Lthe journey toward sustainability:

a report from herman miller, inc. 2006

Yceo’s message 3 report introduction 7 company overview 11 herman miller and the

environment 17 social responsibility: our policies and practices 42 closing comments 53

appendix: leadership and governance 56 corporate structure 60 gri index 62

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on the cover: herman miller’s greenhouse building in holland, michigan, is

surrounded by native wildflower gardens pollinated by the grounds’ resident

honeybee colony. guests often receive sample jars of greenhouse honey.

“Environmental advocacy is part of our heritage and a responsibility we gladly bear for future generations.” This sentence from Herman Miller’s corporate values statement, “Things That Matter,” puts in a nutshell the reason for this report. But even environmental stewardship, a goal given to us by the founder of Herman Miller, D.J. De Pree, in 1953, is part of a larger belief: Like individuals, corporations should contribute to a purpose larger than profit-making. We believe at Herman Miller that we should all help in some way to make the world a better place.

Environmentalism has been alive and well at Herman Miller for a long time. Our formal environmental programs and Environmental Quality Action Team started in the late 1980s when a group of employees pushed senior management to take a strong position on the environment and explore actions to back up the words. This report shows you where we stand, what we’ve achieved, and, most important, where we intend to go.

welcome to herman miller’s first sustainability report

herman miller chief executive officer brian walker

A Message from Brian Walker

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This report deals with many dimensions of Herman Miller as a business because sustainability requires financial success and a commitment to a better world, in addition to environmental programs. For me, the remarkable thing about environmental stewardship at Herman Miller is its broad-based support and the aspirational nature of the goals we set for ourselves. Every employee at Herman Miller has become an advocate for the environment, and our goals (contained in this report) reflect our aspirations to keep improving—even as our targets become harder to hit.

You might say that Herman Miller is in “the habitat business.” The environments we help our customers create improve their performance and, we hope, help make their lives more delightful, meaningful, productive, and rewarding. Our efforts at sustainability have to do with the largest human habitat of all—the earth. I can promise you that we will do everything within our power to make our common habitat as sustainable, as delightful, and as long-lasting as possible. And I hope this report will give you some new ideas about how you can join in.

Thank you.

Brian WalkerChief Executive Officer

herman miller employee-owners often volunteer their time and talents to

environmental stewardship activities that benefit their community and region.

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This is Herman Miller’s first official Sustainability Report, our effort to document not only our environmental activities but related financial and social initiatives, as well. It’s also a direct response to requests from our customers, dealers, and other stakeholders for this kind of information.

We are following guidelines issued by the Global Reporting Initiative (GRI). For our first sustainability report we have focused primarily on Herman Miller’s North American operations. We plan to include more details on our international business in future editions.

If you’re unfamiliar with Herman Miller, the first sections of the report provide important background on who we are, what we believe, and what we do. We then review our environmental legacy and objectives, which always guide our journey to sustainability. Next we have included some fundamental financial information, with the caveat that a more complete profile of our

introduction

Becoming a truly sustainable enterprise involves a process of continuous improvement.

herman miller employees spend a sunny summer afternoon collecting

roadside litter as part of their local “adopt-a-highway” program.

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financial standing is available online via our 10-K Report. Last but certainly not least, we review the role of social responsibility at Herman Miller. To provide as concise and reader-friendly an experience as possible, much of the information presented here appears in summary form. Throughout the report we include links to other locations on the HermanMiller.com website where more details are available. We are pleased to offer this report as an initial sustainability benchmark of our accomplishments to date and objectives we hope to achieve.

The information covers fiscal year 2006 (June 1, 2005 – May 31, 2006). In some instances, facts and figures from previous fiscal years are included.

herman miller’s main site building bg in zeeland, michigan, is leed certified

for commercial interiors.

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Herman Miller’s goal is to improve the performance of human habitats. The effect of our products and services is to make life more meaningful, productive, and rewarding.

As an organization of employee-owners, we share a commitment to problem-solving design, un-compromising quality, and customer satisfaction. Our innovations in design, information technology, human resource programs, and environmental practices have made us a leader—in our own industry and beyond.

We focus our resources and investments on those things we do that benefit customers the most: research, design, distribution, and services. We source most manufactured com-ponents through a strong and proven network of trusted and expert suppliers. Through this highly flexible and efficient approach, we avoid vertical integration and its resulting cost burdens and inflexibility. We believe that this model—supported by continued product and

company overview

“A business is rightly judged by its products and services, but it must also face scrutiny as to its humanity.” – D. J. De Pree, founder, Herman Miller, Inc.

herman miller founder d.j. de pree

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service advances and the unmatched speed and reliability of our op-erations—is the best long-term approach for our organization and our customers.

Herman Miller presently employs approximately 6,100 full-time employees in over 70 office buildings, sales offices, design centers, and manufacturing sites worldwide. We are headquartered in Zeeland, Michigan.

To learn more about who we are and what we do, please visit the About Us section of HermanMiller.com.

our design heritage

Herman Miller is a globally recognized innovator in contemporary interiors and related technologies for office, home, healthcare, and higher education settings. Our reputation for integrity in product quality and business relationships has developed through our partnerships with some of the century’s most outstanding designers, starting in the years immediately following World War II.

By the early 1950s, Herman Miller gained a worldwide following for its modern furniture designs by Gilbert Rohde, George Nelson, Charles and Ray Eames, Alexander Girard, and Isamu Noguchi, among others. The decades that followed have witnessed continuing breakthroughs in performance, ergonomics, aesthetics, and environmentally responsible design through succeeding generations of equally inspired designers.

Today, we apply our research and problem-solving design capabilities to a wider range of human habitats than ever before, as we continue to enhance and expand our offering of furnishings, equipment, and technology to support the ongoing changes in working and living environments.

20th century modern design pioneers including charles and ray eames (top),

alexander girard (bottom right), and gilbert rohde (bottom left) helped transform

herman miller into the industry’s leading manufacturer of modern furniture.

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our products

Through innovative research and design, and in partnership with our subsidiary and allied companies, Herman Miller offers:

• Office furniture systems and accessories

• Seating for business, healthcare, home, and higher education environments

• Freestanding furniture and filing and storage products for business, healthcare, home, and higher education environments

• Clinical and laboratory furniture and systems for healthcare

• Residential furniture

• Sound management technologies for open-plan work environments

• Modular and programmable power infrastructures for buildings

For more, please visit our Product Showroom on HermanMiller.com.

our services

Herman Miller services are designed to help customers envision, create, and sustain great places to work through interactive workshops, consulting engagements, and partnering.

For more, please visit Services on HermanMiller.com.

herman miller designs and manufactures furniture solutions for business,

healthcare, home, and higher education environments.

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a legacy of environmental leadership

In the early 1950s, Herman Miller founder D.J. De Pree composed a statement of corporate values that declared Herman Miller “will be a good corporate neighbor by being a good steward of the environment.”

