S Ma Rt Presentation 2 2009

© 2007

Get SMaRT©

SMaRT© Consensus Sustainable Product Standard

SMaRT Solutions for Sustainable Business

© 2007




Get SMaRT©

• What is SMaRT?

• Why did leading manufactuers choose it?

• Who else is involved?

• How do you achieve a SMaRT rating?

• What does it mean for customers?

© 2007




What is SMaRT©?

• SMaRT is to products what LEED® is to buildings

• The Consensus Sustainable Product Standard covering 80% of the world's products — excludes only planes & vehicles

• SMaRT is based on the LEED model—a consensus rating system with prerequisites and optional credits

• Acronym stands for Sustainable Materials Rating Technology

• SMaRT© Sustainable Building Product Standard launched December 2006

• Fast Company (Nov. 2008) identifies SMaRT as an important product certification

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Who oversees SMaRT©?

The Institute for Market Transformation to Sustainability (MTS)

• A non-profit public charity based in Washington, D.C.

• An Accredited Standards Developer audited by American National Standards Institute (ANSI)

• MTS unites leading environmental groups, manufacturers, and state and local governments

• Its goal is to increase the share of sustainable products to 90% of the market by 2015

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Why did Leading Manufacturers Choose SMaRT©?

SMaRT is the consensus sustainable sustainable product standard. It is:

• Accessible

• Comprehensive

• Transparent

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Why did Leading Manufacturers choose SMaRT©?

SMaRT is accessible.

• Open – any interested party can become a committee member

• Consensus – the SMaRT Committee has sole responsibility for standards development, approval, interpretation, and revision

• Affordable – SMaRT is cost effective

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Increased Profitability Sustainable Product Case Study – Forbo Linoleum

A Culture of Long Term Commitment to Optimized Environmental Performance. Forbo Linoleum manufacturers and sells linoleum floorcovering, wallcovering and finishing for office furniture. The company attributes the following superior economic performance to its sustainable practices (Forbo internal data 2001):

• EBIT (Operating Result) performance as a percentage of sales that is, at a minimum, 25% better than any of its competitors

• Internal profitability shows its sustainable products’ EBIT level performance more than double, as a percent of sales, those of traditional products

• Five year share price performance is 100% greater on average than its three largest competitors

Forbo Linoleum is a SMaRT Platinum Certified Sustainable Product eligible for credit for LEED certified green buildings and sustainable investment.

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SMaRT is comprehensive.

• Leading standards – Meets existing stringent product sustainability standards in its criteria, including:– Int’l Organization for Standardization

(ISO) 14001 Environmental Management

– GREENGUARD / California 01350 VOC

– FSC Certified Wood

• Life Cycle Assessment (LCA) – Per ISO standards, an LCA scientifically measures environmental impacts throughout product life cycle – raw materials extraction, manufacturing, shipping, use or reuse

• Global – Requires global supplier data for 12 environmental impacts, & credit for reduction of over 1300 pollutants up to 100%

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LCA Impact Example: Environmental Performance for SteelSMaRT Requires an ISO Compliant LCA Thus Providing Critical Coverage of Global

Suppliers

HumanTox

Global Warming

Energy

Smog

Waste

EcoTox

EutrophicationAcidiication

Ozone Depletion

0%

50%

100%

High RecycledContent Steel

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SMaRT is transparent.

• Quantified - All assumptions, requirements and metrics within criteria are available to the public

• Documented – Manufacturers must disclose points earned by certified products

• Audited – Ernst & Young’s Global Sustainable Audit Group audits SMaRT Certifications

• Accredited – Criteria was developed by an American Nationals Standards Institute (ANSI) accredited process

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Who else is involved?

SMaRT Committee Officers

• Ken Baker, Principal, Gensler

• Doug Pierce, AIA, LEED AP, Perkins+Will

• Ginny Dyson, IIDA, LEED AP, DMJM / Rottet

• Keith Winn, IIDA, LEED AP, ASID, Catalyst Partners

• Ralph Bicknese, AIA, LEED AP, Hellmuth+Bicknese

• Eric Corey Freed, Licensed Architect, Principal, Organic Architects

• Sigi Koko, Principal, Down to Earth Design

• Lou Newett, Environmental Director, Knoll Inc.

