treesin damaged forests to recognize over 360hours of Earth Month volunteer workcompleted by our employees
Conducted CEU courses on sustainabilityfor 548 individuals
Maintained or improved level® 2 or 3certification on products for meetingANSI/BIFMA e3 Sustainability Standard
Sponsored LEED® for Healthcareeducation course at GreenbuildConference
Reduced year-over-year cost of electricalconsumption by 16% per casegood unitproduced; Annual average savings $137k
Employees donated over 1,700 items to Food Banks in communities where we operate
2011All veneer casegoods and tables moves to UV (ultraviolet) finish technology“IntegraClear®”
Implements ecoScorecardSM, a free web-based tool for evaluating anddocumenting sustainable attributes of our products for proposals and LEED® documentation
Partnership begins with the take backprogram ANEW (Asset Network forEducation Worldwide)
All seating series, except for one,advance to Indoor Advantage™ Gold certification
Additional casegoods and tables advanceto Indoor Advantage™ Gold certification
100% of National manufactured productsadvance to ANSI/BIFMA level® 2 or 3 certification
Dallas Showroom earns LEED® Goldcertification
Registers Santa Claus, IN, manufacturingfacility for LEED® EB (Existing Buildings)certification
Receives ISO 14001 three-yearrecertification at each facility with no nonconformance
Publicly discloses greenhouse gasemissions and reduction goals withcompletion of the Carbon DisclosureProject’s (CDP) Investor Report
Fordsville facility achieves SHARPS(Safety & Health Achievement Recognition Program) by KentuckyOSHA/Labor Cabinet
Achieves reduction of chemicals used infinish formulation for products andmaintenance operations
3 National employees receive SGE(Special Government Employee)designation with OSHA and assist inVoluntary Protection Program (VPP)evaluations
Conducts CEU courses on sustainabilityfor 492 individuals
Awards $25,000 Gift of Inspiration forHealthcare to Good Samaritan RegionalMedical Center, Corvallis, OR
Awards $25,000 Gift of Inspiration for Education to Brandeis University,Waltham, MA
2010Receives Resource Caretaker Award fromState of KY for Fordsville facility
Earns OSHA Voluntary Protection Program(VPP) STAR Status/11th Avenue
Installs UV (ultraviolet) finish technology“IntegraClear®” at Fordsville facility
Completes Life Cycle Assessment (LCA)for key casegood series
Completes chemical Assessments forproducts and processes; reduction plan developed
Completes LEED® assessment (ExistingBuildings) for Santa Claus facility
Submits LEED® Gold certification(Commercial Interiors) for Dallasshowroom
Introduces Antimicrobial wood finish on casegoods, tables and seating
4 additional casegood series, 1 additionalseating series and all tables earn IndoorAdvantage™ certification
1 additional casegood series and 1 additional seating series earn level® certification
Awards $25,000 Gift of Inspiration forHealthcare to the University of WisconsinHospital and Clinics, Madison, WI
Awards $25,000 Gift of Inspiration forEducation to Hill College, Hillsboro, TX
2009Receives Governor’s Award forEnvironmental Excellence in Pollution Prevention
Majority of products earn level®certification from SCS
Installs UV (ultraviolet) finish technology“IntegraClear®” at Santa Claus facility
Introduces continuing education programfeaturing four sustainability CEUs
Completes Greenhouse Gas Inventory for all facilities
Earns OSHA Voluntary Protection Program(VPP) STAR Status/Santa Claus
Accepted into Indiana Department ofEnvironmental Management’s (IDEM)Environmental Stewardship Program (ESP)
Products meet California Air ResourceBoard (CARB) Air Toxins Control Measure93120 Phase 1
Orange County, CA, showroom earns LEED® certification
Awards $10,000 Gift of Inspiration forEducation to Southwest Middle School,Savannah, GA
2008Receives ISO 14001 registration at all manufacturing facilities
First veneer and laminate casegoods meetBIFMA FES; SCS Indoor Advantage™certification
Partnership in U.S. EPA SmartWaySM
Transport Program
First products meet BIFMA e3-2008Sustainability Standard; SCS SustainableChoice™ certification
Certified to offer Forest StewardshipCouncil (FSC®) certified wood
2007First seating products meet BIFMAFurniture Emissions Standards (FES)
New York showroom earns LEED®Certification
Joins Indiana Department ofEnvironmental Management (IDEM)Vehicle Idling Program
First products meet California 01350 Environmental Requirements
2006Joins Indiana Department ofEnvironmental Management (IDEM)Partners for Pollution Prevention
2005 Jasper, IN, showroom earns LEED® Gold certification
Chicago, IL, showroom earns LEED® Silver certification
2004Awarded SONY “Green Partner”certification for Excellence inEnvironmental Management
2002 Establishes Corporate Recycling Center
Membership in the U.S. Green BuildingCouncil (USGBC)
Earns HONDA ISO 14001 RecognitionAward for Excellence in Recycling
2001 Awarded Recognition as “CorporateConservator” from The NatureConservancy
Earns Indiana Governor’s Award forExcellence in Recycling
Named Mississippi Corporate Recycler of the Year
2000Earns OSHA Voluntary Protection Program(VPP) STAR Status/Springs Valley
Named Mississippi Corporate Recycler of the Year
Earns Indiana Quality Improvement Award
1990 Trees for Tomorrow Program begins
1980 National Office Furniture founded
1977 Membership in Business and InstitutionalFurniture Manufacturer’s Association(BIFMA)
1976 Energy and Environmental Departmentestablished
1970 Message from Kimball InternationalPresident, Tom Habig, on Sustainability
1963 First reforestation efforts on 280 acres
www.NationalOfficeFurniture.com 5
A History of Sustainability and Social Action
2012 Corporate Social Responsibility Report | Our People
6
Our Culture of Caring
We care for our employees and in turn, they care for others. Along with being good
neighbors, our employees are active stewards in their communities serving as
volunteers, mentors, coaches, caregivers, and much more. We often team up to
support a good cause and enjoy each other’s company at work and at play.
