UNICOR’s Fresh GREEN Attitude—More than Just a Passion for Color

1. GSA Expo2009 Training ConferenceMAKING SUSTAINABILITY HAPPEN UNICOR’s Fresh GREEN Attitude—More than Justa Passion for Color REDUCE REUSE RECYCLE Robert Grieser, Chief, Strategic Business Development & Marketing UNICOR, Federal Prison Industries, Inc.

2. UNICOR’s GREEN Attitude Discussion Topics • Why GREEN? • Government Initiatives on GREEN • How Does UNICOR Approach GREEN? • Recycling Lives

3. UNICOR’s GREEN Attitude Reduce… waste prevention, or "source reduction," means consuming and throwing away less. Re-Use… by repairing, refurbishing, rebuilding, donating to schools and community groups, or re-selling -- also reduces waste. Recycle turns materials that would otherwise become waste into value/usable resources

4. UNICOR’s GREEN Attitude Sustainability… “meeting the needs of the present without compromising the ability of future generations to meet their own needs.” (U.S. EPA)

5. UNICOR’s GREEN Attitude • Why Green? … • What’s all the Rage? • - Conserves resources for our children's future • - Prevents emissions of many greenhouse gases and water pollutants • - Saves energy/creates jobs • - Supplies valuable raw materials to industry • - Stimulates the development of greener technologies • - Reduces the need for new landfills and incinerators

6. UNICOR’s GREEN Attitude Green Certifications… Like the Good Housekeeping Seal of Approval or the Underwriters Laboratory UL Listed Electrical Certification, green products and services can also be certified. The WEB Site, AllGreenRatings.com offers a comprehensive list of green ratings and certifications.

7. UNICOR’s GREEN Attitude ISO 14001 “The guidepost of all things green” The ISO 14000 family addresses "environmental management". This means what the organization does to: • minimize harmful effects on the environment caused by its activities, and • achieve continual improvement of its environmental performance. • Standards ISO 14001:2004 and 14004:2004 outline the requirements and provide general guidelines for environmental management systems (EMS). • Other standards address specific environmental aspects, including: labeling, performance evaluation, life cycle analysis, communication and auditing.

8. UNICOR’s GREEN Attitude Top Government Priorities • GREEN Buildings • GREEN Transportation • GREEN Energy • GREEN Products *Institute for Electronic Government, IBM Corporation – February 1, 2008

9. UNICOR’s GREEN Attitude U.S. Government Buildings • GREENING Priority #1 • U.S. Government owns/leases 500,000 buildings • Those buildings comprise over 3.1 billion sq. ft. of floor space • Greenhouse gases related to those buildings is 2% of all U.S. building related greenhouse gases

10. UNICOR’s GREEN Attitude According to the U.S. Green Building Council… • Buildings in the U.S. account for… • 70% of electricity consumption, • 39% of energy use, • 30% of greenhouse gas emissions, • 40% of raw materials use (3 billion tons annually, globally), • 30% of waste output (136 million tons annually), and • 12% of potable water consumption *Institute for Electronic Government, IBM Corporation – February 1, 2008

11. UNICOR’s GREEN Attitude U.S. Green Building Council… LEED* Program • Recycled content • Local/regional material suppliers • Rapidly Renewable materials • Certified sustainability harvested wood • Indoor air quality performance • Low-Emitting materials *Leadership in Energy and Environmental Design

12. UNICOR’s GREEN Attitude Green Transportation • GREENING Priority #2 • Decrease overall energy consumption • Increase the use of clean energy • Save $ *Institute for Electronic Government, IBM Corporation – February 1, 2008

13. UNICOR’s GREEN Attitude Fleet Management… • Initiatives include replacing or converting fleet vehicles with energy efficient alternative fuel vehicles • Optimizing transportation routes to reduce mileage and fuel consumption • Federal government agencies with 20 or more vehicles must reduce petroleum usage by 2% per year through 2015 • Those same agencies must increase non-petroleum-based fuel by 10% per year • Purchase plug-in hybrid vehicles when life-cycle cost analysis demonstrates cost comparability to other vehicle *Institute for Electronic Government, IBM Corporation – February 1, 2008

