SMa RT Solutions for Sustainable Business SMa RT
SMa. RT Solutions for Sustainable Business © SMa. RT. I’m Ask me why. SMa. RT© Consensus Sustainable Product Standard The Deepest Shade of Green© © 2007
SMa. RT Solutions for Sustainable Business I’m SMa. RT©. Ask me why. • What is SMa. RT? • Why did leading manufacturers & governments choose it? • Who else is involved? • How do you achieve a SMa. RT rating? • What does it mean for customers? SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business What is SMa. RT©? • SMa. RT is to products what LEED® is to buildings • The Consensus Sustainable Product Standard covering 80% of the world's products — excludes only planes & vehicles • SMa. RT is based on the LEED model—a consensus rating system with prerequisites and optional credits • Acronym stands for Sustainable Materials Rating Technology • SMa. RT© Sustainable Building Product Standard launched December 2006 SMa. RT Solutions Business • Fast Company (Nov. 2008) identifies SMa. RTfor as. Sustainable an important product SMa. RT Solutions for Sustainable Business certification © 2007
SMa. RT Solutions for Sustainable Business Who oversees SMa. RT©? The Institute for Market Transformation to Sustainability (MTS) • A non-profit public charity based in Washington, D. C. • An American National Standards Institute (ANSI) Accredited Standards Developer • 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 SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Why did Leading Manufacturers & Governments Choose SMa. RT©? SMa. RT is the consensus sustainable product standard. It is: • Accessible • Comprehensive • Transparent The Deepest Shade of Green© SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Why did Leading Manufacturers & Governments choose SMa. RT©? SMa. RT is accessible. • Open – any interested party can become a committee member • Consensus – the SMa. RT Committee has sole responsibility for standards development, approval, interpretation, and revision • Affordable – SMa. RT is cost effective SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business 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 SMa. RT Solutions for Sustainable Business Forbo Linoleum is a SMa. RT Platinum Certified Sustainable Product eligible for credit SMa. RT Solutions for Sustainable Business for LEED certified green buildings. © 2007
SMa. RT Solutions for Sustainable Business Why did Leading Manufacturers & Governments choose SMa. RT©? SMa. RT is comprehensive. • Leading standards – Meets existing stringent product sustainability standards in its criteria, including: – ISO 14001 Environmental Management & 14040 LCA – 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 – Covers 80% of the world’s products & requires global supplier SMa. RT& Solutions for Sustainable data for 12 environmental impacts, credit for reduction of over. Business 1300 SMa. RT Solutions for Sustainable Business pollutants up to 100% © 2007
SMa. RT Solutions for Sustainable Business LCA Impact Example: Environmental Performance for Steel SMa. RT Requires an ISO Compliant LCA Thus Providing Critical Coverage of Global Suppliers SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Why did Leading Manufacturers & Governments choose SMa. RT©? SMa. RT 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 & Redstone Group audit SMa. RT Certifications • Consensus – Criteria were developed through an accredited process SMa. RT is a leadership standard with key prerequisites: • No Toxic Stockholm Chemicals • FSC Certified Wood - defense to criminal liability under Lacey Act banning illegally harvested wood (about 20% of climate change pollution) • ISO Compliant Life Cycle Assessment (LCA) covering suppliers SMa. RT Solutions for Sustainable Business • 28 Points Minimum for Certification SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Sustainable Investment Initiative Capital Markets Briefing Paper: Business Case for Commercializing Sustainable Investment© Summarizes four years of Wall Street due diligence with investors, investment banks & rating agencies concluding that green buildings and SMa. RT certified sustainable products are: • More profitable • Less risky • Preferred by investors in Survey initiated with S&P covering over $3. 3 trillion in assets. Solutions forat. Sustainable Business Briefing Paper was released SMa. RT for top management MTS / Capital Markets Partnership New York Stock Exchange Press Conference, Aug. 19, Business 2009 SMa. RT Solutions for Sustainable © 2007
SMa. RT Solutions for Sustainable Business Sustainable Manufacturing National Consensus Underwriting Standard • 1 -100 CMP Corporate Green Value Score • • • Value measured by increased share value Higher value at Silver, Gold & Platinum Levels Higher value for Green-e Power & Conventional Energy Reductions Higher value for higher reduction of pollutants Higher value for reuse – avoids disposal risks Covers multiple attributes & all products other than planes & vehicles Underwrites Green Convertible Securities (GCS) For manufacturers & retailers. GCS cover debt & equity. Launched at Aug. 19, 2009 MTS New York Stock Exchange Meeting The SMa. RT Solutions for Sustainable Business Deepest Shade of SMa. RT Solutions for Sustainable Business © 2007 Green©
SMa. RT Solutions for Sustainable Business Who else is involved? SMa. RT 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 SMa. RT Solutions for Sustainable Business • Michi Pena, Commissioner, Chicago Dept. of General Services © 2007
SMa. RT Solutions for Sustainable Business Who else is involved? • U. S. Green Building Council (USGBC) and its LEED® Rating System – LEED provides credit for SMa. RT certified products – SMa. RT & LCA Education are USGBC Education Provider Programs – Use of SMa. RT certified products for 2. 5% of total the value of a project contributes one Innovation and Design credit • American Institute of Architects (AIA) – SMa. RT is part of AIA's imperative to reduce 70% of conventional energy use in new or renovated buildings by 2015 • Sustainable Furnishings Council SMa. RT Solutions for Sustainable Business – SFC approved SMa. RT as the standard to which its SMa. RT Solutions for Sustainable Business members must certify to © 2007