Mr. De Pree introduced several corporate practices that today are regarded as environ-mentally sensible, such as placing windows in all company buildings, including manufacturing facilities, to let in natural light. He also specified that 50 percent of any Herman Miller corporate site must be set aside as “green space.”

Succeeding generations of our company’s leadership and employee-owners have expanded upon D.J. De Pree’s legacy. Today, “living with integrity and respecting the environment” remains one of our core values. Our business decisions are constantly guided by a sense of responsibility to the environment, to the others who live in it, and to those who will follow.

herman miller and the environment

We believe that sustainability and commercial success should coexist in a mutually beneficial relationship.

herman miller’s design yard front door in holland, michigan, is leed gold

certified for commercial interiors.

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Our environmental sustainability efforts are focused on three specific areas, starting with a vigorous effort to minimize manufacturing waste. Second, we evaluate products from their earliest design stages for their material chemistry, ease of disassembly, and recyclability. Third, we constantly assess how the design of our buildings can be more energy efficient and healthy for employees and visitors.

Our approach to business is informed by the belief that sustainability and commercial success are not mutually exclusive ends, but instead should coexist in a mutually beneficial relationship.

herman miller’s environmental policy statement Approved by the Herman Miller, Inc., Board of Directors October 2002

At Herman Miller respecting the environment is more than good business practice – it is the right thing to do. We believe that continued economic growth and environmental protection are inextricably linked – that the quality of life depends on meeting human needs without destroying the environment on which all life depends.

As business leaders we are committed to develop sustainable business practices that meet the needs of the present without compromising the welfare of future generations. Sustainability demands that we pay attention to the entire life cycle of our products. We will develop strategies that enable us to move toward sustainability while enhancing the value offered to customers. We will measure and monitor progress toward our environmental goals as a key metric of our business success.

On the journey toward sustainable business practices, through continuous improvement, we will:

• Go beyond compliance with environmental regulations and other requirements

• Pursue prevention of pollution and elimination of waste of any kind

• Implement technologies to efficiently use energy resources

• Design our products, processes, and buildings for the environment

• Promote environmental knowledge and awareness

responsibility in environmental operations

Our director of Environmental Health and Safety oversees Herman Miller’s corporatewide environmental programs and operations. He is supported by a team of engineers, chemists, and project managers.

our environmental quality action team (eqat)

In 1989 a group of our mid-level employees launched the Environmental Quality Action Team (EQAT), a cross-functional steering committee that sets our corporate environmental priorities and improvement goals. The EQAT reflects what former CEO Max De Pree called “roving leadership,” where any employee can step up and assume responsibility for a corporate initiative.

In 1991, EQAT created Herman Miller’s first formal environmental policy statement and established zero landfill use as our first-ever environmental goal. Since then we have continually expanded our goals to make Herman Miller, Inc., a sustainable business.

Today, approximately 400 people throughout our company volunteer their time to work directly or indirectly on various environmental initiatives. Additionally, it’s understood that 100 percent of Herman Miller employees are expected to “think sustainably” and carry out their tasks in an environmentally responsible manner.

eqat wheel

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Base Year 93/94 05/06 05/06 06/07 07/08 08/09 09/10 Actual Goal Actual Goal Goal Goal Goal

Air Emissions (tons) 266 39.84 41.79 35.52 30.19 25.66 21.81% Change* 85.17% 84.3% 86.6% 88.6% 90.4% 91.8%Water Emissions (mil gal) 114 92.60 84.61 71.92 61.13 51.96 44.17% Change 18.77% 25.8% 36.9% 46.4% 54.4% 63.1%Hazardous Waste (tons) 291 47.02 30.31 25.76 21.89 18.61 15.82% Change 80.55% 89.6% 91.1% 92.5% 93.6% 94.6%Solid Waste (tons to landfill) 10050 2996.43 3042.48 2586.55 2198.57 1868.78 1588.47% Change 70.19% 69.7% 74.3% 78.1% 81.4% 84.2%% Green Energy (kWh) 0% 9% 10.3% 27.0% 41.0% 55.0% 69.0%

Oper. Footprint Reduction 0% 57.66% 55.7% 63% 69% 75% 80%

* Percent change from Base Year of 1993/94.

environmental goals and performance

In 2004, we set a new environmental mandate with our “Perfect Vision” program. This initiative established a target date of 2020 to meet the following sustainability goals:

• 100 percent reduction of VOC emissions to air

• 100 percent reduction of process water consumption

• 100 percent reduction of hazardous waste

• 100 percent reduction of solid waste to the landfill

• 100 percent renewable electrical energy use

• 100 percent of sales from our Design for Environment (DfE)-approved products

• 100 percent of owned and/or leased company buildings target USGBC’s LEEDSilver certification

We measure our performance against these targets and regularly report our results to senior management.

For Fiscal 2006, we met our targets in some areas and lagged in others. We’re pleased with our performance in hazardous-waste reduction and water emissions, yet we missed our targets in the air emissions and solid waste to landfill categories. Our ambitious goal of selling significantly more products that meet our DfE protocol similarly fell short. However, in the past year we have identified an improvement to our air-emissions processes, resolved our solid waste reduction issues, and introduced several new DfE-approved products that we believe have us on track to achieving our goals in these key areas.

2010 goal calculations for 80% footprint reduction goal and fiscal 2006 performance

herman miller and german design firm studio 7.5 teamed to create mirra®, the

first chair designed from its earliest stages according to herman miller’s

design for the environment protocol.

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environmental performance by year

Base Year 93/94 03/04 04/05 05/06 Actual Actual Actual Actual

Air Emissions (tons) 266 46 37.30 41.79Water Emissions (mil gal) 114 82 88.58 84.61Hazardous Waste (tons) 291 66 46.95 30.31Solid Waste (tons to landfill) 10050 3512 2588.67 3042.48% Green Energy (kWh) 0.0016% 2.62% 3.14% 10.3% Design for the Environment 0% 1.45% 3.07% 5.94%

Despite the mixed results, the U.S. Environmental Protection Agency recognized Herman Miller again in 2006 as a leader in waste-reduction programs and achievements. Perhaps that’s because our goals already exceed those set by any official standards and regulations. We also recorded an almost 15 percent improvement over last year’s sales as we continued to reduce our impact on the environment.

In 2004, we realized we had reached approximately 55 percent of our 1994 baseline reduction goal. As a result, the EQAT and our senior management set more aggressive measurements to reach an 80 percent reduction in our overall environmental footprint by 2010. We have set an additional goal of generating 50 percent of our sales from products that meet our DfE protocol.

our environmental management system (ems)

One important component of the EQAT initiative is our ISO 14001 Team, which includes Environmental Management System site leads at all of our major office and manufacturing locations. Team members monitor and report on the environmental activities of their respective sites. The ISO 14001 Team meets regularly to share information and to ensure that Herman Miller’s EMS requirements are established, implemented, and maintained companywide.

voc emissions to air

We manage volatile organic compounds (VOCs), which result largely from our finishing processes, under our Perfect Vision program. As previously noted, we’re targeting a 100 percent reduction of VOC emissions to air by 2020.

