2009 corporate social responsibility report · first reforestation efforts on 280 acres 1950...

Corporate Social Responsibility

Report2009

At National Office Furniture, we see our legacy as more than quality furniture. It is also a reverence for nature, which inspires our

resolve to protect, nurture and preserve nature’s gifts. Renewable hardwood resources are fundamental to our heritage and our future.

In this second annual report on our social and environmental progress, you will learn about National’s “Shades of Green” and the actions

we are taking to preserve resources as we refine them into quality furnishings. This report is guided by the Global Reporting Initiative (GRI)

Sustainability Reporting Guidelines and our deeply rooted commitment to positively impacting people and the environment. You’ll see how we

are working to safeguard the health of our world, for one another and for generations to come. You’ll look at where we’re headed, while gaining

an understanding of where we’ve been.

“Shades of Green” signifies that we all have our own way of contributing to the environment’s well-being whether as a business, community or

an individual. Start simple, refuse, reduce, reuse, recycle and change one behavior, then two, then three and so on. Ultimately, shades of green

will brighten and then combined with the efforts of others, we can all really shine for the environment.

The answers aren’t all black and white; there are many shades of green. But we know that any challenge can be solved when people work

together. In that spirit, we invite you to share in our journey, one thoughtful step at a time.

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2009 Corporate Social Responsibility Report

There are many shades of green.

Contents

4Our History

6Our People

12Our Products

16Our Facilities

20Our Transportation

21GRI Considerations

www.NationalOfficeFurniture.com 3

A Message from Our General Manager

Wouldn’t it be great if everyone’s environmental footprint was in sand and very near the shoreline? One or two gentle, ocean waves and your environmental

footprint is gone. That’s what we all want, right? Throw in a beach chair, an umbrella drink and this footprint reduction stuff is great!

We all know it’s not that simple. The fact that it isn’t, may not actually be a bad thing. The environmental challenges the world faces today have been

evolving and escalating over time. So, quick fixes won’t work, but small waves of change that lead to bigger waves will. As individuals, organizations

and a society, we’re responsible for getting it right this time, and getting it right means we have to take the time to plan and execute to ensure efforts

produce the right results.

What you’ll discover as you turn commitments into strategies and establish activities with targets, implementation and completion dates, is that you’re

impacting more than the environment. And as you go along this journey, ideas, innovations and opportunities will emerge that will lead to more efficient

operations and organizational pride resulting in community, environmental and financial improvements. By reducing your footprint, you’re actually creating

a fingerprint because everyone’s journey is unique and plays a significant role in an organization’s identity.

So, welcome to our second report on National’s commitments to environmental and social stewardship. We found out a lot about our company while

collecting data for this and our previous progress report. First, it reinforced how fortunate we are to have a solid foundation and incredible support from

our parent company, Kimball International. Second, it also uncovered an abundance of green passion and personal ownership pushing National beyond

status quo. Our environmental prowess is stronger than ever as evidenced by the achievements in GHG benchmarking and reductions, LCA product

assessments and taking care of the small details that produce the big results found in this report.

At National, we will always strive for excellence in environment and social responsibility. Therefore, with your collective efforts, we’re ensuring that as we

sit in our beach chair, looking at the footprints in the sand, they are from future generations having fun and enjoying nature’s wonderful gifts. As for the

fingerprint left on the umbrella drink, it reflects a legacy from a society that created an amazing identity for caring for those in need around us. Measure,

share and improve your footprints; we’re all walking this beach together.

Kevin McCoy

Vice President, General Manager

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2009 Corporate Social Responsibility Report | Our History

A History of Sustainability and Social Action

2009Receives Governor’s Award for Environmental Excellence in Pollution PreventionMajority of products earn level™ certification from SCSIntroduces continuing education program featuring four sustainability CEUsCompletes Greenhouse Gas Inventory for all facilitiesEarns OSHA Voluntary Protection Program (VPP) STAR Status/Santa ClausAccepted into Indiana Department of Environmental Management’s (IDEM) Environmental Stewardship Program (ESP)Products meet California Air Resource Board (CARB) Air Toxins Control Measure 93120 Phase 1Orange County, CA, showroom earns LEED® certification

2008Receives ISO 14001 registration at all manufacturing facilitiesFirst veneer and laminate casegoods meet BIFMA FES; Indoor Advantage™ CertificationPartnership in U.S. EPA SmartWaySM Transport ProgramFirst products meet BIFMA e3-2008 Sustainability Standard; SCS Sustainable Choice™ CertificationCertified to offer Forest Stewardship Council (FSC) Certified Wood

