DESSO is the first carpet tile manufacturer in the world to achieve a Cradle to Cradle GOLD level certification

A GOLDEN MILESTONE

DESSO is the first carpet tile manufacturer in the world to achieve a Cradle to Cradle GOLD level certification

A GOLDEN MILESTONE In a world challenged by resource scarcity, climate change and an increasing population, we believe it is essential to make a paradigm shift in thinking about how our products are designed, what goes into them and where they go after use. We see Cradle to Cradle product certification as a set of milestones along the road we are travelling. It is also a tangible way of measuring our achievements, as it is both comprehensive and rigorous. On our C2C journey, we have reached a major milestone in becoming the first carpet tile manufacturer in the world to achieve a Cradle to Cradle Gold level certification for an entire collection of products. Desso s Gold Collection comes with EcoBase backing as standard, contains ECONYL 100% regenerated nylon and upcycled re-engineered calcium carbonate (chalk), a residual material stream from local drinking water companies. Our Gold certification is the culmination of seven years of hard work and effort along the path to the circular economy, based on C2C principles. Achieving a gold level certification represents a major milestone in achieving our goals as set out in our C2C Roadmap to 2020. Our journey and achievements so far are described in this brochure. TM Cradle to Cradle Certified TM is a certification mark licensed by the Cradle to Cradle Products Innovation Institute A GOLDEN MILESTONE 3

THE ROAD LESS TRAVELLED As one of the pioneers of Cradle to Cradle design principles, it was a natural decision for Desso to take the road less travelled. When we began our Cradle to Cradle journey in 2008, we decided that this would be a central part of our corporate vision of what we wanted to be as a business. It would ensure that our footprint was positive to the environment and society, as well as helping us to create products that added value and supported our vision of making the floor work for our health and wellbeing. As in Robert Frost s famous poem, The Road Not Taken we stood at a fork in the road and faced two paths: one pointed towards Cradle to Cradle ; the other to business as usual. And, to borrow Frost s words, we took the road less travelled by and that has made all the difference. A GOLDEN MILESTONE 5

INSPIRED BY NATURE When you look to nature for inspiration, rewards tend to come naturally. With our innovative agenda we aim to improve people s quality of life, and create a positive environmental footprint. The Cradle to Cradle philosophy teaches us in a very practical manner how to design products in a new way, so that we can be smarter about our use of finite resources and make sure we use positively defined 1) materials that can be safely used in new products. In nature, everything that becomes waste helps to create something new. C2C encourages industry to mimic nature, where materials are treated as nutrients to make new goods. Some of the materials go through the manufacturing process (a technical cycle) and some go back into the earth to biodegrade (the biological cycle). The cherry tree provides a perfect example of what industry can learn from nature. Everything that falls from the tree has a purpose, helping to rejuvenate new life. Nothing is wasted. Waste equals food, whether that is for the tree itself, insects, animals or humans. Products created in this way are eco-effective as they are made not just to benefit consumers but also the ecosystem and human health. A GOLDEN MILESTONE 7

TOWARDS A CIRCULAR ECONOMY The earth has a fragile eco-system which can nourish and supply our needs but its resources are finite. The reality is we need to develop an eco-effective system, in which we can shape healthy economic growth for current and future generations in a sustainable way. For the past seven years we have been on a clear course towards the circular economy, rooted in the principles of Cradle to Cradle. At the heart of the C2C concept is the notion of doing the right things right. The 150 year old linear model often referred to as the take, make and waste model once seemed to make sense. Now, this is no longer the case. One answer would be to curb economic growth and encourage everyone to spend less. However, we believe there is a better alternative, in which more people can benefit from economic growth and prosperity. Therefore, our commitment to C2C and the circular economy remains a key focus for us. We made C2C one of the three pillars of our innovation programme in 2008, alongside creativity and functionality. These pillars are helping us to achieve our corporate responsibility goals, as well as driving innovation and further business success. Furthermore, it enables us to reshape our business for the circular economy, guided by our 2020 C2C Roadmap (for more details see page 23). A GOLDEN MILESTONE 8

If all citizens of the world would live by US standards, we would need more than 4 planet Earths.

