1

2

The Business Case

3

The Business Case

Risk Management

4

The Business CaseRisk Management

Survival

5Source: BIFMA.

BIFMA Order Trends

Unprecedented Decline

12/93 06/04

- 38% (2½ Years)

7000

8000

9000

10000

11000

12000

13000

14000

6

The Business Case

Risk Management

Survival

Market

7

The Business Case

Risk Management

Survival

Market

• Goodwill

8

The Business Case

Risk Management

Survival

Market• Goodwill

• Green Buildings

9

The Business CaseRisk Management

Survival

Market• Goodwill• Green Buildings

• Ethical Design

10

The Business Case

Risk Management

Survival

Market• Goodwill• Green Buildings• Ethical Design

• Cultural Creatives

11

The Business Case

Risk Management

Survival

Market• Goodwill• Green Buildings• Ethical Design• Cultural Creatives

People

12

The Business CaseRisk Management

Survival

Market• Goodwill• Green Buildings• Ethical Design• Cultural Creatives

People

Products

13

The Business CaseRisk Management

Survival

Market• Goodwill• Green Buildings• Ethical Design• Cultural Creatives

People

Products

Processes

14

The Business CaseRisk Management

Survival

Market• Goodwill• Green Buildings• Ethical Design• Cultural Creatives

People

Products

Processes

Profits

15

The Business CaseRisk ManagementSurvivalMarket• Goodwill• Green Buildings• Ethical Design• Cultural Creatives

PeopleProductsProcessesProfits

Purpose

16

The Business CaseRisk Management

Survival

Market• Goodwill

• Green Buildings

• Ethical Design

• Cultural Creatives

People

Products

Processes

Profits

Purpose

Place

17Typical Company of the 20th Century

V

PROCESSES

PEOPLEPEOPLE CAPITALCAPITAL

Suppliers

Market

Customers

$ $Raw

MaterialsProducts

Earth'sBiosphere

Natural Materials Waste to Landfill

Earth'sLithosphere

OrganicInorganic

Waste Emissions

CommunityEmployees

Wages $ Dividends $Investments $

Taxes $Laws

181. Eliminate Waste through QUEST

V

PROCESSES

PEOPLEPEOPLE CAPITALCAPITAL

Suppliers

Market

Customers

$ $Raw

MaterialsProducts

Earth's

Biosphere

Natural Materials Waste to Landfill

Earth's

Lithosphere

OrganicInorganic

Waste Emissions

1

Community

EmployeesWages $ Dividends $Investments $

Taxes $Laws

19

$5

$262

1Q - 952Q -3Q -4Q -

1Q - 962Q -3Q -4Q -

1Q - 972Q -3Q -4Q -

1Q - 982Q -3Q -4Q -

1Q - 992Q -3Q -4Q -

1Q - 002Q -3Q -4Q -

1Q - 012Q -3Q -4Q -

1Q - 022Q -3Q -4Q -

1Q - 032Q -3Q -4Q -

1Q - 042Q -3Q -4Q -

0.00

0.25

0.50

0.75

1.00

1.25

$0

$50

$100

$150

$200

$250

$300

Interface, Inc.QUEST - Cumulative Results

Blue - Baseline = 1994

Green - Baseline = 2003Index

Cumulative Savings in Millions

Baseline = 1.0

20

Doing Well by Doing GoodThe Interface Model©

1. Eliminate Waste Through QUEST2. Benign Emissions3. Renewable Energy4. Closing the Loop5. Resource Efficient Transportation6. Sensitivity Hookup7. Redesign of Commerce

217. Redesign of Commerce

V

PROCESSES

PEOPLEPEOPLE CAPITALCAPITAL

Suppliers

Market

Customers

$ $Raw

MaterialsProducts

Earth'sBiosphere

Natural Materials Waste to Landfill

Earth'sLithosphere

Community

OrganicInorganic

Waste Emissions 7

7

Sustainability Link

Compostable Products

NaturalCycle

TechnicalCycle7

7

Service7

Solar Energy

SensitivityEmployeesWages $ Dividends $

Investments $Taxes $Service Laws Investment

22

Prototypical Company of the 21st Century

V

PROCESSES

PEOPLEPEOPLE CAPITALCAPITAL

Suppliers

Market

Customers

$ $Raw

MaterialsProducts

Earth'sBiosphere

Natural Materials

Earth'sLithosphere

Community

Sustainability Link

Compostable Products

NaturalCycle

TechnicalCycle

Service

Solar Energy

SensitivityEmployeesWages $ Dividends $

Investments $Taxes $Service Laws Investment

Doing Well by

Doing Good!

23

V

PROCESSES

PEOPLE CAPITAL

Suppliers

Market

Customers

$ $Raw

MaterialsProducts

EarthBiosphere

Natural Material

EarthLithosphere

Community

Sustainability Link

Compostable Products

Service

SensitivityEmployeesWages $ Dividend $

Investment $Taxes $Service Laws

Renewable Energy

NaturalCycle

TechnicalCycle

Investment

GHG emissionsAir emission pointsWater effluent pointsTrees for Travel (off-sets)

QUEST SavingsSolid Waste

Post consumer content

Petro energyPetro materialsWaterPost industrial

Natural Products

Non-Petro materials

Bio-based Materials (PLA)

Absolute GHG Emissions

Down 52%

Workplace enrichmentCommunity enrichmentProfitability improvementJob security enhancementShareholder value

24

Selected Eco-Metrics (vs. Baseline)

Interface, Inc

Waste - US$262 Million

GHG Emissions -35% (abs.)GHG Offsets -17% (abs.)Net GHG Emis. -52% (abs.) NonRen. Energy -43% (rel.) (carpet)

Water -66% (rel.) (carpet)

North America

Waste - US$236 Million

GHG Emissions -33% (abs.)GHG Offsets -20% (abs.)Net GHG Emis. -53% (abs.)

NonRen. Energy -44% (rel.) (carpet)

Water -64% (rel.) (carpet)

25

ReEntry ProgramPounds of Carpet Diverted from Landfill

(in Millions)

3.1 3.57.7

27.1

36.3

49.1

66.2

1.9

22.3

13.4

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

26

I = P x A x T

I = Environmental ImpactP = PopulationA = AffluenceT = Current Technology

Environmental Impact Equation

27

1st Industrial Revolution

I = P x A x T1

I = Environmental ImpactP = PopulationA = AffluenceT = Current Technology

= Extractive Linear Fossil Fuel Driven Abusive Wasteful Focused on Labor Productivity

28

I = P x A T2I = Environmental ImpactP = PopulationA = AffluenceT2 = Technology of the Future

= RenewableCyclicalSolar / Hydrogen Driven BenignEmulating Nature (No Waste) Focused on Resource Productivity

2nd Industrial Revolution

29

I = P x a T2 x HI = Environmental ImpactP = Populationa = AffluenceT2 = Technology of the FutureH = Happiness = Satisfying all basic human needs

Subsistence LeisureProtection CreationAffection IdentityUnderstanding FreedomParticipation Transcendency (higher purpose)

The New Civilization

30

Max-Neef MatrixBasic Human Needs and Satisfiers

Being Having Doing Interacting

Subsistence

Protection

Affection Understanding Participation Leisure Creation Identity

Freedom

Transcendency

Satisfiers:

Violators and Destroyers

Pseudo - Satisfiers

Inhibiting Satisfiers

Singular Satisfiers

Synergistic Satisfiers

Select the satisfiers that maximize happiness to create more happiness with less stuff.

Axiological Category of Needs

Existential Category of Needs