Our people bring our products to life. Furniture with Personality® is driven by a big
grin, solid handshake and an obvious enjoyment for what we do. Genuine people
that care about the success of our customers, the communities we serve and
the environment.
Backpacks of PersonalityEmployees at our Santa Claus facility donated funds and supplies to fill
back to school backpacks for underprivileged children.
National employees are encouraged to live healthy lives with
resources such as gym membership reimbursement, nutrition programs,
wellness events and a 5k walk/run before our annual Sales Meeting.
www.NationalOfficeFurniture.com 7
Our Statement on SustainabilityWe aim to create lasting stakeholder value through responsible
growth and deep commitment to the well-being of future
generations. We cherish the earth’s natural resources and hold
sustainability and environmental protection as our key priorities.
As our company fulfills its responsibilities to our customers,
shareholders, employees and the public, six commitments provide
a framework for focusing our energies toward the greatest good:
• Product Stewardship
• Environmental
Preservation
• Green Building
Development
• Regulatory Compliance
• Social Accountability
• Economic Responsibility
Changing the World One Pair at a Time®
Around the world, over 1.5 billion people have no shoes.
Since its inception in 2006, Soles4Souls® has distributed
nearly 20 million pairs of shoes to people in 128 countries.
Shoes are a basic necessity and the reality of life for many people
in developing nations is that having a pair of shoes is a rarity. It
is not uncommon for children to grow up in these areas without
ever having a pair of shoes. National employees, friends and
partners put their best foot forward for Soles4Souls in 2012 with
over 1,500 pairs of shoes being donated. We had incredible
turnout at our showroom collection gatherings, and the boxes
overflowed at our facilities as well.
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2012 Corporate Social Responsibility Report | Our People
Taste, Tour, and Renew Trip Culminates with Incredible Generosity from Our Guests…and National!
In October 2012, Hurricane Sandy hit just before our Taste, Tour and Renew incentive trip to Napa Valley for our
Dealer Partners. The unsettled weather caused several attendees to miss their hard-earned vacation. While in Napa
Valley, guests and National employees alike were moved by the devastation of the storm. When it was announced
that National would match any monetary donations to the storm relief effort, our guests donated $7,500 (it was a
small, but mighty generous crowd). With National’s matching gift, a total of $15,000 was sent to the American Red
Cross to support Sandy victims. We can’t think of a better example of great people and a great company doing
extraordinary things for its neighbors and communities.
600 Trees Planted in At-Risk Forestsin Honor of Employee Efforts
With stewardship woven throughout our culture, each Earth Day we
take the opportunity to participate in a focused campaign for our
employees and family. In 2012, we asked our employees to do a
little bit more of what they were already doing – helping improve
the environment, community and people’s lives. They responded
with activities such as planting flowers in public areas, cleaning
up shorelines and parks, and helping elderly neighbors with their
lawn. In recognition, National donated a tree in honor of each
employee who participated. The result? Through the Arbor Day
Foundation, we put 600 trees in the ground in at-risk areas. Three
hundred trees were planted in the Shasta-Trinity National Forest,
the largest National Forest in California. An additional 300 trees
were planted in the Blackwater River State Forest, a woodland
abundant in plant and animal life which lies in the northwestern
Florida Panhandle.
www.NationalOfficeFurniture.com 9
Time and Energy Volunteered forGreen Apple Day of Service
National supported sustainability in education by conducting an
energy audit at an area high school as part of the Green Apple Day
of Service program. Personnel from National and parent company
Kimball International teamed up with Jasper High School in Indiana
to gather performance metrics on the building and conduct an
ASHRAE Level 1 energy audit.
The audit resulted in some key findings that the school will be
addressing as they move forward with their master plan to save
energy and operate a more efficient building. The Green Apple Day
of Service is a nationwide program sponsored by the U.S. Green
Building Council to engage communities and businesses in creating
healthier, more sustainable schools.
367 Volunteer Hours to Improve theEnvironment by Employees in 2012
APRIL 2012
SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAYSATURDAY1 2 3 4 5 6 78 9 10 11 12 13 1415 16 17 18 19 20 2122 23 24 25 26 27 2829 30
Good FridayPassover
Easter Sunday
Earth Day
Arbor Day
Become more aware and educate myself on being more “Green.”
Recycle old motor oil.Recycle all my old magazines. Reuse my water bottles. Turn off the water while I dothe dishes.
Unplug all electronics after use instead of leaving them plugged in.
Turn off the lights when leavingthe roomTurn off the T.V. and do something outside for at least 1 hour.
Drink tap water instead of buying a water bottle.