14. UNICOR’s GREEN Attitude Green Procurement – Priority #3 • The federal Government spends >$200 billion on goods and services each year… • Buying Green helps: • Conserve natural resources and minimize environmental “footprint” • Improve worker safety and health • Reduce Federal energy use, greenhouse gas emissions and waste to landfills • Stimulate new markets and create jobs • Reduce Liabilities • Provide potential cost savings $$ • It also is: • The law and national policy; • Increasingly easier to do, and • Closes the loop on the recycling process

15. Green Purchasing in the Federal Government • Exec order 13423 requires: • Use of sustainable, environmental practices, including: • Environmentally preferable, energy-efficient, and recycled content products

16. Green Purchasing in the Federal Government • Required green products and services • Office furniture • Awards & plaques; signage • Rebuilt vehicle parts • Paper and paper products • Parks benches and recreation tables • Bedding, bed linens, towels

17. UNICOR’s GREEN Attitude UNICOR Efforts for a Brighter Future… • UNICOR is committed to supporting the letter and spirit of federal EPA and other environmental standards • UNICOR’s plan is to meet its mission while safeguarding the environment

18. UNICOR’s GREEN Attitude Impetus behind UNICOR’s Green Efforts - Raw materials we procure - Our factory operations processes - Packaging and shipping of customer orders - Publications and materials we create

19. UNICOR’s GREEN Attitude UNICOR’s Environmental Record • In past 5 years, UNICOR has recycled 185 million pounds of computers and other electronic equipment • UNICOR’s operations have kept more than 32.5 million tons from America’s landfills by… • Remanufacturing and rebuilding government vehicles, significantly lowering environmental impact over buying new • Reusing and recycling wooden skids • Optimizing packaging and ensuring that packaging materials are readily recycled

20. UNICOR’s GREEN Attitude UNICOR’s Lifecycle Planning includes… • Selecting suppliers based on the strength of their environmental processes • Designing and implementing environmentally sound, energy efficient, production systems • Selecting environmentally preferable materials, emphasizing recycled content • Minimizing waste and reusing materials left over from the production process • Capturing and reusing oils for lubricating parts and minimizing the use of hazardous materials • Using electric forklifts, ventilation and other safeguards to provide a healthy manufacturing environment for workers • Using cross-country transportation partners that use biodiesel fuel

21. UNICOR’s GREEN Attitude Examples of UNICOR’s GREEN stewardship • Fleet: • Re-build HUMVEES and other military tactical wheeled vehicles • Environmentally friendly wash booths (filter/recycle water) • Biodegradable cleaners in high pressure washing processes • Remanufactured forklifts for the U.S. Navy

22. UNICOR’s GREEN Attitude Examples of UNICOR’s GREEN stewardship • Industrial Products: • Manufacture of air filters to improve indoor air quality • Durable, plastic signs from recycled milk containers • Screen-printed emblems using chemically-inert inks free of VOCs • Powder coated paint finishes on vehicles

23. UNICOR’s GREEN Attitude Examples of UNICOR’s GREEN stewardship • Services/Printing/Reverse Logistics: • Use of recycled paper • Vegetable/Soy-based printing inks • Environmentally friendly chemicals (reducing VOCs) • Recycling offal (trim and other paper waste) • Repackaging items for re-sale instead of trashing • Recycling of clothes hangers • Environmentally sensitive laundry operations • Electronics: • Energy efficiency in production of solar panels

24. UNICOR’s GREEN Attitude Examples of UNICOR’s GREEN stewardship • Textiles: • Use of electric forklifts in our production environment • Scrap bailing and sales to recyclers • Cut scrap used to produce auto carpet lining • Restoration of worn textiles to prime condition • Recycled cotton fills our cotton mattresses • Recondition mailbags for USPS

25. UNICOR’s GREEN Attitude Examples of UNICOR’s GREEN stewardship Computer Recycling: • De-manufacturing of computer electronics for landfill avoidance • Refurbishment of computer electronics for re-use

26. UNICOR’s GREEN Attitude Facts And Figures On E-scrap Recycling • EPA estimates 57 million televisions and computers are sold each year; 20-24 million old TVs and computers are placed in storage • 180 million cell phones are retired each year • 70-80 million computers retire each year • Only 12.5 percent of disposed e-waste is recycled

27. UNICOR’s GREEN Attitude A Recent Case Study on Electronics Recycling • April 2009 Federal Times article: “One way to ensure proper recycling: Hire federal prison inmates” • EPA has certified that the UNICOR program is compliant with its guidelines • Interior Dept. frequently hires UNICOR to handle its electronic recycling • A recycling partnership between the two organizations won Interior an award for reuse and recycling efforts in 2007

