Transcript of The CEO that Realised the Immense Environmental Damage he Caused | Beyond Zero
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0:00Heat.0:02[Music]0:25Heat.0:32By civilization's definition, I'm a0:34captain of industry.0:37The entrepreneur who founded a company0:39that provides over 5,000 people with0:42their jobs and supports their spouses0:44and upwards of 12,000 children.0:47In the eyes of many, a kind of0:49modern-day hero.0:52By my own definition, I am a plunder of0:55the earth and a legal thief.0:59Someday people like me may be put in1:02jail.1:11[Music]1:16A good place to start is on a day in1:18June of 1969 when I saw for the first1:22time and fell in love with an idea. The1:25idea was carpet tiles, modular carpet.1:29Here's the product. It was quite new in1:31the United States in 1973.1:34And here's the market, the office1:36market. A burgeoning white-collar1:39workforce in an increasingly1:40serviceoriented economy was about to1:43create unprecedented demands on1:45corporate and institutional America.1:48This new office demanded a new kind of1:51carpet. Broadland carpet wallto-wall no1:54longer fill the bill. The new and better1:57way was carpet tiles. Removable for easy2:00access to inflow electricals. Easily2:03replaceable when worn or damaged.2:07You know, if you don't have a market,2:09you have to conjure it up. We would ride2:11through the streets of Houston or2:13Chicago or any city in America, and I2:15would ask him, "What's, you know, what's2:16in that building? What's in that2:18building?" Constantly driving home the2:20point. It's all around us. It's all2:21around us. You know, we just have to2:23make the call. Make the call. Make the2:25call. You You can't get the order if you2:27don't make the call.2:29He wasn't Ray then. He was Mr. Anderson.2:32He was always Mr. Anderson. He was all2:35business and he had high expectations2:38and if Mr. Anderson asks a question, you2:41better have the answer and it better be2:42right.2:44I had two small kids. I was literally2:47working 70 hours a week. Literally.2:51I said, "Ray,2:53I'm working 70 hours a week. I need to2:55hire some people." And he just looked at2:57me and he said, "Dan, doesn't that go2:58with the territory? 70our work weeks."3:03Here's 16 years of sales from a dead3:06standing start in 19733:08to Fortune's 500 list in 1989.3:13Interface Incorporated is the world's3:15largest manufacturer and marketer of3:17carpet tiles,3:19drawing together into one corporate3:21entity the largest carpet tile companies3:24in North America, Europe, Asia, and3:26Australia.3:29I remember like it was yesterday, a day3:31in August 1974 when we had not one order3:34on the books that branded in my brain3:37for as long as I'll live the veritable3:40truth that you're always just one order3:42away from being out of business. The3:45next order is like the next heartbeat.3:53interface looks in the marketplace for3:55high-profile projects to really focus on3:58and that has great benefit to drive more3:59sales.4:02So, there was one particular project in4:04Southern California that had a4:06environmental consultant and he wasn't4:08going to let his client buy products4:11from us. Well, that message got all the4:15way up through the sales chain all the4:16way to to to Ray Anderson. And Ray4:19walked in my office and said, 'Dan,4:22what what is this about the environment?4:24He said, 'Isn't complying with law what4:26you do about the environment? I said,4:29yeah, Ray, I think so. Makes sense to4:31me. And he was really frustrated. And so4:34he charged a task force to come up with4:36what interface should be on the4:38environment.4:40Well, I wasn't particularly enthusiastic4:42about the subject myself. didn't4:45necessarily want to be on the task4:47force, let alone leading it. So, how am4:50I going to get anybody to show up?4:53Well, the hook was Ray.4:56Ray was the legendary founder of the4:58company figure. So, I sent the5:01invitation for Ray to come kick off that5:04task force and there was no response.5:06And I just kept kind of proddding5:09politely and eventually he relented.5:12I had not a clue what to say. I was5:15sweating. I could not get beyond we obey5:18the law. We comply. I knew complying was5:21not a vision. A book arrived on my desk.5:26I started to thumb through the book.5:28What I found was an indictment. I did5:31not want to look, but I could not take5:33my eyes off it either.5:36We used to boast, legitimately boast,5:39that you could take the carpet product,5:42you could stick it in a pile of compost5:46for one or two seasons and take it out5:49again and nothing would have happened to5:51it. That was a sales boast.5:56So I took Hawkins book home that night.6:00My