2013 Corporate Sustainability Report

Transcription

1 2013 Corporate Sustainability Report

2 Table of Contents

3 1 Letter from the General Manager 3 Overview 5 Product Portfolio 7 Locations 9 History 11 Triple Bottom Line 13 People 15 Planet 17 Products 19 Conclusion

4 Mike Wagner General Manager, Kimball Office Vice President, Kimball International 1

5 Letter from the General Manager Kimball Office has long been a leader in sustainable practices, dating back to our founding nearly 45 years ago. Our mission today is the same as it was then: maximize our product potential while minimizing our impact on the environment. To that point, I am proud to say that 2013 was no exception. It is said that there are three pillars to sustainability, economic demands, environmental resilience, and social equity. Each year, we make strides toward improved practices, and we update our sustainability efforts to link to these three pillars. Our belief that Kimball Office should be among those setting the standards for our industry is not just a goal, but an expectation. We expect that our products will set new industry sustainability standards simply complying to industry guidelines is not enough. I hope you take the time to review the contents of this report and find it to be representative of Kimball Office s commitment as a responsible corporate citizen. I encourage you to visit for further information about our company and our sustainability efforts. Sincerely,

6 Company Overview Kimball Office has been transforming workspaces for nearly 45 years with an ever-widening breadth of relevant, sustainable office furniture solutions. As one of America s most respected and environmentally-conscious contract office furniture manufacturers, we provide architects, designers, facility managers, and employers with open plan system solutions, both modern and classic desking, and a range of conference and seating options. The company is a brand unit of Kimball International, Inc., (NASDAQ:KBALB), a $1.2 billion publicly-traded company headquartered in Jasper, Indiana. Membership and Involvement: - Members of the U.S. Green Building Council (USGBC) - Members of the Business and Institutional Furniture Manufacturer s Association (BIFMA) - Involved in the development of the ANSI/BIFMA furniture sustainability standards We offer products with the following attributes: - SCS Indoor Advantage TM -certified products - Forest Stewardship Council TM -certified products - BIFMA level 2 and 3 certified products, with level 3 being the highest certification We strive to create products that will contribute to LEED (Leadership in Energy and Environmental Design) project certification and make sure that our own facilities meet or exceed LEED standards. Kimball Office has also partnered with EcoScorecard SM, a web-based tool that helps architects and designers quickly and accurately evaluate the sustainable attributes of our products and materials against major environmental rating systems like LEED. For additional information about the EcoScorecard, visit 3

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8 Product Portfolio Casegoods Systems 5

9 Seating Tables See our full product portfolio at

10 Post Falls, ID Manufacturing Facility Kimball Office Locations San Francisco, CA Showroom LEED CI Gold Los Angeles, CA Showroom Kimball Office has been proactively adopting and developing sustainability practices for nearly 45 years. Over time, we ve made continual progress as a responsible steward of resources and as an agent of sustainable change in our industry. As such, our facilities operate within compliance of all local, state, and federal regulatory requirements, while striving to go above and beyond in embracing social, environmental, and economic practices. Kimball Office manufacturing facilities and corporate showrooms are located throughout the United States. 7

11 Boston, MA Showroom Chicago, IL Showroom LEED CI Silver New York, NY Showroom LEED CI Washington, D.C. Showroom Jasper, IN Corporate Headquarters Corporate Showroom LEED CI Gold Manufacturing Facilities Salem, IN Manufacturing Facility Dallas, TX Showroom Atlanta, GA Showroom LEED CI Silver

12 Founded as the Jasper Corporation Acquisition of the W.W. Kimball Piano Company Kimball International s first reforestation efforts take place on 280 acres Kimball Office furniture brand is introduced to the market The Kimball International Environmental and Energy Management Department is created Dust control systems are installed in all plants to collect 99 percent of all wood dust and return clean air to the plants, saving energy in the process Wood-fired boiler systems are installed to convert wood waste to energy, and eliminate it from landfills Membership in the Business and Our History Institutional Furniture Manufacturer s Association (BIFMA) Implementation of high solids catalyzed topcoats reduces VOCs by 15 percent while improving durability Implementation of our hazardous waste management program reduces hazardous waste by 80 percent Cardboard recycling program is implemented; today we re recycling nearly 625,000 lbs of cardboard annually Initial compliance reporting to EPA on all SARA chemicals Launched the Trees for Tomorrow program; we ve planted over 375,000 seedlings to date Guiding Principles documented into programs and processes Post Falls, Idaho, operations start up Implementation of NESHAP program Kimball acquires an additional 11,700-acre land tract Indiana facilities earn OSHA VPP Star status Corporate Recycling Center is established (recycling cardboard, plastic, paper, steel, upholsteries, brass, wood, electronics, furniture, and more) Mississippi Founded as Jasper Corporation Wood-fired boiler systems are installed to convert wood waste to energy, and eliminate it from landfills Dust control systems are installed in all plants to collect 99% of all wood dust and return clean air to the plants, saving energy in the process Initial compliance reporting to EPA on all SARA chemicals First Kimball Office facility earns OSHA VPP Star status Membership in the USGBC Governor s Award for Corporate Recycler of the Year Corporate Conservator from the Nature Conservancy Indiana Governor s Award for Excellence in Recycling Membership in the USGBC HONDA ISO Recognition Award for Excellence in Recycling Conversion to powder coating from liquid paints completed, reducing VOC Emissions and hazardous waste Jasper, IN, showroom earns LEED CI Gold Certification Chicago, IL, showroom earns LEED CI Silver Certification Membership in IDEM Partners for Pollution Prevention First products meet BIFMA Furniture Emissions Standards (FES) New York, NY, showroom earns LEED CI Certification Kimball Membership in IDEM Vehicle Idling Program First products meet California Environmental Requirements Environmental Management System ISO Registration Systems products receive SCS Indoor Advantage Certification U.S. EPA SmartWay SM Transport Program participation FSC Certified Wood product offerings available Implementation of Pura UV top coat, wood finish system allowing products to meet IAQ certifications while reducing VOC emissions and energy consumption