2007First seating products meet BIFMA Furniture Emissions Standards (FES)New York showroom earns LEED® CertificationJoins Indiana Department of Environmental Management (IDEM) Vehicle Idling ProgramFirst products meet California 01350 Environmental Requirements

2006Joins Indiana Department of Environmental Management (IDEM) Partners for Pollution Prevention

2005 Jasper, IN, showroom earns LEED® Gold CertificationChicago, IL, showroom earns LEED® Silver Certification

2004Awarded SONY “Green Partner” Certification for Excellence in Environmental Management

2002 Establishes Corporate Recycling CenterMembership in the U.S. Green Building Council (USGBC)Earns HONDA ISO 14001 Recognition Award for Excellence in Recycling

2001 Awarded Recognition as “Corporate Conservator” from The Nature ConservancyEarns Indiana Governor’s Award for Excellence in RecyclingNamed Mississippi Corporate Recycler of the Year

2000Earns OSHA Voluntary Protection Program (VPP) STAR Status/Springs ValleyNamed Mississippi Corporate Recycler of the YearEarns Indiana Quality Improvement Award

1990 Trees for Tomorrow Program Begins

1980 National Office Furniture Founded

1977 Membership in Business and Institutional Furniture Manufacturer’s Association (BIFMA)

1970 Message from Kimball International President, Tom Habig, on Sustainability

1963 First Reforestation Efforts on 280 Acres

1950Kimball International Founded (Parent Company)


Our Statement on Sustainability

We aim to create lasting stakeholder valuethrough responsible growth and deepcommitment to the well-being of futuregenerations. We cherish the earth’s naturalresources and hold sustainability andenvironmental protection as our key priorities.

As our company fulfills its responsibilities to our customers, shareholders, employees and the public, six commitments provide aframework for focusing our energies toward the greatest good:

• Product Stewardship

• Environmental Preservation

• Green Building Development

• Regulatory Compliance

• Social Accountability

• Economic Responsibility

“The earth is not inherited from our fathers, but is borrowed from our children.”

– Native American saying

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2009 Corporate Social Responsibility Report | Our People

Adopt-A-Street ProgramKeeping our communities beautiful by participating in the Adopt-A-Street program.

$10,000 Gift of Inspirationfor Education Environments

At National Office Furniture, we believe inbuilding environments that promote creativityand a passion for success through extraordinarylearning experiences. In this spirit, we offeredour first Gift of Inspiration for EducationContest. Learning institutions of all typesentered the no-purchase-necessary drawing for a $10,000 gift that could be used forfunding scholarships, endowments, learningmaterials, programs or other endeavors.

The 2009 winner, Southwest Middle School of Savannah, Georgia, put the gift to good use in developing an after-school program for at risk students.

“These kids have so much potential and our job is really just to help them uncover it.”Says Beth Jones, Academic Coach, SouthwestMiddle School, “With the economic times we are in, this Gift of Inspiration is such a wonderful way to help us fulfill a need forthese students that we didn’t know how tohandle. This is filling in an amazing gap for us.”


A Culture of Caring Filled with Personality

We care for our employees and in turn, they care for others. Along with being good neighbors, our employees

are active stewards in their communities serving as volunteers, mentors, coaches, caregivers and much more.

We often team up to support a good cause and enjoy each other’s company at work and at play.

Our people bring our products to life. Furniture with Personality™ is driven by a big grin, solid handshake

and an obvious enjoyment for what we do. Genuine people that care about the success of our customers,

the communities we serve and the environment.

American Cancer Society Relay for LifeEmployees raised nearly $16,000 for the American CancerSociety Relay for Life.

Sharing Our BlessingsRemembering those less fortunate, employees donated 428 items to the local food bank at Thanksgiving.

Habitat for HumanityEmployee Parvin Phillips and daughter, Hilary, participatedin the Habitat for Hope project in Owensboro, Kentucky,where 140 volunteers worked on two Habitat for Humanityhomes. Parvin served as crew leader and shared this, “It’s quite rewarding to be able to use the gifts we have to bless others in need.”