Herman Miller recorded a nearly 80 percent decline in VOC emissions between 2001, when we switched to powder-based paints, and 2003. Since then, emissions have remained relatively steady. Increases recorded in Fiscal 2006 reflect increased product sales and production.

We also track our Nitrogen Oxide (NOx) and Sulfer Oxide (SOx) emissions, but they are not included in our 2020 goals. NOx and SOx are released at our Energy Center, where we burn scrap wood to create energy. We calculate these emission figures at this site every calendar year. They have remained constant for the past three years.

air emissions (tons) water emissions (gallons)

process water consumption

We currently monitor the environmental impact of water use throughout our manufacturing operations. We recognize that meeting our 2020 goal of a 100 percent reduction of process water consumption in manufacturing is among our greatest environmental challenges, but one we will remain vigilant in pursuing.

Separately, we look for every opportunity to upgrade and improve the ways we use water throughout the organization, from installing low-flush toilets and waterless urinals to introducing manufacturing processes that limit water use.

solid waste to landfill

We are also pursuing a zero-solid-waste-to-landfill goal by 2020. By finding alternative uses for waste, Herman Miller cuts landfill costs, generates steam, earns revenue, and reduces waste’s negative effect on the environment. In the last 10 years, we have tripled the pounds of solid waste we recycle. We have also reduced our waste sent to landfills from 21 million pounds in 1994 to 6.6 million pounds in fiscal 2006. Our waste-reduction efforts have resulted in cost reductions of $800,000 per year. During fiscal 2006, we recorded recycling income of more than $1.5 million.

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To achieve our solid-waste-to-landfill goal, we have found new and creative ways to reduce, reuse, and recycle waste. One of our most noteworthy programs is the reformulation of paint powder waste into new paint supplies. A percentage of waste from manufacturing is converted into paint for some of our desk and filing and storage drawers. This paint, called Iron Stone, allows us to reduce our waste, to recycle our manufacturing goods, and to create a new product at a reduced cost.

We’ve also developed an innovative use for the sawdust that results from our manufacturing operations. After a 10-year effort, we won approval from Michigan’s Department of Environmental Quality to mix a portion of our sawdust with chicken droppings, compost it, and return it to the environment as a high-grade topsoil and nutrient.

hazardous waste

In line with our goal to produce zero hazardous waste by the year 2020, reducing the use of hazardous materials in manufacturing – from raw materials to building and equipment maintenance – is a first, important step. Our hazardous-material use has been steadily declining as we’ve introduced new manufacturing technologies and techniques to our processes.

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In recent years we have seen a significant decrease in hazardous waste due to our switch to powder-coat paint for many metal product components, followed by our reduced use of solvents in wood finishings.

energy

percent of energy consumption met by renewable sources We’ve set a 2020 target for converting to 100 percent renewable electrical energy for all corporate sites. As we work to reduce our environmental impact while maintaining high productivity, we are progressively phasing in the use of green energy in our office and manufacturing facilities.

To help achieve our 100 percent renewable energy goal, we purchase “Green-e Certified” Renewable Energy Credits. (Green-e is a national certification organization that audits and approves renewable energy sources.) Our renewable energy portfolio consists of 51 percent wind- generated electricity and 49 percent biomass (landfill gas that generates electricity).

Green-e electricity is purchased with savings achieved from energy conservation projects such as lighting upgrades, LEED projects, building optimization projects, and manufacturing efficiencies.

We are currently on track to meet our 100 percent renewable energy objective by 2020.

percent renewable energy 03/04 04/05 05/06

kWh 2.62 3.14 10.3

solid waste to landfill (tons)

hazardous waste (tons)

waste type and destination (pounds)

our energy use Our energy needs increased in fiscal 2006, a factor we attribute largely to increased sales and the related ramping-up of production. Nonetheless, our internal energy reduction efforts helped control energy use companywide during this period of increased business activity. We know that as sales and production increase, so must our efforts to reduce overall energy consumption.

initiatives that support energy-efficient products and services

energy conservation Since 1999, we have utilized the U.S. Environmental Protection Agency’s Green Lights program and its successor, the Energy Star Building program. Under Energy Star guidelines we utilize a seven-step management program for energy conservation. Since 1999, we’ve achieved an average 51 percent return on investment, reduced energy costs, and increased energy efficiency in all of our North American production, office, and warehouse facilities. Our energy conservation projects have reduced our energy consumption costs by more than $1 million annually.

energy center In 1981 we built the Herman Miller Energy Center, located adjacent to our Main Site offices and manufacturing facility in Zeeland, Michigan. At that time, our intention was to reduce utility costs by burning wood waste to create steam and electricity. Today, the Energy Center generates 100 percent of the steam needed to power the Main Site’s manufacturing operations, including 92 percent from the incineration of wood waste.

herman miller’s main site building c1 in zeeland, michigan, features

abundant natural light and is leed gold certified for new construction

and major renovations.

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direct energy consumption Electric (kWh in millions) Natural Gas (Mcf )

other initiatives Because we recognize the environmental benefits of promoting energy efficiency, we:

• Build or renovate corporate buildings to LEED specifications

• Conduct internal building-energy audits

• Maintain building and equipment energy-efficiency standards

• Maintain building benchmarking and energy tracking

greenhouse gas emissions due to energy usage

Thanks to our energy-reduction efforts, we are continuously reducing our greenhouse gas (GHG) emissions. GHG increases recorded in Fiscal 2006 reflect increased product sales and production, and are an estimated nine percent below GHG levels we would have experienced had we not instituted corporatewide energy-reduction initiatives.

energy and greenhouse gas savings from conservation and efficiencies

By joining the EPA’s Energy Star program, purchasing renewable energy, and implementing companywide energy efficiencies, we achieved significant savings in electrical energy use and dollars during fiscal 2006, including:

• 27 million kilowatt hours

• $1.1 million

• a reduction of 45.2 million pounds of greenhouse gases

We expect new projects regularly coming online to increase these totals annually.

the financial implications of climate change

As a publicly owned company pledged to environmental stewardship, Herman Miller is concerned with both the economic and the environ-mental implications of climate change.

this spine connector links herman miller’s main site campus to the energy

center, which generates 100 percent of the steam needed to power main site

manufacturing operations.

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greenhouse gas emissions Electric (GHGs)(lbs. - in millions) Natural Gas (GHGs)(lbs. - in millions)

At this time it’s not possible to quantify how climate change may affect Herman Miller financially. However, we are taking the actions necessary to reduce our own impact on the environment. Herman Miller has formally stated the goal of using 100 percent renewable electrical energy by 2020, and we are allocating the funds necessary to achieve this goal. As of September 2006, 27.7 percent of our energy needs were being met by renewable sources.

our design for the environment initiative

“Herman Miller has been a pioneer in the environmental movement for decades. With their adoption of MBDC’s Cradle-to-Cradle design protocols, they have taken that commitment to a new and immensely more powerful level, moving beyond eco-efficient to true sustainability.”

