We understand our responsibility. Our effort to eliminate waste is relentless. We make a lifetime commitment.

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1 SUSTAINABILITY We understand our responsibility. Our concern for the environment permeates our entire business. Protecting the environment means caring about how things are made, how they re used, and what happens to them after their useful life. From the beginning, environmental consciousness has been part of Allsteel s culture. We understand the responsibility a business has to minimize its impact on the environment. We also recognize the environment does not begin or end at our doors, and neither does our obligation. We value our ability to help others recognize this, too. Our effort to eliminate waste is relentless. We determine where value is added to each of our products, recognizing everything else to be waste. Next, we measure the energy we consume and work to be more efficient. We evaluate the materials and processes we use and identify the lifecycle intrusion of our choices. As we achieve success, we share the lessons we learn along the way with our suppliers, customers, members, and the community. Our pursuit of lean manufacturing fosters a workplace where improvement is rapid and continuous. The elimination of waste is relentless: creativity and teamwork lead to energy efficient, right-sized processes and human friendly manufacturing methods. Our environmental goals align with the expectations of our customers. By eliminating toxic chemicals from our workplace, we keep them out of our customers workplaces. Rigorous testing proves it. We make a lifetime commitment. Allsteel designs products that bring style and efficiency to the workplace. We fully expect our products will fulfill their intended function as long as they re needed. To this end, Allsteel warrants its products to be free from defects in workmanship for as long as the original purchaser owns them. If one of our products or components fails under normal commercial office use, we will repair or replace it at no cost to the owner. Sustainability is a journey. And we are on board. Who we are and what we do as a business has an impact on the environment. Our requirement as a business is to comply with applicable regulations. Our obligation as a corporate citizen is to ensure that safe and environmentally aware systems are integrated into manufacturing. Our opportunity lies in helping our business partners make a positive environmental impact, and in demonstrating that environmentally responsible practices can be gainful. Sustainability is not something we create. It is something we participate in.

2 ENVIRONMENTAL IMPACT Our production methods respect the environment. At Allsteel, we constantly harness our creative energy to find ways to minimize the environmental impact of our business. We work with our suppliers to guarantee that materials balance performance and sustainability. The materials used to produce Align, Terrace and Concensys include a substantial amount of recycled content. Aluminum 70 to 100% Fabric up to 100% Particle board 97% Steel 30% We re committed to using clean materials and resources, including pre-painted steel, hot melt adhesives, re-claimed paint, and powder paint. Our panel fabrics and seating upholstery include a substantial amount of recycled material. We design our packaging to minimize transportation costs, to reduce total volume, and to recycle completely. And we re always looking for bulk packaging opportunities. The corrugated material used for product packaging averages 74% recycled content. We ve undertaken a rigorous research program to identify and limit emissions from Allsteel products. Allsteel products are tested to the State of California s rigorous Special Section indoor air test procedures. We participate in Scientific Certification Systems Indoor Advantage certification process and are ready to supply LEED-CI EQ credit 4.5 documentation upon request. By identifying optimal transportation routes that cut our products in-transit time, we re able to reduce hydrocarbon pollutants. Inside and outside, our concern for the environment permeates our entire business.

3 THE BUSINESS OF CONCERN Public awareness of the importance of environment and sustainability are increasing rapidly in the building industry, driven primarily by LEED and concerns about indoor air quality for building inhabitants. Environment is not a new concept at Allsteel and its parent company, HNI we ve been incorporating environmental innovation into our business and culture for many years. We integrated pollution prevention techniques into our manufacturing processes in the 1980s, empowered employees to operate lean and minimize waste in the 1990s, and constantly seek better ways to improve the environment in the 2000 s. It s part of our program of continuous improvement. Allsteel s credibility is as important as the quality of our office furniture product lines so we adhere to the Federal Trade Commission Part 260 Guide for the Use of Environmental Marketing Claims and use third party experts to test and certify our products benefits to the environment. We only make statements that we can substantiate. A sampling of Allsteel s environmental accomplishments: Our manufacturing processes and people Not everyone recognizes that durability is an environmental attribute but products that last longer decrease the need to harvest and transport new materials, decrease energy use, keep products out of landfills longer, can be reused by second or third generation end-users after the initial purchase. Rapid Continuous Improvement (RCI) was introduced in 1992 to empower employees to find ways to improve production and eliminate waste, benefiting the environment and the bottom line. Allsteel teams continue to study ergonomics, economics, life cycle analysis, manufacturing, marketing, sales, and design to ensure that all processes are efficient, protective of workers and the environment, and lean. Our products impacts on indoor air quality The State of California s 1350 Green Specification for Open Office Furniture standard limiting indoor air emissions, such as formaldehyde, is the most stringent and protective in the entire country. Allsteel was awarded the State of California furniture contract in 2001 for being the first company to be able to meet those standards.

