The power of radical innovation Ramón Arratia

Sustainability Director

Interface

“One day people

like me will go

to jail” Ray

Anderson

1994

Interface Europe Ecometrics 2014

• Direct GHG Emissions: -98% Reduction from 1996

• Renewable Energy: 95%

• Energy Efficiency: -54% Reduction from 1996

• Water Usage: -93% Reduction from 1996

• Waste to Landfill: Zero

98% GHG reductions from 1996

100%

1996

Manufacturing efficiencies (54%)

Green electricity (20%)

2014

Biogas credits (24%)

Remaining 2%

Type of projects implemented

• Hot parts insulation

• Steam boiler elimination, switch to efficient boilers

• Compounds that work at lower temperatures

• Valves that keep heat in the process

• Password restricted thermostats

• Optimising humidity in curing

• Automated system BMS

• Air curtains for doors

• Reuse of cold air from the bottom to the top

• Decision of some halls and storage space to be at 5C

• Spot heating

• Compressed air

Approach

• Sense or urgency. Not 2020, now.

• Empower engineers, giving them an umbrella to act

on and a stronger voice

• Acceptance that the last 10% would cost more

• Differentiate ourselves by doing some extraordinary

ahead of schedule and expectations

• Strong communication, yet humble

• Sense of pride for the rest of the organization

• Extra motivation for sales people (feeling the winning

hand)

A Paradigm Shift

OLD

• Corporate

sustainability

• The beauty contest

• Awards and labels

• Zero company

impacts

NEW

• Product sustainability

• Embedded

• LCA performance

• Zero product life

cycle impacts

RADICAL

• Services redesign

• Closed loop systems

• Radical materials

• Zeroing others by

cannibalising

• Positive lobbying

Company

Product

vs.

Embedding Sustainability

Life Cycle Assessment (LCA) –

The Key in Sustainability

Carbon Footprint Breakdown:

Materials and Processes

Why CO2 per m² is the Magic Metric

Source: TrueCost study for Interface, based on environmental indicators from EPDs

14

The power of product redesign

Use less yarn

Use more recycled yarn

Find an alternative yarn or

re-invent an existing yarn

What Can We Do to Zero Out the

Impact of the Yarn?

1) Use less

Yarn: Microtuft

– Less is More

Technology using up to

50 % less yarn

Following the ‘less is

more’ principle – only

340 g yarn per m²

11 million m² sold since

launch

Accounting for around

14 % of European sales

High growth product

category

2) Use More

Recycled Yarn

Challenging our suppliers

More than 450 colour

ways with 100 %

recycled yarn are

available now!

Far more than any of our

competitors

3) Alternative/

Inventing a New

Yarn: PA6.10

63 % bio-based yarn derived

from castor bean plants

Castor bean plants grow on

marginal land

Grow quickly and need water

only once in 25 days

Do not compete with food crops

Provides socio-economic

benefits for rural farmers

Class 33 Rating – No

compromise in durability or

appearance

3) Re-Inventing

an Existing Yarn

Polypropylene yarn (PP)

Less resilience than PA

Less carbon impact than PA

New construction from Interface

guarantees same performance as

PA

Eliminates the precoat layer

Achieves the lowest CO2

footprint

First heavy contract

Polypropylene carpet in history

(Class 33 Rating)

Scavenging others’ waste:

• PVB used to be sent to landfill as waste

from glass recycling

• Now it’s used as latex in our carpet

Open Loops

Re-designing the supply

chain with Net-Works™

•A socially inclusive

business model

•Net-Works enables

fishing communities in

developing countries to

sell waste nets back into

a global supply chain

•Partnership with

Zoological Society

London (ZSL) and our

yarn supplier Aquafil

www.net-works.com

Full Transparency

Environmental Product

Declarations (EPDs)

Third party verified and

based on a thorough LCA in

line with ISO 14040

standards.

EPDs enable customers to

compare products’

ingredients, energy and

material resource

consumption and

environmental impacts.

No green washing!

http://www.interfaceflor.in/we

b/in/sustainability/epd/certifi

cates

Easy Access to

Information A quick and fact-based

overview of the main

environmental impacts for

each of the Interface products

Covers all phases of the life

cycle of a product

Recycled content figures at

color level

Product features and services

that help to reduce the overall

environmental impact are

highlighted

Contribution towards major

green building schemes

http://www.interfaceflor.co.uk/w

eb/sustainability/environmental

_datasheets

…but every carpet,

every kg of cement,

every building….

Pay the same VAT

Successful regulation at cars

• What is the biggest issue?

• Energy at use = gCO2/km (becomes the magic metric)

• European-wide goals for the industry on gCO2/km

• Mandatory displaying of the metric on advertising

• Company car tax: more tax if more gCO2/km

• Road tax: more tax if more gCO2/km

• City incentives: Low gCO2/km have exemptions

e.g. parking, congestion charge

Product Carbon Footprint

• Very interesting approach

• Slow, little resources

• Combine it with voluntary standards

Do Customers Pay for Sustainability?

Biosfera – Our

First EcoHero

• Carpet with a minimum

use of raw materials

Made from 100 %

recycled yarn including

fishing nets and used

carpet fluff

Highest growth new

product introduction ever

A Paradigm Shift

OLD

• Corporate

sustainability

• The beauty contest

• Awards and labels

• Zero company

impacts

NEW

• Product sustainability

• Embedded

• LCA performance

• Zero product life

cycle impacts

RADICAL

• Services redesign

• Closed loop systems

• Radical materials

• Zeroing others by

cannibalising

• Positive lobbying

Cannibalization of unsustainable

practices, products and design

Cannibalization of unsustainable

practices, products and design

ReUse and Recycling Carpet Tiles

Business case for sustainability

• Reputation

• Efficiency savings (eg. energy, waste)

• Recruiting

• Internal engagement

• Competitive advantages

• Open new markets

• Create barriers to entry