Open doors and windows instead of using the air conditioner.Turn off all monitors when not in use. Replace my old bulbs with energy efficient bulbs. Install an energy efficientthermostat. Donate gently used clothes tocharitable organizations.
Buy economy sized beverages andrefill smaller containers.Adjust the water level on mywashing machine to the amount being washed.
Use re-chargeable batteries. Bring my lunch in reusablecontainers. Open the curtains to let natural light in instead of turning on a lamp.
Use a re-usable bag when grocery shopping. Recycle aluminum cans, plasticbottles, and cardboard.
Change the air/furnace filters when recommended.
Hang my clothes outside instead of using a dryer.Take my plastic bags to a localgrocery and recycle them.
Use rain water for my plantsand garden. Run the dishwasher only whenit is at max capacity. Use hand towels and fabric napkinsinstead of paper ones.
Take the stairs when possibleinstead of the elevator. Water my lawn only whenneeded.
Use paperless billing for all mybills that allow me this option.
Daily Dose of Green
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2012 Corporate Social Responsibility Report | Our People
Inspiration Totaling $160,000
In 2009, we started our Gift of Inspiration program to provide
opportunities for educators and healthcare providers to enrich lives
and communities. We wanted to do our part in supporting educators,
students, caregivers, and care recipients with a chance to provide
inspirational, meaningful programs, especially as funding for these
important initiatives has been challenged in recent years. The Gift of
Inspiration program allows us to give back to these markets with
financial gifts that may be used for technology needs, scholarships,
enrichment and development programs, facility enhancements or other
worthy endeavors. Through 2012, we have awarded seven Gifts of
Inspiration to education and healthcare organizations totaling
$160,000 in donations since the program’s inception.
4th
10
7.5
5
2.5
0
Employee Survey
Mission, Vision & Guiding Principles*
2006 2008 2010 2012
1,708 Items Donated to Food Banks in our Communities
* 1-10 scale with 10 being the highest
6.997.56 7.65
8.0
1.2
1
0.8
0.6
0.4
0.2
0
www.NationalOfficeFurniture.com 11
Percentage of Employees
Gender Diversity
Total Hourly Salaried Management
100
80
60
40
20
0
Female Male
Average Employee Tenure
13.7 YearsEmployees with 10+ Years
56%Employees with 5+ Years
70%
Percentage of Employee Average Monthly
Voluntary Turnover
2007 2008 2009 2010 2011 2012
Not all data is available for the same time periods, thus charts may vary in duration.
Our Goal: To be an Employer of Choice
National’s culture of caring, bias for action and fun personality make it a
great place to work as is evident through the lengthy average employee
tenure of 13.7 years.
National fosters an environment committed to equal opportunity.
One of the key elements to our diversity management is creating and
maintaining a gender-diverse workforce.
We also pride ourselves on the commitment and dedication of our
employees and set aggressive goals regarding low employee turnover and
consistently exceed these targets as part of our strategy to be their
Employer of Choice.
Every two years we conduct a Mission, Vision and Guiding Principles
survey to ensure our employees feel our actions as an organization align
and deliver what we have committed to as a company. Our values and
guiding principles serve as a road map and direct feedback from our
employees helps us maintain the world class business environment and
performance that exist today.
41%
59%
39%
61%
49%51%
36%
64%
.90 .94
.33
.63
1.05
.49
2012 Corporate Social Responsibility Report | Our People
Way to go!
1 Million Hours12
11th Avenue facility surpassed
Manufacturer of the Year!
In 2012, we were honored to be named the Manufacturer of the Year in the Casegoods
Category by the Office Furniture Dealers Alliance (OFDA). National earned this recognition
by achieving the highest ratings from OFDA’s 2012 Dealer Choice Survey that measures key
performance metrics in the dealer-manufacturer relationship such as training, product lines,
service and support, sales and marketing, management and technology. Over 2,000 dealers
from across the nation completed the survey, where they were asked to rate their top-volume
nonaligned suppliers in each of six product categories.
without a lost time injury
Congratulations to our Fordsville facility for acceptance into the State of Kentucky Excellence in Environmental Leadership (EXCEL) Program
www.NationalOfficeFurniture.com 13
Per 100 Employees
Injury Incident Rate
National Industry Average
5
4
3
2
1
0
71%Less ThanIndustry Average
Ø
Promoting Personal BestSimilar to delivering quality products to our customers, we believe in delivering a quality work experience to
our employees and their families. Safety and overall wellness is immersed in our culture to ensure employees
are comfortable and equipped with all the advantages to be productive and successful.
From flu shots and health screenings, to healthy recipes on the
intranet, creating walking path maps, and on-going feedback,
we are committed to providing the optimal work environment
for our employees. Our approach is holistic to enable our people
to grow professionally and personally.
Examples of Lifelong Learning and Wellness Offerings
• “Fit It In” Fitness Classes
• Seasonal Flu Shots
• Health Screenings
• Fire Extinguisher Training
• Annual Ethics Training (required)
• Workplace Violence Awareness
• Discrimination and Harassment Free Workplace
DETUR Don’t Ever Take Unnecessary Risks
Number of Employee
Recordable Injuries
2004 2005 2006 2007 2008 2009 2010 2011 2012
140
120
100
80
60
40
20
0
87%Reduction
from 2004
Ø
109
71 69
37 26
7 918 14
1.2
4.2
Our Products Reflect Stewardship
Product stewardship is our focus. We actively pursue ways to minimize
the impact of our products on the environment. This means designing
products that save resources, have longer life, use clean manufacturing,
meet indoor air requirements, recycle easily and include many other
sustainable attributes.