– William McDonough

At Herman Miller, designing our products with consideration for their environmental impact is a central corporate strategy. When it comes to product innovation, durability, and overall quality, we’ve been designing with the environment in mind for decades.

Today we’re focused on incorporating increasingly more environmentally sustainable materials, features, and manufacturing processes into our new product designs. Our Design for the Environment (DfE) Team, another committee of EQAT, is responsible for developing environmentally sensitive design standards for new and existing Herman Miller products.

Working with McDonough Braungart Design Chemistry (MBDC), the DfE Team evaluates new product designs in the key areas of material chemistry and safety of inputs, disassembly, and recyclability. Today, all new Herman Miller products are designed using the DfE protocol and all pre-existing products are now held to these standards, as well.

Learn more about our DfE protocol on HermanMiller.com.

greenguard

Herman Miller’s major lines of systems furniture, office seating products, and filing and storage, including Meridian® products, have earned GREENGUARD Indoor Air Quality Certification for low-emitting products.

the herman miller greenhouse manufacturing and office building in holland,

michigan, was a pilot for the development of leed certification guidelines,

and earned “pioneer” status from the u.s. green building council.

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sustainable woods

Our company policy specifies that we purchase wood only from suppliers that practice sustainable forestry. In situations where we determine that wood is being harvested faster than it’s being replenished, we work with suppliers to find other sources.

recycled content used

We pay close attention to our selection and use of raw materials. One aspect of our design and manufacturing criteria involves incorporating recycled materials into all of our products. This process includes carefully monitoring each product’s weight and the percentage of recycled content used.

More information is available on our Environmental Product Summaries and LEED Credit Summaries on HermanMiller.com.

reclaiming used herman miller product

We design each Herman Miller product to last through many years of reliable performance before being recycled, in whole or in part, at the end of its useful life. We provide disassembly instructions and recycling options for many of our products.

We have also partnered with two companies as part of a trade-in program. One company primarily acquires parts inventories including systems components, “as is” panels, etc., and markets them to furniture refurbishers. The other company handles complete workstation inventories and larger scale projects and performs refurbishing in-house.

Additionally, we are working closely with our industry trade association, BIFMA International (Business and Institutional Furniture Manufacturer’s Association), to create a comprehensive, industrywide reclamation infrastructure.

green buildings at herman miller

Herman Miller founder D.J. De Pree’s recognition of the importance of green space around buildings and natural light within them foreshadowed the emergence in recent years of the green building industry. Not coincidentally, Herman Miller was a founding member of the U.S. Green Building Council (USGBC). We also helped formulate the USGBC’s Leadership in Energy and Environmental Design (LEED) certification standards.

our leed initiative

As the USGBC was launching in 1993, we hired well-known environmental architect William McDonough (of MBDC) to design a new manufacturing facility on more than 45 acres of open land populated largely by wildflowers. In 1995, the USGBC used the building, which we named the “GreenHouse,” as a pilot for the development of the LEED guidelines. The USGBC ultimately awarded the GreenHouse LEED Pioneer status in light of its environmentally sound, aesthetically pleasing, and financially beneficial qualities.

Today, we are committed to building or renovating our facilities to target Silver LEED certification, minimum. In our home state, Herman Miller is among the top tier of Michigan-based companies with the most LEED-certified buildings. During fiscal 2006 we earned LEED certification for our New York National Design Center (Gold), our Dallas National Design Center (Silver), and our Toronto Design Center (Certified). We also achieved “Excellent” status in BREEAM, the European equivalent of LEED certification, for our VillageGreen manufacturing facility in Chippenham, England.

A complete list of our LEED certified buildings can be viewed on HermanMiller.com.

supporting biodiversity

At Herman Miller we recognize the importance of nurturing a healthy ecosystem that supports and sustains a wide variety of life forms, and we take the stewardship of our company properties seriously.

Several of our West Michigan building sites feature native flowers and grasses, as well as retaining ponds that support a diversity of plant and animal life. We use Integrated Pest Management (IPM) at all facilities to reduce pesticide use and minimize our impact on biodiversity and human health. Under the IPM system, we treat infestation and similar issues only as they arise – we don’t spray for preventative purposes. For facilities that require regular groundskeeping, we use a phosphorus-free fertilizer to prevent harmful run-off into surrounding natural areas.

habitat restoration and protection

Per LEED guidelines, we encourage management practices that have the lowest environmental impact possible and preserve ecological integrity, enhance diversity, and protect wildlife, while supporting building performance and integration into surrounding landscapes.

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transportation

transportation of people

We encourage carpooling and other energy-conservation measures whenever possible. When large groups of our employees must travel to attend annual meetings and similar events, we try to provide mass transportation such as buses. One ongoing issue we face is the amount of travel necessary for some employees between Herman Miller facilities in West Michigan. Unfortunately, mass-transit options are limited in this area. We will continue to look for practical solutions to this challenge, while encouraging employees to consider the most fuel-efficient options available.

transportation of products

Without question, the use of fossil fuels is essential to bringing our products to market. Herman Miller is making every possible effort to reduce the impact of this process.

One of our transportation initiatives focuses on minimizing product packaging in order to maximize delivery loads. We do this by shipping some of our products in bulk, securely enclosed in reusable blanket wrapping. This method also reduces the flow of cardboard and plastic packaging to the landfill.

Several years ago, we subcontracted out a significant portion of our long-distance shipping business. Our delivery service achieves significant fuel efficiencies, especially in round-trip transportation costs, by serving Herman Miller and other customers simultaneously.

We are also currently expanding the use of biodiesel fuel for our existing trucking system. As reliable access to this and other cleaner-burning fuels increases, we look forward to incorporating these more environmentally friendly energy sources into our operations.

our product packaging

Herman Miller Packaging Engineering has developed packaging options for various distribution environments, ranging from full truckload/direct ship to less-than-truckload common carrier. In the direct-ship scenario, most high-volume products, such as panels and work surfaces, are now packaged on wooden shipping pallets. This method reduces packaging requirements by approximately 50 percent. It also reduces damage to product and expedites installation. The remainder of product is packaged

shipping products in reusable blanket wrapping reduces the flow of

cardboard and plastic to the landfill.

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in standard shipping containers designed to withstand the rigors of the common carrier and international shipping environments. We encourage bulk shipping whenever possible.

sharing our knowledge

“We’re a free-trade company. When it comes to commitment to the environment, there are no trade secrets.”

– Mike Volkema, Chairman of the Board, Herman Miller, Inc.

We’ve learned a lot about sustainability practices in our products and our buildings, so it makes sense to us to share these insights. Representatives from Herman Miller’s environmental team travel throughout the United States to speak at conferences and visit design schools and architectural firms. Architecture and design (A&D) professionals and students can now receive continuing education credits for attending these meetings. Interacting with students and other businesses also helps expand our awareness of new ways to approach environmental issues.

