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SMaRT Sustainable Standard 101
                   Sustainable Materials Rating Technology




                                                               Con




  Consensus Standard – Global Third Party Audits – Life Cycle Assessment



                                      Smart Solutions for Sustainable Business
Copyright 2008
SMaRT Sustainable Standard
                     from What is it? to Let’s Become Sustainable!

           1. Why now?
                   What’s driving the market to Sustainable Standards?

           2. Laws vs. Standards
               ANSI American National Standards Institute

           3. The Standard Field
               Single Attribute, Single Industry and Multi-Industry/Comprehensive

           4. The Criteria
               Pollution, Labeling, Certification Process

           5. The Adoption
                        Key industries, Financial Institutions, Consumers


                                                Smart Solutions for Sustainable Business
Copyright 2008
Why Now? What’s Driving
                     the move from Green to
                     Sustainable to Prove it?
                         •Climate Change

                         •Pollution Change

                         •Economic Change




                 Smart Solutions for Sustainable Business
Copyright 2008
Climate Change is the #1 reason
                                   Sustainability Thinking has gone from
                                   an interesting concept to a massive
                                   market movement.



 Not everyone believes that Climate Change is “man-made” and
 therefore we can do something about it, but they can’t argue that it’s
 now a serious market trend.

 If you’re a business person ,or someone with a retirement plans tied to
 mutual funds and corporate growth, Climate Change issues will have a
 dramatic impact on your bottom line. Education is the best defense for
 both companies and individuals.



                                         Smart Solutions for Sustainable Business
Copyright 2008
Pollution Change

                                  Let’s say that Climate Change isn’t
                                  man-made. We’re still stuck with
                                  consumption pollution. Our water
                                  streams might be drying up, but our
                                  waste streams are getting bigger.

 Sustainable Standards not only work to reduce CO2 emissions, they also
 monitor the entire Life Cycle Assessment of a product and quantify its
 impact from across its supply chain. That means cleaning up the water,
 soil, air and atmosphere at the same time. It also has built in social
 equity (human rights) rules.




                                       Smart Solutions for Sustainable Business
Copyright 2008
Economic Change
                 “Climate change is the mother of all sustainability
                 issues and will have an impact on every economic
                 sector, whether from new regulations, physical
                 impacts or growing demand for climate-friendly
                 technologies. Thus, climate risk is embedded in
                 every business and investment portfolio, which is
                 why more Wall Street analysts are beginning to
                 factor corporate response to climate risk into their
                 evaluations of the companies they cover.

                                  Mindy Luber, President of Ceres representing
                                  $4 trillion in investments.




                        Smart Solutions for Sustainable Business
Copyright 2008
Laws vs. Standards
                 Laws come from governments. They take years to get passed
                 and then their effectiveness stops with each government’s
                 territory. Legislation is initiated in a response to systems that are
                 out of control and that need a court order before they will
                 improve.

                      Laws run the free world.

                 Sustainable Standards come from along-side industry. They are
     Make it     generated to create a common playing field for excellence and
    Good and
   Sustainable   prevent things from going wrong, so that legislation isn’t needed.
                 Their effectiveness can be global as they follow the product or
                 service and not the country. Sometimes the government
                 initiates a standard, but more often it comes from outside the
                 government

                      Standards run the free-market world.


                                                Smart Solutions for Sustainable Business
Copyright 2008
Who’s ANSI?
                   The American National Standards Institute
                   is voluntary guidelines for voluntary standard
                   development.

                   “To help ensure such openness and
                   transparency, ANSI procedures require a public
                   review and comment period for American
                   National Standards activities, changes to
                   ANSI’s own procedural documents, and for any
                   procedures submitted for accreditation or
                   reaccreditation by a standards developer or
                   U.S. Technical Advisory Group (TAG) to ISO.”

                   Because the ANSI guidelines for creating a
                   standard are open for pubic review,
                   governments are comfortable to adopt
                   standards that have been through this process.


                         Smart Solutions for Sustainable Business
Copyright 2008
SMaRT Sustainable Standard Steps
   Critical information is gathered
   from an LCA (Life Cycle Assessment)
   to satisfy the SMaRT Standard
   prerequisites.

   LCAs are done via an in-house
   group or outside consulting
   team and then verified
   through a third party auditor.

   Global Auditors verify the facts
   and check the supply chain even
   if it’s in China.

                                               Above: Minnesota DfE toolkit




                                         Smart Solutions for Sustainable Business
Copyright 2008
Standards can cover…
                            Single Attributes (Packaging…)

                            Single Industries (Wood…)

                            Multiple Industries and Products
                            (A comprehensive standard covers
                            everything except cars and planes.)