Our furniture earns the stringent Indoor
Advantage™ Gold mark from the
independent third party SCS Global Services
for meeting Indoor Air Quality criteria,
which can assist organizations seeking the low-emitting furniture credit
in the LEED® Rating System.
Additionally, our products meet the multi-attribute
criteria set forth in the ANSI/BIFMA e3 Sustainability
Standard and are certified to level®, the sustainability
certification program for furniture from BIFMA (Business
and Institutional Furniture Manufacturers Association). Products can be
awarded level® 1, level 2 or level 3 based on their score, with level 3
being the highest award a product can achieve. We are proud that 100%
of company manufactured products are certified to level 2 or 3. Using
level certified products can contribute to LEED® certification under the
Materials Pilot Credit #80.
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2012 Corporate Social Responsibility Report | Our Products
Casegoods
Arrowood™ Veneer, Laminate 4 4 4 4
Barrington® 4 4 4 4
Captivate® 4 4 4 4
Casbah® 4 4 4 4
Clever® 4 4 4
EnvyWorks® 4 4 4 4
Epic™ 4 4 4
Epic™ with Epicenter® 4 4 4
Escalade® 4 4 4 4
Flourish™ 4 4 4
Franklin™ 4 4
Hiland™ 4 4 4 4
Renegade™ 4 4 4 4
Roosevelt™ 4 4 4
WaveWorks® Veneer, Laminate, Thermofoil 4 4 4 4
WaveWorks® Metal 4 4
For more information, refer to the “What We Believe” page in the Sustainability section of NationalOfficeFurniture.com
By giving customers the option of Forest
Stewardship Council (FSC®) certified wood, we offer
products that are not only economically viable, but are
environmentally responsible and socially beneficial.
Choosing FSC certified furniture can assist with a credit in the LEED®
rating system.
National’s manufacturing facilities are registered to the ISO 14001
standard. This management tool enables us to identify and control
the environmental impact of our operations, continually improve our
company’s environmental performance and systematically set
environmental objectives and demonstrate their achievement.
We realize that the environmental impact of a product
throughout its entire life is important. Thus, we have
conducted a Life Cycle Assessment (LCA) that is
compliant to ISO 14040/14044 on a number of our
products. LCA is a method of addressing the environmental aspects
throughout a product's life cycle from raw material acquisition through
production, use, end-of-life treatment and disposal.
www.NationalOfficeFurniture.com 15
Seating
Acquaint® 4 4 4* 4
Admire® 4 4 4* 4
Arlington™ 4 4 4
Aurora® 4 4 4
Confide® 4 4 4
Cinch® 4 4
Davari™ 4 4 4
Eloquence® Executive, Lounge 4 4 4
Eloquence® Guest/Tandem/Bariatric 4 4 4* 4
Fuel® 4 4 4
Gotcha® 4 4
Jiminy® 4 4
Journey® 4 4 4
Justice® 4 4 4
Medalist™ 4 4 4
Mix-it® 4 4
Monterrey™ 4 4 4
Pennant™ 4 4 4
Remedy® 4 4 4
Reno® 4 4 4
Respect® 4 4 4
Swift™ 4 4 4
Tag® 4 4 4
Timberlane™ 4 4
Triumph™ 4 4
Dividers
Chameleon® 4 4
Conference, Training, Occasional Tables
Varies - refer to online list 4 4 4 4
Wall Rail Solution
Exhibit™ 4 4
National Manufactured Products
Certified to level® 2 or 3100%* Requires FSC-certified wood option
LEEDing The Way
We realize it is important to our customers to build and maintain buildings that are easy on the environment. Many strive to meet the guidelines of the LEED®
(Leadership in Energy and Environmental Design) Green Building Rating System™. In addition to following the LEED guidelines in our own buildings, we also feel
it is critical to offer furniture solutions to our customers that can help contribute LEED points towards certification.
Furniture is included in the scope of a limited amount of LEED categories; however, rest assured that we have those categories covered. The table below outlines
how National’s solutions can help achieve points in a number of areas, from task lights to packaging to the furniture itself.
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2012 Corporate Social Responsibility Report | Our Products
Contributions to LEED®New Construction and Commercial Interiors v2009
MR Credit 2.1 Construction Waste Management: Divert 50% from LandfillMR Credit 2.2 Construction Waste Management: Divert 75% from LandfillMR Credit 3.1 Materials Reuse, 5%MR Credit 3.2 Materials Reuse, 10%MR Credit 3.3 Resource Reuse, 30% Furniture and FurnishingsMR Credit 4.1 Recycled Content: 10% (Post-consumer + ½ Pre-consumer)MR Credit 4.2 Recycled Content: 20% (Post-consumer + ½ Pre-consumer)MR Credit 5.1 Regional MaterialsMR Credit 7 Certified WoodMR Pilot Credit 80 Environmentally Preferable Interior Furnishings
EA Credit 1.1 Optimize Energy Performance
Materials & Resources
Energy & Atmosphere
EQ Credit 4.5 Low-emitting MaterialsEQ Credit 6.1 Controllability of Systems, Lighting EQ Credit 8.1 Daylighting and Views
Indoor Environmental Quality
ID Credit 1.1-1.4 Innovation in Design Innovation in Design
RP Credit 1 Regional PriorityRegional Priority
www.NationalOfficeFurniture.com 17
ecoScorecardSM
Green Product Information Made Simple
ecoScorecard is an easy-to-use tool to
search and evaluate sustainable products
from National. It’s also a simple way to
produce some of the documents required
to apply for certification for LEED® and
other green building rating systems.