Additionally, over the past 13 years we’ve hosted 6 environmental conferences open to area businesses, our customers, suppliers, employees, and even our competitors. These day-long events have featured leaders in the sustainability movement addressing a wide range of environmental topics.

commitments to external sustainability initiatives

external sustainability initiatives we support

Herman Miller supports and participates in numerous sustainability- focused initiatives and programs, including:

• GREENGUARD Certification

• ISO 14001

• Leadership in Energy and Environmental Design (LEED) Certification

• McDonough Braungart Design Chemistry (MBDC) Cradle to Cradle Certificationand Protocols

• Michigan Department of Environmental Quality Clean Corporate Citizen

• Michigan Occupational Safety and Health Administration (MIOSHA) VoluntaryProtection Program

• Supplier Diversity Initiatives

• U.S. Environmental Protection Agency (EPA) Energy Star Building Program

• EPA WasteWise Program

aeron® chair bases await assembly. in addition to its exceptional ergonomics

and design, the aeron chair is up to 94 percent recyclable at the end of its

useful life.

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Legally, Herman Miller must be in compliance with several government-mandated programs. However, we set our own standards to exceed legislative requirements when appropriate to comply with our corporate goals and philosophy.

our membership in sustainability-focused organizations

Herman Miller holds memberships in many organizations for which sustainability is a primary precept, including:

• Five Winds International

• Institute for Market Transformation to Sustainability

• International Design Center for the Environment (IDCE)

• McDonough Braungart Design Chemistry (MBDC)

• Society of Organizational Learning (SoL)

• Tropical Forest Foundation – Charter member

• U.S. EPA National Pollution Prevention and Toxics Advisory Committee (NPPTAC)

• U.S. Green Building Council (USGBC) – Charter member

• West Michigan Chapter, Air and Waste Management Association

• West Michigan Environmental Action Council (WMEAC)

• West Michigan Sustainable Business Forum – Charter member

sustainable investment

Herman Miller has been reviewed by several socially aware investment indexes, including:

• Dow Jones Sustainability Index

• KLD* Domini Social Index (DSI)

• KLD Global Climate Index (GCI100)

• NASDAQ Global Select

*Note: KLD Research & Analytics is a Boston-based independent research firm regarded as a leading authority on

social research and indexes for institutional investors. More information on KLD can be found on HermanMiller.com.

herman miller’s new york national design center is leed gold certified for

commercial interiors (ci), the first gold-level leed-ci rating to be awarded

in new york city.

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the herman miller employee experience

An organization’s culture is made up of the collective attitudes, aspirations, ideals, and experiences of the people who work there.

At Herman Miller, “social responsibility” is more than a series of programs, initiatives, and measurements – although each has an important role to play. Rather, we believe that by fostering a meaningful Employee Experience we can help create a transformational culture, both within our own organization and through-out the communities in which we live and work.

Our Employee Experience Strategy centers on the five key themes of Meaning, Choice, Opportunity, Inclusion, and Leadership. More information on Herman Miller’s Employee Experience is available at HermanMiller.com.

social responsibility: our policies and practices

We have a responsibility to be a contributing member of the communities in which we live and work.

the watercarrier sculpture on herman miller’s main site campus honors

employees who have worked at the company for at least 20 years.

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herman miller’s brand of leadership

The fact that our company has had only eight CEOs in its 100-year existence speaks volumes regarding the consistency of leadership we have experienced.

Company founder D.J. De Pree and his sons Hugh and Max established a “quiet” leadership style focused on supporting individual participation and initiative. The De Prees believed that people of any rank can and should take leadership responsibility in their area of specialty. Max De Pree’s books, Leadership is an Art and Leadership Jazz, provide a comprehensive overview of Herman Miller’s commitment to participative leadership and shared purpose.

communities

We contribute to the quality of community life by conducting business in a responsible manner. At minimum, we do this by properly maintaining our buildings and grounds, minimizing noise and congestion around our facilities, and monitoring the environmental impacts of our manufacturing operations.

volunteer efforts

We encourage our employee-owners to seek out volunteer opportunities and allow each person eight paid hours a year to work with the charitable organization of their choice. Herman Miller people regularly take part in a variety of initiatives ranging from highway and river clean-ups to youth mentoring programs.

We keep track of the hours our employees volunteer, and for the period from March 2005 to August 2006, employees devoted more than 33,000 volunteer hours to community charitable causes.

During Fiscal 2006 our volunteer initiatives extended beyond our local communities and national borders to lend a hand to those in need:

hurricane katrina Herman Miller and its employees supported a local relief agency that provided medical supplies and personal care items to hurricane victims. In the months that followed, a number of our employees traveled to the Gulf Coast to assist reconstruction efforts.

project india We sent 10 employees to Tharangambadi, India, for 2 weeks to help rebuild a local school devastated by the December 2004

natural disasters such as hurricane katrina and nonprofit initiatives

including habitat for humanity regularly receive the hands-on support of

herman miller employees.

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tsunami. Our group built benches, painted murals, and taught computer skills, among other tasks. Employees from all over the company contributed vacation days to those doing the work.

habitat for humanity During the spring and summer of 2005, over 150 West Michigan employees volunteered to construct a home and help a family experience the joy of first-time home ownership.

We Care Each year, Herman Miller and Geiger, a subsidiary, along with the Boys and Girls Clubs of America, organize We Care events to let disadvantaged children make artistic holiday presents and enjoy a visit from Santa Claus. In 2006, 150 leading interior design firms in 16 cities participated.

opportunity

We value personal growth and development designed around individual skill sets and interests. All employees are encouraged to explore new opportunities throughout Herman Miller. Everyone has access to internal job postings, and employees are provided a number of resources to support career mobility.

lifelong learning programs

Employees are offered a variety of learning and development resources including online, instructor-led learning opportunities as part of a specific job curriculum and/or for general career development. For example, our Leader Core Curriculum explores the multiple aspects of leadership, from communications to supporting diversity and developing others. Participants are supported with mentors, regular learning events focused on key leadership topics, and spontaneous opportunities to practice key leadership skills.

education reimbursement Herman Miller provides full financial reimbursement for employees who choose to continue their formal education to broaden business skills or keep current with business trends and practices.

herman miller graphic designer kim harris vanderlende makes a friend during

project india, a 10-day volunteer effort to rebuild a tharangambadi school

devastated by the december 2004 tsunami.

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inclusiveness and diversity

“Every person should have the chance to realize his or her potential, regardless of color, gender, age, sexual orientation, educational back-ground, family status, (or) skill level. When we are truly inclusive, I believe we go beyond toleration to really understanding what makes us unique and what unites us as human beings.”

– Brian C. Walker, President and Chief Executive Officer, Herman Miller, Inc.