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Guidance and Discovery for the Journey Ahead

To keep us moving toward a sustainable future, the National Sustainability Council ensures our efforts are relevant

and forthright. Our goal is to not only serve the environment and our communities through our corporate strategies

and projects, but to also shift this mentality to the homes of our employees, business partners and the communities

we serve. Meeting regularly to research, plan, implement, communicate and lead sustainability initiatives across all

National functional areas, the council provides the path for richer shades of green for National. The council is

made up of a cross-functional team for a unified, comprehensive advancement of sustainable strategies focused

in four key areas: People, Product, Facilities and Transportation.

We believe sustainability means leaving the world a better place than we found it. So the Sustainability

Council drives environmental initiatives like looking at new, innovative packaging solutions, identifying

and reducing chemicals of concern from our processes and products and further improving the indoor air

certification of our products.


2

1.8

1.6

1.4

1.2

1

0.8

0.6

0.4

0.2

0


A Matter of Experience

National’s culture of caring, bias for action and fun personality

make it a great place to work as evident through the lengthy

average employee tenure of over 14 years. Also, 60% of our

employees have over 10 or more years tenure and 77% with

more than five years. Experience matters, and this invaluable

knowledge translates into the many good things being documented

in this report and the commitment to bring exceptional value

and quality to our customers.

National’s goal is to foster an environment of equal opportunity.

One of the key elements to our diversity management is creating

and maintaining a gender-diverse workforce.

Percentage of Employee

Gender Diversity

Total Salaried Management

100

80

60

40

20

0

Female Male

Average Employee Tenure

14.3 YearsEmployees with 10+ Years

60%Employees with 5+ Years

77%

Percentage of Employee

Voluntary Turnover

Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09

We’re creating an environment that inspires an insatiable desire to learn, stretch and do things better every day.

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Learn and Do Things Better Every Day

National is committed to creating environments where

people can grow and learn and ultimately do things

smarter and better every day. Part of our commitment

includes offering a portfolio of educational offerings,

which have been approved for continuing education

unit (CEU) credit, for those needing it. For the design

professional, dealer salespersons or simply interested

individuals, we have a variety of industry topics that

are designed to increase your knowledge.

Playing it Safe

Our commitment to our employees’ well-being is just as

strong as our commitment to sustainability. We strive to

provide healthy, safe work environments and a culture

where people feel good about coming to work and truly

care about one another. To that end,

we have a Safety Committee in place at each of our facilities. Members meet each

week and dedicate themselves to soliciting employee concerns regarding safety,

addressing those concerns and conducting training sessions. On any given week, the

members can be found conducting machine-guarding audits, near miss investigations,

hazard recognition or a number of other important activities.


Number of Employee

Recordable Injuries

2004 2005 2006 2007 2008 2009

140

120

100

80

60

40

20

0

Safety Beyond the Manufacturing Facilities

Our commitment to safety extends beyond the production walls as the well-being

of our employees is vital to quality of life at work and home. That’s why we

implement programs such as a mandatory Safe Driving

Course featuring tutorials and tests to keep travelers

safe and prepared for road hazards. We also provide

education and awareness on a variety of health-

related topics such as flu season where we held

meetings sharing prevention tips, placed

hand sanitizer in common areas and

conference rooms and offered

convenient onsite flu vaccinations

for employees.

94%ReductionFrom 2004

Ø

In its history, National has never been issued a notice of violation by the

U.S. Environmental Protection Agency

Our Santa Claus, Indiana, facility has gone

4.3 Yearswithout a lost time injury

In the last 6 years, National has reducedits total number of lost time injuries by over

96%!

From Start to Finish, It All Counts

The cliché “It’s not where you start, it’s where you finish that counts” is true in most cases. However, when it comes to sustainability, all stages of a product’s life are vitally important. That’s why National implemented a Life Cycle Assessment (LCA) strategy to measure where we are and where we’re going regarding our products’ environmental impact. An LCA conductedon our wood casegoods finished with IntegraClear™ was completed in 2009

with plans to assess additional product lines. Combined with our Design for the Environment (DfE)approach, LCAs provide the benchmark to base improvements on and guide future decisions such assourcing, production and distribution to ensure consistent progress is made in reducing our footprint.

Pack for the Journey

In addition to our products being environmentally-friendly, our efforts in smarter packing help tie it alltogether. All of our packing materials are recyclable while the material used for casegoods pack containsan average of 60% recycled content, and the material used for seating pack contains an average of 50%recycled content.

