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    Our vision for sustainable transport
         at InterfaceFLOR Europe
2                                                                                                                                                                                        3


    Just the facts our vision for sustainable transport at InterfaceFLOR Europe


                                                                                  InterfaceFLOR’s seven
                                                                                  fronts of sustainability




                                                                                  1. Eliminate waste                4. Closing the loop                6. Sensitising stakeholders
                                                                                  Eliminating the concept of        Redesigning processes and          Creating a community within
                                                                                  waste, not just incrementally     products so that all resources     and around InterfaceFLOR that
                                                                                  reducing it.                      used can be recovered and          understands the functioning
                                                                                                                    reused, closing the technical or   of natural systems and our
                                                                                  2. Benign emissions               natural loop.                      impact on them.
                                                                                  Focusing on the elimination of
                                                                                  molecular waste emissions.        5. Resource-efficient              7. Redesign commerce
                                                                                  Eliminating waste streams that    transportation                     Redesigning commerce
                                                                                  have negative or toxic effects    Transporting all of our people     to focus on the delivery of
                                                                                  on natural systems.               and products efficiently and       service and value instead of
                                                                                                                    with minimal waste and             material. Encouraging external
                                                                                  3. Renewable energy               emissions. This includes           organisations to create
                                                                                  Reducing our energy demands       plant location, logistics and      policies and market incentives.
                                                                                  while substituting non-           commuting.
                                                                                  renewable sources with
                                                                                  renewable ones like solar, wind
                                                                                  and landfill gas.
4                                                                                                                      5


    Just the facts our vision for sustainable transport at InterfaceFLOR Europe


    Transport at
    InterfaceFLOR Europe




    Our transport can be divided                                                  InterfaceFLOR has three
    into two main categories:                                                     factories in Europe and
    international transport and                                                   national distribution centres
    national distribution.                                                        in all our major markets.

    International transport                                                       • Craigavon, Northern Ireland

    • Inter-company transport of                                                  • Shelf, England
      semi-finished products from                                                 • Scherpenzeel, the Netherlands
      factory to factory.
                                                                                  London and Paris are our
    • Line-haul transport of                                                      two largest city markets and
      finished carpet tiles                                                       account for the most significant
      from factory to national                                                    proportion of our transport
      distribution centres.                                                       impact due to the high volume of
                                                                                  distribution. Peripheral regions
    National distribution                                                         such as Spain or Scandinavia
                                                                                  also have a relatively high impact
    • Transport of products from
                                                                                  on international transport due to
      national distribution centres
                                                                                  the relatively long distances from
      to our customers
                                                                                  our factories.
6                                                                                                                          7


    Just the facts our vision for sustainable transport at InterfaceFLOR Europe


    Understanding our
    transport impacts




                                                                                  We conducted a study in 2008 to
                                                                                  establish an accurate baseline
                                                                                  for our current performance and
                                                                                  quantify opportunities to reduce our
                                                                                  transport impacts. The main aim was
                                                                                  to develop a tool to measure and
                                                                                  monitor transport emissions.
                                                                                  Monitoring our impacts gives us
                                                                                  a better understanding of the
                                                                                  factors that influence our transport
                                                                                  emissions levels and enables us to
                                                                                  work with our logistics partners to
                                                                                  identify areas where we can improve
                                                                                  our performance.
                                                                                  To calculate the environmental
                                                                                  impact of our distribution we
                                                                                  collected data on the amount of
                                                                                  goods transported, the total distance
                                                                                  travelled by our goods and the
                                                                                  environmental performance of each
                                                                                  mode of transport. We collected
                                                                                  data internally and from our logistics
                                                                                  partners to calculate transport
                                                                                  impacts per m² of carpet delivered.

                                                                                  Our current performance is 0.3
                                                                                  kg CO2/m² of carpet delivered.
8                                                                                                                                               9


    Just the facts our vision for sustainable transport at InterfaceFLOR Europe


    How to reduce our
    transport impacts




    Following a review of our                                                                                 In the Netherlands, where
    entire distribution network,                                                                              we have switched from
    we have identified several                                                                                dedicated to grouped
    areas where we can reduce                                                                                 delivery, the fill rate of our
    our transport impacts:                                                                                    trucks have increased
                                                                                                              from 38% towards 60%.
    1. Manufacturing regionally       demand is growing, we are           Sharing transport space with        Our international line-haul
                                      developing local manufacturing      goods for other companies           transport uses Groupage, a
    Cutting the distance that our
                                      facilities. For example, new        rather than sending dedicated       service that enables us to
    products have to travel is one
                                      factories were recently             trucks or containers for our        share space with other goods
    of the most effective methods
                                      completed in China and Uruguay.     products can significantly          for international shipping
    of reducing our transport
                                                                          increase efficiency, particularly   from our factories to national
    impacts.                          2. Improving load factors           for national distribution where     distribution hubs.
    In Europe over 99% of             Empty and underutilised             freight capacity is typically
                                                                          used less efficiently. This also    Load factors are one of
    the products sold are             vehicles dramatically reduce
                                                                                                              the criteria in the annual
    manufactured in Europe.           transport efficiency. A 2009        helps to avoid trucks delivering
                                                                          our products coming back            questionnaire sent to all our
                                      report by the World Economic
    In addition, the majority of                                          empty.                              logistics partners, and we
                                      Forum found that 24% of
    our raw materials by weight                                                                               welcome ideas on how to
                                      freight vehicles in the EU run
    are sourced from suppliers                                                                                improve these.
                                      empty. The research also
    close to our factories. This
                                      found that the rest run with an                                         We are also looking for ways to
    is especially important for
                                      average load of only 57% of                                             pack more products per truck.
    heavier raw materials such as
                                      capacity (load factor), giving an                                       This is challenging because
    limestone.
                                      overall efficiency of just 43%.                                         our products are heavy and
    Our commitment to regional        The report estimates that this                                          their size means the pallets
    manufacturing is not limited      inefficiency costs the 27 EU                                            we use are not the standard
    to Europe. As we expand into      countries 22 billion a year –                                           dimensions (1,06m x 1,06m).
    emerging markets, where           1.2% of GDP.
10                                                                                                                                                                                                                     11


