Could Harnessing Human Energy Reduce a Buildings Carbon Footprint?

2. Gail Lalla | Role of Sustainability in the Exercise Equipment Industry November 9, 2015 Page 2
INTRODUCTION
Greener by Design LLC has been tasked with assessing the role of sustainability in the exercise
equipment industry. The purpose of this white-paper is to out-line the cost-benefits to SportsArt ECO-
POWR™ (SAEP) for further alignment with the sustainability industry. SportsArt ECO-POWR™ is a
pioneer in green systems that attached to an inverter that harnesses human-generated power from
exercisers and feeds it back into the power grid as useable energy, which can offset the costs of a facility.
Through this focused study on the SportsArt’s fitness line, key stakeholders in the industry and the
consumer market will have a better understanding of the cost-benefits of environmental responsibility
and sustainable best practices in comparison to exercise equipment lines that are not considering these
measures.
Greener by Design sees the advantage of the further alignment with sustainability and the certification of
green products as a demonstration of a company’s dedication to public safety and effort to provide a high
level of product quality to customers.
“Sustainability can be a driver for increased engagement with current and
new stakeholder relationships. Organizations are looking at implementing
programs for improving the health of their employees, which can create a
culture of health and also reduction f their carbon footprint.”

3. Gail Lalla | Role of Sustainability in the Exercise Equipment Industry November 9, 2015 Page 3
BACKGROUND/PROBLEMS
The total dollar amount of manufacturer’s, as reported by The Fitness Industry Suppliers Association was
$708,178,501 in 2014, which increased by 11% from 2013 (Fitness Industry Suppliers Association, N.A.,
January 2014 through December 2014). There are several indicators that show that the fitness industry
has significant staying power. Health club memberships increased from 47.7 million to an estimated 52.6
million during the five year period from 2008 to 2013. Those numbers will continue to rise as consumers
pursue healthier lifestyles (Bixler, 2014).
The scope of competition in the exercise equipment industry is global; and global competiveness,
especially in the manufacturing process, is something that the US exercise equipment industry has
focused upon. Manufacturers in the exercise equipment industry look for opportunities to become more
efficient and increase their bottom-line by reaching larger target audiences through commercial
partnerships with distributors. This mixed marketing integration utilizes the internet to sell and advertise
products, and create retail stores by forming partnerships with professional retailers. Backward integration
also occurs when companies have acquired key suppliers and
service providers. More so, companies are investing more in
innovative ideas to differentiate their products in an effort to gain
a competitive advantage over other companies in a market where
products might tend to be similar. In the exercise equipment
market, these differences are most evident in new technologies
used to manufacture cutting edge products. One of the most
difficult obstacles to overcome when entering the exercise
equipment market is the consumers’ loyalty for existing brands.
Demand is driven by consumer income and demographic trends.
The profitability of individual companies depends on unique
product designs and effective marketing. Large companies have
some advantages in brand recognition, but small companies can
compete effectively by building unique products. Companies
have to spend more on research and development and marketing than legacy companies in order to
survive and be successful.
“One of the most difficult obstacles to overcome when entering the exercise
equipment market is the consumers’ loyalty for existing brands.”
Major products are motorized treadmills, stationary bikes, stair climbers, rowing machines, and elliptical
"cross-trainers," collectively called cardio equipment; and weightlifting machines ("strength training"), and
traditional weightlifting equipment ("free weights" and benches). In addition, there are a large number of
ancillary products. This equipment allows individuals to exercise by them-selves in a limited space. The
two major market segments for fitness equipment are the home and the institutional exercise equipment
market (including health clubs, corporations, apartments, and hotels).