13 Products meet California Air Resource Board (CARB) Air Toxins Control Measure Phase 1 Greenhouse gas emissions baseline developed First product life cycle assessment completed Atlanta, GA, showroom earns LEED CI Silver Certification San Francisco, CA, showroom earns LEED CI Gold Certification Salem II facility celebrates over 3,000,000 hours worked without a loss time injury Salem and Jasper, IN, facilities accepted into the IDEM Environmental Stewardship Program Jasper, IN, facility receives the Governor s Award for Environmental Excellence Awarded the Communitas Award for Community Service San Francisco, CA, showroom awarded the Good Green Design Award Post Falls, ID, facility receives the Pollution Prevention Champion Award from the state of Idaho Fluent product line receives the Green Good Design Award San Francisco, CA, showroom recognized in Top Ten LEED Projects by Interiors & Sources Magazine Achieved its third STAR certified site under the OSHA/VPP with the KO Jasper Cherry Street facility Earned level Certification for its entire product portfolio one of the first in the industry to have its product certified to a new furniture sustainability standard Atlanta, GA, showroom earned LEED-CI Certification Earned Office Furniture Dealers Alliance (OFDA) 2009 Manufacturer of the Year Silver Award Interstuhl Fit, marketed and sold by Kimball Office, earned Best of NeoCon 2009 Innovation Award Atlanta, GA, showroom received ASID Design Excellence Award-Gold KO-Salem received the Above and Beyond Award from the Indiana Employer Support of the Guard and Reserve (ESGR) Kimball Office corporate head Membership in the Business and Institutional Furniture Manufacturer s Association (BIFMA) The Kimball International Environmental and Energy Management Department is created Implementation of hazardous waste management program Implementation of high solids catalyzed topcoats reduces VOCs by 15 percent while improving durability Jasper, Indiana, facility receives the Governor s Award for Environmental Excellence Earned level 2 or 3 Certification for entire product portfolio quarters earned LEED-CI Silver Certification KO-Post Falls named Large Business of the Year by the Post Falls Chamber of Commerce Hum. Minds at Work. earns Good Design award Jasper, IN, Showroom earns Green Good Design award All SCS Indoor Air Quality certified seating lines are Indoor Advantage Gold certified and meet California specification of emissions 100 percent of Kimball Office-manufactured products earn ANSI/BIFMA level 2 or 3 certification; including all casegoods to level 3 98 percent of product line certified for indoor air quality contributions Completed second annual Carbon Disclosure Project s (CDP) Investor Report KO headquarters and manufacturing facilities awarded design s highest sustainability honor, Good Green Design All three Indiana facilities have earned OSHA certification and two have earned VPP Star status 2012 GSA Evergreen Recipient 2013 Indiana Dept. of Labor Recognizes KO-Salem for Workplace Safety and Health

14 Triple Bottom Line Kimball Office has outlined its environmental philosophy around our people, planet, and products. More importantly, in each of these areas we ve demonstrated our sustainable commitment with action. At Kimball Office, we are proud of our environmental stewardship. We are committed to sustainable business practices and continuous improvement. It s part of our heritage to take initiative, reduce waste, conserve energy, commit fully, and lead by example. It s not enough to simply sustain. We strive to enhance our world. 11

15 People Planet Customer Focused We develop relevant products in line with the needs of our customers. Employees We encourage and support our diverse team members through a collaborative, engaging environment. Safety We strive to create a safe and healthy work environment for all. Community We engage ourselves in our community through various community service projects and involvement. Energy We work to limit our energy use to only the necessary amount. Water Our manufacturing processes are routinely studied to find ways to reduce our consumption of this valuable resource. Waste We have a goal of 100% landfill diversion of all production waste and have reached that goal on several product lines. Emissions Our manufacturing facilities follow strict guidelines to reduce our environmental impact. Products Design We plan for sustainability in the earliest stages of development. Materials When choosing materials, we are careful to consider the environmental impact involved. Manufacturing Our manufacturing processes are studied to understand and mitigate their Significant Environmental Aspects. Testing Our products are tested to meet or exceed industry standards.

