iupui ceo alliance sustainable business strategy by george bandy jr
TRANSCRIPT
IUPUI CEO AllianceSustainable Business Strategy
by
George Bandy Jr.
"Humanity has the ability to make development sustainable--to ensure that it meets the needs of the present without compromising the ability of future generations to meet their own needs."
World Commission on Environment and Development, Brundtland Commission
what is sustainability?
A System Perspective Emphasizes:
Principles rather than details
Shared framework and a common language
Focusing “upstream”
Necessary (non-negotiable) system conditions
Science Principles
Matter and energy cannot be created or destroyed (the Conservation Law)Matter and energy tend to spread spontaneously (2nd Law of Thermodynamics)Biological and economic value (quality) is in concentration and structure of matter (What we consume)Green cells are essentially the only net producer of concentration and structure (Photosynthesis)
The Concept of the Funnel
Decline of Living Systems
Margin for Action
Population x Affluence x Technology
1. substances from the earth’s crust must not systematically increase in nature.
2. substances produced by society must not systematically increase in nature.
3. the physical basis for productivity and diversity of nature must not be systematically diminished.
4. we must be fair and efficient in meeting basic human needs.
The Natural Step
what is sustainability?
HOW THE JOURNEY BEGAN
Ray Anderson
Ray’s Epiphany˜August 31, 1994
Today, key driver of:˜Competitive advantage˜Innovation˜Workforce engagement
GLOBAL LEADER.
2005 Market Share Analysis
All Competitors 70%
Interface 30%
InterfaceFLOR / BentleyPrinceStreet / Heuga Brands/FLOR
DIVERSE PRODUCTS & SERVICES.
Services 2%
Broadloom 14%
Fabrics 20%
Modular 64%
CATEGORY SALES BREAKDOWN
InterfaceFLOR Bentley Prince StreetInterfaceFabric (SOLD)Strategic Flooring ServicesFLOR (residential)2006 estimated revenue $1.4 Billion
HEUGA: CARPET TILE THEN.
Interface/Heuga Installation
~Contract Customers Receive a 20% Discount~Order Online With Discount Code at www.florcatalog.com
RESIDENTIAL EMPLOYEEPURCHASE PROGRAM.
GLOBAL LOCATIONS.
Asia 2
ManufacturingLocations
Canada 1
Europe 3
Latin America 0
United States 3
Asia 47
Distribution Sites
Canada 25
Europe 93
Latin America 26
United States 132
Asia 8
Servicing; Sales and Marketing Sites
Canada 6
Europe 21
Latin America 3
United States 10
Using InterfaceFLOR global network reduces cost and lead time issues vs. shipping overseas from US competitors.
GLOBAL MANUFACTURING LOCATIONS.Interface Americas Global Manufacturing
LaGrange, GA(Modular)
Picton, Australia(Modular)
Belleville, Canada(Modular)
Chonburi, Thailand(Modular)
Holland(Modular)
N. Ireland(Modular)
West Point, GA(Modular)
Yorkshire, England(Modular)
City of Industry, CA(Modular, Broadloom)
Note: Tile plant in Georgia & Fabric Plant in Maine are members of U.S Environmental Protection Agency’s National Environmental Performance Tracking Program.
THE MARKET.Custom product website.
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THE MARKET.Inspired Online Design Tool.
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Old Model vs. New Model of Environmentalism
Doom & Gloom
Old Model vs. New Model of Environmentalism
Positive vision of the futureSustainability as business opportunityNo compromises
The Interface Vision
IMAGE HERE“To be the first company that, by its deeds, shows the entire industrial world what Sustainability is in all its dimensions: people, process, product, place and profits – by 2020 – and in doing so we will become restorative through the power of influence.”
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INTERFACE’S SUSTAINABILITY PROGRAMS.