4. Gail Lalla | Role of Sustainability in the Exercise Equipment Industry November 9, 2015 Page 4
SUSTAINABILITY
No matter how large or how profitable, businesses today do not stand alone.
Businesses are inextricably linked with the societies in which they operate.
Whether it’s to close a plant, move operations to a different country or set a price
for a new product, every decision that is made affects the surrounding
community and the natural environment, for better or worse. What was the origin
of sustainability you might ask? Many consider Rachel Carson’s Silent Spring
(Carson, 1962) to be the turning point in our understanding of the
interconnections among the environment, the economy, and social well-being.
Since then, many milestones have marked the journey toward sustainable
development. Regulations, resulting from corporate scandals, the rising influence
of non-governmental organizations, environmental concerns and the fact that
nearly one-third of the world’s top 100 economic entities are corporations, not
countries, have prompted the emergence of sustainability. Sustainability has
been broadly equated with philanthropy, while others expand the definition to
focus on regulatory compliance, business ethics, and the environment. The
terminology may also refer to Corporate Social Responsibility, Corporate
Citizenship, Triple P (People, Planet, Profit), Triple Bottom Line and “Being
Green” often interchangeably. In this paper, “sustainability” will be referred to as
the umbrella term.
Top Five Drivers for Sustainability
1
1. Cost and efficiency opportunities
2. Brand and competitive differentiation, customer requirements
3. Pressure from employees, shareholders, public
4. Government, regulatory pressures
5. Innovation and growth opportunities
1
Source: Forrester Research, The Evolution of Carbon and Energy Management
Software, December 2010
Sustainability
Defined
The most widely recognized
definition of sustainability is:
"Meeting the needs of the present
generation without compromising
the ability of future generations to
meet their needs."
—Brundtland (1987)
This definition describes the
balance that is needed between
the short term and the long term.
At the same time, a sustainable
business model also focuses on
the balance between your own
needs and those of your
environment:
“Sustainability entails a balanced
approach for organizations to
integrate stakeholder concerns
into business operations, in a way
that aims to benefit the
organization as well as its internal
and external stakeholders.”
—Based on definitions of ISO and
the European Union

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METHODS FOR ORGANIZING SUSTAINABILITY
Set Goals
• Include all stakeholder requirements and sustainability in your goal setting process
• Organize to achieve them
• Drive sustainability initiatives into financial and operating plans
• Measure performance overtime
• Monitor and analyze sustainability metrics and adjust goals and initiatives to ensure achievement
of short-term and long-term goals
• Report progress on sustainability initiatives to internal and external stakeholders
2
One example of an organization that measures performance is the Global Reporting Initiative (GRI), an
independent non-governmental organization that was previously part of the United Nations, provides an
effective way track environmental and social reporting. The GRI reporting framework is intended to serve
as a generally accepted framework for reporting an organization’s economic, environmental, and social
performance. GRI is a pioneer in sustainability reporting and is widely used around the world. Employees
as well as customers look forward to GRI reports each year to become more familiar with their
organization’s impact: employee engagement, sustainable practices, and customer health and safety. It
helps to create more transparency between the organization and its stakeholders.
GRI is an international not-for-profit organization, with a network-based structure. Its activity involves
thousands of professionals and organizations from many sectors, constituencies and regions. The
Framework is developed collaboratively with their expert input: international working groups, stakeholder
engagement, and due process – including Public Comment Periods – help make the Framework suitable
and credible for all organizations.
- See more at: https://www.globalreporting.org/information/about-gri/what-is-
GRI/Pages/default.aspx#sthash.NeMz68fI.dpuf
2
O’Rourke, 2011

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7. Gail Lalla | Role of Sustainability in the Exercise Equipment Industry November 9, 2015 Page 7
Table 1.1 GRI G4 Sustainability Reporting Framework
Category Aspects
Economic
Economic Performance
Market Presence
Indirect Economic Impacts
Environmental
Materials
Energy
Water
Biodiversity
Emissions, effluents, and waste
Products and services
Compliance
Transport
Overall
Labor Practices
Employment
Labor/management Relations
Occupational Health and Safety
Training and Education
Diversity and Equal Opportunity
Human Rights
Investment and Procurement
Non-Discrimination
Freedom of Association and Collective Bargaining
Child Labor
Forced and Compulsory Labor
Security Practices
Indigenous Rights
Society
Community
Corruption
Public Policy
Anti-Competitive Behavior
Compliance
Product Responsibility
Customer Health and Safety
Product and Service Labeling
Marketing Communications
Customer Privacy
Compliance