16 People Customer Focused Customer Focused Attributes At Kimball Office, we strive to create relevant products by tuning in to our customers needs. Over the years, those needs have included durability, affordability, and flexibility. Increasingly, our customers need furniture solutions that meet higher environmental and quality standards. As we ve strived to meet those standards, we ve used globally recognized, transparent, and consensus-based certification systems to document and support our product and process claims. Flexible Customer Sustainable Employment Diversity Durable Affordable Men Women Minorities SR/Mid/Line Management Technical/Professional Employees 72% Men, 28% Women, 3% Minorities 61% Men, 39% Women, 7% Minorities Sales Employees Operations/Manufacturing 39% Men, 61% Women, 15% Minorities 69% Men, 31% Women, 8% Minorities Total Employees 39% Men, 61% Women, 15% Minorities

17 Employees Community/Volunteer Activities in 2013 The Kimball Office family is comprised of many diverse team members. We support equal opportunities regardless of gender, age group, or minority status. Our culture has developed with a focus on teamwork and collaboration. We ve developed strong relationships with each other, our customers, our suppliers, and the communities in which we live and work. The average tenure for a Kimball Office team member is over 18 years and many of our customers and suppliers have been with us for 40 years. Health/ Wellness Community/ Social Activities Fundraiser/ Sponsorship Safety The health and safety of our employees and their families is critical to our success. We believe that the best way to continually improve is to regularly involve our team members in monitoring and improving our processes. Team members participate in daily informal meetings to monitor and improve our safety program. All safety statistics, achievements, and issues are regularly reported to leadership. Safety statistics for each facility are available to all Kimball Office employees. Each of our manufacturing facilities operate within compliance of all environmental, health, and safety laws. Our all injury rate decreased over last year and was the second lowest all injury rate since There has been a steady progression of improvement over this 14-year period. We are always looking for ways to improve our safety standards. In 2000, we began participating in OSHA s Voluntary Protection Programs (VPP), which helps us promote workplace safety and health practices. Star status by VPP is OSHA s official recognition of outstanding efforts for those who have achieved exemplary occupational safety and health. Our Indiana facilities have achieved VPP Certification or Star status and our Post Falls, Idaho, facility will be evaluated in April by OSHA for admittance to the program. Community Donations/Support 50 Activities Reported in 2013 At Kimball Office, we feel it is our duty to help others. Our company has a long history of community service and involvement. Fifty different community and volunteer activities were logged in Examples of these include: Crisis collection donations to support those challenged by disaster, fire, or illness. Donations for local community organizations: food banks, school supplies, holiday gifts. Supporting national non-profit organizations: American Cancer Society, American Heart Association, and the Cystic Fibrosis Association. Donating products to non-profit and civic organizations to use in their space or for fundraising events to support their organizations. Our efforts to be socially responsible extend beyond the workplace. Many employees volunteer and actively support community organizations and events. For our people, social responsibility isn t just a way of work. It s a way of life.

18 Planet Energy Management and Conservation The proper management of energy and its impact on the environment is important to all of us. We have established our greenhouse gas emissions baseline, and our facilities are engaged in power management. Recognizing that our finish operations were significantly impacting our energy demand, Kimball Office made investments and adaptations over the years to reduce our energy consumption. With new technology that focuses only on the materials being processed, we can be sure that only the necessary amount of energy is being used. Water Usage Gallons (Millions) VOC Emissions Both of our Indiana facilities convert waste to energy through the utilization of wood scraps from the production process. Over 50% of the electricity used to power our Idaho facility is generated from hydro and non-hydro renewable electric sources. Tons Water Consumption In 2013, our absolute water usage was down for the fourth consecutive year. We strive to reduce water consumption per unit produced. In 2010, Kimball Office implemented process changes in our Post Falls, Idaho, facility to significantly reduce water consumption from our powder-coat wash processes, saving nearly 620,000 gallons. These process changes are also reducing our energy consumption, as the improved wash process requires less heat Green House Gas Emissions 26,000 25,000 Tons C02e 24,000 23,000 22,000 21,000 20,