We’ve also incorporated fanfold machines in ourcasegood facilities allowing us to use less custompacking and more general corrugated optionsreducing overall cardboard quantity and waste. Ourstandard pack design for our seating lines wasengineered to enable our warehouse to stack chairsthree-high versus two-high in our trailers. Maximizingthe use of space in a trailer translates to lessgreenhouse gasses released into the environment.

8%35% 57%

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Our Products Reflect Stewardship

We base our business on producing

environmentally-friendly goods that

enhance the lives of our customers and

bring value to the markets we serve.

Our emphasis on low-emitting products

protects indoor air quality through the

achievement of standards established by

the Business and

Institutional Furniture

Manufacturer’s

Association (BIFMA)

Furniture Emissions Standards (FES).

Many of our products earn the SCS Indoor

Advantage™ mark from Scientific

Certification Systems (SCS) for meeting

this standard. Other National products earn

the more stringent SCS Indoor Advantage™

Gold mark for meeting the FES requirements

and also the more aggressive California

01350 Special Environmental Requirements

and Collaborative for High Performance

Schools (CHPS).

Furthermore, we have taken the necessary

actions with our supply chain and internal

processes to ensure compliance with

California Air Resources Board (CARB)

regulatory code 93120, Phase 1. Our products

satisfy CARB’s established limits on the

emissions of formaldehyde from core

materials and finished goods being sold

for use in the state of California. We are

committed to achieving the Phase 2

levels, which will take effect in 2011,

and are actively working to meet them.

Additionally, most National products meet

the criteria regarding material and energy

use, greenhouse gas impacts, human and

eco-system health considerations and social

responsibility outlined in the BIFMA e3-2008

Sustainability Standard, and certified by

SCS with the level™ label. A number of

National products carry level™ 1 certification,

with others earning the higher level™ 2.

These certifications add the assurance of

compliance by independent third parties.

2009 Corporate Social Responsibility Report | Our Products

BIFMA level™ 2

BIFMA level™ 1

No Certification

Percentage of Products Certified to

BIFMA level™

19%35% 46%

SCS Indoor Advantage™ Gold

SCS Indoor Advantage™

No Certification

Percentage of Products Certified to

SCS Indoor Advantage™

National’s packingmaterials are

100%Recyclable

Doing Our Part for Those Seeking LEED®

At National, we realize it is important to our customers to build and maintain buildings that are easy on the

environment. Many tell us that they strive to meet the guidelines found in the LEED® (Leadership in Energy

and Environmental Design) Green Building Rating System™. In addition to following the LEED guidelines in

our own buildings, we also feel it is critical to offer furniture solutions that can help contribute LEED points

towards certification.

Furniture is included in the scope of a limited amount of LEED categories. However, rest assured that we

have those categories covered. The table below outlines how National’s solutions can help achieve points in

a number of areas, from task lights to packaging to the furniture itself.


Contributions to LEED®New Construction 2.2 and Commercial Interiors 3.0 and 2.0

MR Credit 2.1 Construction Waste Management: Divert 50% from LandfillMR Credit 2.2 Construction Waste Management: Divert 75% from LandfillMR Credit 3.1 Materials Reuse, 5%MR Credit 3.2 Materials Reuse, 10%MR Credit 3.3 Resource Reuse, 30% Furniture and FurnishingsMR Credit 4.1 Recycled Content: 10% (Post-consumer + ½ Pre-consumer)MR Credit 4.2 Recycled Content: 20% (Post-consumer + ½ Pre-consumer)MR Credit 5.1 Regional Materials, 20% Manufactured RegionallyMR Credit 7 Certified Wood

EA Credit 1.1 Optimize Energy Performance

Materials & Resources

Energy & Atmosphere

EQ Credit 4.5 Low-emitting MaterialsEQ Credit 6.1 Controllability of Systems, Lighting

Indoor Environmental Quality

ID Credit 1.1-1.4 Innovation in DesignInnovation in Design

Our Products Can Help Earn LEED® Points

An Environmental and Product Profile isavailable for each series. It specificallyoutlines a product’s environmental attributes, including LEED point contribution.

For a complete listing of products that can help you achieve LEED points, log on towww.NationalOfficeFurniture.com/sustainability.