LEED
Cool Blue
ReEntry
Cool Commute
Cool CarpetClimate Neutral
Think LocalAct GlobalBrazil & India
The Interface ModelSeven Fronts of Mt. Sustainability
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1. Eliminate waste
2. Eliminate harmful emissions
3. Use only renewable energy
4. Create closed loop processes
5. Resource efficient transportation
6. Integrate sustainability into the culture
7. Pioneer new business models for sustainability
~ Reduced solid waste to landfill by 70% since 1996~ $336 million in waste savings since 1994
Front 1: Zero Waste
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Sample Return Program•2005: over 55,000 samples were returned
•2006: 90,163 samples returned
SIMs•In 2006, 8,000 SIM prints sent
•Conserving > 2,000 gal of oil
•Keeping 20,000 lbs carpet out of landfill
Front 1: Zero Waste
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1 Carpet sample=1 Qt oil
Water savings•Exited energy intensive printing process in 1998
•Water intake per square meter is down 87% since 1996
•Today no wastewater leaves manufacturing area
•No environmental permits are needed
˜ Big cost savings!
Front 1: Zero Waste
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1 Carpet sample=1 Qt oil
50 gallons/sq yd
0.9 gallons/sq yd
versus
INNOVATIVE PRODUCTS INSPIRED BY NATURE How does nature create random beauty?
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Entropy – inspired by natureEach tile is slightly different in pattern & color
Typical i2 installation waste: 1.5%
Typical broadloom installation waste: 8-12%
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Reduced installation wasteReduced manufacturing wasteNo attic stock, no storage space needed
The Interface ModelSeven Fronts of Mt. Sustainability
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1. Eliminate waste
2. Eliminate harmful emissions
3. Use only renewable energy
4. Create closed loop processes
5. Resource efficient transportation
6. Integrate sustainability into the culture
7. Pioneer new business models for sustainability
COOL CARPET TM
Carpet Tile
GHG Emissions
=???
Manufacturing
Use & Maintenan
ceTransportati
on
Return and Reuse
Raw material extraction
Carpet Tile35 lbs
COOL CARPET TM
The Only Climate Neutral Carpet Offering
Reductions& Offsets(Solution)
Total Life CycleGHG
Emissions(Problem)
Carpet that Cools the Planet
35 lbs
COOL CARPETTM
Carpet that Cools the Planet
177 tons
Carbon Offsets
177 tons
GHG Emissions
COOL CARPETTM
10,000 sq yds =
177 tons GHGs =
21 households’ electricity use for
1 year!
Carpet that Cools the Planet
The Interface ModelSeven Fronts of Mt. Sustainability
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1. Eliminate waste
2. Eliminate harmful emissions
3. Use only renewable energy
4. Create closed loop processes
5. Resource efficient transportation
6. Integrate sustainability into the culture
7. Pioneer new business models for sustainability
Front 2: Benign Emissions
Landfill gas is fueling manufacturing processes at LaGrange, GA facility
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Front 3: Renewable Energy
The Interface ModelSeven Fronts of Mt. Sustainability
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1. Eliminate waste
2. Eliminate harmful emissions
3. Use only renewable energy
4. Create closed loop processes
5. Resource efficient transportation
6. Integrate sustainability into the culture
7. Pioneer new business models for sustainability
Front 4: Close the LoopReEntry Program
Interface has diverted more than 103 million lbs of carpet since 1994
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1. Carpet shipped back to LaGrange, Georgia2. Full carpet tile is ground up, fiber and backing3. Agglomerator converts material to pellets
Front 4: Close the LoopReEntry Program
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Front 4: Close the LoopReEntry Program
4. “Cool Blue Food” sprinkled onto conveyor belt5. Pellets heated until they ‘ooze’6. Backing cured and face fiber added
The Interface ModelSeven Fronts of Mt. Sustainability
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1. Eliminate waste
2. Eliminate harmful emissions
3. Use only renewable energy
4. Create closed loop processes
5. Resource efficient transportation
6. Integrate sustainability into the culture
7. Pioneer new business models for sustainability
Interface Business Travel Since 1997
~ 136 million miles
~ Emitting 30,000 tons of greenhouse gas emissions
Front 5: Resource Efficient Transportation
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Greenhouse Gas Emissions Offset through “Trees for Travel” ~ Planted over 75,000 trees since 1997
Front 5: Resource Efficient Transportation
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The Cool Fuel™ program offsets CO2 from company car fuel purchases
˜To date: offset 7,000 tons CO2
Cool Co2mmute offsets GHG emissions from employee commuting
˜10,000 trees planted, 416 employees
EPA SmartWay Transport Charter Partner, to reduce emissions from ground freight
Front 5: Resource Efficient Transportation
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Partnership with Subaru
Subaru will sponsor the planting of thousands of trees through AMERICAN FORESTS’ Global ReLeaf program, making the operation of the vehicles “climate neutral” for the first 60,000 miles.