                              SMaRT is a Comprehensive
                              Sustainable Standard.




                 Smart Solutions for Sustainable Business
Copyright 2008
SMaRT incorporates all of these to create one
 Comprehensive Sustainable Standard.

                                                                                              =          SMaRT

 • State of Minnesota DfE Toolkit
 • EPA Closed Loop Process Regulation                            • FSC Certified Wood
 • EPA Lifecycle Design                                          • LEED
 • EPA/Purdue University Best Management Practices               • Green-e Power
 • EPA Environmentally Preferable Product Guidance               • Certified Organic
 • EPA Toxic Release Inventory                                   • GRI Social Equity Indicators
 • EPA Tool for the Reduction and Assessment of Chemical         • ISO 14025 LCA
 and other Environmental Impacts (TRACI)                         • GREENGUARD / California 1350      -
 • Minnesota Public Utilities Commission Cleaner Fuels Spec      • VOC
 • EcoSmart CO2 Reductions for Concrete & Cement                 • FTC Environmental Marketing Guides
 • ISO 14001 Environmental Management System                     •·Stockholm Treaty Chemical Ban
 Environmental Policy & Publicly Available Targets               • Cleaner & Greener Certification

                                                                 ·
                                                              Smart Solutions for Sustainable Business
Copyright 2008
Standards serve different audiences, purposes and intent



                                           • Trade Associations
                                           • Business
                                           • Non-Profits
                                           • Governments
                                           • Consumers
                                           • Environmental Groups
                                           • Universities

                                           .


                                 Smart Solutions for Sustainable Business
Copyright 2008
For Example:

                           Standards developed or adopted
                           by Trade Associations serve their
                           members.


                           .




                 Smart Solutions for Sustainable Business
Copyright 2008
For Example:

                           Standards developed or adopted
                           by Trade Associations serve their
                           members.

                           Consensus-based standards, are
                           formed using ANSI guidelines for
                           balanced development . They
                           include input from all groups in a
                           broad base of public opinion.
                           .

                               SMaRT is a Consensus-based
                               Sustainable Standard



                 Smart Solutions for Sustainable Business
Copyright 2008
The SMaRT Sustainable Standard covers 24 Criteria

         #1. Pollution Reduction Minimums                   .
                 (to reverse Global Warming and reduce waste streams )

         #2. Reporting and Labeling Requirements
                 (using a common language to report the facts.)

         #3. Certification Process
                 (ensuring that the process is democratic and open)




                                                 Smart Solutions for Sustainable Business
Copyright 2008
SMaRT Sustainable Standard Criteria


   Pollution Reduction Minimums
                                                       .
   1. Sustainable: to the triple bottom line / covers environment, economy
      and social equity
   2. Climate Change Pollution Reductions
   3. Encourages No or De Minimus Toxins including endocrine disruptors
   4. Prerequisite: ISO Compliant Life Cycle Assessment (LCA)
   5. Rewards Product Reuse/ Reclamation consistent with FTC requirements
   6. Requires the Elimination Stockholm Treaty Toxic Chemicals (13 highly toxic
      chemicals banned by International Treaty)
   7. Rewards Product Performance Durability.




                                             Smart Solutions for Sustainable Business
Copyright 2008
SMaRT Sustainable Standard Criteria


   Reporting and Labeling Requirements
                                                    .
    8. Meets Federal Trade Commission (FTC) environmental marketing requirements
    9. ISO 14020 environmental label principals
   10. Meets ISO 14024 environmental label principles
   11. Meets ISO 14021 environmental label principles
   12. Meets EPA requirements for EPP products certifiers




                                          Smart Solutions for Sustainable Business
Copyright 2008
SMaRT Sustainable Standard Criteria


   Certification Process
   13.   Consensus: ANSI approved process
   14.   Transparent
   15.   Independent certification
   16.   Third Party Global Auditing: manufacturer & supply chain
   17.   Decertification for noncompliance
   18.   Rules preventing industry trade association dominance
   19.   Approved standard
   20.   Performance Based: tangible impact measures
   21.   Reasonable costs associated with the use and implementation
   22.   Accessibility
   23.   Requires continuous improvement
   24.   Multiple levels of compliance / certification




                                             Smart Solutions for Sustainable Business
Copyright 2008
Who has adopted SMaRT?