RP Credit 1 Regional PriorityRegional Priority

National Casegoods Include at least

82%Recycled Material

Taking It Apart Helps Pull It Together

A Design for Environment (DfE) process

is essential to our product development

cycle. Timeless styling and enduring

craftsmanship, guaranteed with a limited

lifetime warranty, enhance the lifespan of

National furnishings and their inherent

environmental value. In anticipation of

when a product reaches the end of its

useful life, National provides Disassembly

Instructions to help determine the material

composition and assist with recycling efforts.

Average PercentagePost-ConsumerRecycled Content

Average PercentagePre-ConsumerRecycled Content

Total Average PercentageRecycled Content

Executive Seating 11.7% 12.7% 24.4%

Task Seating 11.6% 0% 11.6%

Lounge Seating .3% .8% 1.1%

Guest Seating 1.5% 0% 1.5%

Stacking Seating 13.7% 17% 30.7%

Veneer & Laminate Casegoods 1.7% 80.6% 82.3%

Veneer & Laminate Table Tops .1% 97.5% 97.6%

Occasional Tables 0% 67 - 91% 33.5 - 45.5%

Training Table Tops .1% 97.5% 97.6%

Sustainable Textiles

The upholstery offered on National products includes fabrics with a reduced

environmental impact. Choices include seating fabrics with significant recycled

content, are PVC or chrome-free, and are produced with rapidly renewable materials.

Some bear the Terratex® name, which signifies they are made of 100% recycled fiber

and use a fabric production process that reduces waste and emissions. In addition,

some fabrics are Green-e® certified, signifying that 100% of the electricity used to

make the fabric is matched by Green-e® certified renewable energy certificates that

support clean energy.

Our alliance partners, cf stinson, Maharam and Momentum, also offer upholstery

choices that feature sustainable characteristics. For additional details, please refer

to their websites.

2009 Corporate Social Responsibility Report | Our Products

14

Environmental Attributes

Standard Seating Fabrics Contents Reduced Environmental Impact

Boardwalk 100% Pre-consumer Recycled Polyester Recycled Content

Brisa 100% Polyurethane PVC-Free

Brisa Distressed 100% Polyurethane PVC-Free

Crossbox 61% Polyester, 39% Cotton Rapidly Renewable Materials

Echo 100% Pre-Consumer Recycled Polyester Terratex*, Green-e Certified** Recycled Content, No Backing

Essence/Ultraleather 100% Polyurethane PVC-Free

Fossil 54% Pre-Consumer Recycled Polyester, 32% Cotton, 14% Post-Consumer Recycled Polyester Recycled Content, Rapidly Renewable Material s

Ostrich 100% Polyurethane PVC-Free

Promessa 100% Polyurethane PVC-Free

Ripple 69% Pre-Consumer Recycled Polyester, 31% Polyester Recycled Content

Shenanigans 67% Pre-Consumer Recycled Polyester, 33% Nylon Recycled Content

Showcase 100% Chrome-Free Leather Chrome Free

Spectrum 100% Pre-Consumer Recycled Polyester Recycled Content

Speedway 52% Polypropylene, 48% Pre-Consumer Recycled Polyester Recycled Content

Tranquility 100% Pre-Consumer Recycled Polyester Recycled Content

Twilight 100% Pre-Consumer Recycled Polyester Terratex*, Green-e Certified** Recycled Content, No Backing

** 100% of the electricity used to make these fabrics is matched by Green-e® certified renewable energy certificates.

www.green-e.org

Green-e is a registered trademark of the Center for Resource Solutions

* Terratex® is the first textile product to achieve Carbon Neutral® certification. Each Terratex fabric must meet these four criteria:

• Made of 100% post-consumer and/or pre-consumer fiber, or compostable material• Made using processes that reduce waste, emissions, energy water usage, and toxic by-products• Meets/exceeds same quality standards of fabrics manufactured using virgin materials and conventional processes• Made of a single fiber type, without backcoating, so that it too can be recycled or composted

Terratex is a registered trademark of True Textiles

R

National offers

195Textiles with

Reduced Environmental Impact

IntegraClear™Friendliest Finish Around

Friendly to the environment, in application, to the eyes and even the not

so nice daily events such as coffee spills, you can always count on

IntegraClear™. This proprietary, water-based UV finish provides the

ultimate balance in clarity, durability and sustainability enabling our

products to earn indoor air quality certifications that can contribute to

LEED® points.