This free, web-based tool is available
24/7 to anyone who would like more
details on the sustainability attributes
and certification conformance of National’s
furniture. No one will know if you utilize
the application (unless you click a
“Contact Me” button) and information
can be saved to come back to later.
ecoScorecard is a quick and easy
method to consolidate product
sustainability information without
spending hours making phone calls,
sending emails or tracking down details.
level® ProductsContribute toLEED under Pilot Credit 80
NationalOfficeFurniture.ecoScorecard.com
For specific information on LEED® credit
contribution for National products, visit
our free web-based tool.
National offers
722Textiles with
Reduced Environmental Impact
Sustainable Textiles
Sustainability extends beyond a product to its coverings. That’s why the textiles offered on National
products include fabrics with a reduced environmental impact. There are 235 for seating, 39 for tack
boards, and 448 “carded” alliance for seating. Choices include fabrics which have significant recycled
content or are PVC or chrome-free. Some bear the Terratex® name, which signifies they are made of
100% recycled fiber and use a fabric production process that reduces waste and emissions. Others
are made of Repreve® yarn, a recycled polyester yarn that uses the U Trust™ verification program
which ensures that Repreve recycled fibers are traceable, transparent and certifiably sustainable. In
addition, some fabrics are Green-e® certified, signifying that 100% of the electricity used to make
the fabric is matched by Green-e® certified renewable energy certificates that support clean energy.
Our alliance partners, Arc-Com, Stinson, Maharam, Momentum and Ultrafabrics, offer a wide variety
of upholstery choices that feature sustainable characteristics. For additional details, please refer to
their websites.
2012 Corporate Social Responsibility Report | Our Products
18
National Casegoods Include on Average
82%Recycled Material
Average PercentagePost-ConsumerRecycled Content
Average PercentagePre-ConsumerRecycled Content
Total Average PercentageRecycled Content
Executive Seating 11.7% 11.5% 23.2%
Task Seating 11.7% 0% 11.7%
Lounge Seating .3% .8% 1.1%
Guest Seating 1.5% 0% 1.5%
Stacking Seating 13.7% 17% 30.7%
Veneer & Laminate Casegoods 1.7% 80.6% 82.3%
Veneer & Laminate Table Tops .1% 97.5% 97.6%
Occasional Tables 0% 67 - 91% 67 - 91%
Training Table Tops .1% 97.5% 97.6%
Wall Rail Solution 1.1% 62.4% 63.5%
Assessing and Reducing Chemical Use
As part of the ongoing work to improve our furniture, we address health and safety impacts across the life cycle of products. All product series are tested
against industry safety/durability test standards during development. To date, roughly half of the series in our product portfolio have undergone life cycle
analysis as outlined in the ISO 14040 and 14044 standards. What’s more, we analyze the materials and processes in place to detect the presence of any
“chemicals of concern” as defined in the ANSI/BIFMA e3 Sustainability Standard, which is the criteria for level® certification. Since 2010, we have been
assessing our end products, manufacturing processes and maintenance operations and taking steps to reduce or eliminate chemicals wherever possible.
In 2012, a new wood coating technology was implemented on our seating to transition from a low emitting formaldehyde finish to one that is non-detectable
for formaldehyde with current testing technology. As more is understood about the impact of chemicals on human and ecosystem health, we continue to take
action to reduce and eliminate these types of elements.
Doing What’s Right With What’s Left®
Since 2011, National has been in partnership with ANEW (Asset Network for
Education Worldwide), a non-profit organization dedicated to extending the
life cycle of surplus furniture, fixtures and equipment (FF&E). A Take Back
program, ANEW works with organizations to collect, organize and repurpose
FF&E for donation to the underserved, resulting in cost savings and increased
social responsibility. An alternative to sending used furnishings to a landfill,
working with ANEW can also result in tax advantages for organizations which
is a win-win for all.
To learn more, visit ANEW’s website www.anewfound.org
IntegraClear®Tough, Beautiful, Earth-Friendly
All of our veneer casegoods and tables are finished with IntegraClear®,
our proprietary, water-based ultraviolet (UV) finish. This finish is friendly
to the environment, easy on the eyes and even handles daily events such
as coffee spills like a champ. IntegraClear provides the ultimate balance in
beauty, durability and sustainability enabling our products to earn indoor
air quality certification for low-emitting furniture that can contribute to
LEED® points.
www.NationalOfficeFurniture.com 19
100%of Finished Wood Products Include
Silver Ion Antimicrobial Protection
A Bright Idea
We recognize that energy consumption can be a contributor to climate change due to the generation of carbon dioxide (a greenhouse
gas) associated with the burning of fossil fuel energy sources. While most solutions within our product portfolio do not rely on a power
source, we have recently introduced desk lighting products which are energy efficient. Our LED lighting products meet the
requirements of the Energy Independence and Security Act of 2007 and also meet six of the seven Energy Star requirements for
LED lights. Use of the lights can assist customers in their efforts to reduce energy consumption, and also help keep reduce their
energy costs.
a n ew
20
2012 Corporate Social Responsibility Report | Our Facilities and Operations
Growing with Green Buildings
National facilities testify to our belief in sustainable building
practices. Pursuing guidelines set by the U.S. Green Building
Council (USGBC), we prioritize building
practices that support the LEED® (Leadership
in Energy and Environmental Design) Green
Building Rating System™. Our latest LEED
project is the application for LEED
Commercial Interiors (CI) certification for our
Washington, DC and Atlanta, GA facilities.
