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Carpet to Coats: Reducing Waste & Helping Humanity. Tom Norris, Al Renner, Edward Taylor. Agenda. Abstract: Al Company Profile: Edward Developing TBL Framework: Edward Sustainability Deployment: Tom Outcomes & Impacts: Al Ongoing Sustainability Practices: Edward
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Carpet to Coats:Reducing Waste & Helping Humanity Tom Norris, Al Renner, Edward Taylor
Agenda • Abstract: Al • Company Profile: Edward • Developing TBL Framework: Edward • Sustainability Deployment: Tom • Outcomes & Impacts: Al • Ongoing Sustainability Practices: Edward • Challenges & Opportunities: Tom • Local & National Impact: Al • Audit Instrument: Tom • Income Statement: Edward • Balance Sheet: Tom
Abstract • Non-profit organization • Nylon coats from recycled carpet • 5.9 billion lbs carpet discarded 2009 • 96% in landfills; 4% recycled • Markets – charities, govt. agencies, retail • Addresses TBL – Planet, People, Profit • Start Up Cost $ 3 million • 80/20 plan for start up capital
Company Profile • Location • Building specifications and cost • 6 Business processes • Key elements of manufacturing process
Developing TBL Framework • The three founders of Carpet to Coats strongly believe that the true purpose of business extends beyond just making a profit • established five functional priorities: • (1) to receive the carpet recycler’s raw materials • (2) to make durable and functional coats • (3) to distribute the final product to various retailers and non-profit organizations • (4) to increase the number of domestic carpet donators • (5) to solicit contributions from public and private investors who want support our business
Sustainability Deployment • Each department will be assigned a liaison responsibility for SMS initiatives (includes outsourced services) • Ensure a minimal impact to the environment during all processes • Improve internal and external social conditions • Bring economic growth to our supplier and the surrounding community
SMS Economic • Implementing the Environmental and Social aspects will also bring Economic benefit such as: • Employee retention and recruiting • Reduces training costs & increase productivity. • Passionate employees • Reduced costs of shipping • Increased job opportunities
Outcomes & Impacts • Operations Personnel Management • Carpet donation on site encourages recycling • Diverting 600,000 lbs of carpet from landfill/year • Package Flow Tech for delivery routes • Personnel Management • Lost work time reduced 20% via health & safety • Communicate sustainability commitment to employees • Environmentally friendly admin processes
Outcomes & Impacts • Supplier – Shaw’s Evergreen Nylon Recycling • Evergreen carpet reclamation program • CARE awards for recycling innovation • Has reclaimed 300 million pounds of post-consumer carpet since 2006 • Stakeholders • CARE effort has three interlinked goals • Charity customers improve People aspect of TBL
Ongoing Sustainability Practices • Integration into business processes • Integration into compensation and performance management • Employee buy-in
Challenges & Opportunities • Increased costs upfront & additional costs to maintain sustainability. • Managers examining the workflow for operations • Training. • SMS team • Employees must understand our SMS policy, • SMS audit team
Challenges & Opportunities • Employees must be convinced that it is a worthwhile strategy. • Employees must embrace the culture of sustainability • Consumer’s preference • Some customers may wonder if the coat is free of undesired material. • consumers tend to view sustainable products high in ethicality, but may think the product lacks the performance of normal produced goods
Challenges & Opportunities • Ahead of any possible environmental legislation passed here or internationally. • Reduced disruptions to business • Partnership with Shaw's Evergreen Nylon Recycling will give a strong foundation to implement our own sustainability program. • Their example and experience will certainly give us some key insights for implementing sustainability in the manufacturing industry.
Challenges & Opportunities • Our community used carpet recovery site • Surrounding businesses can donate their used carpet at our location instead of the landfill. • Financially beneficial for them as they can possibly avoid landfill fees. • Marketing ability. • Our SMS could enable us to increase sales to federal, state, and/or city services that have a green purchasing initiative. • Retailers that have green conscience customers.
Local & National Impact • Sustainability - Labor & Human Rights • HR policies provide labor rights per United Nations • Clean safe working conditions • Competitive wages & benefits/incentives • Sustainability – Environmental Principles • 1st priority is environmental aspect of TBL • Intergenerational equity via reducing carpet waste stream • Managing economic growth to be green