The Subaru plant was the first auto assembly plant to achieve zero landfill status.
Front 5: Resource Efficient Transportation
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The Interface ModelSeven Fronts of Mt. Sustainability
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2
3
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1. Eliminate waste
2. Eliminate harmful emissions
3. Use only renewable energy
4. Create closed loop processes
5. Resource efficient transportation
6. Integrate sustainability into the culture
7. Pioneer new business models for sustainability
Front 6: Integrate SustainabilityLegacy Projects
•Annual tradition for Interface sales force •Creates culture of social responsibility
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The Interface ModelSeven Fronts of Mt. Sustainability
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2
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1. Eliminate waste
2. Eliminate harmful emissions
3. Use only renewable energy
4. Create closed loop processes
5. Resource efficient transportation
6. Integrate sustainability into the culture
7. Pioneer new business models for sustainability
Front 7: Redesign Commerce
1 Carpet sample=1 Qt oil
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*Not recommended for installation over existing carpet.
TACTILES NEXT GENERATION OF INSTALLATION
~Creates a “Floating Floor”~Install over existing floors ~Tiles adhere to one another, not the floor~90% Lower Environmental Footprint~Eliminates installation waste
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Front 7: Redesign CommerceGreen buildings
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Front 7: Redesign CommerceCarpet & LEED
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MR 4.1 Recycled Content
EQ 4.1 Low Emitting Materials: Adhesive
EQ 4.3 Low Emitting Materials: Carpet Carpet & Rug Institute’s Green Label Plus
MR 6 Rapidly Renewable Materials
MR 2.1 Construction Waste Mgt
ZeroVOCs
<50 mgVOCs
18-31% Post-consumer 32-55% Post-industrial
vs.
Front 7: Redesign CommerceGreen buildings
InterfaceFLOR Atlanta ShowroomFirst LEED Commercial Interiors Platinum Rating
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InterfaceFLOR Shanghai ShowroomFirst LEED Commercial Interiors Gold Rating in China
Front 7: Redesign CommerceBeyond LEED
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Would you choose a ‘green’ product made in a ‘brown’, polluting factory?
LEED doesn’t consider:Performance/durabilityReuse, recycling opportunities at end-of-lifeSustainable Product certificationImpacts on Global WarmingCorporate commitment to sustainability Efficiencies in manufacturing:
water, emissions, waste, renewable energyISO 14001, 9001 certification
• Highest consensus standard on sustainable carpet
• Comprehensive measurement
1. Reducing pollutants and energy use
2. Renewable energy3. Recycled content and bio-based
materials 4. Corporate wide environmental
and social responsibility commitment
5. Product performance, durability, reuse and reclamation
Front 7: Redesign CommerceIndustry Standards
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Sustainable Carpet Assessment Standard
InterfaceFLOR certifications:GlasBacRE: SCS Sustainable Choice Platinum California PlatinumGlasBac: SCS Sustainable Choice GoldNexStep: SCS Sustainable Choice Gold
94% of ’05 sales meet standard
Front 7: Redesign CommerceIndustry Standards
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FLOOR FOCUS DESIGNER SURVEY. Top 250 Design Firms - 2006.
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Front 7: Redesign Commerce
Ray Anderson becomes an unforeseen hero
Front 7: Redesign Commerce
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The World’s Most Socially Responsible Companies
“Interface ranked #1 by sustainability experts as fulfilling responsibilities to society better than others.”
Announces Top 10 'Green' Companies of 2006 Interface ranks #4
Fast Company HIP scorecard: Generate compelling returns and benefit society
Interface ranks #16
Continuing the Journey
The Interface Story and More…
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www.interfacesustainability.com
CONCLUSIONIf we’re successful, we’ll spend the rest of our days harvesting yesteryear’s carpets and other petrochemically derived products, and recycling them into new materials; and converting sunlight into energy; with zero scrap going to the landfill and zero emissions into the ecosystem.
And we’ll be doing well – very well – by doing good.- Ray C. Anderson
THANK YOU