The presentation of Ramon Arratia, the Sustainability Director, Interface on 23rd of October 2014 at Sitra's Road to carbon neutrality -event.

1. Radical
sustainability
is possible
Ramón Arratia
Sustainability Director, Interface
Twitter @ramonarratia

2. “One day people
like me will go
to jail” Ray
Anderson
1994

3. An outrageously ambitious Mission

4. European manufacturing from Jan 2014
• 95% Renewable energy
• 90% reduction of absolute carbon since 1996
• Zero water used in manufacturing process
• Zero waste sent to landfill

5. 5
Ultrasonic cutting technology
Carpet
Die cut
Tiles
6 cuts + waste
Carpet
Ultra Sonic cut
Tiles
1 cut + waste
‘window waste’with ultra sonic cutting
‘window waste’with die cutting

6. 6
Our new Pre-coat process consumes
40% less gas per m2

7. 7
7
What is the business case?
Saved €1.1M p.a.
Reduced yarn usage by 12% /m2compared to 1996, saving €5.8M p.a.
Saved €0.8M p.a.
At a cost premium of 10% i.e. €0.1M p.a.
Net impact:
•€7.6M p.a. cost saving
•13,800 tCO2e GHG emissions reduction
•Happier staff and customers
•Higher profit margins
•Continued global market leadership in carpet tiles

8. 8
8
Can this be replicated our manufacturing Europe?
8
94
2.3
28
- 22
-1.9
8.4
100
€B p.a.

9. The 2 paradigm shift
OLD
• Corporate
sustainability
• The Beauty contest
• Awards, labels,
csr reports,
certifications
• Zero company
impacts
NEW
• Product
sustainability
• Embedded
• LCA performance
• kg co2 / m2
• Zero product life
cycle impacts
RADICAL
• Systems
sustainability
• Services redesign
• Close loop systems
radical materials
• Zeroing others
by cannibalising

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Embedding Sustainability?
Truly embedding is in your product

11. Life Cycle Assessment

12. Life Cycle Assessment

13. Addressing the biggest issue
What can we do
to zero out the
impact of yarn?
Reduce the
amount of
yarn used
Use more
recycled
yarn in the
composition
Invent a
new yarn

14. Less is more
50% less yarn
350g of yarn vs 700g
Microtuft Products

15. Insert background Image here
Microtuft are high growth products
14% of total
EMEAI sales are
Microtuft products

16. Insert background Image here
Over 400 colourways in 100% recycled yarn

18. Biosfera Micro.
Superflat
350g yarn
100% recycled yarn
1st carpet with 100%
recycled nylon
Biosfera Micro

19. Developments in technology and the shift to modular carpet have resulted
in radical reduced carbon footprint
Developments

20. 20
• What is the biggest issue?
• Energy at use = gCO2/km (becomes the magic metric)
• European-wide goals for the industry on gCO2/km
• Mandatory displaying of the metric on advertising
• Company car tax: more tax if more gCO2/km
• Road tax: more tax if more gCO2/km
• City incentives: Low gCO2/km have exemptions e.g. parking, congestion charge
How the magic metricenabled smart legislation in cars in Europe

21. 21
Environmental
Products
Declarations

22. 22
Full product transparency aligns value chains
What you tell to your suppliers is the same that what you tell to your customers.
What your designers focus on is the same your sales force talk about.
What you report to stakeholders is the same that what your marketing claims.
Its all base on just the facts from LCA.

23. 23
•Who pays a premium for sustainability?
•Specifying sustainability
•No ‘x’
•Standards (eg LEED, DGNB; BREEAM)
•Legislation
Commercializingsustainability in the hard business cases

24. 24
• Do you have an environmental policy?
• Do you sign to the precautionary principle?
• Have you signed to the Global Compact?
• What is your CSR policy?
How transformative is this…?
The 700 questions questionnaire is both boring and useless

25. 25
One single question…

26. 26
•Radically cut carbon per kg of raw material
•100% recycled or biobased materials
•No X
•Give me something others can’t have
Suppliers

27. The 2 paradigm shift
OLD
• Corporate
sustainability
• The Beauty contest
• Awards, labels,
csr reports,
certifications
• Zero company
impacts
NEW
• Product
sustainability
• Embedded
• LCA performance
• kg co2 / m2
• Zero product life
cycle impacts
RADICAL
• Systems
sustainability
• Services redesign
• Close loop systems
radical materials
• Zeroing others
by cannibalising

28. Innovation - substituting adhesives

29. 29
BBC offices, London
What are cannibalizing here?

30. Zoning
Using the full
flexibility and design
capabilities of carpet
tiles to create all kind
of zones within open
spaces
Zeroing out the walls!

31. Engaging employees
• Status
• Sphere of influence
•Walk the talk
• Product
• Key influencers

32. 32
Ramón Arratia
Sustainability Director Interface
Twitter @ramonarratia