wife of 10 years, Pat, could see I6:02was upset.6:04I went to bed still reading, still6:06confused, still without a vision for6:08that speech.6:10I mean, we had been specifically asked6:11to bring certain information. And so I6:14was scrambling around at my factory6:15saying, "What have I been doing here?6:18What are we doing?" We hadn't6:19intentionally been doing anything.6:22Then about midnight, I found something I6:25wasn't expecting. It was a vision that6:28absolutely transcended compliance. It6:30would be so much more than an answer to6:32reassure our customers. It was a call to6:35lead, powerful enough to energize the6:37corporation and would give me a new6:39purpose in life.6:42I got up from that bed to get a glass of6:44water and stopped in front of a mirror.6:46I looked at myself long and hard and I6:48thought, why not?6:52[Music]6:53Well, the meeting starts and then Ray6:54comes in the room. Well, he is only6:57going to be there for a few minutes.6:58literally has a car waiting outside the7:00hotel.7:02I get up and start the meeting and then7:04essentially introduce Ry to to share7:07with us his environmental vision. Nobody7:10had any idea what was about to happen. I7:14certainly had no idea. I didn't even7:15know if Ry had seen the agenda.7:18Every dairy farmer knows the term7:20carrying capacity meaning sustainable7:24population as how many cows will this7:27pasture support.7:29St. Matthew Island in the Beering Sea7:32was a deserted island until 1944 when 297:36reindeer were imported. Scientists7:39calculated that the island had a7:41carrying capacity of about 2,000 with no7:44natural control, no predators.7:48By 1963, there were 6,000 reindeer.7:53The scientists thought the calculations7:55had not been correct, but the7:57calculations had been correct. By 1966,8:01in just 3 years, the population had8:04dropped to 42.8:07Not just the extra died, but the8:09overshoot produced a catastrophic8:12effect.8:15The fact that St. Matthew Allen exceeded8:18its carrying capacity by 200% or 300% or8:22even 400% for a while did not prevent8:26the inevitable day of reckoning.8:31We are exceeding the carrying capacity8:33of the Earth now and will continue to do8:38so at an increasing accelerating rate8:41until catastrophe strikes.8:46What really struck me from it was his8:49heartfelt sincerity.8:52Rey um8:54[Music]8:55really cared and he wanted us to care.9:00Now we at Interface take oil and natural9:03gas from the earth in the form of nylon,9:06latex energy and we don't put it back.9:10We make products that end up at the end9:13of their useful lives in landfills. Our9:16industrial waste is a pollutant. We must9:19call it what it is. We waste all along9:22the way.9:24It was absolutely a stunning9:28condemnation9:30of Ray's heroic creation of interface as9:35an example9:37of what industry was doing that was9:40going to destroy the planet not only for9:43Ray's grandchildren and their9:45grandchildren but also eroding and9:48destroying the the the economic9:50capability and future of business9:53itself.9:54Now, who can do something about this?9:58Well, business, industry, that's who.10:01This is the most powerful, pervasive10:03institution in the world and the one10:06doing the most damage. Companies like10:08ours, yours and mine, people like us,10:12us, you and I. The next thing I I10:16remember and will never forget, he said,10:20"I've decided we're going to make this10:22company a sustainable enterprise."10:26And there was simply silence.10:30And in my case, stone silence. How about10:33this for a mission to convert interface10:36into a restorative enterprise worldwide?10:41And suddenly we were going to undertake10:44a a different type of business.10:48Once we're sustainable, we become10:50restorative by helping others become10:53sustainable. Putting back more than we10:56ourselves take.10:58And while I'm at it, how about this for11:01a goal? To achieve sustainability by the11:05year blank.11:07You must fill in the year.11:11Ray gave a speech11:14and walked out11:16and the place fell apart.11:20There were tears. There were arguments.11:23There was massive defensiveness. This is11:26just fantasy. This is nuts. This is not11:29even possible.11:30What is the market going to think about11:32this? What are our customers going to11:34think about this?11:37you were given the opportunity to11:39quietly, individually think about it,11:42and I did.11:44I then was able to mentally confront11:47what I'd been involved with and it11:49wasn't pretty.11:52At the end of the uh conference, they11:54actually went around the room and asked11:56people, "How are you feeling? What' you11:58think?"12:01The meeting didn't seem to be going12:02anywhere. At that