Capital Markets                                                 AIA 2015 Imperative to stop irreversible
MTS Completed Sustainable Mortgage Backed                       dangerous climate change. SMaRT was
Securities Standards Requirements2.0 specifying how             adopted.
LEED, ENERGY STAR and Climate Neutral Certified
Buildings can be aggregated into MBS Pools now with
sufficient buildings to meet diversification and quantity
needs for MBS pools. Sustainable MBS is expected to
add an estimated $1 trillion/year to the global economy         Sustainable Furniture Council (SFC)
after five years.                                               SMART Sustainable Product Standards are
                                                                adopted and incorporated into the SFC 2008
                                                                Standard on the Platinum or highest level of
                                                                achievement.

                                                                SFC’s and MTS’ customer education programs
U.S. Green Building Council                                     are being delivered by manufacturer sales
SMaRT Certified Sustainable Products have been                  professionals:
approved for an Innovation Credit which contributes to
the overall accumulation of LEED points. LEED projects
are in progress in 41 countries.




                                                            Smart Solutions for Sustainable Business
Copyright 2008
Who has adopted SMaRT?
                                                National Education Partnership
                                                MTS, , USGBC, SFC, US Department of Commerce, Big Green
                                                Purse and other market leaders have formed a partnership to
                                                commercialize Certified Sustainable Products.



  Fireman’s Fund
  They are using SMaRT for its underwriting
  criteria.




  Big Green Purse.com
  Consumer Engagement Campaign. Big
  Green Purse will champion to the social
  media world, any company and product
  that becomes Certified Sustainable in 2008.
  A growing list of individual women and
  women bloggers are joining in the effort.




                                                   Smart Solutions for Sustainable Business
Copyright 2008
First Steps?

 1. Begin educating yourself and incorporating the spirit for “Sustainable Change”
    throughout your company. Subscribe to www.sustainableproductsblog.com.
                                                          .
 2. Furniture manufacturers may want to also be part of the Sustainable Furniture
    Council. Go to www.sustainablefurniture.org for more information.

 3. If your products are part of building construction or interior design, join the USGBC
    and learn about LEED. www.usgbc.org

 4. For an inside view of what a Corporate Sustainability Report looks like, download
    Forbo’s Story at: www.sustainableproductsblog.com.




                                               Smart Solutions for Sustainable Business
Copyright 2008
.


                      Thank you, for helping to reverse
                 Global Warming & Waste Stream Pollution
                   while Building a Sustainable Economy.

                           The members of MTS




                                     Smart Solutions for Sustainable Business
Copyright 2008
.
                   Market Transformation to Sustainability
                   1511 Wisconsin Avenue, NW
                   Washington, DC 20007

                   P: 202-338-3131
                   F: 202-338-2800
                   E: info@sustainableproducts.com
                   B: http://www.sustainableproductsblog.com
                   W:http://mts.sustainableproducts.com

                   Accelerating the Global Market
                   Transformation to Sustainability

                   Obtain LEED credit for
                   Certified Sustainable Products:
                   http://mts.sustainableproducts.com/SMART/LEED




                 Smart Solutions for Sustainable Business
Copyright 2008

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S Ma Rt Sustainable Standards 101 2 15 08