Our LEED® Certified Projects
Research and Development Annex/Jasper, IN - LEED Certified
Corporate Showroom/Jasper, IN - LEED Gold
Showroom/Atlanta, GA - LEED Pending
Showroom/Chicago, IL - LEED Silver
Showroom/Dallas, TX - LEED Gold
Showroom/New York, NY - LEED Certified
Showroom/Orange County, CA - LEED Certified
Showroom/Washington, DC - LEED Silver
Manufacturing Facility/Santa Claus, IN - LEED Silver
We’ve reduced our year over year greenhouse gas emissions by 10.13%
Measuring Today For a Better Tomorrow
Further strengthening our commitment to environmental and social
stewardship, National completed the CDP (formerly the Carbon Disclosure
Project) Investor Report in 2011 and we continue to voluntarily disclose
our measurements and management of greenhouse gas emissions (GHG)
and climate change initiatives today.
As our industry embraces more transparency with the growing use of tools
such as EPDs (Environmental Product Declarations) and HPDs (Health
Product Declarations) based on certifications and life cycle assessments,
carbon disclosure and climate change impacts will be key data that
manufacturers and suppliers must make readily accessible to consumers.
Overall, National reduced GHG emissions per unit produced by 9.76% per
metric ton from 2011 to 2012. Total GHG emissions have decreased by
10.13% per metric ton during this same time frame. Other key 2012
GHG statistics:
• Total GHG emissions (metric tons) was 39,967.
• Total was comprised of 9,194 metric tons of GHG emissions from
direct sources which include sources controlled by our company and
parent company such as emissions from combustion in our boilers,
furnaces, and from corporate truck fleet and aircraft.
• Total also includes 30,773 metric tons from indirect sources, which
include emissions from the generation of purchased electricity, and
from contracted carriers and commercial aircraft.
• An offset of 1,014 metric tons was achieved from recycling activities
and utilization of a landfill which converts resultant greenhouse
gases (methane) into an alternative energy source.
• GHG emissions from National facilities (not including allocation of
parent company facilities) were driven by the consumption of
22,088,008 total kilowatt hours of electricity, 42,451,419 cubic feet
of natural gas and 27,003 gallons of propane.
• Our efforts to reduce GHGs included (among others) the use of wood
waste to eliminate coal in a facility, energy reduction efforts put in
place by Power Management Teams at each facility, reduced impact of
transporting recycled materials due to use of a new bailer, improved
fuel efficiency and reduced idling of our fleet and external carriers.
www.NationalOfficeFurniture.com 21
Percentage of Wood Based Casegoods and Tables Available in
FSC® Certified Wood
100%
FSC® Certified WoodThe Mark of Responsible Forestry
National’s manufacturing facilities have been approved to offer the
option of Forest Stewardship Council (FSC®) certified wood since
2008. Our commitment to offering FSC wood continues as we were
recently recertified for another five year period.
The FSC is an international organization which promotes the
long-term stewardship of the world’s forests through the
development of worldwide standards for responsible forest
management. To ensure that these standards are adhered to, the
organization accredits independent third party organizations who
can certify forest managers and forest product producers that meet
the FSC standards. By giving customers the option of FSC certified
wood, we offer the assurance of products that are not only
economically viable but are also environmentally responsible and
socially beneficial. Purchasing FSC certified wood products from
National can also help businesses earn points toward achieving
a LEED® building rating.
National’s FSC Chain of Custody Number: SCS-COC-001573
Valid from June 4, 2013, to June 3, 2018
Independently certified by SCS Global Services
Many casegoods, tables and seating products are available with an FSC
certified wood option
ZERO Fines or sanctions for noncompliance of environmental regulations
Significant spills of hazardous substances
Investing in the Future
As we invest in the future of our employees, communities and
shareholders, our organization received the following assistance
from the government in 2012:
• $40,000 local tax abatement for UV (ultra-violet) wood finish
work cell in the Santa Claus facility
• $25,000 federal tax credit for Research and Development
• $15,890 in training costs were reimbursed for employees hired
through the State of Kentucky Bluegrass Area Development
District’s On-The-Job training program
• $12,390 federal tax credit for Targeted Jobs program
• $5,654 Kentucky Economic Development Finance Authority
payroll tax benefit
• $27,290 in rebates to Fordsville/11th Avenue facilities for
switching to more efficient light fixtures
Waste Wise
With our parent company, Kimball International, we recycle 65 different kinds of materials;
from steel, aluminum, glass and cardboard to oil, printer cartridges and computer hardware.