4 We have our products tested and certified by a third party laboratory and verifying organization in accordance with the new LEED-CI EQ 4.5 Compliance Path C. This method sets more protective emission limits and provides us with more detail than paths A (Greenguard certification) and B (USEPA ETV) so we can test new product components individually, identify potential need for improvements, and produce products that meet or exceed indoor air requirements. Our products impacts on the planet s natural resources Allsteel provides bulk-packaging and blanket wrap for office furniture shipments in an effort to eliminate cardboard and foam waste, make the unpacking process more efficient for the buyer, and decrease costs for both. The corrugated cardboard that is used for bulk packaging has an average of over 70% recycled content so the environment wins twice (once for decreased packaging and once for recycled content of packaging that is needed). All Allsteel products contain recycled content in their component parts. The levels vary depending on the component (such as a panel), the type of material (such as plastic or fabric), and the percentages of the materials, by weight, that make up the component. We produce Environmental Data Sheets that provide a breakout of each material, their post consumer and post industrial recycled content, and a value coefficient for computing the dollar value of the recycled content for those seeking LEED-CI MR 4.1 credit. The #19 office chair, made with 100% recycled aluminum and 88% recyclable, had fewer component parts than standard seating and was introduced with a take-back program for customers to return chairs at the end of their useful life. Allsteel introduced PLA panel fabric (made from the starch component of feed corn) to the contract furniture market in In 2005, Allsteel introduced Reach, a unique office storage solution that doesn t require a spine wall (it actually serves that function itself), so fewer natural resources are used to set up an office, workspaces are more efficient and less space consuming (reducing office energy use), and manufacturing impacts on the environment are decreased. In addition, Reach uses recaptured paint to coat the interior of Reach storage drawers rather than dispose of the paint.

5 Our attitude of learning, then sharing knowledge Allsteel provided the benefit of years of experience with the technique of Rapid Continuous Improvement work to the U.S. Environmental Protection Agency by assisting in the development of The Lean and Environment Toolkit. The toolkit is available free on EPA s website to help other companies realize the environmental improvements Allsteel had achieved. We led the development and use of the Environmental Data Sheet, a compact summary to inform consumers of the environmental attributes of product lines. Our constant search for better ways Allsteel hired a Stewardship Coordinator with extensive background in environmental excellence programs and government regulations to expand the knowledge of Allsteel members and clients in the concepts of sustainability and seek new ways to improve products We are constantly striving to improve our products and decrease their environmental impacts through research, design, and testing of new materials to find those that provide quality with less impact on the planet s natural resources. We introduced Biomimicry to product design and manufacturing process teams in 2002 to look at nature-oriented design processes. We established Lean Assessment Audit Teams in 2003 to benchmark environmental friendliness across all operating companies; from factory lighting to manufacturing paint systems, machinery lubricants to parking lot de-icers. Allsteel joined the U.S. Green Building Council in Our impact on our community In 1999, Allsteel transformed an existing manufacturing facility left empty by another company into a corporate headquarters featuring a constructed streambed to slow storm water runoff and down-lighting to reduce parking lot light pollution, among other features. Pursuing the urban infill of an empty building site, instead of building on a Greenfield, avoided urban sprawl and put existing community resources back into productive reuse. Lighting in the headquarters building is Energy Star rated.

6 We installed Solar sunflowers (solar collectors) at our corporate headquarters to supplement the power needs of the office building and introduce the practicalities of solar energy to the community. All Allsteel and HNI members are encouraged to participate in activities beneficial to their local community. Our leadership in the environment Allsteel has been recognized by USEPA with its Pollution Prevention Award, by the State of Iowa for manufacturing excellence in several categories (including environmental responsibility), and by the US General Services Administration with its Evergreen Furniture Award for Allsteel s environmental efforts in the area of waste prevention, recycling, model facility, affirmative procurement, and environmental preferability. Allsteel was the first contract office furniture manufacturer to participate in Scientific Certification System s Indoor Advantage air quality certification program to assure the best possible indoor air quality for office workers. Sum chairs, Get Set chairs, and all metal storage options are certified as Indoor Advantage Gold, the highest level of achievement. Allsteel s new showrooms in San Francisco, Atlanta, Santa Monica, Boston, and Toronto are seeking LEED-CI certification. Allsteel products can support* clients seeking LEED-CI certification in the following credits: Construction Waste Management - MR Credit 2.1 & 2.2 Recycled Content - MR Credit 4.1 & 4.2 Manufactured Regionally - MR Credit 5.1 Extracted and Manufactured Regionally - MR Credit 5.2 Rapidly Renewable Materials - MR Credit 6.0 Certified Wood - MR Credit 7.0 Low Emitting Materials, Systems Furniture and Seating EQ Credit 4.5 Daylight and Views EQ credit 8.1 & 8.2 * Note that no product from any manufacturer can guarantee LEED credits.