point,12:04I felt obliged to say something. So12:07Scotty had been there forever, forever12:10in terms of interfaith. So he was very12:13well respected. He was the first to12:15talk.12:16And I do recall12:19standing up and saying that I had been12:21guilty of making compromises.12:24He essentially was saying that there are12:27some things that we have to do in12:29business that we know aren't quite12:32right, but we just do them to help make12:35money to provide for our own families.12:39And that man and pointed to the door12:41that Ray walked out of, that man has12:44just given me the opportunity to make up12:47for all those compromises.12:49Things couldn't go on the way they were.12:52I had an opportunity to start to put12:54things right.12:59It was August in 1994 and I received a13:02letter from Ray Anderson and I never13:05heard of him or the company.13:08I was asked to come to kind of a seauite13:10meeting in Santa Barbara at that time. I13:13have to say I mean Rey was the one who13:15was the driver and I felt that the rest13:18of the people were saying well he's the13:20boss rather than uh having bought into13:24it so to speak.13:25I was probably13:27the biggest skeptic in the whole thing.13:29And I I literally13:32we we literally some of the management13:34teams that were running businesses13:36really thought this was the flavor of13:37the month club. I13:39we just didn't think it that it would13:41stick. We really didn't.13:44There's a conference every year. It's13:46called the Southeast Conference where13:47all the companies from the Southeast13:48come in. And our biggest shareholders13:51were in this meeting and our stock was13:54under a little bit of pressure cuz you'd13:56just come through a downturn and we we13:58weren't performing yet.14:01Back then you had a 35mm slide tray,14:04right, with 35 slides in it. And I was14:07CFO keeper of the slide tray. And I14:10always go give it to the 80 guy and he'd14:12queue it up and then Ray and I'd go up14:14to the front of the room and Ray would14:16present and then I would do the numbers14:19and Ray wouldn't let me keep slide tray14:21and give it to the AD guy. He just said,14:23"No, Dan, give that give it to me." Um,14:27so I was like going, "Okay." So Ray14:30walked up with the slide tray in his14:32hands and set it down on the podium14:37and he said, "I'm not going to talk14:39about my company and my financial14:40results today. I'm going to talk about14:43Mother Earth in trouble."14:45You could have heard a pin drop. People14:48were looking at each other. I'm I was14:50looking at everybody. I'm like going,14:52"Oh, what? Where is Red going with14:54this?" Right?14:56And he proceeded to tell the story about14:59the reindeer and the overpopulation.15:02They all died and and they're just like15:04going.15:05He didn't mention interface results.15:07Once15:09our stock dropped, my biggest15:11shareholder sold. I had a call from an15:14analyst the next day thinking that Ry15:16was terminally ill and he was trying to15:18save the world before he died and so15:21forth. And I just said, "No, that's he's15:23fine. Amazing. He He's just on this15:26journey about sustainability.15:30I did say to Ry,15:33"Ray, you quit talking to Wall Street.15:35Let me talk to Wall Street." And you, my15:37quote was, "And you can go save the15:38world.15:40They think you're a tree hugger. They15:42think you're a dreamer and you just15:44don't need to play at Wall Street."15:47Actually, when that happened, I knew Ry15:49was not turning back, right? I didn't15:52know how we were going to do what he15:54wanted us to do, but I knew he wasn't15:55backing down and that he had put a stake15:57in the ground that day.16:00I challenged them to pick the year.16:03Pick the year by which Interface would16:05achieve sustainability.16:08Two days later, they told me that their16:12target year would be the year 2000.16:15I'll be 66 that year, and I hope to live16:20to see it happen.16:22I actually think they may be a little16:23ambitious and it may take a good bit16:26longer, but I still hope to live to see16:28it.16:30And we're trying to take it throughout16:32our company of 5,000 associates. That is16:36not easy.16:38No one else, even at Interface, gets it16:43just because I do.16:45And for us to be successful, everyone16:49has to get it.16:50[Music]16:58I get invited by the head of operations17:00of the European business to come to17:02England and let's talk about this17:05sustainability stuff. Uh we want to17:07learn what's going on and we want to17:08share what we're doing.17:11So I show up to the mill and there's no17:13tables or anything. was kind of weird,17:16but there was this big horseshoe of17:18seats17:20and there was one