DELIVERING ON OUR VISION At Desso, we believe it is our responsibility to develop a more sustainable business model which in turn helps to generate innovations and enables our company to deliver added value products that contribute to people s health and wellbeing. To reach this golden milestone, we have had to fulfil a broad range of criteria, as defined within the Cradle to Cradle Certified Product Standard. This is a framework for innovation, which shows that designing with purpose makes perfect business sense and positively impacts the bottom line as well as the environment and human health. It is administered by the Cradle to Cradle Products Innovation Institute based in the US, and it helps guide designers and manufacturers through a continual improvement process that assesses a product against five quality categories: 1. material health 2. material reutilization 3. renewable energy and carbon management 4. water stewardship 5. social fairness A product receives an achievement level in each category - Basic, Bronze, Silver, Gold, or Platinum - with the lowest achievement level representing the product s overall mark. A GOLDEN MILESTONE Product assessments are performed by a qualified independent organisation. For Desso, this is carried out by the Environmental Protection Encouragement Agency (EPEA), based in Hamburg and led by Prof. Dr. Michael Braungart, one of the founders of the Cradle to Cradle concept. The assessment reports are reviewed by the Institute, and then certified if the products meet the Standard requirements. 10

FIVE QUALITY CRITERIA 1. MATERIAL HEALTH Material health is a vital part of our sustainability journey and also plays an increasingly large role in the built environment. It involves ensuring that the materials we use are made of positively defined chemical ingredients selected in accordance with C2C material assessment principles. It underpins our goal to move towards the circular economy and strive to have a positive impact on human health and wellbeing as well as the planet. 100% positively defined materials In line with Desso s C2C commitment to material health, the Gold Collection is produced with 100% positively defined materials and process chemicals. All the materials in our products are assessed according to the Cradle to Cradle Certified Material Health Methodology 2) which enables us to design eco-effective products. Very low VOC s The Gold Collection meets the very strict VOC (Volatile Organic Compounds) criteria as defined in the Cradle to Cradle Certified Product Standard 3). Contributes to LEED v4 points Cradle to Cradle certified products can earn up to two points for Materials & Resources Credit 4 4), Building Disclosure and Optimization Material Ingredients. This can be done via the following options: Option 1. Material ingredient reporting (1 point) Use at least 20 different permanently installed products from at least five different manufacturers to demonstrate the chemical inventory of the product to at least 0.1% (1000 ppm). For Cradle to Cradle certified products these must meet at least v3 Bronze level. Option 2. Material ingredient optimisation (1 point) Use products that can document a material ingredient optimisation covering at least 25% of the total value of permanently installed products in the project. Cradle to Cradle v3 Gold or Platinum products will be valued at 150% of cost. A GOLDEN MILESTONE 13

2. MATERIAL RE-UTILIZATION Material re-utilisation is about designing products in such a way they can easily be disassembled and safely returned to nature or industry. Our customers value the fact the we take responsibility for our products beyond their first use and this is also central to our commitment to C2C and the circular economy. 100% regenerated yarn The yarn used to produce the Gold Collection is ECONYL, a 100% regenerated nylon. On average 52% recycled content 5) This measures the portion of the product that is currently made of positively defined recycled material. This includes upcycled ECONYL, a 100% regenerated nylon from our supplier, Aquafil S.P.A., and upcycled calcium carbonate (chalk) from our revolutionary new C2C material stream organised with local water companies, who produce this as a residue from their water softening process. On average 80% recyclable materials 5) A recyclable material 6) is one that can be recycled at least once after its initial use phase, according to Cradle to Cradle Certified Product Standard. A GOLDEN MILESTONE Closing the loop Via Desso s ReStart programme 7), we offer to take back post-consumer carpet tiles. Carpets are then recycled using our innovative separation technique called Refinity, which separates the yarn and other fibres from the backing. After an additional purification stage, the yarn (with the required purity) is returned to the yarn manufacturer for the production of new yarn. The EcoBase backing is fully recyclable in Desso s own production process. 14

Desso switched to 100% green electricity in 2012.

3. RENEWABLE ENERGY & CARBON MANAGEMENT One of the basic principles of Cradle to Cradle is to use solar income. It is about envisioning a future in which all manufacturing is powered by 100% clean renewable energy. In 2012, Desso switched to 100% green electricity (hydropower generated in the Alps) for our production facilities. Next to that, we have reduced our carbon emissions (indirect and direct) by 55% between 2007 and 2014. In addition, we also joined the UN s REDD+ initiative (Reducing Emissions from Deforestation and Forest Degradation 8) ) in 2013. As a result of this project, 1.100 small farmers will be able to improve their livelihoods and the project is expected to reduce greenhouse gas emissions by 450.000 tonnes per year. This project contributes to meeting the C2C requirements for renewable energy and carbon management. A GOLDEN MILESTONE 17