8. Gail Lalla | Role of Sustainability in the Exercise Equipment Industry November 9, 2015 Page 8
Companies, such as Adidas and Nike may also look to the emergence of several
sustainability-driven financial indexes, including the Dow Jones Sustainability
Index, Ethibel, SERM, and FTSE4GOOD, which have helped investors make
informed decisions by evaluating companies across a broad range of economic
and environmental criteria. These indexes may consider policies the company
has in place, how it reports on environmental impact and whether it monitors its
suppliers. They typically also track external and internal social aspects, such as
how the organization:
• Consults various stakeholders in decision-making processes
• Ensures equal opportunities for staff
• Fosters human capital development
• Complies with health and safety regulations
• Embraces corporate philanthropy policies
• Focuses on product safety
“Companies, such as Adidas and Nike may also look to the
emergence of several sustainability-driven financial indexes,
which have helped investors make informed decisions by
evaluating companies across a broad range of economic and
environmental criteria.”
Sustainability indexes also track corporate governance issues, such as board
composition, policies around ethical behavior and processes for risk and crisis
management.
SORTING THROUGH THE GREEN PRODUCT
MAZE FOR THE MULTI-FAMILY AND
HOSPITALITY ORGANIZATION
The market for green products is exploding, from energy-efficient lighting to
recyclable flooring. Thus, trademarks and symbols for green product certifications
and labels are pervasive from: product packaging, manufacturers’ websites, print
advertising, and trade show booths. Familiar names include: Greenguard, Green
Seal, Energy Star, Environmentally Preferable Products and Services, and
Building for Environmental and Economic Sustainability (BEES). Without these
programs, specifiers would be left to sift through piles of product information filled
with invalidated claims from manufacturers to determine which products are right
for the job. Green certifications, otherwise known as eco-labels, verify that a
product meets specific standard via a third-party validation. Green certifications or
labels are voluntary; therefore they are showcases for manufacturers genuinely interested in being taken
seriously by facility executives who want to purchase products with verified green claims. Green product
certifications and labels complement the U.S. Green Building Council’s LEED rating system as tools for
facilitating a market shift to more environmentally responsible buildings. The difference lies in that LEED
looks at the whole-building envelope while the green product certifications and labels look at the specific
characteristics of the individual products LEED is the most recognizable rating system for whole-building
green design, whereas green certifications each have their own criteria.
Integration into
Business Models
Companies can select an
integrated approach to
sustainability within their
business models, which can
create shareholder value, while
also protecting the company
from high-risk exposure. Risk
management includes
establishing clear codes of
conduct and transparent
operations. Common risks
include:
§ Financial: avoid fines or
higher interest rates
imposed by banks that view
your business as a high-
risk association.
§ Operational: prevent safety,
health, or environmental
issues from shutting down
operations.
§ Customer: limit the risk of
negative corporate image
alienating current or
potential customers.
§ Strategic: don’t miss the
opportunity to align with
what your stakeholders
require; and evaluate
relationships with suppliers
and channel partners for
effective branding.
Increasingly, companies are
devoting more resources to
integrating sustainability into
their business planning efforts,
which provide numerous benefits
for risk avoidance, stakeholder
engagement, shareholder
revenue, operational efficiency,
customer attraction and
retention, competitiveness,
brand value and innovation.