     Just the facts our vision for sustainable transport at InterfaceFLOR Europe


     How to reduce our
     transport impacts




                                                                            Now, orders heavier than                                             potential reductions in CO2 and    Once vehicle efficiency
                                                                            three tonnes (around three                                           NOX emissions which affect         is optimised, the
                                                                            pallets) are transported                                             climate change, as well as         biggest opportunities for
       Scherpenzeel, Netherlands                                            directly to the customer                                             particulates which contribute to   InterfaceFLOR are the use of
                                                                            from our factory in                                                  local air pollution.               second generation biofuels
            Lille, France                                                   Scherpenzeel,                                                                                           and hybrid or electric vehicles.
                                                                                                                                                 ‘Megatrucks’ can improve
                                                                            the Netherlands.                                                                                        These are areas where we
                                                                                                                                                 the efficiency of transport by
                                                                                                                                                                                    expect our logistics partners
         Paris, France                                                      There will still be some                                             moving more goods per trip,
                                                                                                                                                                                    to innovate to cut impacts
                                                                            detouring for small orders (for                                      reducing the overall number
                                                                                                                                                                                    dramatically. We look forward
                                                                            example, from Scherpenzeel to                                        of trips needed. However,
                                                                                                                                                                                    to new ideas and projects
                                                                            Paris and back to a customer                                         they are not accepted in
                                                                                                              4. Using cleaner fuels and                                            to improve efficiency and
                                                                            in Lille or Strasbourg), but a                                       all European countries
                                                Optimised delivery route
                                                                                                              more efficient vehicles                                               emissions of vehicles. For
                                                                            balance needs to be made in                                          and weight restrictions on
                                                Delivery route                                                                                                                      example, we are exploring
                                                                            order to avoid small orders       Cleaner, more efficient and        individual vehicles make the
                                                                                                                                                                                    options with our transport
                                                                            travelling long distances on      alternative vehicles are the       use of megatrucks difficult for
     3. Optimising delivery routes                                                                                                                                                  company in the UK to test
                                                                            potentially empty trucks.         most effective way to reduce       InterfaceFLOR because our
                                                                                                                                                                                    trucks that run on bioethanol.
     Our products do not travel in a     We are working to cut the                                            our transportation impacts.        carpet tiles are heavy.
                                                                            Since 2009, deliveries                                                                                  We are also in discussion with
     straight line from our factories    amount of de-touring in our                                          Improved vehicle efficiency,                                          our logistics partners to invest
     to our customers. Their journey     distribution network. In France,   of over 1.5 tonnes also                                              Manufacturers are continually
                                                                                                              alternative vehicles and the       improving the efficiency           in hybrid delivery vehicles in
     is determined by transport          for example, all our goods         dispatched directly from          use of biofuels will bring the     of regular trucks and              Paris and London in the future.
     networks and the location of        used to go via our hub in          Scherpenzeel to customers         biggest reductions in CO2
     national distribution hubs. The     Paris because the Paris area       in Germany and Austria                                               improvements in aerodynamics
                                                                                                              emissions, according to the        and rolling resistance are
     amount our routes deviate from      accounts for around half our                                         European Commission.
                                                                            In our other major markets,                                          expected to make new vehicles
     a straight line is called           sales in the country. However,     such as the UK and Spain,                                            30% more efficient by 2020.
     ‘de-touring’. Reducing de-touring   this often added unnecessary                                         The table on page 14 shows
                                                                            we are looking for similar                                           But there are limits to what can
     can cut environmental impacts       mileage.                                                             the potential savings that could
                                                                            opportunities to reduce                                              be achieved through efficiency
     of transport, especially for                                                                             be achieved by implementing
                                                                            detouring and encourage our                                          gains while still using fossil
     larger orders.                                                                                           a range of new technologies
                                                                            logistics partners to help us                                        fuels.
                                                                                                              or fuels in trucks. It shows the
                                                                            meet our goals.
12                                                                                                                                                                                                                                                                      13


