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Sustainability

            PROFIT
   NET               PE
PLA                    OP
                         LE
The Sustainability Business Imperative




•   Growing sensitivity in most markets
•   Potential to significantly impact businesses or capabilities
•   Ability to influence the outcome of that impact
•   Long-term economic growth not possible unless socially and
    environmentally sustainable
Information   •Sustainability is the “wild west”
Overload      •No time to explore new
              manufacturers

              •So many labels---Which ones
              are legitimate?

              •Do I really need to know it all?

              •Is there an information filter?
Understanding the three types of Certifications:
                                 Certifications


    First         Example: manufacturer’s in-house label
    Party




                 Example: FloorScore, CRI-Green Label and Green
    Second       Label Plus
    Party



                 Example: FSC, GreenSeal, GREENGUARD
    Third        Certification (the only one focused on health
    Party        impacts)
YE
                     Avoidance of




                 T
                      sustainable
                     products and
                       processes
Achieve clean
 environment
The 7 Sins of “Greenwashing”
• Hidden Trade-Offs
• No Proof
• Vagueness
• Irrelevance
• Worshipping False Labels
• Fibbing
• Lesser of Two Evils




Source: Terrachoice 2009
FTC Environmental Marketing Guides



FTC: KMart To Stop "Biodegradable" Claims
“The company is among three retailers charged by the Federal Trade Commission with
making "false and unsubstantiated" claims about the environmental "greenness" of their
products.”

FTC Charges Companies with 'Bamboo-zling' Consumers with False Product
Claims
“Bamboo-based Textiles, Actually Made of Rayon, Are Not Antimicrobial, Made in an
Environmentally Friendly Manner, or Biodegradable”
“70% of consumers believe products claiming to be green or
          sustainable is just a marketing tactic.”




1Loechner,   Jack, “Most Americans Say Green Marketing is ‘Just a Marketing Tactic,’” September 27, 2007,
http://publications.mediapost.com/?fuseaction=Articles.showArticleHomePage&art_aid=68186
2GfK   Custom Research of North America, “Americans Reaching Environmental Turning Point…Companies
Need to Catch Up According to GfK Roper Green Gauge Survey,” April 2007,
http://www.csrwire.com/News/9473.html
Preference for 3rd Party Certification

                                                      •Almost 40% prefer
                                                      governmental involvement

                                                      •Approximately 30% prefer
                                                      independent organizations

                                                      •Consumers do not prefer
                                                      manufacturers, industry
                                                      trade associations and
                                                      retailers handling IAQ
                                                      certification




Source: Harris Interactive Consumer Study, Dec 2008
Use of and
Engage                                              Easier decision -making
                            reliance on
players on all                                      process; technical issues
                            Eco Labels
sides of the                                        explained, reliable claims
                            and Third -
sustainability                                      documentation
                            party
effort.
                            Certifications



   Eco-Label:       Individual or organization that offers a product or service
   with some type of verification, assurance, label or certification to a
   standard or set of criteria. (GREENGUARD Environmental Institute)
Why Third-Party Certification Matters?
• Public health and
  quality of life concerns
• Complexity
• Trust and credibility
• Liability
• No official standards
  or regulations
Qualification
     • Independence, 3rd Party
     • Standards
     • Verification, CoC, Audits,
      Rigor
     • Transparency / Public
      Information
     • Market Acceptance
How does the Sustainable community
 benefit from third party Eco Labels:
                              Labels
 Leadership: Transforming Standards

 Educational Resource: Continuing Education courses, Certification
Programs, Product Guides

 Specification Resource: Use of manufacturers’ products you know and trust

 Green Building Certification Process: Readily available information through:
       Certificates –proof of product compliance with documentation;
       Information – on product applicability to your design needs;
Weeding through the “green garden”


Name                          Certification
ENERGY STAR                   YES
WaterSense                    YES
GREENGUARD                    YES
Certification Program
Green Seal                    YES
Forestry Stewardship          YES
Council (FSC)
Cradle to Cradle              YES
Sustainable Forestry          YES
Initiative (SFI)
Eight Market Movers that you can trust: (Courtesy McGraw Hill Smart
Market Report 2008)
Indoor Air Quality is Important
• People spend more than 90% of their time indoors
• Children receive 72% of environmental exposure to
  chemicals indoors
• Air pollutions levels indoors are typically 2-5x
  (sometimes 1,000x) higher than those found outside
• The largest source if indoor air pollution is chemical
  emissions from building materials and furnishings
  products
• Poor indoor air quality is recognized by the U.S.
  EPA the American Lung Association and the World
  Health Organization as “one of greatest modern
  risks to human health.”
Indoor Air Pollution Leads to Health Consequences