Discarded materials find new life as fencing, automotive insulation, animal bedding, tack
boards and other goods to enhance people’s lives. Our corporate recycling center alone diverts
3.6 million pounds of waste each year from landfills. Sawdust and wood scraps become
clean-burning fuel for National manufacturing plants. Computer-guided trimming prevents
fabric waste, and the minimal scrap is repurposed in trunk liners, headliners and acoustic insulation.
Aluminum180,924 lbs.
Cardboard3,339,752 lbs.
Plastics1,092,958 lbs.
Sawdust/ Wood Waste20,611,841 lbs.
Steel3,307,298 lbs.
Upholstery175,334 lbs.
Electronics63,252 lbs.
Office Paper/Magazines161,384 lbs.
Data is for Kimball International
22
2012 Corporate Social Responsibility Report | Our Facilities and Operations
of Solid Waste generated by National was Recycled or Reused in 2012
59.7%Reduction
From 2002
Ø
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
20,000
15,000
10,000
5,000
0
Total Weight of
Generated Solid Waste*
94.5%
We Recycle
65Differ
ent Kinds o
f
Materials
*In tons
Regardless of Volume Growth
16,158
10,289 10,3148,189
6,7295,239 5,199 4,800
6,257 7,424 6,515
www.NationalOfficeFurniture.com 23
Waste Not, Want Not
At National, we continue to tackle waste
from all angles to mitigate its effect on the
environment and operations. Waste can be
costly in more ways than one, so we
measure it by total weight, and also by
units produced to ensure progress is being
made even when we are producing more
product year over year. Our Design for the
Environment (DfE), continuous
improvement efforts, and education
programs help reduce waste, energy use,
and water during the manufacturing of our
products and our general operations.
Not all data is available for the same time periods, thus charts may vary in duration.
Pounds Per Unit Produced
Solid Waste
2009 2010 2011 2012
2.5
2.0
1.5
1.0
.5
0
44%Reduction
From 2011
¨
772Tons of Wood Reclaimed for Boiler Fuel
Providing Energy for Production Facilities
Gallons Per Unit Produced
Water Used
2009 2010 2011 2012
12
10
8
6
4
2
1.812.09 1.69
0.94
7.91
9.89
7.868.29
Reducing Our Environmental Impact
A critical element of the ISO 14001-certified Environmental Management System (EMS) in place at each of
our manufacturing locations is the identification of Significant Environmental Aspects. These Aspects are
key continuous improvement projects or metrics that are identified, tracked and monitored through our
EMS system. Each location determines their Significant Environmental Aspects annually based on the
potential impact to the environment while considering the larger strategies and goals of the company.
Our EMS system is certified to ISO 14001 by the third-party registrar SAI Global, who conducts annual
audits and a recertification every three years. Our system enables us to identify and control the
environmental impact of our operations, continually improve our company's environmental
performance, and systematically set environmental objectives and demonstrate their achievement.
24
2012 Corporate Social Responsibility Report | Our Facilities and Operations
Goals 2012 Performance 2012
Reduce GHG emissions per unit produced by 2% Achieved a total reduction of 9.76% per unit produced
Increase Break Room Recycling by 75% in select facilities
Achieved a 35.5% increase
Improve landfill diversion rate for vinyl in selectfacilities by 2%
Improved from a diversion rate of 0% for this material to 16.6%
Reduce by 50% the amount of cardboard containerspurchased for recycling use in select facilities
Achieved a 68.9% reduction in purchases of cardboard containers;now utilizing a bailer for plastic materials (resulted in a reduction of9.49 metric tons of CO2 due to decreased transportation footprint)
Pounds Per Unit Produced
VOC Emissions
2009 2010 2011 2012
0.9
0.8
0.6
0.4
0.2
0
Pounds Per Unit Produced
Hazardous Waste
2009 2010 2011 2012
.09
.08
.06
.04
.02
0
Goals 2013 (may vary by facility)
Reduce GHG emissions per unit producedby additional 2-4%
Reduce total hazardous waste by 34% in select facilities
Increase recycle rate by 2% in selectfacilities
Reduce use of aerosols by 15% in select facilities
Percentage of National ManufacturedProducts from
ISO 14001 Facilities
100%
.08 .084 .081 .080.71 .75
.65 .57
Percentage of Tractor
Idling Time*
www.NationalOfficeFurniture.com 25
Reducing Our Tire Tracks
At National we recognize the environmental impact produced by
commercial freight. We continuously work to reduce our carbon footprint
as materials ship into our facilities and products ship to our customers.
Our corporate fleet participates in the Indiana Department of
Environmental Management (IDEM) Vehicle Idling
Program for Cleaner Air and was accepted by the
U.S. EPA into their SmartWaySM Transport Partnership
in 2008.
Additionally, our logistics group has identified a number of strategies to
improve fuel efficiency and reduce emissions through methods such as
testing the use of nitrogen in tires as a way to increase fuel efficiency,
using auxillary power units to decrease idle
times, and utilizing battery management
systems to increase battery life. In 2011 our
fleet was comprised of 26% CARB (California
Air Resource Board) compliant engines; in 2012 we increased the
number to 74%.
2012 Corporate Social Responsibility Report | Our Transportation
2005 2006 2007 2008 2009 2010 2011 2012
50%
40%
30%
20%
10%
0
*Engine is running but truck is not moving
2005 2006 2007 2008 2009 2010 2011 2012
7
6.8
6.6
6.4
6.2
6
5.8
Over-the-Road Fleet
Average Miles per Gallon
Industry average is 6% for heavy duty trucks
Not all data is available for the same time periods, thus charts may vary in duration.