chair at the opening17:24of the horseshoe17:26and I'm thinking that's, you know, their17:27president of the business going to come17:29in and talk or something. So, I go sit,17:31you know, in, you know, in the horseshoe17:33somewhere. No, no, no, no. Jim, we'd17:34like you to sit17:37there. I go um17:43the head of manufacturing led the17:45conversation17:47and his message was something like we've17:50been hearing a lot of crazy things from17:52Atlanta. We don't know really how to17:55interpret them but we wanted to share17:58with you our thinking so you could take18:00it back to Atlanta.18:05First of all, philosophically what you18:08guys are talking about, there is really18:10no role for business in this moral,18:13ethical18:15kind of thing. You know, our job is to18:18make carpet, satisfy customers, send18:22money back to Atlanta.18:25And you know, we're in the carpet18:26business. You know, you know how we make18:28carpet. We don't need any spotlights. We18:32stick our head up on this subject. we18:34are going to get slapped.18:37So, not only philosophically this is a18:39bad choice, but who are you Americans18:44to talk to us about the environment?18:48You really are the pigs of the planet.18:55That was a difficult moment.18:59[Music]19:03Change is hard for everybody. You know,19:06there there's always institutional19:08resistance.19:10And at first there was just a lot of19:13wow, what are y'all doing? Have y'all19:15gone crazy?19:16Well, first of all, your product is 90%19:19oil based, right?19:22Stuff coming out of the ground.19:24So, how do you change that paradigm19:26where we're going to have recycled19:27content, we're going to have biio-based19:30products?19:32Yeah. We don't make yarn, right? And so,19:35how you going to change your supply19:36base? Cuz they're going to have to spend19:37money to get there. And then the energy19:39is huge because it's all brown energy19:42that's cheap. And so, how do you how do19:44you get renewable energy?19:47I mean, Ray didn't have a clue what the19:49road map was on this. He just knew that19:51something had to be done.19:54He had the selfawareness to know he had19:57to assemble the smartest people on the19:58planet to help him figure that out. And20:01that became what he started calling the20:03eco dream team.20:05It was as if there was an NFL and you20:09were the first team and you got to20:11choose everybody you wanted before20:13anybody else chose the team. I mean he20:16pretty much got the cream of the crop.20:22You got to remember 93 to 2000 was the20:26best growth in the commercial office20:28market probably in history.20:30So we were doing pretty well. So we we20:32actually could take some chances on20:35investing in sustainability. People were20:38feeling really good. The reason we had20:40the guts to do the global sales meeting20:42was our stock was at all-time high.20:48Well, I learned about this big meeting20:50that was being planned for the Grand Wya20:53Resort and Spa in Maui.20:57The world meeting started out as being20:59just a big sales meeting celebrating the21:0125th anniversary of the company. So Ray21:04said, "Oh, we've got this new eco dream21:06team. What a great opportunity to bring21:09them together and have our first21:10meeting." And our real purpose is what21:13do we do with this? Maybe we can get a21:15day of this 4-day sales meeting to talk21:17about sustainability. And it was, you21:20know, giants in sustainability. uh you21:22know Paul Hawkins was there and and Mc21:23Bill Mcdana was there and John Peard was21:26there and we introduced the idea we're21:29going to be meeting at the Grand WA with21:32this big party. We got all these21:34entertainers coming and we want to take21:36a part of that to talk to them about21:38sustainability.21:41Well, to a person, this group of21:44adviserss completely rejects the entire21:48idea.21:50Wait, you're going to take a thousand21:51interface people from around the world21:53and you're going to fly them to Maui21:57and you're going to bring them together21:59in one of the most abusive hotels that22:04exists on the entire planet.22:07It's in this big resort with fountains22:10that run all night and multiple pools22:13and you know air conditioning where22:15there doesn't need to be air22:16conditioning. So it like violated any22:19possible idea of sustainability that you22:21could imagine.22:24Paul Hawin who doesn't suffer fools said22:26look Ray if you want my advice just22:29don't go.22:32We've already booked the entire hotel.22:36Ray was an emotional guy. His face22:38turned beat red.22:39When he got really stressed, he had a a22:42vein that would pop up in his forehead22:44and that thing was pumping. And he said,22:47"Maybe