John WellsPresident and CEOInterface Americas

Making the Business Case for Sustainability

Sustainability•Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. (Brundtland Report)

•Leave the world better than you found it, take no more than you need, try not to harm life or the environment, make amends if you do. (Paul Hawken)

•A sustainable society is one that lives within the self-perpetuating limits of its environment. That society is not a "no growth" society - it is, rather a society that recognizes the limits of growth and looks for alternative ways of growing. (James Coomer)

Business Case•Competitiveness•Innovation•Investor interest•Customer demand•Employee engagement

Interface Category Sales Breakdown 2006

•5000 people worldwide •$1.1 billion in revenue• NASDAQ symbol IFSIA

Interface is the leader in the Global Carpet Tile Market

InterfaceFLOR / BentleyPrinceStreet / Heuga Brands

2006 Market Share Analysis

Interface 40%All Competitors 60%

Interface 40%

Interface Named To Business Ethics Best Corporate Citizens List

Interface, Inc has been named to the 100 Best Corporate Citizens ListBy Business Ethics Magazine. The survey recognizes best practices in the area of corporate social responsibility.

First Mover in Sustainability: Interface Continues to be Recognized as the Leader in Sustainability

Which Which is is

which?which?

The Economy and the Environment

MaterialsMaterialsEnergyEnergyWaterWater

AirAirFoodFood

Flows from the Environment to the Economy:

The Economy grows at theEnvironment’s expense.

But these are not the only flows.

waste,waste, pollution,pollution,andand greenhousegreenhousegasesgases into theinto theEnvironmenEnvironmentt..

The Economy dumps its

And the Economy grows still more at the expense of the Environment..

How longHow longcan this can this go on?go on?

ENVIRONMENTAL OPPORTUNITIES CURRENT INDUSTRIAL “LIFECYCLE”

Raw Material Extraction Manufacturing/Interface Customer

Landfill/Water Waste

Emissions

Taking resources from the Earth without putting anything back into the regenerative cycle.

ENVIRONMENTAL OPPORTUNITIES FUTURE, SUSTAINABLE, INDUSTRIAL “LIFECYCLE”

Recycled/Renewable Materials Manufacturing/Interface Customer

Recycling/Composting/Biodegrade

Emissions

A Regenerative Cycle where we take less than we give back to Earth, balancing our existence.

Renewable Energy

Our Core Value, Our Vision

˜The first sustainable industrial company on Earth. ˜“ZERO FOOTPRINT” by 2020˜Help restore our world through the power of our influence.˜We call this...

Sustain

Protect

Restore

Our Strategy to Get There…

7 Fronts of Sustainability:1. Zero Waste.2. Benign Emissions.3. Renewable Energy.4. Closing the Loop.5. Resource-Efficient Transportation.6. Sensitivity Hook-up.7. Redesign Commerce.

Competitiveness - costs are down not up

Twelve year Progress

• Waste Reduction˜ $336 million in cumulative avoided waste

• Waste to Landfill ˜ reduced by 70%

• Greenhouse Gas Emissions˜ Improved efficiencies and direct renewable energy purchases – 37%

˜ LaGrange, GA landfill gas project resulting in a net absolute GHG reduction of 13%

˜ Green-e certified renewable energy credits (green tags) – 10%

• Water Intake˜ Water intake per square meter of carpet is down 80% in modular carpet facilities and down 62% in broadloom facilities from 1996 due to conservation efforts and process changes.

• Renewable Energy ˜ 16% of total energy, 7 facilities have achieved 100% renewable electricity

Twelve year progress continued:

• Closing the Loop˜ ReEntry: 103 million pounds of used carpet material from landfills.

˜ Percentage of Recycled or Bio-based Raw Material – the percentage of recycled or bio-based material in Interface Inc’s global products increased from .05% in 1996 to 20% in 2006.

• Climate Neutral Products – ˜ Cool Carpet – 11.5 million square yards of Cool Carpet in 2006 for a cumulative program total of almost 26 million square yards since 2003.

• Resource Efficient Transportation – ˜ More than 75,000 trees have been planted in this program since 1997.

Innovation - accelerating

Nature as a Model

Nature as a Mentor

No Glue Project

No Glue Project

Landfill Gas Project

Investors are Measuring Environmental and Social Metrics in Addition to Financial….

Customers are Asking:

•Jeffrey Immelt, GE (10 billion investment in clean tech R&D)•Toyota over 200,000 hybrid gas electric vehicles sold – up from 91•U.S. Green Building projects currently under Leed certification are 781 compared to 100 five years ago.•Walmart is driving change through its supply chain

Employee engagement is driving up retention and attracting talent

Our supply chain is critical to this journey because 74% of GHG emissions happen outside of our process and inside our supply chain.

“ The world we have created has problems that cannot be solved thinking the way we used to think when we created them”

Albert Einstein

“The future ain’t what it used to be” Yogi Berra