 Asthma and allergies 
 Headaches
 Respiratory disease
 Eye, nose & throat Irritation
 Reproductive / developmental defects
 Neurological disease
 Cardiovascular disease
 Cancer
 Children and other sensitive individuals are 
 at increased risk 
GREENGUARD’s Mission
   “To protect human health and quality of life
through programs that reduce chemical exposure
         and improve indoor air quality”
Introduction to GREENGUARD
      • Certifying products for low, non-toxic emissions
        since 2001
      • Globally recognized leader in indoor air quality
      • Industry independent, third-party certification
        program
      • Two product certification programs:
          • GREENGUARD Indoor Air Quality
          • GREENGUARD Children & SchoolsSM
      • More than 300 participating manufacturers
      • More than 200,000 products represented in the
        largest online database for low-emitting
        products
History of GREENGUARD
June 2001      GREENGUARD Environmental Institute (GEI)
               founded by Dr. Marilyn Black
Sept. 2002     Formation of Independent Advisory Board
Oct. 2002      First Certified Product (Insulation)
Nov. 2004      ANSI Accredited Standards Developer
Dec. 2004      Publish Test Methods
Jan. 2005      Publish Laboratory Qualification Guidelines
Sept. 2005     GREENGUARD Children & Schools Certification
Feb. 2006      GREENGUARD Building Construction Program
July 2007      100th manufacturer certifies products with GREENGUARD
Nov. 2008      Opening of subsidiary in Beijing, China
Mar. 2009      200th manufacturer certifies products with GREENGUARD
April 2009     1st ANSI standard: ANSI/GEI MMS 1001
The GREENGUARD Certification 
 The GREENGUARD Indoor Air Quality Certification 
 indicates that products have been tested for emissions 
 of volatile organic compounds (VOCs)

 The emissions criteria for the GREENGUARD 
 Certification is among the most stringent IAQ 
 standards in the U.S.  
Achieving GREENGUARD Certification
Extensive review of material,
manufacturing processes and
manufacturing locations
Products are tested for over 10,000
individual chemicals
Testing in state of the art stainless steel
environmental chambers, following
global ISO standards
Products are certified to
GREENGUARD Standards, based on
comprehensive emission criteria from
the EPA, Germany’s Blue Angel
Program, State of California and
reputable public health expert agencies
Products must undergo annual testing
to remain certified
GREENGUARD Certified Products Help Create 
Healthier Indoor Environments 
Advantages of GREENGUARD Certified products

Third‐party validated product 
scientific substantiation 
Reduction in product/occupant 
complaints
Demonstration of social 
responsibility
Environmental marketing 
advantages: list program, bid 
specifications, sole sourcing and 
others
GREENGUARD - Recognized & Referenced in Leading
     Sustainable Organizations & Programs
Industry Leaders Choose GREENGUARD
Questions?

     Mark Rossolo
Director of Public Affairs
mrossolo@greenguard.org
     (503) 267‐8516

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The Sustainability Business Imperative: Understanding Eco-Labels and Third-Party Certification

