Business Leaders Must Embrace Environmental Change

A new report on the future of Sustainable Businesses launched today claims that in the future business success will mean appreciating how a company is intimately linked to its social and environmental context.

Vision and values give a company a sense of direction, but long-term success depends on embracing sustainable business practices. This is one of the findings of Sustainable Futures, a new report from global flooring company InterfaceFLOR, with contribution from Forum for the Future.

With the rise of new economies in Asia, growing resource constraints and more powerful information and communication technology are all key drivers of business change. James Goodman, Head of Futures at Forum for the Future, who wrote the report’s chapter on ‘The Future of Business Leadership’, believes that accepted notions of what is right and profitable in business change quickly. He comments: “This only the beginning. Global climate change is accelerating and sustainable business will depend not only on being very finely tuned to these changes, but also being expert in understanding how they interact and tangibly affect the company.”

Goodman continues: “We see change as an opportunity. Strategies which respond to changes in consumer behaviour and build flexibility to cope with more change will ultimately reap the rewards.”

Lindsey Parnell, President and CEO of the European division of InterfaceFLOR agrees with James and adds that companies who rush to make sustainable claims which they cannot substantiate and will not stand the scrutiny of third party audit will damage their businesses and fail to achieve the business growth of proper sustainable investment. “In the wake of the Stern Report, businesses have two choices: be driven by legislation, or make positive changes to their business to foster growth. Businesses who decide on the latter course have to invest in making it happen, but it has taken Interface 12 years to get to a point where we can see the benefit of sustainable investment in business growth and employee fulfilment. We want all businesses – and that includes our competitors – to succeed in their quest for sustainability, but greenwash won’t wash.”

In the mid-nineties, Interface published a vision statement which challenged itself to change into a new kind of industrial company. Through its Mission Zero promise, Interface is committed to reduce its environmental footprint and is aiming for zero environmental impact by 2020. As part of the drive to become a truly sustainable business, InterfaceFLOR addresses sustainability on seven fronts. These involve eliminating waste and harmful emissions; maximising use of renewable energy; recycling waste materials and reusing products; developing resource efficient transportation methods; creating a culture that integrates the principles of sustainability into working lives; and creating new models for businesses. A metrics system which evaluates progress on each front is in place to enable the company to track how the divisions are doing globally to minimise their environmental impact.

Lindsey comments: “Over the past 12 years since we started to focus single-mindedly on making Interface a more sustainable business with a zero environmental footprint by the year 2020, the business has been subject to fluctuating profits, markets and trends. It is clear that without the cost savings and marketing activities brought about by sustainable initiatives, which total $300 million of costs avoided since 1996, we would not be in business today.”

InterfaceFLOR’s report, Sustainable Futures, includes contributions from the UK’s top thought leaders on trends across six key areas of business: Leadership (Forum for the Future); Marketing (University of Strathclyde Business School); Communications (Futerra); Business Environment (The Climate Group); Employee Engagement (The Work Foundation) and Design and Innovation (The Design Council). All contributions clearly demonstrate a correlation between investment in sustainable business practices and successful businesses.

InterfaceFLOR also lists 36 actions businesses can take now to reduce their environmental footprint. However, Parnell warns that many of these will require investment in time and money to deliver. These include initiatives to win the hearts and minds of customers, revolutionise manufacturing processes, design and innovation, supplier relationships, recruitment and retention, and total business vision.

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Date issued: 23 Jan 2007

Note to Editors

A copy of Sustainable Futures, including the full list of 36 actions businesses can take and InterfaceFLOR case studies, is available on request.

Interface’s energy efficiency and renewable energy programmes have resulted in a 56% reduction in CO2 emissions since 1996. It has also made improvements to the production processes allowing an 81% reduction in water intake per m2 of production facilities, petroleum based materials have been reduced by 29% and all the European factories work on 100% renewable electricity. However, although the company has made great progress to date it recognises that it still have a considerable way to go on the journey to becoming a completely sustainable business.

• Cool Carpet® - a climate neutral option for many of the carpet tile ranges from InterfaceFLOR. Any GHG’s which are emitted during the life cycle of the product are offset or balanced
• ReEntry® a scheme to reduce the volume of used product sent to landfill at the end of life
• Evergreen Leasing™ the ability to lease carpet tiles where InterfaceFLOR takes on the responsibility for supply installation maintenance and replacement
• Renovisions® a furniture lifting service to replace modular carpet with the minimum amount of upheaval

*A copy of GlobeScan’s Report is available from www.globescan.com

Interface Carpet /Interface Inc.

Interface is a recognized leader in the commercial interiors market, offering floor coverings and fabrics. The company is committed to the goal of sustainability and doing business in ways that minimize the impact on the environment while enhancing shareholder value.

Interface was founded in 1973 by Chairman, Ray Anderson, considered to be a pioneer from the start - a trailblazer of the modular carpet industry in the United States. The company promotes sustainable business practices - within its global community and in the products it makes. For Interface, sustainability is a belief that is built into the business model, an underlying corporate value, ensuring that business decisions are weighed against their potential impact on economic, natural and social systems. It's a means for associates to deliver superior value to customers and shareholders.

Interface is a global company with manufacturing locations on four continents and offices in more than 100 countries.