• Tim Cole, Environmental Director, Forbo Flooring

• Michael Bohn, Marketing VP, Bosch & Siemens Home Appliances

• Tim Nolan, State of Minnesota

• Michi Pena, Commissioner, Chicago Dept. of General Services

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• U.S. Green Building Council (USGBC) and its LEED® Rating System– LEED recognizes SMaRT certified products

– SMaRT & LCA Education are USGBC Education Provider Programs

– Use of SMaRT certified products for 2.5% of total the value of a project contributes one Innovation and Design credit

• American Institute of Architects (AIA)– SMaRT is part of AIA's imperative to reduce 60% of

conventional energy use in buildings by 2015

• Sustainable Furnishings Council– SFC approved SMaRT as the standard to which its

members must certify to

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• Capital Markets Partnership– Led by Citi, JPMorgan Chase and San Francisco Mayor Gavin Newsom

– Supported by US Conference of Mayors:

• Consensus Green Building Underwriting Standards recognize SMaRT

• Sustainable Investment Standards Requirements 2.0 recognize SMaRT

• Sustainable Building Securities (SMBS) recognize SMaRT

• Fireman's Fund – Adopted SMaRT in its underwriting criteria for discounted insurance to manufacturers of certified products

• City of Santa Monica – Includes SMaRT certified products in its purchasing directive, which is being sent to U.S. cities for their adoption too

Capital Markets PartnershipActing Now to Secure a Healthy & Prosperous Tomorrow

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• Los Angeles Community College District– $5B of LEED Platinum construction

– More than 3000 manufacturers are transitioning to SMaRT

– SMaRT Certified manufacturer data accessible through a searchable online data base.

• Big Green Purse– Leading consumer web site & book on sustainable products

– Adopted SMaRT

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• Alliance for Sustainable BuiltEnvironments

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A financial and professional services firm specializing in real estate services & investment management, with more than 30,000 people in 700 cities and 60 countries.

J

• Jones Lang LaSalle

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Three companies are leading the charge and SMaRT certified theirproducts:

• Forbo flooring

• Milliken carpet & textiles

• Knoll furniture

Due to the SMaRTLEED Credit, all three Companies

went Climate Neutral at theirManufacturing

Facilities.

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Platinum

Produced With 100% Wind Energy

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SMaRT Certified Sustainable Carpet

PVC FreeCarbon Neutral Production

Platinum

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How do you achieve a SMaRT© rating?

• Submit a completed application

• Pass an internal MTS data audit

• Execute a legally binding certification that verifies:– Data are accurate and not misleading

– Qualified professionals were used

• Publish certification summary on a web site

• Pass an external audit by Ernst & Young's Global Sustainable Auditing Group or Redstone Global Auditing (depending on level)

• Renew certification every three years

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Product must achieve 14 prerequisite points and score a minimum of28 out of 162 points in the following areas covering all product stagesacross the global supply chain:

• Safe for public health & environment

• Renewable energy & energy efficiency

• Biobased or recycled materials

• Facility or company requirements

• Reclamation, sustainable reuse & end of life management

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Based on overall points achieved, there are four levels of SMaRTcertification

SMaRT Rating

Sustainable Sustainable Silver

Sustainable Gold

Sustainable Platinum

PointRange

28-40 41-60 61-89 90-162

External Audit

Random Random Mandatory Mandatory

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Case Study: How did the Knoll Life chair rate?

Sustainable Gold with 71 pointsThe first chair in the industry to be SMaRT certified

• 18 points: Safe for public health & environment– GREENGUARD Children & SchoolsSM certified

• 23 points: Renewable energy & energy efficiency– Lubin electricity offset by wind energy

• 16 points: Biobased or recycled materials– 60%+ recycled content

• 10 points: Facility or company requirements– Life Cycle Assessment

• 4 points: Reclamation, Reuse & End of Life

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What does it mean to Knoll customers?

• They are purchasing an independently certified product that is good for the environment, economy and social equity

• They can have confidence in the environmental claims because of the accessible, comprehensive, and transparent nature of the certification process

• They can achieve an additional LEED credit for the Life chair, depending on percent of total project value

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What are the next steps for Knoll?

• Include SMaRT Certified Chadwick chair in customer education

• Knoll has built SMaRT certification into product development initiatives going forward

• Knoll has trained A&D managers to lead CEU accredited courses on Life Cycle Assessment and Sustainable Product Certification

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Value of SMaRT

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Stops Imminent Irreversible Dangerous Climate Change

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Before it’s too late

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Demysticizes sustainable products

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Eliminates market confusion based on real metrics using sound science and

consensus

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Conserves natural resources & reduces waste

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Facilitates design & process innovation

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Advances Triple Bottom Line: Environment, Economy & Social Equity

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7. Improves quality of life

Improves quality of life

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Improves stakeholder value

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Improve manufacturer share value & good will

Improves manufacturer share value & good will

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Remember, SMaRT© is

• To products what LEED® is to buildings

• Accessible – Open, consensus, and affordable

• Comprehensive – Incorporates leading standards, LCA, global supply chain

• Transparent – Quantified, documented, audited, and accredited

© 2007

Get SMaRT©!Thank you
