Shaw s Green. A Commitment to Sustainability

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1 Shaw s Green Edge A Commitment to Sustainability

2 INTRODUCTION World s largest carpet manufacturer Wholly owned subsidiary of Berkshire-Hathaway Headquartered in Dalton, Georgia Founded in 1967 Annual revenue exceeding $4 billion Global provider of carpet, rugs, hardwood, laminate, tile & stone, resilient, turf and services for residential & commercial markets World s largest carpet fiber producer PayPal Israel Tel Aviv

3 UNDERSTANDING SUSTAINABILITY Copyright 2013 Shaw Meeting the needs of the present without compromising the ability of future generations to meet their own needs

4 Sustainability through Innovation TM the Shaw Green Edge

5 A SUSTAINABILITY PLATFORM Should be holistic in approach and include design, manufacturing, delivery, and end of life reclamation. Provides a business model that drives performance, growth, innovation and productivity Focuses on Triple Bottom Line objectives of People, Planet and Profit Embraces Cradle to Cradle SM philosophy

6 Cradle to Cradle

7 Cradle to Cradle SM Philosophy Design with the total product lifecycle in mind Waste nothing simulating nature At the end of their useful lives, Cradle to Cradle products can be reclaimed, disassembled and remanufactured back into themselves Over and over again Copyright 2010 Shaw

8 CRADLE TO CRADLE TM CERTIFICATION Certification by McDonough Braungart Design Chemistry (MBDC)

9 TM CRADLE TO CRADLE CERTIFICATION Five Key Components Using environmentally safe and healthy materials Design for material reutilization, such as recycling or composing The use of renewable energy and energy efficiency Efficient use of water and maximum water quality associated with production Instituting strategies for social responsibility Shaw is the only carpet and hardwood flooring manufacturer in the world with Cradle to Cradle Silver certified products

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11 TILE BACKING 100% PVC and Phthalates free Contains 44% recycled content 40% lighter than PVC alternatives Supported by an environmental guarantee that provides free cradle-to-cradle recycling Copyright 2013 Shaw

12 PREMIUM BRANDED NYLON Commercial fiber of choice because it is tough, resilient, beautiful and fully recyclable. Available in over 200 color options Extensive Performance Warranties Fiber contains 25% post consumer and 20% pre-consumer recycled content for total recycled content of 45%

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14 TM INTRODUCING Lok*Dots Demanding Installations High Moisture 12 ph up to 10 lbs 95% relative humidity Occupied Space All Subfloors

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16 INDUSTRY CHALLENGE: DIVERT USED CARPET FROM LANDFILLS

17 SHAW PCC RECLAMATION COLLECTOR LOCATIONS

18 Innovations from Post Consumer Carpet Materials Recovery N6 Carpet & EcoWorx N6,6 All Fiber Types, Carcass All Carpet Types Carpet to Carpet Carpet to Other Products Carpet to Energy

19 EVERGREEN Where Nylon 6 Becomes More Nylon 6 World s largest type 6 nylon recycling facility Produces virgin grade caprolactam from type 6 nylon post-consumer carpet Recycles 100 million pounds of post-consumer type 6 nylon carpet per year

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21 CLEAR PATH RECYCLING Joint venture with DAK Americas, LLC Opened in Fayetteville, NC in July 10 New facility Produces recycled PET flake from post-consumer PET bottles Recycles at rate of 3 billion bottles per year Saves over 550,000 cubic yards of landfill space per year Saves 1.9 trillion BTUs of energy annually equal to the energy required to power 20,000 U.S. homes per year

22 PET BOTTLE RECYCLING PROCESS Recovery Bales Sorting Granulation Carpet BCF Yarn Clear Flake Outside sales Flake Washing Green Flake

23 Innovations from Post Consumer Carpet Materials Recovery N6 Carpet & EcoWorx N6,6 All Fiber Types, Byproducts All Carpet Types Carpet to Carpet Carpet to Other Products Carpet to Energy

24 ENERGY RECOVERY FROM BY-PRODUCTS Shaw pioneered Alternative Energy technology in the carpet industry. Gasification partnership with Siemens Technologies began in 2005 Plant converts post-industrial waste into 40,000 lbs. of steam energy per hour Saves 2.5 million gallons of fuel oil per year... enough energy to support 5200 homes.

25 INTRODUCING Re2E World s first energy plant completely fueled by carpet products 80 million pounds (phase I) Primarily uses post-consumer material Produces 50,000 lb/hr of steam Saves fossil fuel equivalent required to support 7200 homes per year Cogeneration capability will supply electrical power for the fuel processing building

26 Re2E BENEFITS Energy cost stability Landfill diversion Strengthen and support our reclamation partners Reduce fossil fuel dependency State of the art pollution controls Facility is LEED certified

27 Copyright 2013 Shaw

28 Thank You.

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