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© 2007
I’m SMaRT©.
Ask me why.
SMaRT© Consensus Sustainable Product Standard
SMaRT Solutions for Sustainable Business
The Deepest Shade of Green©
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
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?
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
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
• Fast Company (Nov. 2008) identifies SMaRT as an important product certification
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
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
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
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©
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
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
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
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
Forbo Linoleum is a SMaRT Platinum Certified Sustainable Product eligible for credit for LEED certified green buildings.
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
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 data for 12 environmental impacts, & credit for reduction of over 1300 pollutants up to 100%
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
LCA Impact Example: Environmental Performance for SteelSMaRT Requires an ISO Compliant LCA Thus Providing Critical Coverage of Global
Suppliers
HumanTox
Global Warming
Energy
Smog
Waste
EcoTox
EutrophicationAcidiication
Ozone Depletion
0%
50%
100%
High RecycledContent Steel
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
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• 28 Points Minimum for Certification
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
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.
Briefing Paper was released for top management at MTS / Capital Markets Partnership New York Stock Exchange Press Conference, Aug. 19, 2009
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
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©
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
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
• Michi Pena, Commissioner, Chicago Dept. of General Services
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
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– SFC approved SMaRT as the standard to which its
members must certify to
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
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 products in its purchasing directive, which is being sent to U.S. cities for their adoption too
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
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 on sustainable products
– Adopted SMaRT
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
Who else is involved?
• Alliance for Sustainable BuiltEnvironments
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
Who else is involved?
• Alliance for Sustainable BuiltEnvironments
Implementing Global SMaRT Marketing Agreement
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
Who else is involved?
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.
J
• Jones Lang LaSalle
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
Who else is involved?
The Leading Green Home Standard for new and existing homes, equivalent to LEED, and part of the Green Building Underwriting Standards© .
J
• Build it Green GreenPoint RATED Homes
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
Who else is involved?
CB Richard Ellis is the global leader in real estate services.
• CB Richard Ellis
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
Who else is involved?
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.
J
• Leadership Standards Campaign (LSC)
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
Who else is involved?
Three companies led the charge and SMaRT certified theirproducts:
• Forbo flooring
• Milliken carpet & textiles
• Knoll furniture
Due to the SMaRTLEED Credit, all three Companies
went Climate Neutral at theirManufacturing
Facilities.
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
Platinum
Produced With 100% Wind Energy
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Certified Sustainable Carpet
PVC FreeCarbon Neutral Production
Platinum
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
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)
• Renew certification every three years
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
How do you achieve a SMaRT© rating?
Product must achieve 14 prerequisite points and score a minimum of28 out of 162 points in the following areas covering all product stagesacross the global supply chain:
• Safe for public health & environment
• Renewable energy & energy efficiency
• Biobased or recycled materials
• Facility or company requirements
• Reclamation, sustainable reuse & end of life management
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
How do you achieve a SMaRT© rating?
Based on overall points achieved, there are four levels of SMaRTcertification
SMaRT Rating
Sustainable Sustainable Silver
Sustainable Gold
Sustainable Platinum
PointRange
28-40 41-60 61-89 90-162
External Audit
Random Random Mandatory Mandatory
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
Case Study: How did the Knoll Life chair rate?
Sustainable Gold with 71 pointsThe 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
• 4 points: Reclamation, Reuse & End of Life
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
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 products depending on percent of total project value
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
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 CEU accredited courses on Sustainable Product Certification
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
Value of SMaRT
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
Stops Imminent Irreversible Dangerous Climate Change
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
Before it’s too late
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
Demysticizes sustainable products
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
Eliminates market confusion based on real metrics using sound science
and consensus
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
Conserves natural resources & reduces waste
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
Facilitates design & process innovation
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
Advances Triple Bottom Line: Environment, Economy & Social Equity
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
7. Improves quality of life
Improves quality of life
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
Improves stakeholder value
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
Improve manufacturer share value & good will
Improves manufacturer share value & good will
© 2007
SMaRT Solutions for Sustainable Business
SMaRT Solutions for Sustainable Business
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
© 2007
Get SMaRT©!Thank you
SMaRT Solutions for Sustainable Business
Market Transformation toSustainability (MTS)
1511 Wisconsin Ave., NWWash., DC 20007
202-338-3131mts.sustainableproducts.com
The Deepest Shade of Green©