Benefits include:

• Virtually free of volatile organic compounds (VOCs), with significantenergy efficiency gains during the curing process

• Automated application reduces waste, provides better aestheticconsistency and creates a healthier work environment

• Increased product longevity and durability with excellent heat,sunlight and chemical resistance and will not haze with hot liquids or containers

We are fully committed to IntegraClear™ and its environmentally-friendly

attributes evidenced by investing in $4.6 million of UV finish technology

equipment to integrate an additional line in our network as we transition

all wood casegoods to IntegraClear™.


IntegraClear™Environmentally-Friendly UV Finish

IntegraClear™

Clarity and Durability Testing

Heat Resistant Tests

• Replicating heat transfer from pizza boxes, microwave dishes and hot beverages, an iron is pressed on a moist cloth heating the worksurface and leaving no effect.

• Burning lighter fluid on the worksurface causes no effect when the flame isextinguished within several seconds.

Chemical Resistant Tests

• Fingernail polish and permanent marker leave no effect after wiping away clean with acetone fingernail polish remover.

Keeping Things Lean

Guided by our company’s Lean Internship Program, we believe in

continuous improvement throughout our organization. This program

routinely identifies opportunities to gain efficiencies and reduce costs

often directly related to our sustainability initiatives. We provide tools

and resources like 5S (Sort, Straighten, Shine, Standardize, Sustain)

ensuring that employee awareness remains high regarding recycling,

safety and productivity.

Furthermore, our Lean Internship Program is a college accredited

course. National employees, who successfully complete the program

in lean manufacturing theory and practice, will earn college credits.

What’s more is that students can participate in our Lean Internship

Program and apply their knowledge in real-world situations.

A win-win experience.

National’s Lean Internship Program is offered to employees,as well as to students at Vincennes University through an accredited offering. The course provides participantsreal-life experience and up to 6 hours of college credit.Through 2009, there have been 21 graduates.

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2009 Corporate Social Responsibility Report | Our Facilities

Growing with Green Buildings

National facilities testify to our belief in

sustainable building practices. Pursuing

guidelines set by the U.S. Green Building

Council (USGBC), we prioritize building practices

that support the LEED® (Leadership in Energy

and Environmental Design) Green Building

Rating System™. Benefits to LEED certification include reductions in

energy, water, and material use, leading to a reduced environmental

impact making our green buildings healthier and more comfortable.

Our LEED® Certified Projects

Research and Development Annex/Jasper, IN - LEED Certified

Corporate Showroom/Jasper, IN - LEED Gold

Showroom/Chicago, IL - LEED Silver

Showroom/New York, NY - LEED Certified

Showroom/Orange County, CA - LEED Certified

In 2009, National was proud to be a silver level sponsor of the USGBC GREENBUILD Conference, the world’s largest conference and expo dedicated to green building practices.

Green Cleaning Policy

From cleaning up our streets to around the office, the goal is the same,

do it responsibly. Therefore, we’ve implemented a Green Cleaning policy

throughout our facility network that utilizes environmentally-friendly

cleaning products and disposal methods.

FSC-Certified Wood OptionsThe Highest Level of Quality Assurance

The Forest Stewardship Council (FSC) is an international

organization which promotes the long-term stewardship of the

world‘s forests. The organization has developed international

standards for responsible forest management. To ensure that these

standards are adhered to, the organization accredits independent

third party organizations who can certify forest managers and

forest product producers that meet the FSC standards.

Buying wood and wood products that are certified by the Forest

Stewardship Council ensures that the long-term sustainability of

the forests that they were harvested from is maintained.

Purchasing FSC wood may also qualify for points under the LEED®

rating systems.

Our manufacturing facilities are certified to offer the option

of Forest Stewardship Council (FSC) certified wood and have been

awarded a Chain of Custody (CoC) certificate.

By giving customers the option of FSC-Certified wood, we offer the

assurance of products that are not only economically viable, but

are environmentally responsible and socially beneficial.

Most National casegoods, seating and tables areavailable with an FSC-Certified wood option.


Proactive Compliance

We uphold the well-being of the environment as a public trust. We

proactively pursue compliance to ensure our operations meet or exceed all

applicable environmental regulations and are proud that in our history,

National has never been issued a notice of violation by the U.S.

Environmental Protection Agency.

Moving beyond compliance and into excellence, all

of our manufacturing facilities are registered to the

ISO 14001 standard. The Environmental Management

System in place at our facilities enables us to identify

and control the environmental impact of our operations, continually

improve our company’s environmental performance and systematically

set environmental objectives and demonstrate their achievement.