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However, LEED and eco-labeling share the same goals to validate specific environmental criteria. It’s
important for facility executives to separate green wash from verified environmental claims by assessing
key criteria such as: low VOC emissions, energy efficiency, or high percentage recycled content, for
example. Green certification and labeling bodies use vastly different standards, which range from: life
cycle analysis, single-attribute certifications, multiple attribute certifications, processes and performance
standards. Facility executives, especially in areas of multi-family housing and hospitality, should
differentiate the spectrum of certifications by evaluating the transparency of the standard (easy to
understand), its foundation in environmental science, and the standard’s ability to select only the upper
echelon of products in a certain product category to achieve certification. The hospitality industry has
increasingly recognized the importance of being green for their bottom line. The Green Hotel Association
Invalid source specified. are environmentally friendly properties whose managers are eager to institute
programs that save water, save energy, and reduce solid waste while saving money. Green Hotels
provides a Catalog of Environmental Products for the Lodging Industry and a 157-page Membership
Conservation Guidelines & Ideas.
“675.9 million square feet of real estate space became LEED
certified in 2014, the largest area ever to become LEED certified
in a single calendar year, and a 13.2% increase in total certified
square-footage from 2013. (U.S. Green Building Council)”
THE GREEN GYM
A logical step for commercial real estate markets seems to be trending towards the greening of facilities,
notably in the hospitality industry. Hotel Fitness centers, for instance, have become models for sustainable
design and operations. The two sectors share a common thread of achieving optimal health, both
personal and environmental. Strategic planning, design and operations, can help fitness centers be at the
forefront of the eminent shift to the incorporation of green practices within the fitness industry. Currently,
there are only a handful of green fitness centers and there unfortunately is no standard for green gyms and
equipment outside of LEED certification. Green gym design includes not only the incorporation of
environmentally friendly products but also creating an environment that fosters the promotion of healthy
living.
Fitness centers have unique challenges in respect to sustainable design and operations. Fitness centers
use energy, deplete resources and generated heat via exercise only to be lost in the surrounding
environment as wasted energy. Fitness gyms in select case studies have adopted power-producing
exercise machines by harnessing human energy. Equipment selection is a key criterion for the design
phase. The main impedance to the wide-spread implementation of energy harvesting devices is regarding
economy of scale – can an energy harvesting system harvest enough energy to offset the initial cost, and
is the cost per kilowatt hour (kWh) comparable to current energy generation methods? It is vital to
consider the predicted energy savings of the gym as well as the economic effect of a potential influx of
customers at commercial fitness centers. In order to evaluate the effectives of a human-driven energy
harvesting system, the workings of a gym lacking this technology must first be understood. To determine
whether or not energy harvesting technology is beneficial, it is necessary to know the difference between a
gym that harvests human energy and one that does not. The following questions can be used to model
the benefits:

10. Gail Lalla | Role of Sustainability in the Exercise Equipment Industry November 9, 2015 Page 10
• What are the facility’s annual energy costs, and how do these costs vary throughout the year?
• How much energy is likely to be harvested with the proposed technology?
• How much money could energy harvesting save the facility over a given time period?
• What would the initial cost be to implement energy harvesting technology?
• Does a correlation exist between energy usage and gym attendance?
• Do enough people currently visit the facility to make the implementation of energy harvesting
worthwhile?
Information from this methodology can be used as a case study for demonstrating the pros and cons of
implementing energy harvesting into design.
“Infrastructural improvements to a green gym can enhance the customer’s
experience in working out while giving back to the environment.”

11. Gail Lalla | Role of Sustainability in the Exercise Equipment Industry November 9, 2015 Page 11
SPOTLIGHT ON
OUR MISSION
SportsArt leverages eco-innovation, unique design and green manufacturing excellence to provide the
fitness, medical, performance and wellness markets superior products, innovative programming, research-
based education and unmatched support.
SportsArt is an established industry leader leveraging over 38 years of innovative design and
manufacturing excellence. The company consistently seeks to advance industry standards, positioning
itself as one of the most creative manufacturers of premium quality fitness, medical, performance and
residential equipment. SportsArt is one of the largest single brand manufacturers in the world and is sold in
over 70 countries worldwide. With over 500,000 square feet of state-of-the art manufacturing space;
SportsArt designs, manufactures and tests all equipment to rigorous TÜV quality standards. with hundreds
of patents worldwide for innovative technologies; such as the award winning ICARE™ system or the newly
re-launched ECO-Powr series, SportsArt is the leading green fitness partner, developing products that are
instrumental to rebuilding and sustaining lives.
Using innovation and technology to make the best fitness equipment, SportsArt technology is advanced,
from factory to final product. Conducting business worldwide requires a commitment to product quality and
safety. In addition to TÜV ISO 9001 quality certification, TÜV ISO 14001 certification for environmentally
sound practices, and ISO 13485 Certification for Quality Management Systems, SportsArt products are
also CE and ETL-C approved.
ECO-Powr
ECO-Powr consists of a group of cardio products that harness the energy of the user and feed it directly
back into the grid by simply plugging it into a standard 120v wall outlet. Once users begin exercising,
power is generated and fed back into the power grid to offset power consumption elsewhere in the facility
Club owners who replace all of their ellipticals and cycles with the ECO-Powr products will see significant
power offsets savings. See diagram 1 and 2 below to illustrate the ECO-Powr process.
In one hour, ten ECO-POWR products can generate up to 2000 watts of power. See Diagram 3 below to
illustrate the carbon footprint impact of ECO-Powr.

