Behind the Green Green Building Claims and Your Business

Dr. Robert J. HrubesSenior Vice President, Scientific Certification Systems

Presented to:National Green Builders Products ExpoMay 29, 2009

Provides global leadership in third-party environmental and sustainability certification, auditing, testing and standards development

25 years of experience

Programs span a wide cross-section of industries and recognize achievements in green building, product manufacturing, forestry, retail, agricultural production, fisheries and energy.

150+ staff, auditors and affiliates worldwide

Scientific Certification Systems A few of our clients

Sample of Programs Offered

What are “Green” Claims?

Public or private assertion/claim incorporating some sort of environmental (and, more recently, social) attribute

Rapidly becoming ubiquitous, almost literally involving every sector of business-to-business and retail commerce

As “green” lacks a universal definition, it can mean anything

Meaningful “Green” Terms

Recycled content Readily biodegradable Low VOCs Energy efficient Water efficient Sourced from well-managed forests Organic

Less Meaningful “Green” Terms

All Natural Naturally Derived Non-Polluting Ozone Friendly Forest Friendly Environmentally Friendly Earth Friendly Nature’s Friend Anything “friendly” Enviro-effective No Chemicals Garden Safe Green Solution

What About “Sustainability”?

Essentially, “sustainable” has become a term equivalent to “green” and subject to the same pitfalls

Its origins are in sustained yield management of biotic systems such as fisheries and forests

Now:

Sustainable forestry Sustainable agriculture Sustainable tourism Sustainable development Sustainable communities Sustainable golf courses Sustainable mining Sustainable luxury

Green Certification – Instantly!

“If you look for GREEN things, if you really care for environmental change, global warming, greenhouse gases, recycling, CO2 emissions, climate change, compact fluorescent lights (CFL), compost, Al Gore, this certification is for you.

Get your Free GREEN Certificate today and be part of this fast growing community!”

Bottom Line:

Caveat Emptor

Expansion of Green Building

Even in Down Economy, Green Building Grows

LEED-specified projects increased 50% from 2006-2008

In 2005, 13 U.S. state governments had implemented green building initiatives

By 2008, 31 states had implemented green building initiatives

Federal Government Incentives

Energy Economic Stabilization Act of 2008 passes tax credits to homeowners and builders of energy-efficient buildings

Incentives for purchasers of window, door and roof products that demonstrate improved environmental performance

Contractors Choose Green Products

Thermal and moisture protection Doors and windows Wood and plastics

Source: McGraw-Hill, Commercial & Institutional Green Building SmartMarket Report, 2009

Per

cent

age

How Can I PromoteMy Business’

Environmental Story?

Types of Environmental Claims

First-Party – self proclaimed, as in material safety data sheets or marketing materials

Second-Party – involves a trade association or outside consulting firm in setting a standard and verifying claims

Third-Party – verified by an independent body

Credible Environmental Claims are:

Factual – basis for the claim is transparent (standards-based or science-based)

Significant – real environmental benefits that are substantial, without hidden tradeoffs

Progressive – encourages continuous improvement

Independently verified

Third-Party Certification Provides:

Corroborated and measurable environmental and social benefits

Opportunities for improvement, pathways toward greater sustainability

Independent review to guide truthful advertising

Most credible claims

Benefits of Third-Party Certification

Strengthen corporate reputation, build brand value

Potentially increase market share and/or shareholder investment

Potentially increase profits through value-added premiums

Improve employee morale

Examples of Third-Party Certifications

Example: Trusted Third-Party Certification

Forest Stewardship Council (FSC)

Voluntary, internationally recognized forest management standards

Developed by consensus, multi-stakeholder process

Supports biodiversity, protects high conservation value forests, provides for human benefits, ensures long-term timber supplies

Certificates holders must be audited annually

Certification bodies must be accredited and audited annually

Example: Trusted Third-Party Certification

FSC certification follows the supply chain: Forest Management certification Chain-of-Custody (CoC) certification tracks

wood from forest to end-use customer Currently expanding to address new issues in

forestry including carbon sequestration and controlled wood

Included in USGBC LEED program (MR-7)

Example: SCS Indoor Advantage™ Gold

Certification program for interior building materials, furnishings and finishes

Imposes the toughest limitations on indoor airemissions in the building products sector

Program requirements:

Uses the health-based exposure limits required by State of California for school children

Provides greater environmental accountability than any other indoor air quality certification program.

Certified products comply with: Collaborative for High Performance Schools (CHPS); California 01350 Special Environmental Requirements; BIFMA X7.1 Low-Emitting Furniture; and LEED EQ 4.1, 4.2, and 4.5

Example: Recycled Content

For wood, plastics, metals, fibers and more

Pre-consumer and/or post-consumer recycled content percentage is calculated based on factory data, site visit and, in some cases, lab testing

Certified products comply with: LEED MR credits; can be used toward NSF-140 Sustainable Carpet Assessment

Retail Programs with Third-Party Support

Retailers create their own eco-label brands or seek evaluation and/or enhancement of an existing in-house program

Provide meaningful product information and solutions so that customers can make more environmentally conscientious purchases

Turn commitments to sustainability and social responsibility into marketable brands and services

Be Skeptical.Look Behind the Label.

Image source: BSR, Food and Agriculture Industry Trends Report, October 2007

Is there a certification standard and is it rigorous?

Is the audit protocol transparent? Will hidden or undisclosed tradeoffs

more than offset the environmental attribute?

Is it truly an independent, third-party program?

What Lies Ahead for Green Claims and

Environmental Certification?

Considering the Full Life-Cycle and Addressing Tradeoffs

Image Source: BSR, Food and Agriculture Industry Trends Report, October 2007

Environmental impacts from entire chain of custody — producers, distributors, importers, brokers, retailers

Social responsibility

Packaging

Energy use in production, packaging, processing, and transport

Carbon footprint

Product quality and safety

Questions?

Contact SCS

Forestry, FSC, Chain-of Custody and Carbon Offsets Dr. Robert J. Hrubes, rhrubes@scscertified.com510.452.8007           

Recycled Content Samantha Poblitz, spoblitz@scscertified.com 510.452.8050

The Home Depot Eco Options Product ReviewBill Christopher, bchristopher@scscertified.com 510.452.8025

Media Rebecca Graham, rgraham@scscertified.com 510.452.8020

www.SCScertified.com