SMa. RT Solutions for Sustainable Business Who else is involved? • Capital Markets Partnership – Led by JPMorgan Chase, Citi, Bank of America and San Francisco Mayor Gavin Newsom – Supported by US Conference of Mayors: • Consensus Green Building Underwriting Standards recognize SMa. RT • Green Convertible Securities recognize SMa. RT • Green Building Securities recognize SMa. RT • Fireman's Fund – Adopted SMa. RT in its underwriting criteria for discounted insurance to manufacturers of certified products • City of Santa Monica – Includes SMa. RT certified Solutions forbeing Sustainable products in its purchasing SMa. RT directive, which is sent Business SMa. RT to U. S. cities for their adoption too Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Who else is involved? • Los Angeles Community College District – $5 B of LEED Platinum construction – More than 3000 manufacturers are transitioning to SMa. RT – SMa. RT Certified manufacturer data accessible through a searchable online data base. • Big Green Purse – Leading consumer web site. SMa. RT & book Solutions on sustainable products for Sustainable Business – Adopted SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Who else is involved? • Alliance for Sustainable Built Environments SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Who else is involved? • Alliance for Sustainable Built Environments Implementing Global SMa. RT Marketing Agreement SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Who else is involved? • Jones Lang La. Salle 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. SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Who else is involved? • Build it Green. Point RATED Homes The Leading Green Home Standard for new and existing homes, equivalent to LEED, and part of the Green Building Underwriting Standards©. SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Who else is involved? • CB Richard Ellis is the global leader in real estate services. SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Who else is involved? • Leadership Standards Campaign (LSC) LSC is a nonprofit Coalition of leading environmental groups and companies promoting for educational purposes, transparent Leadership Standards substantially reducing pollution. These Standards include LEED, FSC, SMa. RT, Green Building Underwriting Standards, Climate Neutral Building Standard. SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Who else is involved? Three companies led the charge and SMa. RT certified their products: • Forbo flooring • Milliken carpet & textiles • Knoll furniture Due to the SMa. RT LEED Credit, all three Companies went Climate Neutral at their Manufacturing Facilities. SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Produced With 100% Wind Energy Platinum SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business SMa. RT Certified Sustainable Carpet PVC Free Carbon Neutral Production SMa. RT Solutions for Sustainable. Platinum Business SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business How do you achieve a SMa. RT© rating? • Submit a completed application • Pass an internal MTS data audit • Execute a legally binding certification to FTC Environmental Marketing pursuant Guides that: – 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 SMa. RT (depending on level) Solutions for Sustainable Business SMa. RT • Renew certification every three years. Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business How do you achieve a SMa. RT© rating? Product must achieve 14 prerequisite points and score a minimum of 28 out of 162 points in the following areas covering all product stages across the global supply chain: • Safe for public health & environment • Renewable energy & energy efficiency • Biobased or recycled materials • Facility or company requirements SMa. RT Solutions for Sustainable Business • Reclamation, sustainable reuse & end of life management SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business How do you achieve a SMa. RT© rating? Based on overall points achieved, there are four levels of SMa. RT certification SMa. RT Rating Sustainable Silver Sustainable Gold Sustainable Platinum Point Range 28 -40 41 -60 61 -89 90 -162 External Audit Random Mandatory SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Case Study: How did the Knoll Life chair rate? Sustainable Gold with 71 points The first chair in the industry to be SMa. RT certified • 18 points: Safe for public health & environment – GREENGUARD Children & Schools. SM 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 SMa. RT Solutions for Sustainable Business • 4 points: Reclamation, Reuse. SMa. RT & End. Solutions of Life for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business 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 many Knoll SMa. RT products depending on percent of. Solutions for Sustainable Business SMa. RT Solutions for Sustainable Business total project value © 2007
SMa. RT Solutions for Sustainable Business What are the next steps for Knoll? • Include SMa. RT Certified Chadwick, Generation & Moment chairs & Calibre Furniture & Template Bookcase Series in customer education • SMa. RT Certify remainder of Knoll products. • Knoll has built SMa. RT certification into product development initiatives going forward • Knoll has trained A&D managers to lead CEU accredited courses on Sustainable SMa. RT Solutions for Sustainable Business Product Certification SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Value of SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Stops Imminent Irreversible Dangerous Climate Change SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Before it’s too late SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Demysticizes sustainable products SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Eliminates market confusion based on real metrics using sound science and consensus SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Conserves natural resources & reduces waste SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Facilitates design & process innovation SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Advances Triple Bottom Line: Environment, Economy & Social Equity SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Improves quality of life 7. Improves quality of life SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Improves stakeholder value SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Improve manufacturer share value & good will Improves manufacturer share value & good will SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Remember, SMa. RT© 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 SMa. RT Solutions for Sustainable Business © 2007
SMa. RT Solutions for Sustainable Business Get © SMa. RT ! Thank you Market Transformation to Sustainability (MTS) The Deepest Shade of Green© 1511 Wisconsin Ave. , NW Wash. , DC 20007 202 -338 -3131 mts. sustainableproducts. com © 2007
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