you didn't hear me." He said, "I22:50have invested money, company's money,22:52which I am responsible for, to this22:54venue. We are going to that venue. I22:57need to make it an opportunity instead22:59of a liability.23:02you know, arguably one of the most23:03challenging personalities on that entire23:05team was the the worldrenowned architect23:08Bill Mcdana.23:10He was the one that essentially said,23:14you know, actually we have to realize23:17that that place, as abusive and23:21obnoxious as it is, is actually a23:23reflection of who we are,23:27isn't it? So what about the opportunity23:31of turning that most abusive example23:34into a learning experience for what it23:37could be? Well, that turned the whole23:40idea.23:42And so we decided then to use that as a23:45example of what you could do to create a23:49meeting that in fact uh had a light23:52footprint. We thought we could work with23:54hotels since they had booked the whole23:56hotel for almost a week to see what23:59could be done.24:01And essentially that process went24:04directly to the Japanese owner of the24:05hotel and basically asked him to24:08completely take over the operations of24:10the one of the crown jewels of his24:11investment. He had the audacity and the24:14courage to just say yes and turn to his24:17accountants and just said do whatever24:19they want to do which freaked them out.24:23We got into the bowels of the building.24:25It was so big and so sophisticated. It24:27was like Disney World under there.24:30Underneath hotel is an industrial24:32factory. The amount of water and energy24:36that was being consumed by this hotel to24:38take care of its guest was24:40extraordinary. And also what became24:42obvious is how much waste was occurring24:45in the hotel itself. In other words,24:46they really didn't understand the basic24:49fundamental techniques that existed at24:51that time to reduce their waste, reduce24:54their impact, and frankly to save a heck24:56of a lot of money.25:14The first day we had this luau and we25:17ate all this food and then we measured25:18the food waste.25:20This day we have eaten, we have drank25:22and we have been married. We want to25:24continue to do that of course but I'd25:27like to give you a little feedback. So25:29far, Saturday night, we measured the25:33food waste. We wasted 750 lbs of food.25:37We wasted 1383 calories per person. If25:41we annualize that and globalize that25:44figure, the food waste that we generated25:47would feed 3.15 billion people.25:53I know we went over the numbers again25:55and again and again.25:58We're to continue to work with the hotel26:00to try to change that figure. You can26:02change it by simply trying to take what26:05you need and no more. And if you need26:07more, ask for more.26:10We are on our way.26:12On our way to where?26:16Well, I have this mental image of a26:19mountain to climb.26:21The name of the mountain is26:22sustainability.26:25And we are only on the lowest slopes of26:27this mountain.26:29But we know the way to the top.26:32As we move in the direction of that26:34peak, others will follow.26:38They will follow not because they will26:40feel altruistic or benevolent or26:42philanthropic,26:44but because we will be doing so well in26:48a pure business sense by moving up that26:51slope that they will want some of what26:54we've got26:58through urging. Every morning we would26:59say, you know, try doing this. If you27:01open your sliding door, the air27:02conditioning stays off. When you were in27:04Maui, there really is no purpose. leave27:06your towels on the rack like you do at27:08home. So we would urge them, you know,27:09throughout the week to do certain27:11things. Again, nothing that was so27:12ownorous that would compromise in any27:14way their experience and then at the end27:16of the week we expose all that to them.27:21Good morning.27:23We are saving about 1.8 tons per day of27:26landfill material for every room here.27:2915 pounds of stuff a day. Propane, our27:33usage was 40%. saving $228,000.27:39But what does that mean in terms of27:40footprint? 