     Just the facts our vision for sustainable transport at InterfaceFLOR Europe


     How to reduce our
     transport impacts




     Measures to reduce the environmental footprint of truck transport                                                             fuels. The key to achieving these
                                                                                                                                                                        Key                                 EtOH: Sugar cane (Brazil)
                                                                                                                                   targets lies in what are known
     Material                                       Effect on carbon dioxide   Effect on nitrous oxide   Effects on particulates                                        Conventtional gasoline              EtOH: Wheat straw
                                                    (CO2) emissions            (NOX)                     (PM10)                    as ‘second generation’ biofuels      Conventional diesel                 EtOH: Wheat, NG GT+ CHP, DDGS as AF
                                                                                                                                   as they require less chemical        Syn-diesel: Farmed wood             RME: Gly as chemicals
                                                                                                                                   and energy input and typically       Syn-diesel: Waste wood, Black lquor DME: Waste wood, Black liquor
     1   Natural gas                                -3% to -10%                -80%                      -40%
                                                                                                                                   produce more fuel per unit of
     2
                                                                                                                                   agricultural land used. These     Fuels 2010 (source EUCAR/CONCAWE/JRC
         Replacement of Euro 1-3 by Euro 5          -                          -65% to -70%              -80% to -95%
                                                                                                                                   are produced from cellulosic
     3
                                                                                                                                   materials (such as straw or plant
         Retrofit particulate filters on Euro 2/3   +1.5%                      -                         -20% to -40%
                                                                                                                                   waste) rather than the starchy      180
     4   Megatrucks/ Ecocombi                       -22%                       -25%                      -25%
                                                                                                                                   part of plants which could
                                                                                                                                   compete with food crops.            160
     5   Hybride drive                              -15% to -40%               Locally - 100%            Locally - 100%
                                                                               Overall 0%                Overall 0%                InterfaceFLOR supports the




                                                                                                                                                                         WTW GHG emissions 9g CO2eq / km)
                                                                                                                                                                                                            140
                                                                                                                                   use of second generation
     6   Electric drive (for distribution)          -3% to -10%                Locally - 100%            Locally - 100%
                                                                               Overall -70% to -90%      Overall -90% to -95%      biofuels such as:
                                                                                                                                                                                                            120
     7   Biofuels                                   +10% to -140%              -                         -                         • Biomass to Liquid (BtL)
                                                                                                                                   • Cellulosic ethanol                                                     100
                                                                                                                                   • BioDME/Methanol
     The use of hybrid vehicles                     For the same reason, electric             The EU road transport sector         • BioSynthetic Natural Gas                                               080
     reduces the amount of diesel                   vehicles can significantly reduce         accounts for more than 30% of          (BioSNG)
     used by running off a battery                  local air pollution. However, their       the total energy consumption         • Bio-oil/Bio-crude                                                      060
     which is recharged using energy                potential to cut carbon emissions         in Europe. It is currently 98%       • Algal biofuels
     lost in braking. When running                  depends on the source of the              dependent on fossil fuels and        • Hydrocarbons from catalysis                                            040
     in electric mode, there are also               grid electricity used to charge           the EU has set a target for 25%        of plant sugars
     no particulate emissions. This                 them. Based on the average                of transport fuel needs to be        • Biohydrogen
     reduces local air pollution,                   carbon intensity of EU electricity        met by biofuels by 2030.                                                                                      020
                                                                                                                                   • Bioelectricity/CHP
     especially important in                        production, electric vehicles can                                              • Biobutanol
                                                                                              Biofuels are a renewable
     populated areas.                               achieve savings of about 40%                                                                                                                                  0   100     200        300         400    500   600
                                                                                              energy source and a lower-
                                                    compared with fossil fuels.                                                                                                                                             Total WTW energy (MU / 100km)
                                                                                              carbon alternative to fossil
14                                                                                                                                                                                                                             15


     Just the facts our vision for sustainable transport at InterfaceFLOR Europe


     How to reduce our
     transport impacts




     CO2 (g/tonne-km); containers/non-bulk; short distance; 2010

        160
        140
        120
        100
        080
        060
        040
        020
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     CO2 (g/tonne-km); containers/non-bulk; long distance; 2010                          5. Shifting to lower carbon      We have already made a          transported to the port at       transport to several countries
                                                                                         transport (multimodal)           number of changes to the way    Rotterdam by road.               in Eastern Europe. We are
        160                                                                                                               we transport goods.                                              also looking into the possibility
                                                                                         Shifting loads from trucks to                                    By transferring goods to a
        140                                                                                                                                                                                of using ships from the port
        120                                                                              other modes of transport –       In Italy, for example, we       barge for part of this journey   of Rotterdam to places such
        100                                                                              such as trains, inland barges    have transferred 98% of our     (between Rotterdam and           as Bilbao in Spain or Saint
        080                                                                              and short sea shipping – for     shipments from road to rail,    Utrecht), we have cut CO2        Petersburg in Russia.
        060                                                                              part of the journey can reduce   reducing CO2 emissions          emissions by 39%
        040                                                                              CO2 emissions. The EU goal       associated with the                                              Our goal is for 10% of our
        020                                                                              is for 30% of road freight                                       We are looking for more          products (by volume) to be
                                                                                                                          journey from Scherpenzeel       opportunities to reduce
                                                                                         travelling over 300 km should                                                                     distributed using multimodal
                                                                                                                          to Italy by 69%.                road mileage by shifting to
                                                                                         shift to other modes such as
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                                                                                                                                                                                           transport by 2015.
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                                                                                                                                                          multimodal transport. We are
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                                                                                                                                                          investigating opportunities
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                                                                                         by 2030.                         from our site at Scherpenzeel
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     Note: Short distance transport applies to trips of around 150 km                                                     have traditionally been         to use rail for international
16                                                                                                                                          17


