Can a closed loop business model be competitive in a predominantly linear economy?

A business view byStef KranendijkCEO DESSO Group

DESSO is…

leading in

carpet tiles and

artificial grass pitches

Arsenal FC

Microsoft

DESSO Group

Business Overview

Carpets 80%Business Carpet 50%Hotel, Marine & Aviation 9%Consumer Carpet 21%

Sports 20%

2009 Figures - % of total business turnover

Innovation through

CreativityDESSO transformed itself into a superior floor design company through better external focus via the “Circle of Architects®” program.

FunctionalityDESSO invented carpet tiles that significantly improve health by superior:

• Indoor air quality

- Less fine dust (8 times lower levels than hard floors) - No off-gassing

• Sound absorption in offices, healthcare and schools

Cradle to Cradle®

What is Cradle to Cradle®?

In the Cradle to Cradle® principles, products are

made from pure components that are easy to

disassemble, so that new products can be made

from them (= up-cycling) in both the biosphere

and the technosphere.

Michael Braungart

William McDonough

DESSO: Cradle to Cradle® Company

Cradle to Cradle® – Why?

It is a good, positive quality initiative

Not only for the environment but also for health

(in-door air quality)

Waste becomes food for other products

It is not only good for people & planet – it is a

business building opportunity

DESSO: Cradle to Cradle® Company

Increased attention on sustainability Efficient production Waste reduction Energy saving

DESSO’s past achievements Water preservation

annually 50% in Belgium, goal 100% (= 410 million litres)

Energy consumption

28% reduction in energy use and CO2 emissions over the last

10 years

Recycling

Post industrial waste is recycled and used as fuel

Eco-EfficiencyDESSO: Cradle to Cradle® Company

Eco-Effectiveness

1. Positive footprint

2. Improve quality of life and environment

3. Re-utilize all materials used in the product. Design criteria: easy disassembly

4. Use post-customer materials as raw material in the product

5. All raw materials should be 100% safe for humans and environment

6. Use renewable energy in all stages of the cycle

All about Eco Effectiveness

DESSO: Cradle to Cradle® Company

PROGRESS OF QUALITY FROM CRADLE TO CRADLE WITH TIME

Clients and

suppliers are

regarded as

partners to reach

quality.

ECO-EFFECTIVENESS

Analysis of all Raw Materialswith Prof. Michael Braungart (EPEA)

Create ‘Passive Positive List’ for existing products

Use only positively defined materials

Phase out non-acceptable raw materials

No need to be perfect from day 1

OPTIMAL

OPTIMIZING

TOLERABLE

IDENTIFY THE BEST: ABC-X CATEGORIZATION

NOT ACCEPTABLE

NOT CHARACTERIZED

DESSO: Cradle to Cradle® Company

Product Life CycleDESSO: Cradle to Cradle® Company

80% of DESSO’s carpet tiles C2C certifiedDESSO: Cradle to Cradle® Company

Implementation and Future Steps

• C2C research centre at DESSO

• Work with (young) designers, scientists and students on C2C products

• After carpet tiles work on artificial grass and biodegradable woollen products

• Develop additional products for improved indoor climate and well-being

• Build international community around Cradle to Cradle® quality

• Stronger marketing for Cradle to Cradle® on global market

• Further implement the carpet Take Back system ReFinity®

DESSO: Cradle to Cradle® Company

Separate the post customer carpet Into main components for further use in post

customer market or into carpet again.

Take Back system ReFinity®

DESSO: Cradle to Cradle® Company

NOW

Post customer yarn upcycled into new yarn

Post customer backing used for Road works / cycle paths Cement industry

NEAR FUTURE

Cradle to Cradle Yarn is upcycled into new yarn Backing is upcycled into new backing

(EcoBase®) Yarn and backing are upcycled in other

industries such as office chairs, vacuum cleaners et cetera

DESSO: Cradle to Cradle® Company

Take Back system ReFinity®

DESSO: Cradle to Cradle® Company

Take Back system ReFinity®

Link to Refinity film

C2C Community

DESSO will contribute to C2C business community worldwide Stimulate the formation of necessary C2C infrastructure

Innovation Platform Encourage all stakeholders (suppliers, design community,

waste management partners, customers) to consider new

products and C2C design paradigms Jointly develop know-how and new technology Provide better content to CSR/Sustainability policies of

companies/governments Enable improved wellness/well-being with our products,

such as AirMaster® and SoundMaster®

Offer outstanding design

DESSO: Cradle to Cradle® Company

DESSO’s C2C NetworkDESSO: Cradle to Cradle® Company

For more information, please contact usor visit our website

www.desso.com

Thank you

DESSO: Cradle to Cradle® Company

DESSO AirMaster®

Very fine dust is captured and retained in the fine yarns of the DESSO AirFiltersTM.

Coarser fine dust is captured inthe thicker yarns of the DESSODustCollectorsTM.

The unique structure of DESSOAirMaster® prevents the dust from becoming airborne again.

How does it work?Enlarged profile of DESSO AirMaster®

DESSO AirMaster®

DESSO AirMaster® is 8 times more effective in capturing and retaining fine dust than hard flooring solutions (PM10)*

DESSO AirMaster® is 4 times more effective in capturing and retaining fine dust than standard carpet solutions (PM10)**

DESSO AirMaster®

DESSO AirMaster®

Tests performed by Philips and BOND Textile Research indicate that a regular and thorough cleaning and maintenance programme is important for every flooring solution. For DESSO AirMaster® it ensures a maximum regeneration of performance potential to capture and retain fine dust from the air.

Tests indicate that over 80% of the dust is released by the carpet during vacuum cleaning. This is a 16% improvement compared to standard carpet. Additional tests indicate that during vacuum cleaning the airspeed at the core of the carpet structure is 55% higher compared to standard carpet, resulting in an improved dust release.

DESSO SoundMaster®

DESSO SoundMaster® offers an impact sound reduction value of minimal + 10 dB in addition to the standard value, thereby setting a new industry standard in carpet performance.

In addition, it offers a 60% improvement in acoustical performance in comparison to our standard carpet designs.

DESSO SoundMaster® can contribute to an optimized acoustical performance in: offices, schools, hospitals and other commercial applications.

DESSO SoundMaster®

DESSO EcoBase®

‘Eco’ = Eco-effectiveness‘Base’ = The backing of our product and the foundation of a naturally inspired step in implementation

DESSO EcoBase®

Inspired by nature’s perpetual cycles of development, replacement and rebirth, DESSO EcoBase® products bear the true identity of the Cradle to Cradle® philosophy.

DESSO EcoBase®

Our DESSO EcoBase® backing is

specifically designed with disassembly

and recycling in mind.

Due to its innovative composition,

EcoBase® is fully recyclable in our own

production process.

The yarn, polyamide (PA), will be

converted back to the basic material so

that the yarn manufacturers can use it

again to produce new yarn.

DESSO EcoBase®

A Silver Milestone

With the launch of DESSO EcoBase® we have

achieved Cradle to Cradle® Silver certification for

our carpet tiles, thereby reaching a level where

97% of all our materials are positively defined.

DESSO is proud to be the only carpet tile

manufacturer in the world to have achieved

Cradle to Cradle® Silver certification for an

entire carpet tile product.

Two roads diverged in a wood,and I,I took the one less traveled by,And that has made all the difference.

Robert Frost, 1874 – 1963