11 acres of trees taking27:44carbon out of the air. Electricity,27:47we're saving about 13,000 kilowatt hours27:49a day. That means 35 acres of trees.27:53Potential saving of that is about27:55$600,000.27:58All total, just from the money side, if28:00everyone has behaved and operated as we28:03have through the year, the Hope Hotel28:04could potentially save $860,000.28:09Give yourselves a hand.28:15And the room was just so taken by the28:18impact that they had had on that hotel28:20and obviously what they felt they could28:23do when they left. Amry Loveven said to28:25me last night, "John, I think that this28:28gathering here could be the turning28:30point in a world effort toward a28:33sustainable future." And I believe28:35that's true.28:37[Music]28:45blue water world,28:50oceans and28:53the enthusiasm and the the joy frankly28:57was extraordinary because I feel like28:59what had happened is the story the29:01storyline about the environment and the29:04commitment to the environment that Rey29:06and others and myself carried through29:08and spoke about was also accompanied by29:11song and music and dance and ceremony29:15like wishes and dreams that will come29:18true by and by.29:21It just felt like this was a new type of29:23meeting, you know, that no one had ever29:26seen before as a corporate conference.29:28That meeting pretty much inspired 1,20029:32people. We're going to do this world29:34needs this.29:40And it was inspirational to me who was29:43the biggest skeptic in the room. And29:45that sort of changed it for me was that29:47meeting saying, "All right, we we need29:48to do this. The world really is in29:50trouble.29:56[Applause]30:09There's not an industrial company on30:11Earth, and I dare say not a company of30:14any kind, that is sustainable.30:17When Earth runs out of exhaustible30:19resources and ecosystems collapse, our30:23descendants will be left holding the30:24empty bag.30:27Dear people, can I call you dear people?30:30Now,30:31if I may be so bold, fellow plunderers,30:35we've done a lot of damage.30:44There are really three sections with the30:46carpet towel.30:49the soft part on the front of the carpet30:51tile that's made on kind of like a30:54sewing machine with needles.31:00There's a really stiff back and that31:03makes it adear to the floor and then in31:05between there's a latex that actually31:08bonds the two together.31:12Those are all, you know, those31:15technologies, those engineering kinds of31:17things. But to affect those, we need to31:21engage everybody in a new way of31:23thinking about the world.31:30And that involved actually teaching and31:33engaging staff all over in the different31:35factories. It was about internally31:38changing the fabric and culture of the31:41company.31:45So we had quest teams across the entire31:47business at every level and originally31:50they were designed to work on quality31:52issues but they became uh sustainability31:56teams really because they just educated31:58everybody on what we were trying to do32:00and it made everybody stop and say what32:02can I do in my job to contribute.32:09No greenwashing at all. It was actually32:13hands on, feet on the ground. Let's32:15figure this out. And basically, you32:18can't manage something if you don't32:19measure it. And so, first began the32:21measurement.32:24The more I would read about embodied32:28energy of materials, the amount of32:30energy, electricity, transportation, all32:34those things to make that one product.32:36and nylon was at the bottom of the list32:39of hundreds of materials and that's what32:42we were using.32:45The worst thing was the scientists said32:47you can't recycle it. It's impossible.32:51So, let's just use less of it. Let's32:54start to minimize the amount of material32:59that we would put in the product. So, it33:02was, you know, the best thing we could33:03do and we would start to measure it33:05every year.33:07[Music]33:10We got a couple of wear warranties.33:12Customer did not like the product on the33:15floor. It was wearing badly. So, I would33:18take a sample back and send it off to33:20the fiber manufacturer who would say,33:22"Well, we've looked at it and there's33:24hardly any wear at all."33:27So, I'm saying, "Well, how did you come33:30to that conclusion?"33:32"Well, we looked it under a microscope33:34that all the fiber is still there." I33:35said, "Well, we don't give our customers33:37microscopes. They just walk on the33:39stuff. We made them more dense and found33:42we could get better results with a33:44denser product using less yarn."33:48And so I was able to measure after one33:50year of progress. We'd already saved33:52enough energy to power something like33:54100 pounds. And it was a stark33:57realization that such an apparent small34:00thing would represent that much energy.34:04But not only that, we eliminated wear34:06complaints. They just ceased to be a34:08factory.34:11So every project you had to make sure34:13that it didn't cost more money. It had34:15to either be equal or save money. Better34:17if it saved money cuz then you had a34:19little bit more uh impetus to to get it34:22to roll on through the process of34:23change.34:26So Ray wanted to put a solar array up in34:29LA and it was it was a huge investment34:32and I couldn't find the return anywhere34:34in it. It had a 99-year payback or