     Just the facts our vision for sustainable transport at InterfaceFLOR Europe


     How to reduce our
     transport impacts




                                                                                                           there is not demand for green
                                                                                                           solutions by bigger companies.
                                                                                                           Influencing other companies is
                                                                                                           a key part of our Mission Zero
                                                                                                           and our transport strategy.
                                                                                                           We are working with other
                                                                                                           multinationals to develop and
                                                                                                           share ideas on sustainable
                                                                                                           transport as well as creating
                                                                                                           market demand through
                                                                                                           the Duurzame Logistiek
                                                                                                           (Sustainable Logistics)
                                                                                                           programme, which supports
                                                                                                           250 leading companies
                                                                                                           in the field of sustainable
     6. Promoting regular               7. Understanding the              will allow us to make better     transportation of goods.
     training for drivers               impacts of every m2 of            and faster decisions on          Its aim is to increase the
                                        our products                      our transport to optimise        profitability of companies and
     Training truck drivers in
                                                                          efficiency. This will help       simultaneously reduce CO2
     fuel efficient driving can         Introducing the Eyefreight
                                                                          us monitor and reduce            emissions by more than 20%
     cut emissions by up to 5%.         system will allow us to track,
                                                                          environmental impacts.           by 2012.
     We encourage our logistics         among other things, the
     partners to provide such           environmental footprint of        8. Collaboration with            More information on how
     training for their drivers. This   each individual delivery. The     other companies                  InterfaceFLOR is working with
     is one of the criteria in our      system will act as a portal
                                                                          Our impact on transport is       other companies to reduce
     supplier questionnaire and         for our European distribution
                                                                          very small in comparison with    the impact of our product
     most of our partners already       and will track order intake,
                                                                          other multinational companies.   transportation is available at
     train their drivers regularly.     service level, freight costs
                                                                          We cannot achieve our vision     www.duurzamelogistiek.nl.
     We will continue to raise          and environmental footprint.
     awareness on this.                 This granularity of information   for sustainable transport if
18                                                                                                                                                                                           19


     Just the facts our vision for sustainable transport at InterfaceFLOR Europe


     Our goals for
     sustainable transport




     These are the targets set up by the preliminary transport vision of the European Union.                           By 2015, our vision for            Our goals do not stop at
                                                                                                                       InterfaceFLOR in Europe            2015. The table outlines the
           Influence factors                    Target for                                         Sensitivity         is this:                           vision of the European Union
                                                                                                                                                          on transport for 2020, 2035
                                                2020              2035           2050              GHG           FFS   • Efficiency is down from
                                                                                                                                                          and 2050. We seek to be
                                                                                                                         an average of 0.3kg CO2 /m2
      1    Stabilizing the increase of tkm      Max. +30%         Max. +43%      Max. +44%         N/A           N/A
                                                                                                                                                          well ahead these targets,
                                                                                                                         of carpet delivered to
                                                                                                                                                          and demonstrate to other
                                                                                                                         0.2kg CO2 /m2
      2    Decreasing vehicle energy            -20%              -40%           -50%              88%           -                                        companies that it is feasible to
           demand
                                                                                                                       • 10% of our total volume is       reduce environmental impacts
      3    Reducing carbon emissions in         -37.5%            -61%           -88%              55%           22%     intermodal                       from transport significantly.
           electricity production
      4    Electric engines in road transport   0%                10%            25%               41%           5%    • 90% of vehicles used in our      To achieve our vision on
                                                                                                                         transport is in top Euro Class   sustainable transport, we
      5a   Increase share biofuels              8%                24%            33%               38%           30%     for tailpipe emissions           need the support of all our
                                                                                                                                                          stakeholders. We encourage
      5b   Biofuels upstream emissions          -35%              -83%           -83%                                  • 85% of our transport             our logistics partners to
                                                                                                                         suppliers are ISO 14001          develop more sustainable
      6    Increased efficiency in usage        +8%               +30%           +50%              25%           -       certified                        transport solutions and we
           of veh
                                                                                                                                                          are continuing to work with
      7                                                                                                                • All forwarders regularly train
           Improved engine efficiency           +21%              +40%           +45%              21%           2%                                       industry and other companies
                                                                                                                         their drivers on efficient
                                                                                                                                                          to help drive change within
      8    Higher modal share of                Road     75%      Road    70%    Road        65%   7%            -       driving
           rail ad IWW
                                                                                                                                                          the sector.
                                                Rail     19%      Rail   22.5%   Rail        25%