Percentage of Kimball Fleet usingCARB compliant engines
74%
98%of National’s outbound loads a
re delivered by our
corporate fleet or other SmartWaySM certified carriers
43.1
32.3
24.120.4 19.6 19.9 23.9 19.5
6.0
6.2
6.35
6.54 6.47 6.5
6.9
6.7
2012 Corporate Social Responsibility Report | About National
About National Office FurnitureOver thirty years ago, National Office Furniture was created to deliver on two fundamental objectives: provide customers with office furniture at a better value and offer
shorter lead times. These two fundamentals thrive in our business today and have grown into so much more. That “better value” is now “exceptional value,” which starts
with a great price and becomes even more attractive with the quality, reliability, style and sustainability that are a part of everything we do.
National crafts casegoods, seating, filing and storage, tables, dividers and a wall rail solution to work across all commercial markets and applications. We also integrate
innovative design features and functionality into our extensive product portfolio to excel in focused industries such as healthcare, education and finance as well as state,
local and federal government. In 2012 we expanded our reach by opening a showroom in Atlanta.
Due to the early and continued efforts of our parent company, Kimball International, we’re fortunate to have a rich heritage in wood manufacturing, environmental
responsibility and financial stability to build upon while stretching our curiosity in identifying new opportunities that are meaningful to end customers, dealer partners,
design professionals, employees, neighbors and the environment. Kimball International operates in two segments: furniture and electronics. In addition to National,
Kimball International is parent to Kimball Office, Kimball Hospitality and Kimball Electronics. For more information on Kimball International operations, the Board of
Directors governing body, and communication with the Board, visit www.Kimball.com/Investor_Relations.
For more information regarding National’s environmental and social responsibility, contact Lisa Schmidt at 800.482.1717 or [email protected].
26
Atlanta, GALEED Pending
Chicago, ILLEED Silver
Dallas, TXLEED Gold
Jasper, INCorporate ShowroomLEED Gold
New York, NYLEED Certified
Orange County, CALEED Certified
Toronto, ON
Washington, D.C.LEED Silver
Showroom & Facility Locations
Showrooms 11th Avenue, Jasper, IN282,634 sq. ft.
Santa Claus, IN324,320 sq. ft.LEED Silver
Fordsville, KY194,566 sq. ft.
Danville, KY158,307 sq. ft
ManufacturingFacilities
Corporate HeadquartersProduct Developmentand Research AnnexJasper, IN
We developed this report with consideration given to the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines version G3.1. The GRI framework
suggests principles and indicators that organizations can use to measure and report their economic, environmental and social performance. To learn more about
GRI, go to www.globalreporting.org.
GRI Reference PageStrategy and Analysis
1.1 General Manager Statement 4
Organizational Profile2.1, 2.2 Name of organization, primary brands, products or services 262.4, 2.5 Location of headquarters, countries located 262.7 Markets served 262.10 Awards received during reporting period 4, 5, 12
Report Parameters3.1 Reporting period 13.2 Date of most recent previous report 23.3 Reporting cycle 23.4 Contact point for questions on report 26
Governance, Commitments and Engagement4.1 Organization’s governance structure 264.2 Chair of highest governance body 264.3 Independent members of highest governance body 264.4 Shareholder and employee recommendations to highest governance body 264.8 Internally developed mission relevant to economic, environmental and social performance 74.12 Externally developed, voluntary initiatives organization subscribes to or endorses 5, 8, 9, 10, 194.13 Significant association memberships 284.14 List of stakeholder groups engaged by organization 26
Economic PerformanceEC4 Financial assistance from Government 21
Environmental PerformanceEN2 Recycled input materials used 18EN3 Direct energy consumption by energy source 20EN5 Energy saved due to conservation and efficency improvements 20 EN6 Initiatives to provide energy-efficient products 19EN7 Initiatives to reduce indirect energy consumption 20, 25EN8 Water withdrawal by source 23EN16 Direct and indirect greenhouse gas emissions 20EN18 Initiatives to reduce greenhouse gas emissions 19, 20, 22, 23, 24, 25EN22 Waste by type and disposal method 22, 23EN23 Number of significant spills 21EN26 Initiatives to mitigate environmental impacts of products 14, 18, 19, 21, 22, 23, 24, 25EN28 Value of fines, number of sanctions for environmental noncompliance 21
Social PerformanceLA2 Employee turnover 11LA6 Management – worker health and safety committees 4LA7 Rates of injury 13LA8 Education, training, counseling and prevention programs regarding serious diseases 13LA11 Skills management and lifelong learning programs 13LA13 Breakdown of employees by gender 11SO3 Anticorruption policies and procedures training for employees 13PR1 Lifecycle stages where health and safety impacts of products are assssed 18
2012 Corporate Social Responsibility Report | GRI Considerations
www.NationalOfficeFurniture.com 27
We see our legacy as more than quality furniture.It is also a reverence for nature, which inspires our resolve to protect, nurture and preserve nature’s gifts.
www.NationalOfficeFurniture.com800.482.1717
1205 Kimball Boulevard, Jasper, IN 47549 Form No. NBRCSR2012