Also, our Indiana-based manufacturing facilities

have met the rigorous requirements and have

been accepted into the Indiana Department

of Environmental Management’s (IDEM)

Environmental Stewardship Program (ESP)

for demonstrating long term compliance with environmental laws and

voluntarily implementing continuous improvements in sustainability.

We are also members of the Partners for Pollution Prevention program.

To verify the performance of our products,

systems and processes, we utilize recognized

and certified third party auditors.

Percentage of Products Produced in

ISO 14001 Facilities

94%Percentage of Products Produced in

FSC CoC Facilities

93%

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Our Operations Promote Conservation

Our company is answering the challenges on

conservation fronts. Installing motion activated

lighting in offices and conference rooms and auto-

shut off parking lot lighting are just a few examples.

The implementation of our first IntegraClear™

UV finish line resulted in reduced energy use, lower

greenhouse gas emissions, and re-use of process

water. We expect these improvements to continue as

our next finish line is completed. Our focus on

conservation and efficiency will continue to increase

with the introduction of the Power Management Team, a group charged

with providing analysis and tools to help employees drive down energy

use in all areas of our company.

2009 Corporate Social Responsibility Report | Our Facilities

Reducing Our Emissions

National is serious about reducing our impact on the environment.

During 2009, we took a major step in achieving this goal with a

massive effort to identify the sources of our GHG emissions, determine

the level of GHG emissions from our facilities and establish a GHG

management system for on-going improvement. Now, we know where

we stand and the ground we’re covering.

Using the Greenhouse Gas Protocol developed by the World Resources

Institute (WRI) and the World Business Council for Sustainable

Development (WBCSD), we gathered data representing the source and

level of emissions from three types of activities:

Scope 1 Emissions from sources that are owned or controlled by thecompany such as generation of electricity or heat, andtransportation of materials, products and employees

Scope 2 Emissions from the purchase of electricity used in operations

Scope 3 Emissions from activities not controlled by our company,such as purchased goods and their transportation as well asemployee business travel

Using calculation tools developed by the team, the raw data was

converted into a common unit to simplify measuring: Carbon Dioxide

(CO2). Following this process, the team determined the GHG emissions

for each facility and identified them by source. With the baseline

established, each facility possesses the data needed to determine

targets for GHG emission reductions. These targets and defined reduction

opportunities can now be included in each facility’s Environmental

Management System (EMS) as a Significant Environmental Aspect as

we work towards covering less ground than we do today.

Significant Environmental Aspects

An important element of our ISO 14001 Environmental Management System

is the identification of Significant Environmental Aspects. These

Aspects are key continuous improvement projects that are identified

and regularly tracked through our system. The Significant Environmental

Aspects are determined by each of our manufacturing locations.

Completed 2009

3 8,467,618 pounds of materials recycled/reused

3 56% reduction in liquid hazardous waste generated

3 24% reduction in VOC emissions per unit produced for manufacturing facilities

3 21% reduction in greenhouse gas emissions in 2009 vs. 2008 for all facilties

Goals 2010

• Reduce our energy consumption through a new Power Management program

• Reduce the amount of waste we send to the landfill

• Reduce the amount of Volatile Organic Compounds (VOCs) from ourfacilities

• Better utilize the wood waste from manufacturing, including usingit to generate energy

• Reduce the solid hazardous waste from our facilities

• Reduce our dependence on coal-generated energy

• Reduce the amount of water used in our facilities

We ReducedVOC Emissionsper unit produced by

24% in 2009

Keeping it Simple... Reduce, Reuse, Recycle

Our company recycles 65 different kinds of materials; from steel, aluminum, glass and

cardboard to oil, printer cartridges and computer hardware. Discarded materials find new life

as fencing, automotive insulation, animal bedding, tack boards and other goods to enhance

people’s lives. Our corporate recycling center alone diverts 3.6 million pounds of waste each

year from landfills. Sawdust and wood scraps become clean-burning fuel for National

manufacturing plants. Computer-guided trimming prevents fabric waste, and the minimal scrap

is repurposed in trunk liners, headliners and acoustic insulation.

Aluminum301,741 lbs.

Cardboard2,872,780 lbs.

Plastics1,437,866 lbs.

Sawdust11,807,021 lbs.

Steel3,268,413 lbs.

Upholstery133,085 lbs.

Wood Waste5,393,461 lbs.