                                                IWW          6%   IWW     7.5%   IWW         10%


      9    Increased share of electrical rail   66%               75%            80%               3%            -

      10   Usage of larger trucks               2%                8%             10%               2%            -
20                                                                                                                                                                                                              21


     Just the facts our vision for sustainable transport at InterfaceFLOR Europe


     How does Mission Zero affect our
     relationship with transport companies?
     Q&A with David Kers, European
     Distribution Manager


                                                                          As a transport company,           How do you ensure the             How would you like to           What would be your
                                                                          how can I do business for         economic sustainability of        manage your suppliers?          perfect supplier?
                                                                          InterfaceFLOR?                    your transport suppliers?         The relation with our           The perfect supplier would be
                                                                          We select logistics service       Being financially healthy in      logistics service providers     the supplier that will help us
                                                                          providers who can help            terms of profit and cash flow     is based on a performance       in realising our Mission Zero.
                                                                          us in our quest to launch         is important for a logistics      partnership, where we focus     Besides focusing on Service
                                                                          a sustainable European            service provider, to become       on continuous improvement       and Quality, this supplier
                                                                          distribution organisation and     and stay a sustainable            projects. We challenge our      will have a strong focus on
                                                                          eliminate any negative impact     company. In close cooperation     logistics service providers     innovation (technological and
                                                                          our distribution activities may   with our logistics partners we    to do better every day. Our     social), can adapt to short
                                                                          have on the environment           want to change the European       transport management            and mid-long term changes
                                                                          by 2020, in order to reach        transportation market from a      system “Eyefreight” enables     in the market place and is
                                                                          Mission Zero.                     short term leverage market to     us to monitor our KPI’s on      demonstrating commitment
                                                                                                            a long term sustainable market    (Service) Performance, Profit   to become a sustainable
                                                                          Our European distribution         focusing on the 4 P’s. Market     and Planet. Annually targets    partner. Sustainability
                                                                          model is based on the 4           developments and financial        for KPI’s will be agreed and    should be a key element in
                                                                          P’s; Performance (service),       performance of our logistics      the progress on these KPI’s     their strategy. Our perfect
                                                                          Planet, People and Profit. We     service providers are reviewed    is reviewed in our quarterly    suppliers will be or become
                                                                          have developed a supplier         on a quarterly basis. Through     review meetings.                leaders in the sustainable
                                                                          assessment model in which         collaboration we focus on                                         European transportation
                                                                          our suppliers are assessed        eliminating supply chain costs.                                   market, implementing new
                                                                          on criteria linked to these 4                                                                       sustainable logistics concepts,
                                                                          P’s. Examples of these criteria                                                                     for example: multi modal
                                                                          are: Green Fleet composition,                                                                       transportation and trucks
                                                                          driver training programmes,                                                                         using alternative fuels.
                                                                          experience with alternative
                                                                          fuels, profitability etc.
22




     If you want to know more,
     please go to
     www.interfaceflor.eu/transport

     For more information about
     our products please visit
     www.interfaceflor .eu

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Just the facts transport oct 2011

