| www.interfaceinc.com |
|
| Latest Price per share: | $15.82 |
| SIZE: | |
| Market Value ($ billions): | $0.9 BIL |
| Revenue 2006 ($ billions): | $1.0 BIL |
| Employees: | 4,781 |
| Return on Equity 2006: | 4.5% |
| HIP PRACTICES | |
| Vision: | By 2020, targeting Zero Environmental Footprint (set in 1995, and 40% complete), branded for staff & suppliers as "Mission Zero." |
| Metrics: | Seven "pillars" of reducing waste are all quantifiable have saved $400 milllion in cumulative savings over a decade, and reduced toxins and GHGs. "EcoSense Points" for each facility are forecasted each year based on the cumulative state of environmental and quality programs to date. Implementing a comprehensive company-wide supply chain management program. Health impacts on customers and employees not fully measured yet. |
| Financials: | Sustainability strategy saved the company during 2001-03 industry downturn and now source of innovation and growth. Employee turnover of 7% is half industry average, saving at least $20,000 per retained employee. Lifecycle analysis to supply source spotlights higher long-term profit and impact. |
| Accountability: | 100% participation in sustainability by all employees, from Board members to entire front-line. Regular Board topic at each meeting. Published first sustainability report in 1997; completely transparent plant-level metrics online (see sustainability link below). Eco-positive results required in suppliers across all products. |
| Decision-Making: | Full employee engagement system ("QUEST": Quality Utilizing Employee Suggestions and Teamwork") begun in 1995 and expanded in 2001 to include all employees. Eco-metrics built into employee bonuses and promotions. New projects only approved if eco-footprint reduced; if not sustainable, product ideas are rejected. |
| HIP OUTCOMES: | |
| Health: |
Bio-mimicry, new materials & manufacturing choices presumably boost customer and worker health w/higher air quality, fewer exposures. |
| Wealth: |
10% staff bonuses for waste reduction ideas and results participation. Lower-priced products reach new markets in lower-income communities, benefiting from tenant improvements. |
| Earth: |
Have reduced GHG emissions 56% below baseline; boosts from methane recapture (e.g. landfill gas recapture drops natural gas bill and grows revenue of LaGrange, GA). 80%+ of raw materials are recyclable; 94% of all raw materials are certified for ISO 14001. 100% of the carpet manufactured by Interface worldwide (modular and broadloom) is made in facilities certified for sustainability (ISO 14001). |
| Equality: |
Both Board and senior management have low diversity (no women on senior mgmt team; limited ethnic share). Need more proportional distribution to customer, employee and supplier base. |
| WHAT'S NEXT: | |
| Practices: | Employee innovation continually creates new opportunities: Georgia engineer created waste-recovery partnership with city that improves environment and reduces cost Interface testing consulting services and intellectual-property licensing to other corporates; could develop into formal revenue source and business unit offering knowledge and advice for a fee. |
| Outcomes: | Beyond 2020, expect sustainable outcomes to beyond net-neutral to net-positive for environmental resources (e.g. products cleaner coming out of processing than materials going in). Though barely $1 billion in market value, has influenced mega-corporates 100-times its size--including Wal-Mart--to reinvent their supply chains and sustainability strategies. Tremendous ripple effect from Chair Ray Anderson's 100-plus speeches annually. Can Interface sustain its HIPness after Chair Ray Anderson retires? |
| OTHER RATINGS: | |
| KLD (+/-): Categories include Community, Governance, Diversity, Employees, Environment, Human Rights, and Product | 5 positive strengths; 3 negative concerns |
| Calvert Rating: Companies are rated on a scale of 1 (substantially below Calvert standards) to 5 (superior) | Not published. |
| RESOURCES: | |
| Sustainability or CSR report | Interface Sustainability |
| Annual Report | Investor Relations |
--Sara Olsen and Ruthie Ackerman