7 ENVIRONMENTAL HISTORY FACT SHEET 1992 Rapid Continuous Improvement (RCI) introduced at HNI (Allsteel s parent company) to empower employees to find ways to eliminate waste, benefiting the environment and the bottom line. Allsteel teams continue to study ergonomics, economics, life cycle analysis, manufacturing, marketing, sales and design to ensure that all processes are effective, protective and lean Allsteel transforms an existing manufacturing facility into a corporate headquarters featuring a constructed streambed that slows storm water and sediment runoff, downlighting to reduce parking lot light pollution, and urban infill of an empty building site. Allsteel begins receiving fiberglass cut to size to improve waste recycling and promote a healthy manufacturing environment Allsteel leads the development of Environmental Data Sheets (EDS) now used by the majority of the contract furniture industry to help customers make informed decisions on product selection. Allsteel manufacturing waste begins to be recycled as car trunk liners Allsteel is awarded the state of California furniture contract based on meeting the most stringent indoor air quality standards in the world for office furniture, the California Green Specification for Open Office Furniture Standards. Allsteel begins bulk-packaging worksurfaces and panel frames in an effort to eliminate cardboard and foam waste. Allsteel introduces Landscape surfaces, a collection of unique materials for panel system tiles (some made from PETG resin), providing designers an environmentally friendly alternative.

8 2002 Allsteel establishes a policy to adhere to the FTC s Part 260 Guide for the Use of Environmental Marketing Claims and ISO to assure customers that our statements of environmental impact are credible and verifiable. The state of Iowa recognizes Allsteel for manufacturing excellence in several categories, including environmental responsibility. Biomimicry is introduced to Allsteel s product design and manufacturing process teams to look at nature-oriented design processes. The #19 office chair, made from 100-percent recycled aluminum and 88 percent recyclable, is introduced with a take-back program for customers to return chairs at the end of their useful life Allsteel is presented with the USGSA (General Services Administration) Evergreen Furniture Award, acknowledging Allsteel s environmental efforts in the area of waste prevention, recycling, model facility, affirmative procurement and environmental preferability. HNI (Allsteel s parent company) Lean Assessment Audit Teams are established to benchmark environmental friendliness across all operating companies, from factory lighting, to manufacturing paint systems and machinery lubricants, to parking lot deicers Allsteel joins the U.S. Green Building Council. Allsteel introduces PLA panel fabric, made from the starch component of #2 feed corn, to the contract furniture market. becomes bio-degradable fabric for systems furniture Corn starch Solar sunflowers (solar collectors) are installed at corporate headquarters to supplement the power needs of the office building and introduce solar energy to the community.

9 2005 Reach is introduced as a unique office storage solution that creates more efficient workspaces, less resource consumption, reduced office energy costs and lower environmental impacts of manufacturing. Allsteel is the first contract office furniture manufacturer to participate in Scientific Certification System s Indoor Advantage air quality certification program to assure the best possible indoor air quality for office workers. Sum chairs, Get Set chairs and all metal storage options are certified Indoor Advantage Gold, the highest level of achievement. Allsteel assists in the development of the U.S. EPA s Lean and the Environment Tool Kit to help other companies realize the environmental improvements Allsteel has achieved Allsteel begins using recaptured paint to coat the interior of Reach storage drawers. Allsteel participates in the U.S. Department of Defense Bio-based Products Showcase and Educational Event along with select manufacturers of other environmentally friendly products. Packaging for office chair shipments is drastically reduced as a result of a focused RCI project by Allsteel team members. Allsteel s new San Francisco, Atlanta, Santa Monica and Boston showrooms seek LEED certification. Allsteel hires an environmental excellence expert as Stewardship Coordinator to lead development of future products with minimal environmental and natural resource impacts Allsteel to introduce an exclusive plant-based alternative for the fiberglass substrate used in panel system tiles.