  • 1. 1 Our vision for sustainable transport at InterfaceFLOR Europe
  • 2. 2 3 Just the facts our vision for sustainable transport at InterfaceFLOR Europe InterfaceFLOR’s seven fronts of sustainability 1. Eliminate waste 4. Closing the loop 6. Sensitising stakeholders Eliminating the concept of Redesigning processes and Creating a community within waste, not just incrementally products so that all resources and around InterfaceFLOR that reducing it. used can be recovered and understands the functioning reused, closing the technical or of natural systems and our 2. Benign emissions natural loop. impact on them. Focusing on the elimination of molecular waste emissions. 5. Resource-efficient 7. Redesign commerce Eliminating waste streams that transportation Redesigning commerce have negative or toxic effects Transporting all of our people to focus on the delivery of on natural systems. and products efficiently and service and value instead of with minimal waste and material. Encouraging external 3. Renewable energy emissions. This includes organisations to create Reducing our energy demands plant location, logistics and policies and market incentives. while substituting non- commuting. renewable sources with renewable ones like solar, wind and landfill gas.
  • 3. 4 5 Just the facts our vision for sustainable transport at InterfaceFLOR Europe Transport at InterfaceFLOR Europe Our transport can be divided InterfaceFLOR has three into two main categories: factories in Europe and international transport and national distribution centres national distribution. in all our major markets. International transport • Craigavon, Northern Ireland • Inter-company transport of • Shelf, England semi-finished products from • Scherpenzeel, the Netherlands factory to factory. London and Paris are our • Line-haul transport of two largest city markets and finished carpet tiles account for the most significant from factory to national proportion of our transport distribution centres. impact due to the high volume of distribution. Peripheral regions National distribution such as Spain or Scandinavia also have a relatively high impact • Transport of products from on international transport due to national distribution centres the relatively long distances from to our customers our factories.
  • 4. 6 7 Just the facts our vision for sustainable transport at InterfaceFLOR Europe Understanding our transport impacts We conducted a study in 2008 to establish an accurate baseline for our current performance and quantify opportunities to reduce our transport impacts. The main aim was to develop a tool to measure and monitor transport emissions. Monitoring our impacts gives us a better understanding of the factors that influence our transport emissions levels and enables us to work with our logistics partners to identify areas where we can improve our performance. To calculate the environmental impact of our distribution we collected data on the amount of goods transported, the total distance travelled by our goods and the environmental performance of each mode of transport. We collected data internally and from our logistics partners to calculate transport impacts per m² of carpet delivered. Our current performance is 0.3 kg CO2/m² of carpet delivered.
  • 5. 8 9 Just the facts our vision for sustainable transport at InterfaceFLOR Europe How to reduce our transport impacts Following a review of our In the Netherlands, where entire distribution network, we have switched from we have identified several dedicated to grouped areas where we can reduce delivery, the fill rate of our our transport impacts: trucks have increased from 38% towards 60%. 1. Manufacturing regionally demand is growing, we are Sharing transport space with Our international line-haul developing local manufacturing goods for other companies transport uses Groupage, a Cutting the distance that our facilities. For example, new rather than sending dedicated service that enables us to products have to travel is one factories were recently trucks or containers for our share space with other goods of the most effective methods completed in China and Uruguay. products can significantly for international shipping of reducing our transport increase efficiency, particularly from our factories to national impacts. 2. Improving load factors for national distribution where distribution hubs. In Europe over 99% of Empty and underutilised freight capacity is typically used less efficiently. This also Load factors are one of the products sold are vehicles dramatically reduce the criteria in the annual manufactured in Europe. transport efficiency. A 2009 helps to avoid trucks delivering our products coming back questionnaire sent to all our report by the World Economic In addition, the majority of empty. logistics partners, and we Forum found that 24% of our raw materials by weight welcome ideas on how to freight vehicles in the EU run are sourced from suppliers improve these. empty. The research also close to our factories. This found that the rest run with an We are also looking for ways to is especially important for average load of only 57% of pack more products per truck. heavier raw materials such as capacity (load factor), giving an This is challenging because limestone. overall efficiency of just 43%. our products are heavy and Our commitment to regional The report estimates that this their size means the pallets manufacturing is not limited inefficiency costs the 27 EU we use are not the standard to Europe. As we expand into countries 22 billion a year – dimensions (1,06m x 1,06m). emerging markets, where 1.2% of GDP.
  • 6. 10 11 Just the facts our vision for sustainable transport at InterfaceFLOR Europe How to reduce our transport impacts Now, orders heavier than potential reductions in CO2 and Once vehicle efficiency three tonnes (around three NOX emissions which affect is optimised, the pallets) are transported climate change, as well as biggest opportunities for Scherpenzeel, Netherlands directly to the customer particulates which contribute to InterfaceFLOR are the use of from our factory in local air pollution. second generation biofuels Lille, France Scherpenzeel, and hybrid or electric vehicles. ‘Megatrucks’ can improve the Netherlands. These are areas where we the efficiency of transport by expect our logistics partners Paris, France There will still be some moving more goods per trip, to innovate to cut impacts detouring for small orders (for reducing the overall number dramatically. We look forward example, from Scherpenzeel to of trips needed. However, to new ideas and projects Paris and back to a customer they are not accepted in 4. Using cleaner fuels and to improve efficiency and in Lille or Strasbourg), but a all European countries Optimised delivery