some34:36insane thing.34:39And he finally34:42came to my office and said, "Are you34:44going to sign that that capital34:46authorization?" I said, "No." I said,34:48"Ray, there's no payback here. I can't34:50find it."34:53and he got real frustrated and then he34:55calmed down and he said, "Dan,34:59have you ever thought about solar made35:01carpet?" I'm like, "No,35:06the investment in this is large." So,35:09it's not the kind of justification that35:11an accountant might understand, but the35:14fact that it produces solmade carpet35:17will be very attractive to our customers35:19and will create sales.35:21And so I said, "Okay, that makes sense.35:23We can actually get something out of it35:25with a customer." So I signed it35:28and I'll be damned if when we got it up35:30and running, the California government35:31gave us an order that paid for the whole35:33thing because it was solar made carpet.35:36This is a big step toward the top of35:38that mountain. We're climbing the35:40mountain called sustainability.35:43I'm talking about it. You are doing it.35:51I got a call from Paul Hawin and he35:54mentioned this carpet company that he35:56was working with and he said, "You need35:58to come." And I I was a biologist.36:01Um I had been writing about, you know,36:04biology inspiring design, but I knew36:07nothing about carpets.36:11So, I showed up at my first EcoDream36:13Team meeting.36:18We're looking at reducing the amount of36:20energy we use, reducing the amount of36:22toxins we use, making elegant products36:26and products that can be reincarnated36:28into other products. Life has been doing36:30that in life- friendly ways for 3.836:33billion years. And, you know, it's time36:35that we looked around at the genius that36:38surrounds us.36:39[Music]36:43The question was, "How would nature make36:45a carpet?"36:47They said, "Go outside, look at nature,36:50and what can you learn? And how would36:52nature design a carpet tile?"36:55We looked at stones and leaves and bark36:58and all those things.37:02You start to realize there's a37:04difference between what nature does as37:06far as color and design and what humans37:10do. Big difference.37:13Nature is diverse. There's no solid37:16color. It's kind of like organized37:18chaos,37:21but it was covered by all these37:22overlapping leaves. And when you took37:24one leaf away37:26and you looked back down, you couldn't37:29notice the difference. It's an ordered37:32randomness. And the order comes from37:34this palette of colors that all go37:37really well together. Nobody complains37:40that, you know, a forest floor is ugly,37:42right? There's a there's a harmony to37:45it.37:48So we came back and said, "Well, could37:51we make five different carpets and mix37:54them together and put them in a box?"37:56Somebody in manufacturing said, "I think37:59we could make it all together if we38:02start to change the threads as they go38:05across the machine," which was unheard38:07of.38:10We ran the first production trial. We38:13got the box, opened it, just threw them38:15on the floor.38:17They looked unbelievable.38:21And then suddenly you could randomly38:24throw them around.38:27Customers could actually install it38:30because it was random38:32and they would have less installation38:35waste on a project. So all these38:38positive things were coming from let's38:41just do it like nature.38:47People loved this idea of being able to38:50truly pull something up and put a new38:52one down and not be able to see a sore38:54thumb effect. It moved to 40% of their38:59carpet tile line.39:02Everybody in the carpet industry was39:04doing broad loom cut into squares.39:06Nobody had thought of what if every39:08square was different.39:09And if we hadn't have done that, carpet39:11tile would never be as big as it is39:14today. It was it was just an39:16unbelievable moment.39:19[Music]39:29It actually became clear to me that what39:32we really needed was39:36a new CEO,39:38someone to step into the role that I had39:41had all through these years with new39:43energy and new vision. And last fall,39:46the search committee came to the39:48conclusion that the the very best39:50candidate of all these external and39:53internal candidates, Mr. Dan Hendrickx,39:59the highest point in the history of40:01commercial market, which was October40:042000, was the month I got announced as40:06the new CEO of Interface.40:10And before I took over July 1st, 2001,40:13our business had dropped 25%.40:18Interface was really in trouble. We had40:21$550 million in debt. Uh we were40:24violating bank covenants. Ray walked in40:27my office the day I became CEO. He said,40:29"Dan, I actually thought I'd hand you a40:31better company than I'm handing