  • 1.
  • 2. Sustainability PROFIT NET PE PLA OP LE
  • 3. The Sustainability Business Imperative • Growing sensitivity in most markets • Potential to significantly impact businesses or capabilities • Ability to influence the outcome of that impact • Long-term economic growth not possible unless socially and environmentally sustainable
  • 4.
  • 5. Information •Sustainability is the “wild west” Overload •No time to explore new manufacturers •So many labels---Which ones are legitimate? •Do I really need to know it all? •Is there an information filter?
  • 6.
  • 7. Understanding the three types of Certifications: Certifications First Example: manufacturer’s in-house label Party Example: FloorScore, CRI-Green Label and Green Second Label Plus Party Example: FSC, GreenSeal, GREENGUARD Third Certification (the only one focused on health Party impacts)
  • 8. YE Avoidance of T sustainable products and processes Achieve clean environment
  • 9. The 7 Sins of “Greenwashing” • Hidden Trade-Offs • No Proof • Vagueness • Irrelevance • Worshipping False Labels • Fibbing • Lesser of Two Evils Source: Terrachoice 2009
  • 10. FTC Environmental Marketing Guides FTC: KMart To Stop "Biodegradable" Claims “The company is among three retailers charged by the Federal Trade Commission with making "false and unsubstantiated" claims about the environmental "greenness" of their products.” FTC Charges Companies with 'Bamboo-zling' Consumers with False Product Claims “Bamboo-based Textiles, Actually Made of Rayon, Are Not Antimicrobial, Made in an Environmentally Friendly Manner, or Biodegradable”
  • 11. “70% of consumers believe products claiming to be green or sustainable is just a marketing tactic.” 1Loechner, Jack, “Most Americans Say Green Marketing is ‘Just a Marketing Tactic,’” September 27, 2007, http://publications.mediapost.com/?fuseaction=Articles.showArticleHomePage&art_aid=68186 2GfK Custom Research of North America, “Americans Reaching Environmental Turning Point…Companies Need to Catch Up According to GfK Roper Green Gauge Survey,” April 2007, http://www.csrwire.com/News/9473.html
  • 12. Preference for 3rd Party Certification •Almost 40% prefer governmental involvement •Approximately 30% prefer independent organizations •Consumers do not prefer manufacturers, industry trade associations and retailers handling IAQ certification Source: Harris Interactive Consumer Study, Dec 2008
  • 13. Use of and Engage Easier decision -making reliance on players on all process; technical issues Eco Labels sides of the explained, reliable claims and Third - sustainability documentation party effort. Certifications Eco-Label: Individual or organization that offers a product or service with some type of verification, assurance, label or certification to a standard or set of criteria. (GREENGUARD Environmental Institute)
  • 14. Why Third-Party Certification Matters? • Public health and quality of life concerns • Complexity • Trust and credibility • Liability • No official standards or regulations
  • 15. Qualification • Independence, 3rd Party • Standards • Verification, CoC, Audits, Rigor • Transparency / Public Information • Market Acceptance
  • 16. How does the Sustainable community benefit from third party Eco Labels: Labels Leadership: Transforming Standards Educational Resource: Continuing Education courses, Certification Programs, Product Guides Specification Resource: Use of manufacturers’ products you know and trust Green Building Certification Process: Readily available information through: Certificates –proof of product compliance with documentation; Information – on product applicability to your design needs;
  • 17. Weeding through the “green garden” Name Certification ENERGY STAR YES WaterSense YES GREENGUARD  YES Certification Program Green Seal YES Forestry Stewardship  YES Council (FSC) Cradle to Cradle YES Sustainable Forestry  YES Initiative (SFI) Eight Market Movers that you can trust: (Courtesy McGraw Hill Smart Market Report 2008)
  • 18.
  • 19. Indoor Air Quality is Important • People spend more than 90% of their time indoors • Children receive 72% of environmental exposure to chemicals indoors • Air pollutions levels indoors are typically 2-5x (sometimes 1,000x) higher than those found outside • The largest source if indoor air pollution is chemical emissions from building materials and furnishings products • Poor indoor air quality is recognized by the U.S. EPA the American Lung Association and the World Health Organization as “one of greatest modern risks to human health.”
  • 20. Indoor Air Pollution Leads to Health Consequences Asthma and allergies  Headaches Respiratory disease Eye, nose & throat Irritation Reproductive / developmental defects Neurological disease Cardiovascular disease Cancer Children and other sensitive individuals are  at increased risk 
  • 21. GREENGUARD’s Mission “To protect human health and quality of life through programs that reduce chemical exposure and improve indoor air quality”
  • 22. Introduction to GREENGUARD • Certifying products for low, non-toxic emissions since 2001 • Globally recognized leader in indoor air quality • Industry independent, third-party certification program • Two product certification programs: • GREENGUARD Indoor Air Quality • GREENGUARD Children & SchoolsSM • More than 300 participating manufacturers • More than 200,000 products represented in the largest online database for low-emitting products
  • 23. History of GREENGUARD June 2001 GREENGUARD Environmental Institute (GEI) founded by Dr. Marilyn Black Sept. 2002 Formation of Independent Advisory Board Oct. 2002 First Certified Product (Insulation) Nov. 2004 ANSI Accredited Standards Developer Dec. 2004 Publish Test Methods Jan. 2005 Publish Laboratory Qualification Guidelines Sept. 2005 GREENGUARD Children & Schools Certification Feb. 2006 GREENGUARD Building Construction Program July 2007 100th manufacturer certifies products with GREENGUARD Nov. 2008 Opening of subsidiary in Beijing, China Mar. 2009 200th manufacturer certifies products with GREENGUARD April 2009 1st ANSI standard: ANSI/GEI MMS 1001
  • 24. The GREENGUARD Certification  The GREENGUARD Indoor Air Quality Certification  indicates that products have been tested for emissions  of volatile organic compounds (VOCs) The emissions criteria for the GREENGUARD  Certification is among the most stringent IAQ  standards in the U.S.  
  • 25. Achieving GREENGUARD Certification Extensive review of material, manufacturing processes and manufacturing locations Products are tested for over 10,000 individual chemicals Testing in state of the art stainless steel environmental chambers, following global ISO standards Products are certified to GREENGUARD Standards, based on comprehensive emission criteria from the EPA, Germany’s Blue Angel Program, State of California and reputable public health expert agencies Products must undergo annual testing to remain certified
  • 27. Advantages of GREENGUARD Certified products Third‐party validated product  scientific substantiation  Reduction in product/occupant  complaints Demonstration of social  responsibility Environmental marketing  advantages: list program, bid  specifications, sole sourcing and  others
  • 28. GREENGUARD - Recognized & Referenced in Leading Sustainable Organizations & Programs
  • 30. Questions? Mark Rossolo Director of Public Affairs mrossolo@greenguard.org (503) 267‐8516