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Radical sustainability is possible Ramón Arratia Sustainability Director, Interface Twitter @ramonarratia

Ramon Arratia: Radical sustainability is possible

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The presentation of Ramon Arratia, the Sustainability Director, Interface on 23rd of October 2014 at Sitra's Road to carbon neutrality -event.

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Page 1: Ramon Arratia: Radical sustainability is possible

Radical

sustainability

is possible

Ramón ArratiaSustainability Director, InterfaceTwitter @ramonarratia

Page 2: Ramon Arratia: Radical sustainability is possible

“One day people

like me will go

to jail” Ray

Anderson

1994

Page 3: Ramon Arratia: Radical sustainability is possible

An outrageously ambitious Mission

Page 4: Ramon Arratia: Radical sustainability is possible

European manufacturing from Jan 2014

• 95% Renewable energy

• 90% reduction of absolute carbon since 1996

• Zero water used in manufacturing process

• Zero waste sent to landfill

Page 5: Ramon Arratia: Radical sustainability is possible

5

Ultrasonic cutting technology

Carpet Die cut Tiles

6 cuts + waste

Carpet Ultra Sonic cut Tiles

1 cut + waste

‘window waste’ with ultra sonic cutting‘window waste’ with die cutting

Page 6: Ramon Arratia: Radical sustainability is possible

6

Our new Pre-coat process consumes 40% less gas per m2

Page 7: Ramon Arratia: Radical sustainability is possible

7

7

What is the business case?

Saved

€1.1M p.a.

Reduced

yarn usage

by 12% /m2

compared to 1996,saving

€5.8M p.a.

Saved

€0.8M p.a.

At a cost

premium of

10% i.e.

€0.1M p.a.

Net impact:

•€7.6M p.a. cost

saving

•13,800 tCO2e

GHG emissions

reduction

•Happier staff and

customers

•Higher profit

margins

•Continued global

market leadership

in carpet tiles

Page 8: Ramon Arratia: Radical sustainability is possible

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8

Can this be replicated our manufacturing Europe?

8

942.3

28 -22

-1.9

8.4

100

€B p.a.

Page 9: Ramon Arratia: Radical sustainability is possible

The 2 paradigm shift

OLD

• Corporate

sustainability

• The Beauty contest

• Awards, labels,

csr reports,

certifications

• Zero company

impacts

NEW

• Product

sustainability

• Embedded

• LCA performance

• kg co2 / m2

• Zero product life

cycle impacts

RADICAL

• Systems

sustainability

• Services redesign

• Close loop systems

radical materials

• Zeroing others

by cannibalising

Page 10: Ramon Arratia: Radical sustainability is possible

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Embedding Sustainability?

Truly embedding is in your product

Page 11: Ramon Arratia: Radical sustainability is possible

Life Cycle Assessment

Page 12: Ramon Arratia: Radical sustainability is possible

Life Cycle Assessment

Page 13: Ramon Arratia: Radical sustainability is possible

Addressing the biggest issue

What can we do

to zero out the

impact of yarn?

Reduce the

amount of

yarn used

Use more

recycled

yarn in the

composition

Invent a

new yarn

Page 14: Ramon Arratia: Radical sustainability is possible

Less is more

50% less yarn

350g of yarn vs 700g

Microtuft Products

Page 15: Ramon Arratia: Radical sustainability is possible

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Microtuft are high growth products

14% of total

EMEAI sales are

Microtuft products

Page 16: Ramon Arratia: Radical sustainability is possible

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Over 400 colourways in 100% recycled yarn

Page 17: Ramon Arratia: Radical sustainability is possible
Page 18: Ramon Arratia: Radical sustainability is possible

Biosfera Micro.

Superflat

350g yarn

100% recycled yarn

1st carpet with 100%

recycled nylon

Biosfera Micro

Page 19: Ramon Arratia: Radical sustainability is possible

Developments in technology and the shift to modular carpet have resulted

in radical reduced carbon footprint

Developments

Page 20: Ramon Arratia: Radical sustainability is possible

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• 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

How the magic metric enabled smart legislation in cars in Europe

Page 21: Ramon Arratia: Radical sustainability is possible

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EnvironmentalProductsDeclarations

Page 22: Ramon Arratia: Radical sustainability is possible

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Full product transparency aligns value chains

What you tell to your suppliers

is the same that what you tell

to your customers.

What your designers focus on

is the same your sales force

talk about.

What you report to stakeholders

is the same that what your

marketing claims.

Its all base on just the facts

from LCA.

Page 23: Ramon Arratia: Radical sustainability is possible

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• Who pays a premium for sustainability?

• Specifying sustainability• No ‘x’

• Standards (eg LEED, DGNB; BREEAM)

• Legislation

Commercializing sustainability in the hard business cases

Page 24: Ramon Arratia: Radical sustainability is possible

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• Do you have an environmental policy?

• Do you sign to the precautionary principle?

• Have you signed to the Global Compact?

• What is your CSR policy?

How transformative is this…?

The 700 questions questionnaire is both boring and useless

Page 25: Ramon Arratia: Radical sustainability is possible

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One single question…

Page 26: Ramon Arratia: Radical sustainability is possible

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• Radically cut carbon per kg of raw material

• 100% recycled or biobased materials

• No X

• Give me something others can’t have

Suppliers

Page 27: Ramon Arratia: Radical sustainability is possible

The 2 paradigm shift

OLD

• Corporate

sustainability

• The Beauty contest

• Awards, labels,

csr reports,

certifications

• Zero company

impacts

NEW

• Product

sustainability

• Embedded

• LCA performance

• kg co2 / m2

• Zero product life

cycle impacts

RADICAL

• Systems

sustainability

• Services redesign

• Close loop systems

radical materials

• Zeroing others

by cannibalising

Page 28: Ramon Arratia: Radical sustainability is possible

Innovation - substituting adhesives

Page 29: Ramon Arratia: Radical sustainability is possible

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BBC offices, London

What are cannibalizing here?

Page 30: Ramon Arratia: Radical sustainability is possible

Zoning

Using the full

flexibility and design

capabilities of carpet

tiles to create all kind

of zones within open

spaces

Zeroing out the walls!

Page 31: Ramon Arratia: Radical sustainability is possible

Engaging employees

• Status• Sphere of influence• Walk the talk• Product• Key influencers

Page 32: Ramon Arratia: Radical sustainability is possible

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Ramón ArratiaSustainability Director InterfaceTwitter @ramonarratia