route more efficient vehicles emissions of vehicles. For balance needs to be made in and weight restrictions on Delivery route example, we are exploring order to avoid small orders Cleaner, more efficient and individual vehicles make the options with our transport travelling long distances on alternative vehicles are the use of megatrucks difficult for 3. Optimising delivery routes company in the UK to test potentially empty trucks. most effective way to reduce InterfaceFLOR because our trucks that run on bioethanol. Our products do not travel in a We are working to cut the our transportation impacts. carpet tiles are heavy. Since 2009, deliveries We are also in discussion with straight line from our factories amount of de-touring in our Improved vehicle efficiency, our logistics partners to invest to our customers. Their journey distribution network. In France, of over 1.5 tonnes also Manufacturers are continually alternative vehicles and the improving the efficiency in hybrid delivery vehicles in is determined by transport for example, all our goods dispatched directly from use of biofuels will bring the of regular trucks and Paris and London in the future. networks and the location of used to go via our hub in Scherpenzeel to customers biggest reductions in CO2 national distribution hubs. The Paris because the Paris area in Germany and Austria improvements in aerodynamics emissions, according to the and rolling resistance are amount our routes deviate from accounts for around half our European Commission. In our other major markets, expected to make new vehicles a straight line is called sales in the country. However, such as the UK and Spain, 30% more efficient by 2020. ‘de-touring’. Reducing de-touring this often added unnecessary The table on page 14 shows we are looking for similar But there are limits to what can can cut environmental impacts mileage. the potential savings that could opportunities to reduce be achieved through efficiency of transport, especially for be achieved by implementing detouring and encourage our gains while still using fossil larger orders. a range of new technologies logistics partners to help us fuels. or fuels in trucks. It shows the meet our goals.
  • 7. 12 13 Just the facts our vision for sustainable transport at InterfaceFLOR Europe How to reduce our transport impacts Measures to reduce the environmental footprint of truck transport fuels. The key to achieving these Key EtOH: Sugar cane (Brazil) targets lies in what are known Material Effect on carbon dioxide Effect on nitrous oxide Effects on particulates Conventtional gasoline EtOH: Wheat straw (CO2) emissions (NOX) (PM10) as ‘second generation’ biofuels Conventional diesel EtOH: Wheat, NG GT+ CHP, DDGS as AF as they require less chemical Syn-diesel: Farmed wood RME: Gly as chemicals and energy input and typically Syn-diesel: Waste wood, Black lquor DME: Waste wood, Black liquor 1 Natural gas -3% to -10% -80% -40% produce more fuel per unit of 2 agricultural land used. These Fuels 2010 (source EUCAR/CONCAWE/JRC Replacement of Euro 1-3 by Euro 5 - -65% to -70% -80% to -95% are produced from cellulosic 3 materials (such as straw or plant Retrofit particulate filters on Euro 2/3 +1.5% - -20% to -40% waste) rather than the starchy 180 4 Megatrucks/ Ecocombi -22% -25% -25% part of plants which could compete with food crops. 160 5 Hybride drive -15% to -40% Locally - 100% Locally - 100% Overall 0% Overall 0% InterfaceFLOR supports the WTW GHG emissions 9g CO2eq / km) 140 use of second generation 6 Electric drive (for distribution) -3% to -10% Locally - 100% Locally - 100% Overall -70% to -90% Overall -90% to -95% biofuels such as: 120 7 Biofuels +10% to -140% - - • Biomass to Liquid (BtL) • Cellulosic ethanol 100 • BioDME/Methanol The use of hybrid vehicles For the same reason, electric The EU road transport sector • BioSynthetic Natural Gas 080 reduces the amount of diesel vehicles can significantly reduce accounts for more than 30% of (BioSNG) used by running off a battery local air pollution. However, their the total energy consumption • Bio-oil/Bio-crude 060 which is recharged using energy potential to cut carbon emissions in Europe. It is currently 98% • Algal biofuels lost in braking. When running depends on the source of the dependent on fossil fuels and • Hydrocarbons from catalysis 040 in electric mode, there are also grid electricity used to charge the EU has set a target for 25% of plant sugars no particulate emissions. This them. Based on the average of transport fuel needs to be • Biohydrogen reduces local air pollution, carbon intensity of EU electricity met by biofuels by 2030. 020 • Bioelectricity/CHP especially important in production, electric vehicles can • Biobutanol Biofuels are a renewable populated areas. achieve savings of about 40% 0 100 200 300 400 500 600 energy source and a lower- compared with fossil fuels. Total WTW energy (MU / 100km) carbon alternative to fossil
  • 8. 14 15 Just the facts our vision for sustainable transport at InterfaceFLOR Europe How to reduce our transport impacts CO2 (g/tonne-km); containers/non-bulk; short distance; 2010 160 140 120 100 080 060 040 020 to k tru ted ric n se n EU . TE . 2T ip 6 hip 0 c ct rai ie ai n ck ) l) ) U) >2 tru (3 l. sh (d Tr la T (9 l. s cu d In In gi le rti Ri (e A CO2 (g/tonne-km); containers/non-bulk; long distance; 2010 5. Shifting to lower carbon We have already made a transported to the port at transport to several countries transport (multimodal) number of changes to the way Rotterdam by road. in Eastern Europe. We are 160 we transport goods. also looking into the possibility Shifting loads from trucks to By transferring goods to a 140 of using ships from the port 120 other modes of transport – In Italy, for example, we barge for part of this journey of Rotterdam to places such 100 such as trains, inland barges have transferred 98% of our (between Rotterdam and as Bilbao in Spain or Saint 080 and short sea shipping – for shipments from road to rail, Utrecht), we have cut CO2 Petersburg in Russia. 060 part of the journey can reduce reducing CO2 emissions emissions by 39% 040 CO2 emissions. The EU goal associated with the Our goal is for 10% of our 020 is for 30% of road freight We are looking for more products (by volume) to be journey from Scherpenzeel opportunities to reduce travelling over 300 km should distributed using multimodal to Italy by 69%. road mileage by shifting to shift to other modes such as to k tru ted ric n se n TE ip. TE ip. TE ip. TE ip. TE . transport by 2015. 0 hip 0 c ct ai ie ai rti n ck ) l) U) U) U) U) U) >2 tru 00 sh 70 sh 50 sh 80 sh le Tr (d Tr multimodal transport. We are la 90 s rail or waterborne transport In the Netherlands, products (2 l. (4 Inl. (1 ea (5 ea (1 Sea cu d In gi S S investigating opportunities Ri by 2030. from our site at Scherpenzeel (e A Note: Short distance transport applies to trips of around 150 km have traditionally been to use rail for international