4. WATER STEWARDSHIP Water is a precious resource and therefore improving the ability to recycle this resource is a critical goal. Secondly, C2C principles are about ensuring that the water we send back into the original source is at least as clean if not cleaner than the water it goes into. This is also about our commitment to the local community and the environment. For this collection, we have paid specific attention to the chemicals used in our production processes at our Waalwijk plant, in the Netherlands. Here, a non-approved chemical was replaced in order to meet the strict C2C Gold level requirements. Desso has also increased the amount of recycled water from 11% in 2008 to 19% in 2014. In 2014, the special ozone treatment resulted in a 54 million litre saving on fresh water. A GOLDEN MILESTONE 19

5. SOCIAL FAIRNESS Social responsibility is a key part of the Cradle to Cradle philosophy. We have always been committed to engaging our workforce and maintaining responsible goals towards employees and communities directly linked to the business and through the supply chain. Social fairness is underpinned by our signed commitment to the UN s Global Compact principles relating to human rights, labour relations, and human rights, as well as in regard to our ethical supply chain auditing. We report on our progress in this via the annual Communication on Progress (COP) at the advanced level. 9) As a company we are also involved in numerous innovative social projects. In the past year, we have been carrying out an assessment to map and understand the potential risks related to our own operations and those of our suppliers. Assessments are enabling us to develop effective strategies, policies and procedures that finally will drive continuous improvement of social fairness. A GOLDEN MILESTONE 20

DESSO S CRADLE TO CRADLE ROADMAP 2008-2020 Our long-term goals with respect to Cradle to Cradle implementation are described in a roadmap. We use this as a key tool to ensure we deliver on our promises. Desso s long-term targets include: By 2020, reach a level where more than 80% of all materials used in our products are positively defined according to Cradle to Cradle criteria. By 2020, use 75% positively defined recycled material to produce carpet tiles. Reach the target of 100% renewable energy for processing and manufacturing. Ensure that factory effluent water is cleaner than the water it is discharged into. Further development of our ReStart and recycling programmes. Further implementation of Cradle to Cradle supply-chain management. Support the UN s Global Compact, an initiative that promotes responsible corporate practices in the areas of the environment, labour, human rights and anti-corruption. Desso products to be designed according to Cradle to Cradle design principles by 2020. Continue to advocate in public and private circles for the case for Cradle to Cradle and the circular economy with an emphasis on what businesses can do to move things forward, as well as governments in terms of public policy measures. A GOLDEN MILESTONE 23

Two roads diverged in a wood, and I, I took the one less travelled by, And that has made all the difference. Robert Frost, 1874 1963 A GOLDEN MILESTONE 25

REFERENCES 1) Positively defined = all ingredients have been assessed as either Green (optimal) or Yellow (tolerable) according to the Cradle to Cradle assessment criteria. As described in Cradle to Cradle Certified Product Standard Version 3.1. 2) http://www.c2ccertified.org/resources/collection-page/cradle-to-cradle-certified-resources 3) This standard prescribes that: TVOC must be < 0.5 mg/m 3. Individual VOCs < (0.01) x [the lower of the TLV or MAK value]. The time point used is 7 days. 4) http://www.usgbc.org/node/2616399?view=language, http://www.c2ccertified.org/resources/collection-page/cradle-to-cradle-certified-resources 5) % of the total weight of the carpet tile 6) Cradle to Cradle Certified Product Standard, Version 3.0 7) The programme was formerly called Take Back, but has now been re-branded as ReStart, which refers to the Recycling and Reclamation Programme carried out by Desso s parent company, Tarkett. 8) http://www.un-redd.org/aboutredd/tabid/102614/default.aspx 9) https://www.unglobalcompact.org/participation/report/cop/create-and-submit/advanced/175791 Descriptions, colours and specifications are subject to change without notice. Desso is not responsible for typographical/photographical errors. Actual product may differ from illustration. All rights reserved. Reproduction in whole or in part is prohibited without the prior written consent of the copyright owner. The information presented in this document does not form part of any quotation or contract, is believed to be accurate and reliable and may be changed without notice. No liability will be accepted by the publisher for any consequence of its use. Publication thereof does not convey nor imply any license under patent- or other industrial or intellectual property rights. In case of doubt or differences of interpretation, the English version shall prevail over all other language versions. 2015 DESSO. A GOLDEN MILESTONE 27

Information Desso B.V. P.O. Box 169 5140 AD Waalwijk The Netherlands TEL. +31(0)416 684100 FAX +31(0)416 335955 info@desso.com www.desso.com October 2015, DESSO www.desso.com A Tarkett Company