Data is for Kimball International


of solid waste generated by National was Recycled or Reused in 2009.

70%Reduction

From 2002

Ø

2002 2003 2004 2005 2006 2007 2008 2009

25,000

20,000

15,000

10,000

5,000

0

Weight of

Generated Solid Waste*

88%

National Re

cycles

65Differ

ent Kinds o

f

Materials

*In tons

1

2

3

4

5

67

8Percentage of Tractor

Idling Time*

20

Reducing Our Footprint

Our company is sensitive to the environmental

impact produced by commercial freight. We

continuously work to reduce our carbon footprint

as materials ship into our facilities and products

ship to our customers. We participate in the Indiana Department of

Environmental Management (IDEM) Vehicle Idling Program for Cleaner

Air and have been accepted by the U.S. EPA into their SmartWaySM

Transport Partnership. The SmartWaySM shipper score for our corporate

fleet has increased from 0.68 in 2008 to 0.72 in 2009. A score of 0.50

allows a partner company to use the

SmartWaySM logo in their materials.

We also seek improvements in our freight

operations by reducing energy usage in our warehouses through the use

of energy efficient lighting, HVAC systems, dock door seals and more.

2009 Corporate Social Responsibility Report | Our Transportation

2005 2006 2007 2008 2009

60%

50%

40%

30%

20%

10%

0

*Time engine is running but truck is not moving

55%Reduction

From 2005

Ø

2005 2006 2007 2008 2009

6.8

6.6

6.4

6.2

6

5.8

5.6

Improving Aerodynamics and Fuel Efficiency

Speed Management Restricts truck speed, results in improved fuel efficiency

SpoilerImproved aerodynamics

Rounded MirrorsImproved aerodynamics

Auxillary Power UnitProvides access to cab’s heat, A/C and electronics without idling

SmartWaySM Certified TiresDesigned to reduce drag to improve fuel efficiency

Tractor SkirtImproved aerodynamics

Aluminum WheelsLighter weight to improve fuel efficiency

California Air Resource Board (CARB) Certified EngineDesigned to reduce emissions

1

2

3

4

5

6

7

8

Over-the-Road Fleet

Average Miles per Gallon

98%of National’s loads are delivered by our corporate

fleet or other SmartWaySM certified carriers

*Industry average is 5-6.5% (U.S. EPA)

Sustainability Reporting Guidelines

GRI


2009 Corporate Social Responsibility Report | GRI Considerations

We developed this report with consideration given to the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines version G3. The GRI framework

suggests principles and indicators that organizations can use to measure and report their economic, environmental and social performance. To learn more about

GRI, go to www.globalreporting.org.

GRI Reference PageStrategy and Analysis

1.1 General Manager Statement 4

Organizational Profile2.10 Awards received during reporting period 5

Report Parameters3.1 Reporting period 23.2 Date of most recent previous report 23.3 Reporting cycle 2

Governance, Commitments and Engagement4.8 Internally developed mission relevant to economic, environmental and social performance 54.12 Externally developed, voluntary economic, environmental and social initiatives 7

organization subscribes to and/or endorses4.13 Significant association memberships 12, 16, 17, 20

Environmental PerformanceEN2 Recycled input materials used 12, 13EN5 Energy saved due to conservation and efficency improvements 18EN6 Initiatives to provide energy-efficient products and services 14, 15, 20EN10 Water recycled and reused 18EN18 Initiatives to reduce greenhouse gas emissions 14, 15, 17, 18, 20EN22 Waste by type and disposal method 19EN26 Initiatives to mitigate environmental impacts of products 12, 13, 14, 15, 16, 17, 18, 19EN28 Noncompliance with laws and regulations 11

Social PerformanceLA2 Employee turnover 9LA6 Management – worker health and safety committees 11LA7 Rates of injury 11LA8 Education, training, counseling and prevention programs regarding serious diseases 11LA13 Breakdown of employees by gender 9

Global Reporting Initiative

We see our legacy as more than quality furniture.It is also a reverence for nature, which inspires our resolve to protect, nurture and preserve nature’s gifts.

www.NationalOfficeFurniture.com800.482.1717

1205 Kimball Boulevard, Jasper, IN 47549 A Unit of Kimball International ©Kimball International, Inc. 2010Printed in the USA Form No. NOLSUSREP Ver. 10

2009 corporate social responsibility report · first reforestation efforts on 280 acres 1950...

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