12. Gail Lalla | Role of Sustainability in the Exercise Equipment Industry November 9, 2015 Page 12
DIAGRAM 1.0- Demonstration Of The Eco-Powr Process
DIAGRAM 2.0- Simplified Schematic Of The Inverter Process

13. Gail Lalla | Role of Sustainability in the Exercise Equipment Industry November 9, 2015 Page 13
DIAGRAM 3- Carbon footprint of Eco-Powr
CONCLUSION
SportsArt has the ability to directly address obstacles in the industry by further differentiating its existing
brand from its competitors. The nexus between sustainability and exercise equipment has not been
thoroughly marketed in the fitness industry as a whole. Corporate environmental responsibility is also an
emerging trend that consumers are increasingly vested in following. There is a clear need for expanding
on this niche market angle of sustainability. Green issues are highly technical, complex, and fast moving,
but with a streamlined approach, Sports Art can further accomplish its alignment with the sustainability
industry while overcoming the current challenges the industry faces.
ABOUT SPORTSART
SportsArt Fitness is an industry leader in the design and manufacturing of high quality cardiovascular and
strength equipment for home and commercial use. SportsArt retains control over every aspect of
component design and the overall manufacturing process, ensuring proper integration, maximum
performance and longer product life. SportsArt Fitness holds TϋV and ISO 9001/9002 quality certifications
and hundreds of worldwide patents for their innovations.
SportsArt’s Taiwan factory also holds an ISO-14001 certification, which certifies that the company is
committed to identifying and controlling the environmental impact of business activities, products and
services, and continually improving environmental performance by implementing a systematic approach to
setting environmental objectives and targets. For more information on the SportsArt Fitness brand and
their latest products visit us on the web at www.gosportsart.com.

14. Gail Lalla | Role of Sustainability in the Exercise Equipment Industry November 9, 2015 Page 14
ABOUT GREENER BY DESIGN
Strategies And Solutions With Innovative Vision
Greener by Design LLC (GbD) provides comprehensive energy,
environmental and regulatory compliance services. GbD is a uniquely
qualified boutique firm of experienced, results oriented problem solvers and
a dynamic mix of experienced research analysts, financial management
experts, energy engineers and environmental planning professionals. Our
team offers the knowledge, ability, willingness, and relationships needed to
assist in a wide variety of situations and projects. We are constantly
updating our offerings to keep in line with changing regulations and savings
for our clients. Our primary aim is to:
“Increase your bottom line revenue while
reducing your environmental impact.”
Greener by Design provides expertise on how technology, innovation, and
policy will influence project development and delivers a full range of
consulting and project management services while increasing bottom line
profitability.
Greener by Design offers the personal focused attention and staff resources
to hand-tailor projects to fit each client’s specific needs in the following
areas:
GbD supports operations in resort
destination markets with a focus
on mixed-use commercial
properties including hotels,
resorts, golf courses, restaurants,
casinos, retail operations, and
other select assets across the
United States and the Caribbean.
GbD’s range of consulting,
engineering and project
management services provides
public and private clients with the
ability to meet or exceed
regulatory requirements and
create a healthier environment.
To learn more about Greener by
Design’s solutions please visit:
www.gbdtoday.com
or contact us at 732-253-7717.