  • 9. 16 17 Just the facts our vision for sustainable transport at InterfaceFLOR Europe How to reduce our transport impacts there is not demand for green solutions by bigger companies. Influencing other companies is a key part of our Mission Zero and our transport strategy. We are working with other multinationals to develop and share ideas on sustainable transport as well as creating market demand through the Duurzame Logistiek (Sustainable Logistics) programme, which supports 250 leading companies in the field of sustainable 6. Promoting regular 7. Understanding the will allow us to make better transportation of goods. training for drivers impacts of every m2 of and faster decisions on Its aim is to increase the our products our transport to optimise profitability of companies and Training truck drivers in efficiency. This will help simultaneously reduce CO2 fuel efficient driving can Introducing the Eyefreight us monitor and reduce emissions by more than 20% cut emissions by up to 5%. system will allow us to track, environmental impacts. by 2012. We encourage our logistics among other things, the partners to provide such environmental footprint of 8. Collaboration with More information on how training for their drivers. This each individual delivery. The other companies InterfaceFLOR is working with is one of the criteria in our system will act as a portal Our impact on transport is other companies to reduce supplier questionnaire and for our European distribution very small in comparison with the impact of our product most of our partners already and will track order intake, other multinational companies. transportation is available at train their drivers regularly. service level, freight costs We cannot achieve our vision www.duurzamelogistiek.nl. We will continue to raise and environmental footprint. awareness on this. This granularity of information for sustainable transport if
  • 10. 18 19 Just the facts our vision for sustainable transport at InterfaceFLOR Europe Our goals for sustainable transport These are the targets set up by the preliminary transport vision of the European Union. By 2015, our vision for Our goals do not stop at InterfaceFLOR in Europe 2015. The table outlines the Influence factors Target for Sensitivity is this: vision of the European Union on transport for 2020, 2035 2020 2035 2050 GHG FFS • Efficiency is down from and 2050. We seek to be an average of 0.3kg CO2 /m2 1 Stabilizing the increase of tkm Max. +30% Max. +43% Max. +44% N/A N/A well ahead these targets, of carpet delivered to and demonstrate to other 0.2kg CO2 /m2 2 Decreasing vehicle energy -20% -40% -50% 88% - companies that it is feasible to demand • 10% of our total volume is reduce environmental impacts 3 Reducing carbon emissions in -37.5% -61% -88% 55% 22% intermodal from transport significantly. electricity production 4 Electric engines in road transport 0% 10% 25% 41% 5% • 90% of vehicles used in our To achieve our vision on transport is in top Euro Class sustainable transport, we 5a Increase share biofuels 8% 24% 33% 38% 30% for tailpipe emissions need the support of all our stakeholders. We encourage 5b Biofuels upstream emissions -35% -83% -83% • 85% of our transport our logistics partners to suppliers are ISO 14001 develop more sustainable 6 Increased efficiency in usage +8% +30% +50% 25% - certified transport solutions and we of veh are continuing to work with 7 • All forwarders regularly train Improved engine efficiency +21% +40% +45% 21% 2% industry and other companies their drivers on efficient to help drive change within 8 Higher modal share of Road 75% Road 70% Road 65% 7% - driving rail ad IWW the sector. Rail 19% Rail 22.5% Rail 25% IWW 6% IWW 7.5% IWW 10% 9 Increased share of electrical rail 66% 75% 80% 3% - 10 Usage of larger trucks 2% 8% 10% 2% -
  • 11. 20 21 Just the facts our vision for sustainable transport at InterfaceFLOR Europe How does Mission Zero affect our relationship with transport companies? Q&A with David Kers, European Distribution Manager As a transport company, How do you ensure the How would you like to What would be your how can I do business for economic sustainability of manage your suppliers? perfect supplier? InterfaceFLOR? your transport suppliers? The relation with our The perfect supplier would be We select logistics service Being financially healthy in logistics service providers the supplier that will help us providers who can help terms of profit and cash flow is based on a performance in realising our Mission Zero. us in our quest to launch is important for a logistics partnership, where we focus Besides focusing on Service a sustainable European service provider, to become on continuous improvement and Quality, this supplier distribution organisation and and stay a sustainable projects. We challenge our will have a strong focus on eliminate any negative impact company. In close cooperation logistics service providers innovation (technological and our distribution activities may with our logistics partners we to do better every day. Our social), can adapt to short have on the environment want to change the European transport management and mid-long term changes by 2020, in order to reach transportation market from a system “Eyefreight” enables in the market place and is Mission Zero. short term leverage market to us to monitor our KPI’s on demonstrating commitment a long term sustainable market (Service) Performance, Profit to become a sustainable Our European distribution focusing on the 4 P’s. Market and Planet. Annually targets partner. Sustainability model is based on the 4 developments and financial for KPI’s will be agreed and should be a key element in P’s; Performance (service), performance of our logistics the progress on these KPI’s their strategy. Our perfect Planet, People and Profit. We service providers are reviewed is reviewed in our quarterly suppliers will be or become have developed a supplier on a quarterly basis. Through review meetings. leaders in the sustainable assessment model in which collaboration we focus on European transportation our suppliers are assessed eliminating supply chain costs. market, implementing new on criteria linked to these 4 sustainable logistics concepts, P’s. Examples of these criteria for example: multi modal are: Green Fleet composition, transportation and trucks driver training programmes, using alternative fuels. experience with alternative fuels, profitability etc.
  • 12. 22 If you want to know more, please go to www.interfaceflor.eu/transport For more information about our products please visit www.interfaceflor .eu