SMaRT Solutions for Sustainable Business
©
SMaRT .
I’m
Ask me why.
SMaRT© Consensus Sustainable
Product Standard
The Deepest
Shade of
Green©
© 2007
SMaRT Solutions for Sustainable Business
I’m SMaRT©. Ask me why.
• What is SMaRT?
• Why did leading manufacturers &
governments choose it?
• Who else is involved?
• How do you achieve a
SMaRT rating?
• What does it mean for
customers?
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
What is SMaRT©?
• SMaRT is to products what LEED® is to buildings
• The Consensus Sustainable Product Standard covering 80% of the
world's products — excludes only planes & vehicles
• SMaRT is based on the LEED model—a consensus rating system
with prerequisites and optional credits
• Acronym stands for Sustainable Materials Rating Technology
• SMaRT© Sustainable Building Product Standard launched
December 2006
SMaRT SMaRT
Solutions for
Business
• Fast Company (Nov. 2008) identifies
asSustainable
an important
product
SMaRT Solutions for Sustainable Business
certification
© 2007
SMaRT Solutions for Sustainable Business
Who oversees SMaRT©?
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
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Why did Leading Manufacturers &
Governments Choose SMaRT©?
SMaRT is the consensus sustainable product standard. It is:
• Accessible
• Comprehensive
• Transparent
The Deepest
Shade of
Green©
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Why did Leading Manufacturers & Governments
choose SMaRT©?
SMaRT is accessible.
• Open – any interested party can become a committee member
• Consensus – the SMaRT Committee has sole responsibility for
standards development, approval, interpretation, and revision
• Affordable – SMaRT is cost effective
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT 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
SMaRT Solutions for Sustainable Business
Forbo Linoleum is a SMaRT Platinum Certified
Product eligible
for credit
SMaRT Sustainable
Solutions for Sustainable
Business
for LEED certified green buildings.
© 2007
SMaRT Solutions for Sustainable Business
Why did Leading Manufacturers & Governments
choose SMaRT©?
SMaRT 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
SMaRT
Solutions
for Sustainable
Business
data for 12 environmental impacts,
& credit
for reduction
of over
1300
SMaRT Solutions for Sustainable Business
pollutants up to 100%
© 2007
SMaRT Solutions for Sustainable Business
Environmental Performance for Steel
LCA Impact Example:
SMaRT Requires an ISO Compliant LCA Thus Providing Critical Coverage of Global
Suppliers
Global
Warming
Waste
100%
Ozone Depletion
50%
Energy
EcoTox
High Recycled
Content Steel
0%
Smog
Acidiication
HumanTox
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
Eutrophication
© 2007
SMaRT Solutions for Sustainable Business
Why did Leading Manufacturers & Governments
choose SMaRT©?
SMaRT 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 SMaRT Certifications
• Consensus – Criteria were developed through an accredited process
SMaRT 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
SMaRT Solutions for Sustainable Business
• 28 Points Minimum for Certification
SMaRT Solutions for Sustainable Business
© 2007
SMaRT 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 SMaRT certified sustainable products are:
• More profitable
• Less risky
• Preferred by investors in Survey
initiated with S&P covering over
$3.3 trillion in assets.
SMaRT
Solutions foratSustainable
Business
Briefing Paper was released for top
management
MTS / Capital
Markets
Partnership New York Stock Exchange
Press
Conference,
Aug. Business
19, 2009
SMaRT
Solutions
for Sustainable
© 2007
SMaRT 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 Deepest
Shade of
Green©
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Who else is involved?
SMaRT 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
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
• Michi Pena, Commissioner, Chicago Dept. of General Services
© 2007
SMaRT Solutions for Sustainable Business
Who else is involved?
• U.S. Green Building Council (USGBC) and its
LEED® Rating System
– LEED provides credit for SMaRT certified products
– SMaRT & LCA Education are USGBC Education Provider
Programs
– Use of SMaRT certified products for 2.5% of total the value
of a project contributes one Innovation and Design credit
• American Institute of Architects (AIA)
– SMaRT is part of AIA's imperative to reduce 70% of
conventional energy use in new or renovated buildings by
2015
• Sustainable Furnishings Council
SMaRT Solutions for Sustainable Business
– SFC approved SMaRT as the standard to which its
SMaRT Solutions for Sustainable Business
members must certify to
© 2007
SMaRT 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 SMaRT
• Green Convertible Securities recognize SMaRT
• Green Building Securities recognize SMaRT
• Fireman's Fund – Adopted SMaRT in its underwriting
criteria for discounted insurance to manufacturers of
certified products
• City of Santa Monica – Includes SMaRT certified
SMaRT Solutions
Sustainable
products in its purchasing directive,
which isforbeing
sentBusiness
SMaRT Solutions for Sustainable Business
to U.S. cities for their adoption too
© 2007
SMaRT Solutions for Sustainable Business
Who else is involved?