  • 1. SMaRT Sustainable Standard 101 Sustainable Materials Rating Technology Con Consensus Standard – Global Third Party Audits – Life Cycle Assessment Smart Solutions for Sustainable Business Copyright 2008
  • 2. SMaRT Sustainable Standard from What is it? to Let’s Become Sustainable! 1. Why now? What’s driving the market to Sustainable Standards? 2. Laws vs. Standards ANSI American National Standards Institute 3. The Standard Field Single Attribute, Single Industry and Multi-Industry/Comprehensive 4. The Criteria Pollution, Labeling, Certification Process 5. The Adoption Key industries, Financial Institutions, Consumers Smart Solutions for Sustainable Business Copyright 2008
  • 3. Why Now? What’s Driving the move from Green to Sustainable to Prove it? •Climate Change •Pollution Change •Economic Change Smart Solutions for Sustainable Business Copyright 2008
  • 4. Climate Change is the #1 reason Sustainability Thinking has gone from an interesting concept to a massive market movement. Not everyone believes that Climate Change is “man-made” and therefore we can do something about it, but they can’t argue that it’s now a serious market trend. If you’re a business person ,or someone with a retirement plans tied to mutual funds and corporate growth, Climate Change issues will have a dramatic impact on your bottom line. Education is the best defense for both companies and individuals. Smart Solutions for Sustainable Business Copyright 2008
  • 5. Pollution Change Let’s say that Climate Change isn’t man-made. We’re still stuck with consumption pollution. Our water streams might be drying up, but our waste streams are getting bigger. Sustainable Standards not only work to reduce CO2 emissions, they also monitor the entire Life Cycle Assessment of a product and quantify its impact from across its supply chain. That means cleaning up the water, soil, air and atmosphere at the same time. It also has built in social equity (human rights) rules. Smart Solutions for Sustainable Business Copyright 2008
  • 6. Economic Change “Climate change is the mother of all sustainability issues and will have an impact on every economic sector, whether from new regulations, physical impacts or growing demand for climate-friendly technologies. Thus, climate risk is embedded in every business and investment portfolio, which is why more Wall Street analysts are beginning to factor corporate response to climate risk into their evaluations of the companies they cover. Mindy Luber, President of Ceres representing $4 trillion in investments. Smart Solutions for Sustainable Business Copyright 2008
  • 7. Laws vs. Standards Laws come from governments. They take years to get passed and then their effectiveness stops with each government’s territory. Legislation is initiated in a response to systems that are out of control and that need a court order before they will improve. Laws run the free world. Sustainable Standards come from along-side industry. They are Make it generated to create a common playing field for excellence and Good and Sustainable prevent things from going wrong, so that legislation isn’t needed. Their effectiveness can be global as they follow the product or service and not the country. Sometimes the government initiates a standard, but more often it comes from outside the government Standards run the free-market world. Smart Solutions for Sustainable Business Copyright 2008
  • 8. Who’s ANSI? The American National Standards Institute is voluntary guidelines for voluntary standard development. “To help ensure such openness and transparency, ANSI procedures require a public review and comment period for American National Standards activities, changes to ANSI’s own procedural documents, and for any procedures submitted for accreditation or reaccreditation by a standards developer or U.S. Technical Advisory Group (TAG) to ISO.” Because the ANSI guidelines for creating a standard are open for pubic review, governments are comfortable to adopt standards that have been through this process. Smart Solutions for Sustainable Business Copyright 2008
  • 9. SMaRT Sustainable Standard Steps Critical information is gathered from an LCA (Life Cycle Assessment) to satisfy the SMaRT Standard prerequisites. LCAs are done via an in-house group or outside consulting team and then verified through a third party auditor. Global Auditors verify the facts and check the supply chain even if it’s in China. Above: Minnesota DfE toolkit Smart Solutions for Sustainable Business Copyright 2008
  • 10. Standards can cover… Single Attributes (Packaging…) Single Industries (Wood…) Multiple Industries and Products (A comprehensive standard covers everything except cars and planes.) SMaRT is a Comprehensive Sustainable Standard. Smart Solutions for Sustainable Business Copyright 2008
  • 11. SMaRT incorporates all of these to create one Comprehensive Sustainable Standard. = SMaRT • State of Minnesota DfE Toolkit • EPA Closed Loop Process Regulation • FSC Certified Wood • EPA Lifecycle Design • LEED • EPA/Purdue University Best Management Practices • Green-e Power • EPA Environmentally Preferable Product Guidance • Certified Organic • EPA Toxic Release Inventory • GRI Social Equity Indicators • EPA Tool for the Reduction and Assessment of Chemical • ISO 14025 LCA and other Environmental Impacts (TRACI) • GREENGUARD / California 1350 - • Minnesota Public Utilities Commission Cleaner Fuels Spec • VOC • EcoSmart CO2 Reductions for Concrete & Cement • FTC Environmental Marketing Guides • ISO 14001 Environmental Management System •·Stockholm Treaty Chemical Ban Environmental Policy & Publicly Available Targets • Cleaner & Greener Certification · Smart Solutions for Sustainable Business Copyright 2008