28. UNICOR’s GREEN Attitude UNICOR’s Approach in Office Furniture • OFG products manufactured in ISO 9001:2000 Certified facilities • Production environments are safe, clean and efficient; OFG products are in full compliance with low-emitting standards of BIFMA and the U.S. Green Building Council • GREENGUARD • Leading product lines are GREENGUARD certified • Independent testing shows that additional lines meet standards equal to those required for GREENGUARD Certification

29. UNICOR’s GREEN Attitude Seating - Recycled and recyclable content • Fabrics used in seating contain 46-100% recycled fiber • Foam cushioning in our seating line is 100% recyclable • Plastics in our Nightingale seating line 100% recyclable

30. UNICOR’s GREEN Attitude Case Goods - Recycled and recyclable content • All woods in case goods are from renewable sources. No woods from rain or virgin forests used in OFG products • Particle board used is of the highest grade and meets EPA Standard Title 25 for Air Resources. • All particle board used is 100% pre-consumer recycled content • Laminates contain 20% post-industrial recycled material • Executive casegoods are 100% recyclable

31. UNICOR’s GREEN Attitude • Fabric is 100% recycled and recyclable polyester • Steel components have 75-85% recycled content • Aluminum content of Systems XXI furniture is 100% recyclable Systems Furniture - Recycled and recyclable content

32. UNICOR’s GREEN Attitude UNICOR’s Manufacturing Processes Utilize… Water-based finishes and glues… • All OFG furniture finishes and glues are environmentally safe and water based • OFG finishes and glues contain no VOCs and produce no toxic off-gasing in the production process or the office environment. Powder-coated metals… • UNICOR maximizes use of powder-coated components. Creates durable, attractive finish without producing harmful fumes during manufacturing. • Excess powder is captured and reused.

33. UNICOR’s GREEN Attitude UNICOR’s Manufacturing Processes Utilize… Efficient Lighting… • UNICOR converted the bulbs in our lighting products from magnetic to electronic ballasts in 1992 – prior to EPA requirements for this change. • Our lighting products, as a result, generate less heat, use less energy, and are safe for the environment

34. UNICOR’s GREEN Attitude UNICOR’s Manufacturing Processes Utilize… Recycled and recyclable content… • UNICOR emphasizes using high levels of recycled content in office furniture products. High levels of recycled content conserves natural resources and diverts them from the solid waste stream. • Also, extends the lives of resources already in circulation – aluminum, steel, plastics, wood and fiber.

35. UNICOR’s GREEN Attitude UNICOR’s Manufacturing Processes Utilize… Vendor Selection… • Vendors are chosen based on their records of environmental stewardship. We pay close attention to the recycled content used by our fabric suppliers, and the low-emission standards and biodiesel fuel used by our transportation partners. • All of our vendors and partners are North American, ensuring our office furniture products are produced under strict environmental and safety standards.

36. UNICOR’s GREEN Attitude UNICOR Respect for the environment… • Integral part of the way we do business • Provides customers with environmentally sound products • A sound business practice • The ‘right thing to do’ for the customer, the workers, the community and the nation

37. UNICOR’s GREEN Attitude UNICOR—Green on the Inside ...Vision by 2020: • Be a leader in low impact mfg with meaningful green programs • Be a company whose factories have zero impact on our landfills • Use the least amount of energy to produce recyclable products, that come from sustainable raw materials without harmful chemicals/finishes • Save $ by using renewable energy sources and no wasted packaging • Have customers that consider us for our environmental practices as well as our quality products • Set the standard for sustainable buildings • Be the most environmentally sensitive company among our peers

38. UNICOR’s GREEN Attitude UNICOR— …To meet its objectives, has established 7 goals: • 75% of our factories will have zero impact on landfills • 100% of our current factories will reduce their energy consumption by 25% • 75% of our finished goods will meet or exceed sustainable standards • Will reduce our carbon footprint by 50%, through (a) reduction in the hours of operation of non-alternative energy equipment; (b) increased use of alternative energy equipment, e.g., hybrids, human-powered. • 25% of the energy used by our factories will be renewable energy • 100% of our factories will reduce the quantity of toxic and hazardous chemicals and materials used by 20% or more • 15% of all of our existing buildings will meet sustainable building practices

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43. Roadside e-waste dump in Lagos, Nigeria.