We believe in a workforce composed of a diversity of backgrounds, interests, and talents. Work team leaders throughout our organization are required to exercise fair employment practices.

inclusiveness leadership and management

Two years ago, we introduced a formal Inclusiveness and Diversity initiative and appointed a director of Organizational Diversity, whose team focuses on:

• Supplier diversity: Growing our industry-leading supplier diversity initiative

• Dealer distribution network: Diversifying our distribution channel

• Employee attraction and retention: Recruiting, hiring, developing, and retainingthe most talented individuals available

• Education/Awareness: Developing the curriculum and tools to promote a moreinclusive work environment

• Community outreach: Implementing inclusiveness outreach initiatives beyond the walls of Herman Miller

In March 2006 we initiated further diversity efforts across the enterprise, including the formation of Inclusiveness Business Teams (IBTs). Each IBT reviews internal diversity efforts and recommends new opportunities to expand inclusiveness. An Inclusiveness Council assists the implementation of IBT recommendations.

Please visit Inclusiveness and Diversity on HermanMiller.com.

supplier diversity and screening

We have worked for years to build a strong and diverse supplier network. Expanding our qualified diverse supplier network makes good business sense and builds a stronger community. To support our supplier diversity efforts, we employ several strategies including supplier sourcing and qualification, a Tier II reporting program, a mentoring program, community and business outreach, and training and education.

We recently implemented a companywide revised diverse bid-inclusion process that establishes Herman Miller as a leader in this area among the Fortune 1000. During the year, we earned a place on DiversityInc magazine’s list of the country’s top 10 supplier diversity programs. DiversityInc also recognized Herman Miller as one of its “25 Noteworthy Companies.” This honor measures a company’s overall diversity achievements in four key areas: CEO commitment, human capital, corporate communications, and supplier diversity. We are the only company in our industry to appear on these lists.

As part of our commitment to diversity, all Herman Miller suppliers are screened for their human rights practices through on-site visits and registration requirements.

Please visit Supplier Diversity on HermanMiller.com.

accomplishments

Over the past fiscal year we took several significant steps toward becoming a more diverse and inclusive organization:

• We convened our first Diverse Dealer Council meeting, and added minority- and women-owned dealerships.

• We utilized new diversity recruiters for several critical open positions, and imple-mented a new internship program focused on a more diverse student representation.

• We joined the West Michigan Chamber of Commerce as well as the Michigan Hispanic Chamber of Commerce to gain access to more resources to assist us in our inclusiveness efforts.

• We introduced inclusiveness awareness materials, including a brochure and an Internet website, into our corporate informational material.

• We finalized our diversity education curriculum, incorporated it into our new work team leader core curriculum, and rolled it out to the general employee population.

• Most importantly, we developed communications to create accountability for our inclusiveness initiative to all employee-owners.

We recognize that much remains to be done to achieve our goal of becoming a more diverse and inclusive organization. However, we believe we are making significant strides in this important initiative.

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health and safety

Herman Miller is committed to the highest standards in health and safety man-agement. From the production floor to the workstation, from stacking products to adjusting seats ergonomically, we focus on safety first, last, and always.

Today, 10 percent of Herman Miller’s workforce participates in health and safety committees. Their activities include safety training classes, audits, incident investigations, contractor monitoring, and safety communications. Herman Miller also hosts safety conferences annually for employees and guests.

our safety goals

• Zero injuries

• Excellence in safety performance

• Elimination of at-risk behavior

A key initiative in our pursuit of these goals is our participation in the Michigan Voluntary Protection Program (MVPP), which provides employers and employees with a set of criteria to achieve outstanding corporate safety management systems. The program elements of communication, education, hazard analysis and prevention, and employee involvement provide Herman Miller with a successful infrastructure for a sound safety management approach.

Three of our corporate manufacturing sites have been recognized as MVPP Michigan Star programs for their exemplary safety and health programs. At these sites, injury and illness rates are below industry standards. Herman Miller is one of only 19 Michigan companies to hold this distinction.

health and safety performance results

Over the past three years, we have continuously decreased our corporate injury rate in pursuit of our ultimate goal to achieve zero injuries company- wide. Our numbers are significantly below the current industry standard of 7.8 injuries per 100 employees.

Corporate Rates of Injury per 100 Employees*• 2003/04- 3.1

• 2004/05 - 2.6

• 2005/06 - 2.4

*Numbers include Herman Miller’s United Kingdom operations.

herman miller believes in a workforce made up of a diversity of

backgrounds, interests, and talents.

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safe and healthy products

In addition to the environmental aspects of the materials we choose for our products, we address the health and well-being of our customers through both the ergonomic design of our products and in our raw material selection and manufacturing processes.

ergonomics

In 1976, Herman Miller introduced modern ergonomics to the contract furniture industry with the Ergon® chair, the first ergonomic work chair. Today, proper ergonomics guides every Herman Miller design and designer.

We want to make every person comfortable, safe, and productive at work by applying the principles of good ergonomic design:

1. Fit the user in both size and capability.

2. Fit the task. Placement of tools and equipment with regard to reach, duration, and intensity is essential to task performance.

3. Allow for posture change and activity variety. Muscles require movement to stay healthy.

By improving worker comfort and vitality in the workplace and reducing exposure to Musculoskeletal Disorders (MSDs), we contribute to a healthier, happier, and more successful environment.

Please visit Ergonomics on HermanMiller.com for more details on subjects including codes and standards, research, training, and additional information.

awards and recognition

Although we’re not in business to win awards, along the way we’ve earned some much-appreciated accolades. To see a comprehensive list of our awards, please visit Environment on HermanMiller.com.

designer bill stumpf created ergon®, the first ergonomic work chair, for

herman miller in 1976. stumpf later collaborated with designer don

chadwick to create herman miller’s iconic aeron® chair.

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Herman Miller has been involved in the con-versation about sustainability for a number of years now. We were among the first in our industry to look beyond the traditional, exclusively economic bottom line to define success. No doubt we sometimes baffled customers and competitors alike with our talk of “stewardship” and “a better world.” Still, we have long believed that it’s essential to strike a balance between financial gain, environmental responsibility, and social equity.

Today, we stand together with a growing number of organizations and individuals worldwide who view sustainability as the single, logical path to the future. The next challenge for all of us, of course, is to “walk the talk.” As Hugh De Pree’s comment above suggests – and the information presented in this report illustrates – even our best efforts sometimes fall short of our aspirations. But the right way is not always the easy way.

closing comments

“What this company has done over the years has not always been successful. It has not always been a winner. But it has always tried to operate by certain beliefs and principles, especially the principles of trust, stewardship, equity, and innovation.” – Hugh De Pree, CEO, 1962-1980, Business as Unusual

“we are all extraordinary.” – d. j. de pree, herman miller founder

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In presenting Herman Miller’s first Sustainability Report, our goal was to chronicle how far we’ve come, and the road ahead from our current vantage point. We are also aware that the information presented here puts us “on the record” and holds us accountable for our past, present, and future actions. We willingly accept this responsibility, as well as any resulting debate and discussion – as long as it keeps the conversation about sustainability going.