  • 12. Standards serve different audiences, purposes and intent • Trade Associations • Business • Non-Profits • Governments • Consumers • Environmental Groups • Universities . Smart Solutions for Sustainable Business Copyright 2008
  • 13. For Example: Standards developed or adopted by Trade Associations serve their members. . Smart Solutions for Sustainable Business Copyright 2008
  • 14. For Example: Standards developed or adopted by Trade Associations serve their members. Consensus-based standards, are formed using ANSI guidelines for balanced development . They include input from all groups in a broad base of public opinion. . SMaRT is a Consensus-based Sustainable Standard Smart Solutions for Sustainable Business Copyright 2008
  • 15. The SMaRT Sustainable Standard covers 24 Criteria #1. Pollution Reduction Minimums . (to reverse Global Warming and reduce waste streams ) #2. Reporting and Labeling Requirements (using a common language to report the facts.) #3. Certification Process (ensuring that the process is democratic and open) Smart Solutions for Sustainable Business Copyright 2008
  • 16. SMaRT Sustainable Standard Criteria Pollution Reduction Minimums . 1. Sustainable: to the triple bottom line / covers environment, economy and social equity 2. Climate Change Pollution Reductions 3. Encourages No or De Minimus Toxins including endocrine disruptors 4. Prerequisite: ISO Compliant Life Cycle Assessment (LCA) 5. Rewards Product Reuse/ Reclamation consistent with FTC requirements 6. Requires the Elimination Stockholm Treaty Toxic Chemicals (13 highly toxic chemicals banned by International Treaty) 7. Rewards Product Performance Durability. Smart Solutions for Sustainable Business Copyright 2008
  • 17. SMaRT Sustainable Standard Criteria Reporting and Labeling Requirements . 8. Meets Federal Trade Commission (FTC) environmental marketing requirements 9. ISO 14020 environmental label principals 10. Meets ISO 14024 environmental label principles 11. Meets ISO 14021 environmental label principles 12. Meets EPA requirements for EPP products certifiers Smart Solutions for Sustainable Business Copyright 2008
  • 18. SMaRT Sustainable Standard Criteria Certification Process 13. Consensus: ANSI approved process 14. Transparent 15. Independent certification 16. Third Party Global Auditing: manufacturer & supply chain 17. Decertification for noncompliance 18. Rules preventing industry trade association dominance 19. Approved standard 20. Performance Based: tangible impact measures 21. Reasonable costs associated with the use and implementation 22. Accessibility 23. Requires continuous improvement 24. Multiple levels of compliance / certification Smart Solutions for Sustainable Business Copyright 2008
  • 19. Who has adopted SMaRT? Capital Markets AIA 2015 Imperative to stop irreversible MTS Completed Sustainable Mortgage Backed dangerous climate change. SMaRT was Securities Standards Requirements2.0 specifying how adopted. LEED, ENERGY STAR and Climate Neutral Certified Buildings can be aggregated into MBS Pools now with sufficient buildings to meet diversification and quantity needs for MBS pools. Sustainable MBS is expected to add an estimated $1 trillion/year to the global economy Sustainable Furniture Council (SFC) after five years. SMART Sustainable Product Standards are adopted and incorporated into the SFC 2008 Standard on the Platinum or highest level of achievement. SFC’s and MTS’ customer education programs U.S. Green Building Council are being delivered by manufacturer sales SMaRT Certified Sustainable Products have been professionals: approved for an Innovation Credit which contributes to the overall accumulation of LEED points. LEED projects are in progress in 41 countries. Smart Solutions for Sustainable Business Copyright 2008
  • 20. Who has adopted SMaRT? National Education Partnership MTS, , USGBC, SFC, US Department of Commerce, Big Green Purse and other market leaders have formed a partnership to commercialize Certified Sustainable Products. Fireman’s Fund They are using SMaRT for its underwriting criteria. Big Green Purse.com Consumer Engagement Campaign. Big Green Purse will champion to the social media world, any company and product that becomes Certified Sustainable in 2008. A growing list of individual women and women bloggers are joining in the effort. Smart Solutions for Sustainable Business Copyright 2008
  • 21. First Steps? 1. Begin educating yourself and incorporating the spirit for “Sustainable Change” throughout your company. Subscribe to www.sustainableproductsblog.com. . 2. Furniture manufacturers may want to also be part of the Sustainable Furniture Council. Go to www.sustainablefurniture.org for more information. 3. If your products are part of building construction or interior design, join the USGBC and learn about LEED. www.usgbc.org 4. For an inside view of what a Corporate Sustainability Report looks like, download Forbo’s Story at: www.sustainableproductsblog.com. Smart Solutions for Sustainable Business Copyright 2008
  • 22. . Thank you, for helping to reverse Global Warming & Waste Stream Pollution while Building a Sustainable Economy. The members of MTS Smart Solutions for Sustainable Business Copyright 2008
  • 23. . Market Transformation to Sustainability 1511 Wisconsin Avenue, NW Washington, DC 20007 P: 202-338-3131 F: 202-338-2800 E: info@sustainableproducts.com B: http://www.sustainableproductsblog.com W:http://mts.sustainableproducts.com Accelerating the Global Market Transformation to Sustainability Obtain LEED credit for Certified Sustainable Products: http://mts.sustainableproducts.com/SMART/LEED Smart Solutions for Sustainable Business Copyright 2008