10 ALLSTEEL AND LEED FOR COMMERCIAL INTERIORS Allsteel contributes to LEED for Commercial Interiors (LEED-CI) points, with some support of LEED for New Construction and Major Renovation (LEED-NC). Refer to the end of this document for references to LEED-NC. Allsteel adheres to the Federal Trade Commission s Part 260 Guide for the Use of Environmental Marketing Claims. Indoor Environmental Quality 30% (17 points) Innovation and Accredited Professional 9% (5 points) Materials and Resources 24% (14 points) Energy and Atmosphere 21% (12 points) Materials and Resources Construction Waste Management - MR Credit 2.1 & 2.2 Intent: Reduce the amount of packing material delivered to the site. Capability: Allsteel will work with client to minimize packaging and provide documentation of volume avoidance, as per the LEED-CI template. Recycled Content - MR Credit 4.1 & 4.2 Intent: Increase use of products with recycled content to decrease demand for and extraction of virgin resources. Capability: Experience shows that the recycled content value factor for Allsteel workstations will range from 16% to 26% depending on the client s final specification. Allsteel will provide final documentation (Environmental Data Sheets) for major products containing recycled content for the client s final order, as per the LEED-CI template. Manufactured Regionally - MR Credit 5.1 Intent: Encourage use of furniture manufactured within 500-mile radius of the project to decrease transportation and improve local economies. Capability: Allsteel products are manufactured in Muscatine, Iowa so project site must be within 500 mile radius. Rapidly Renewable Materials - MR Credit 6.0 Intent: Use materials and products made from plants that mature in 10-years or less to decrease impact on forests and longer life cycle plants. Capability: Allsteel can provide PLA fabrics for workstations which will contribute toward the credit and will soon introduce new products that utilize rapidly renewable resources.

11 Certified Wood - MR Credit 7.0 Intent: Use minimum of 50% Forest Stewardship Council (FSC) certified wood and wood based materials to encourage sustainable forestry techniques. Capability: Allsteel can supply FSC certified wood for worksurface substrate and veneer if desired. Our experience is that the significant up-charge imposed by suppliers of furniture grade certified wood combined with the relatively small contribution wood furniture components make to the final project causes projects to look toward structural components when seeking this credit. Indoor Environmental Quality Low Emitting Materials, Systems Furniture and Seating - EQ Credit 4.5 Intent: Reduce indoor air emissions from office furniture to improve the comfort and wellbeing of installers and building occupants. Capability: Allsteel workstations and most seating lines have been tested and independently certified as meeting the LEED-CI Reference Manual Table 1 on page 322. LEED now accepts the improved testing and certification program based on BIFMA s standard workstation and certified by Scientific Certification Systems, as an addition to the previous GreenGuard certification. Allsteel will provide certification compliant with the credit as required by LEED-CI template and can assist the client in selecting material options with low environmental impact. Controllability of Systems, Lighting and Temperature/Ventilation EQ Credit 6.1 & 6.2 Intent: Provide a high level of control (lighting system and temperature/ventilation) for individual occupants to promote the productivity, comfort and well-being of building occupants. These points are sometimes gained through the use of task lighting and raised flooring. Capability: Allsteel systems furniture is very well suited to the use of task lighting and works well on raised floors. Daylight and Views, Daylight 75% or 90% of Spaces EQ Credit 8.1 & 8.2 Intent: Provide occupants a connection between indoor spaces and the outdoor environment through the introduction of daylight and views into the regularly occupied areas of the tenant space. These two focus on access to daylight. Capability: Allsteel can assist in office design and furniture selection to support the client seeking this credit. Daylight and Views, Views for 90% of Seated Spaces EQ Credit 8.3 Intent: Provide occupants a connection between indoor spaces and the outdoor environment through the introduction of daylight and views into the regularly occupied areas of the tenant space. This credit focuses on access to views through glazing from a seated position.

12 Capability: Allsteel can assist in office design and furniture selection to support the client seeking this credit. Energy and Atmosphere In addition, Allsteel office furniture can be designed to assist in providing appropriate task lighting to support decreased overall energy consumption from room lighting. LEED for New Construction and Major Renovation (LEED-NC) also encourages daylight and views, controllability of thermal comfort systems (sometimes achieved with raised floor systems for ventilation and heating), and other green building features; but overall, furniture does not have significant impact on LEED-NC credits.

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