19 Waste to Landfill Emissions Tons Our logistics operations has earned certification by the USEPA as a SmartWay SM partner. Our partnership with SmartWay SM helps us ensure that our logistics and transportation methods have minimal effects on the environment. We rank in the top 25th percentile of SmartWay SM partners. Recycling Percentage of Solid Waste Generated Percentage Hazardous Waste Generated Tons Our products are manufactured without CFCs, achieving label-free status under the EPA s regulations concerning ozone-depleting chemicals. Since 2009, Kimball Ofice has made significant capital and technological investments to reduce both VOC emissions and hazardous waste. Waste Kimball Office uses a variety of methods to reclaim waste materials during the manufacturing process, injecting them back into the same process whenever possible. When waste is generated, we turn to recycling. And as always, we re constantly looking for ways to improve our recycling processes. In 2013, the average recycling efficiency rate for all manufacturing facilities was over 87 percent. Kimball Office s continued commitment to sustainability includes participating in Kimball International s on-site corporate recycling center, recycling 62 different items in more than 15 categories. The amount of recycling at the plants has increased steadily since Products recycled include steel, aluminum, glass, oil, fabric, toner cartridges, plastics, wood, cardboard and electronic equipment, and other materials. Since 1997, Kimball has prevented more than 467,000 tons of waste from being added to landfills. Note: some numbers may be higher from the previous year due to an increase in production.

20 Products Ideation Phase Development Phase Project Planning Develop Ideas Develop Concepts Document Design Intent Final Cost Design To improve our environmental performance, Kimball Office uses an Environmental Design Program. Our goal is to incorporate environmental thinking into the entire life cycle of the product. The assessment begins early in the product conceptualization phase, where all of the component and process attributes are considered to minimize harmful environmental aspects. Indeed, our improvement efforts make their way into our products in some innovative ways. To date, Kimball Office has been awarded 59 different patents, with several dozen more in pending status. FSC We offer customers the choice of wood certified by the Forest Stewardship Council (FSC). A chain-of-custody certification guarantees our wood is sourced from responsible and sustainable suppliers. In 2012, we were able to improve our program to offer over 5,000 models with FSC certified wood as a standard option at standard lead time. We plan to expand our FSC selection to even more models over time. Materials Kimball Office products are fabricated from wood, glass, metal, and aluminum. Many of our materials have high recycled contents up to 90%. Wood is our primary raw material at nearly 39% of our raw material purchases, followed by metals at 15%, and plastics at 2%. Casegoods, desking, and tables have an average recycled content of over 76% We offer fabrics with 100% recycled content Recyclable packaging Kimball Office regionally sources materials when possible, but also leverages a global supply network of domestic and international partners. Many of our supply partner relationships were developed in the earliest stages of the company s life. 17

21 Execution Phase Marketing Planning and Execution Manufacturing Planning and Execution Execution IAQ We are committed to using low-emission adhesives, paints, and wood finishes. We use water-based adhesives where possible and powder-coat paints on metals. In 2012, we transitioned 98% of our manufactured product lines to our Pura finish solution. Pura is a proprietary finish solution that incorporates water-based topcoats, UV topcoats, VOC-free, and formaldehydefree components. IAQ compliant, this finish solution meets or exceeds all indoor air quality standards 98% of Kimball Office products now meet Indoor Advantage program requirements and are third-party certified by Scientific Certification Systems (SCS) to the BIFMA Furniture Emissions Standards and LEED requirements. Manufacturing We go through a semi-annual management review of significant environmental aspects as well as key performance metrics. These reviews are attended by the Director of Sustainability, the Director of Operations for each facility, and the Vice President of Operations. In May 2008, all Kimball Office Manufacturing facilities received ISO14001 registration. This Environmental Management System requires significant environmental aspect projects be addressed each year. This is part of our process for continuous improvement in our manufacturing facilities. Testing Our product testing team evaluates all Kimball Office products, ensuring they meet and exceed ANSI (American National Standard Institute) and BIFMA (Business and Institutional Furniture Manufacturer s Association) standards. Our team members participate on BIFMA and USGBC committees to contribute and develop industry-wide standards.

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23 At Kimball Office, we take a holistic approach to sustainability our level of certification supports this. We make certain that our products can maximize contributions to our customer s own green building certifications (LEED). We make it easy for our customers to choose products from our line that can contribute by having a large number of IAQ gold and level 3 certified products. We make it easy for our customers to order FSC wood as well by making it a standard option on over 5,000 models. We focus our sustainability statements around our certifications wherever possible so that it s not just green rhetoric, but, rather, claims that are backed up by third party audits against open and credible standards. We are committed to not only meeting current environmental and social standards, but also setting new ones. Our employees, customers, and communities have shaped our culture, and we believe that together we can create a better world. This report was prepared with consideration given to the Global Reporting Initiative (GRI) Guidelines.

24 A unit of Kimball International 1600 Royal Street, Jasper, Indiana Kimball International, Inc.