We welcome your feedback on the content and format of our initial Herman Miller Sustainability Report. Send your comments to the EnvironmentalAffairsGroup@HermanMiller.com.

Thank you for your interest in Herman Miller.

Paul MurrayDirector, Environmental Health and Safety, Herman Miller, Inc.

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appendix

leadership and governance

board of directors Herman Miller’s Board of Directors currently consists of 13 members elected by our stockholders to oversee their interests in the long-term performance and overall success of our company. The Board’s primary responsibilities are oversight, counseling, and direction to Herman Miller management. The Board also reviews and maintains our Corporate Code of Conduct.

Our Board has expressed its commitment to, and support of, our environmental and social initiatives.

Please visit the Board of Directors page on HermanMiller.com for more information.

public ownershipHerman Miller, Inc., has been a publicly held company since 1970, and serves as parent to several wholly owned subsidiaries and licensees active around the globe.

Our owners include full-time Herman Miller employees (our “employee-owners”), who today own approximately 12.4 percent of the business. The result is a highly motivated and business-literate workforce that challenges convention and strives to create increasingly greater value for both our customers and owners.

Herman Miller is listed on the NASDAQ Global Select Market as MLHR.

shareholder and employee communications/feedbackEmployees are encouraged to present questions and suggestions through our intranet site. All employees also have access to a global e-mail address listing that houses all employee e-mail addresses, including the CEO and Executive Leadership Team. Additionally, our CEO discusses Herman Miller’s corporate strategy and answers questions during the Employee Annual Meeting.

The company website, www.HermanMiller.com, features sections designed for specific groups including architects and designers, investors, and the media, as well as government, healthcare, and education customers, and general audiences.

Herman Miller also maintains several dedicated intranet sites for its dealers, field sales, and employee-owners that likewise provide up-to-date company news and information.

herman miller’s executive leadership teamThe individuals responsible for managing our North American operations are:

• Brian Walker, Chief Executive Officer

• Don Goeman, Executive Vice President, Research, Design and Development

• Ken L. Goodson, Executive Vice President – Operations

• Andy J. Lock, Executive Vice President – Chief Administrative Officer

• Kris Manos, Executive Vice President, North American Office and Learning Environments

• Gary Miller, Executive Vice President, Creative Office

• Beth Nickels, Executive Vice President – Chief Financial Officer

• John Portlock, Executive Vice President – International

• Charley Vranian, Executive Vice President, North American Emerging Markets

herman miller’s stakeholders include: • Customers

• Architects and Designers

• Dealers

• Suppliers

• Contractors

• Employees

• Investors

markets we serve include: • Business

• Residential

• Federal, State, and Local Government

• Healthcare

• Education

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countries in which we operateHerman Miller is represented through subsidiaries and corporate offices, independent dealers, and licensees in over 80 countries in North America, Asia/Pacific, Europe, Middle East, and Latin America. More information is available on HermanMiller.com.

Herman Miller maintains manufacturing sites in Holland, MI, Spring Lake, MI, Zeeland, MI, Lake Mills, WI, Atlanta, GA, and Bath, England.

our corporate divisionsHerman Miller for the Home

Herman Miller for Healthcare

Herman Miller for Government (Federal)

Herman Miller for Government (State and Local)

our subsidiariesCoro Acquisition Corporation—California 100% Company CaliforniaGeiger International, Inc. 100% Company DelawareHerman Miller (Australia) Pty., Ltd. 100% Company AustraliaHerman Miller Canada 100% Company CanadaHerman Miller Global Customer Solutions 100% Company MichiganHerman Miller Italia S.p.A 100% Company ItalyHerman Miller Japan, Ltd. 100% Company JapanHerman Miller, Ltd. 100% Company England, U.K.Herman Miller Mexico S.S de C.V. 100% Company MexicoIntegrated Metal Technologies 100% Company MichiganMeridian, Inc. 100% Company MichiganMilsure Insurance, Ltd. 100% Company BarbadosOffice Pavilion South Florida, Inc. 100% Company FloridaOP Corporate Furnishings, Inc. 100% Company TexasOP Spectrum LLP 90% Company PennsylvaniaOP Ventures, Inc. 100% Company ColoradoOP Ventures of Texas, Inc. 100% Company Texas

our alliance partnersHerman Miller has formed a network of alliances that complement our product portfolio and strengthen our total offering to customers. We build relationships with companies that share our commitment to high standards of product and service quality, with a clear focus on customer needs.

American Access Technologies

Artek (Aalto Furniture)

Baker Manufacturing Company, Inc.

Brandrud, Inc.

Bretford, Inc.

Corning Cable Systems

First Office

Future Industrial Technologies (F.I.T.)

Luna Textiles, Maharam, and Edelman Leather

SitOnIt, Inc.

SCA Wall Services

Theatre Solutions, Inc.

total sales (millions) net sales (millions)

Sales by geographic area are based on the location of the customer.

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corporate structure

business structureHerman Miller uses a variable-cost business model that’s designed to weather the peaks and valleys of the contract furniture industry. It’s a “both/and” approach that keeps us healthy in the present and prepared for the future.

Our model is built on a non-vertically integrated cost structure. In other words, we partner with suppliers, designers, dealers, and other companies, rather than bringing the work they do for us—and its attendant costs—in house.

management methodologies

core strengthsWe rely on the core strengths of Problem-Solving Design and Innovation, Operational Excellence, and Building and Leading Networks of quality designers, dealers, and suppliers in delivering workplace solutions to our customers.

industry performanceWe closely monitor the statistics reported by BIFMA*, our industry trade association, and consider them among the key indicators of industrywide sales and order performance. We also analyze this information over several quarters as a benchmark for our U.S. business.

More information on our core strengths and industry performance is available on pages 17-18 of our 10-K Report.

*The Business and Institutional Furniture Manufacturer’s Association

goals and performanceWe have set several goals for the year 2010 and described them to our inves-tors and the public. Some of these goals refer to economic success, while others address how we impact our surroundings. Together, they encompass the high standards we have set for our company.

our 2010 goals include: • Double the business – sales of $2.6 billion • Launch 10 innovative, market-defining product platforms • Generate 10 percent of our sales from alliances or acquisitions • Drive 50 percent of our annual revenue growth from new and

emerging markets • Generate 50 percent of our sales from products that meet our

Design for Environment (DfE) protocol • Achieve an 80 percent reduction in our operational footprint on

the environment • Improve operating income to at least 11 percent of sales through growth

and continuing implementation of the Herman Miller Production System

During 2006 we were successful in some of our financial goals and less successful in others. Herman Miller’s sales for fiscal 2006 rose 14.6 percent over the previous year, which puts us on track for our 2010 target to double our business. We also witnessed record sales growth in our Herman Miller for Healthcare division and improved international sales by 23.1 percent. Additionally, we launched two new award-winning product lines this year: My Studio Environments™ and Vivo™ interiors.