• Los Angeles Community College District
– $5B of LEED Platinum construction
– More than 3000 manufacturers are transitioning to SMaRT
– SMaRT Certified manufacturer data accessible through a
searchable online data base.
• Big Green Purse
– Leading consumer web site & book
onSolutions
sustainable
products Business
SMaRT
for Sustainable
– Adopted SMaRT
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Who else is involved?
• Alliance for Sustainable Built
Environments
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Who else is involved?
• Alliance for Sustainable Built
Environments
Implementing Global SMaRT Marketing
Agreement
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Who else is involved?
• Jones Lang LaSalle
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.
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Who else is involved?
• Build it Green GreenPoint RATED Homes
The Leading Green Home Standard for
new and existing homes, equivalent to
LEED, and part of the Green Building
Underwriting Standards© .
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Who else is involved?
• CB Richard Ellis
CB Richard Ellis is the global leader in real estate services.
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT 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, SMaRT, Green Building
Underwriting Standards, Climate Neutral Building Standard.
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Who else is involved?
Three companies led the charge and SMaRT certified their
products:
• Forbo flooring
• Milliken carpet & textiles
• Knoll furniture
Due to the SMaRT
LEED Credit, all
three Companies
went Climate
Neutral at their
Manufacturing
Facilities.
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Produced With
100% Wind Energy
Platinum
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Certified
Sustainable Carpet
PVC Free
Carbon Neutral Production
SMaRT Solutions for Sustainable Business
Platinum
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
How do you achieve a SMaRT© rating?
• Submit a completed application
• Pass an internal MTS data audit
• Execute a legally binding certification
pursuant to FTC Environmental Marketing
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 (depending
on level)
SMaRT Solutions
for Sustainable Business
SMaRT Solutions for Sustainable Business
• Renew certification every three years
© 2007
SMaRT Solutions for Sustainable Business
How do you achieve a SMaRT© 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
SMaRT Solutions for Sustainable Business
• Reclamation, sustainable reuse
SMaRT Solutions for Sustainable Business
& end of life management
© 2007
SMaRT Solutions for Sustainable Business
How do you achieve a SMaRT© rating?
Based on overall points achieved, there are four levels of SMaRT
certification
SMaRT
Rating
Sustainable
Sustainable
Silver
Sustainable
Gold
Sustainable
Platinum
Point
Range
28-40
41-60
61-89
90-162
External
Audit
Random
Random
Mandatory
Mandatory
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT 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 SMaRT certified
• 18 points: Safe for public health & environment
– GREENGUARD Children & SchoolsSM 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
SMaRT Solutions for Sustainable Business
• 4 points: Reclamation, Reuse & SMaRT
End ofSolutions
Life for Sustainable Business
© 2007
SMaRT 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
SMaRT
products depending on percent
of Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
total project value
© 2007
SMaRT Solutions for Sustainable Business
What are the next steps for Knoll?
• Include SMaRT Certified Chadwick,
Generation & Moment chairs & Calibre
Furniture & Template Bookcase Series in
customer education
• SMaRT Certify remainder of Knoll
products.
• Knoll has built SMaRT certification into
product development initiatives going
forward
• Knoll has trained A&D managers to lead
SMaRT Solutions for Sustainable Business
CEU accredited courses on Sustainable
SMaRT Solutions for Sustainable Business
Product Certification
© 2007
SMaRT Solutions for Sustainable Business
Value of SMaRT
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Stops Imminent Irreversible Dangerous
Climate Change
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Before it’s too late
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Demysticizes sustainable products
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Eliminates market confusion based
on real metrics using sound science
and consensus
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Conserves natural resources & reduces
waste
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Facilitates design &
process innovation
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Advances Triple Bottom Line:
Environment, Economy & Social Equity
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Improves quality of life
7. Improves quality of life
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Improves stakeholder value
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Improve manufacturer share value & good will
Improves manufacturer share value & good
will
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Remember, SMaRT© 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
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
© 2007
SMaRT Solutions for Sustainable Business
Get
©
SMaRT !
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