In areas where we were unsuccessful in achieving our objectives, we remain committed to meeting our long-term targets.

Please see our Annual Report for Herman Miller CEO Brian Walker’s statement on our performance for fiscal year 2006.

opportunities and challenges

future avenues of growthWe have identified the following market segments as key avenues for our future growth: • Primary Markets – We will capture additional market share within our

existing primary markets by offering superior solutions to customers who value space as a strategic tool

• Adjacent Markets – We will further apply our core skills in environments such as healthcare, higher education, and residential

• Developing Economies – We will expand our geographic reach in areas of the world with significant growth potential

• New Markets – We will develop new products and technologies that serve wholly new markets

the challenges aheadLike all businesses, Herman Miller is faced with a host of challenges and risks. We believe our core strengths and values, which provide the foundation for our strategic direction, have us well prepared to respond to the inevitable challenges we will face in the future. Please refer to pages 6-8 of our 10-K Report for a discussion of some of these risk factors.

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Strategy and Analysis

1.1 CEO Statement

1.2 Key impacts, risks and opportunities

Organizational Profile

2.1 Name of reporting organization

2.2 Primary brands, products and/or services

2.3 Operational structure

2.4 Location of organization’s headquarters

2.5 Countries located

2.6 Nature of ownership and legal form

2.7 Markets served

2.8 Scale of the reporting organization

2.9 Changes during reporting period

2.10 Awards received during reporting period

Report Parameters

3.1 Reporting period

3.2 Date of most recent previous report

3.3 Reporting cycle

3.4 Contact point for questions on report

3.5 Process for defining report content

3.6 Boundary of report

3.7 Limitations on report scope or boundary

3.8 Reporting on joint ventures, subsidiaries and leased facilities

3.9 Data measurement techniques

3.10 Reinstatements from earlier reports

3.11 Changes from previous reporting periods

3.12 Table identifying location of Standard

Disclosures

3.13 External assurance

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Governance, Commitments, and Engagement

4.1 Organization’s governance structure

4.2 Chair of highest governance body

4.3 Independent members of highest governance body

4.4 Shareholder and employee recommendations to highest governance body

4.5 Compensation of highest governance body

4.6 Process for highest governance body to avoid conflicts of interest

4.7 Process for determining qualifications of highest governance body

4.8 Internally developed mission relevant to economic, environmental, and social performance

4.9 Procedures for highest governance body to oversee organization’s management of economic, environmental, and social performance

4.10 Processes for evaluating highest governance body

4.11 Explanation of how organization addresses precautionary approach

4.12 Externally developed, voluntary economic, environmental, and social initiatives organi- zation subscribes to and/or endorses.

4.13 Significant association memberships

4.14 List of stakeholder groups engaged by organization

4.15 Basis for identification and selection of stakeholders

4.16 Approaches to stakeholder engagement

4.17 Key stakeholder issues and concerns

Economic Performance

EC1 Economic value generated

EC2 Financial implications, risks, and opportunities of climate change

EC3 Coverage of organization’s defined-benefit pension plan

EC4 Financial assistance from government

EC5 Standard entry level wage compared to local minimum wage

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EC6 Spending on locally based suppliers

EC7 Procedures for local hiring

EC8 Infrastructure investments and services for public benefit

EC9 Indirect economic impacts

Environmental Performance

EN1 Materials used by weight or volume

EN2 Recycled input materials used

EN3 Direct energy consumption

EN4 Indirect energy consumption

EN5 Energy saved due to conservation and efficiency improvements

EN6 Initiatives to provide energy-efficient products and services

EN7 Initiatives to reduce indirect energy consumption

EN8 Water withdrawal by source

EN9 Water sources significantly affected by water withdrawal

EN10 Water recycled and reused

EN11 Land adjacent to protected areas

EN12 Impact of activities on biodiversity in protected areas

EN13 Habitats protected or restored

EN14 Strategies for managing impacts on biodiversity

EN15 IUCN Red List species affected by operations

EN16 Direct and indirect greenhouse gas emissions

EN17 Other relevant indirect greenhouse gas emissions

EN18 Initiatives to reduce greenhouse gas emissions

EN19 Emissions of ozone-depleting substances

EN20 NOx, Sox, and other significant air emissions

EN21 Water discharge, quality and destination

EN22 Waste by type and disposal method

EN23 Significant spills

EN24 Transported, imported, or exported hazardous waste

EN25 Water bodies and related habitats affected by water discharge and runoff

EN26 Initiatives to mitigate environmental impacts of products

EN27 Products sold and packaging materials reclaimed

EN28 Noncompliance with laws and regulations

EN29 Environmental impacts of transporting products

EN30 Environmental protection expenditures

Social Performance

LA1 Workforce by employment type and region

LA2 Employee turnover by age group, gender, and region

LA3 Benefits provided to full-time employees not provided to temporary or part-time employees

LA4 Collective bargaining agreements

LA5 Minimum notice periods regarding operational changes

LA6 Management-worker health and safety committees

LA7 Rates of injury

LA8 Education, training, counseling, and prevention programs regarding serious diseases

LA9 Health and safety topics covered in formal agreements with trade unions

LA10 Training per year per employee

LA11 Skills management and lifelong learning programs

LA12 Performance and career development reviews

LA13 Composition of governance bodies and employees according to diversity indicators

LA14 Ratio of basic salary of men to women

HR1 Investment agreements that include human rights clauses

HR2 Human rights screenings of suppliers and contractors

HR3 Human rights policies and procedures training for employees

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HR4 Incidents of discrimination

HR5 Incidents of freedom of association and collective bargaining

HR6 Incidents of child labor

HR7 Incidents of forced compulsory labor

HR8 Human rights policies and procedures training for security personnel

HR9 Incidents of violations involving rights of indigenous people

SO1 Impact of operations on communities

SO2 Business units analyzed for corruption-related risks

SO3 Anticorruption policies and procedures training for employees

SO4 Response to incidents of corruption

SO5 Public policy development and lobbying

SO6 Financial and in-kind contributions to political parties

SO7 Anticompetitive behavior, antitrust, and monopoly practices

SO8 Fines and nonmonetary sanctions for laws and regulations

PR1 Health and safety improvements to products and services

PR2 Noncompliance concerning health and safety effects of products and services

PR3 Product and service information required by procedures

PR4 Noncompliance with regulations concerning product and service information and labeling

PR5 Practices related to customer satisfaction

PR6 Adherence to laws and standards related to marketing communications

PR7 Noncompliance with regulations concerning marketing communications

PR8 Substantiated complaints regarding breaches of customer privacy

PR9 Noncompliance with laws and regulations concerning products and services

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© 2007 Herman Miller, Inc. Zeeland, Michigan

® L, Y, Aeron, Ergon, Meridian, and Mirra are among the registered trademarks of Herman Miller, Inc.

™ My Studio Environments and Vivo and among the trademarks of Herman Miller, Inc.