you40:32right now.40:36We're just bleeding to death." $30040:39million market. It's now down to about40:40$60 million. Uh, and we need to focus on40:44the core and generate earnings in this40:45company. I mean, Interface really was in40:49the forefront of sustainability, not40:50just in our industry, but in the world.40:53And they would have spit me out as CEO40:55if I said, "Hey guys, we're not doing40:58this." You know, I there's not one41:01person on my manage team that would have41:02followed me.41:04But the thing that we had to figure out41:07was how are we going to make this work?41:09How are we going to get there? You had41:11no room for error.41:15Cool Blue was the first41:18real innovation on closed loop recycling41:22and it was like a $10 million investment41:24in that downturn I'm talking about. And41:27David Hob said to me cuz he knew I was41:29going to say no. He says, "If we don't41:31do this, then we're we're we're not41:34walking the talking. Our people aren't41:36going to come up with these innovation41:37ideas, and they're not going to follow41:38us, Dan. This is a breakthrough41:40technology that we need to do." And I41:43was looking at our balance sheet. And41:44then I go, "All right, let's just roll41:46the dice."41:49A 300 ft assembly line snakes through41:51the factory floor, beginning with large41:53bins labeled cool blue food. We feed41:56those vins with carpet backing scraps41:58and other plastics that have been ground42:00into fine particles.42:02The conveyor belt passes through a huge42:04oven and then a giant roller applies42:07just the right amount of pressure to42:09squash the warm soft crumbs into a42:11continuous sheet of carpet tile backing.42:15It took us a long time to perfect cold42:18blue, but our customers believed it.42:20They go to the plant and they could see42:21us recycling the backing. unbelievable42:24goodwill with our customers and we're42:26walking the talk with our people.42:29The downturn probably helped us. We had42:32to think smarter. We had to innovate. We42:34came out with a lot of innovations that42:36actually allowed us to take share and42:38recover faster than anybody else.42:41[Music]42:43Ray left me alone. He was off giving a42:46lot of talks. He just gave us the vision42:50and the inspiration and we did it.42:52[Music]42:55The old flawed view of reality holds to42:57the belief that business exists to make42:59a profit. When we are learning from our43:02experience in this new paradigm that43:04business makes a profit to exist and it43:07must exist surely for some higher43:09purpose. What CEO do you know who really43:13expects to stand before her or his maker43:15someday and talk about shareholder43:17value?43:19Done right? the triple bottom line can43:21come together to create a better way to43:24bigger and more legitimate profits.43:31This is the mind shift that I had to43:32take. You can engage your workforce so43:35they're going to innovate and do things43:36that we never even thought about doing.43:38I mean, one thing people don't talk43:40about is we get the best people in the43:42industry because they want to work for43:43Interface because of higher purpose.43:46It was hearing Ray Anderson tell his43:48story that changed the trajectory of my43:52career. I was sitting in an audience43:55and he started to describe the purpose43:58of this amazing company. And the first44:01thing that hit me was, "Oh my god,44:04someone from Interface called me two44:06days ago to see if I wanted to join the44:08company." And I told them no. You know44:11what? What was I thinking? I promptly44:14called this woman back, got into that44:16interview process late and by some sort44:18of luck, stars aligning, whatever.44:21Actually got the job at Interface. So,44:24uh,44:24we take every single person in the44:26company through three levels of44:27sustainability training. It's just who44:29we are. It's just what you're going to44:31do. It doesn't matter where you are in44:32the company. Doesn't matter what you do.44:34You're going through that level of44:35training because it gave people such44:37confidence and just made them feel44:40really connected to it.44:45We started looking at well how are we44:47installing it and what are the waste44:49factors involved in installation the44:52glue the buckets that the glue come in44:54and of course always if you're doing44:56wall to-all installation the trim waste45:01I thought nature must have a better glue45:03than the glue we're using so how does45:05nature glue things together45:09interface brought us in there was a45:12group sitting and talking about geckos45:14and flies and reversible adhesion. And45:16what they found in that group was that45:19nature doesn't glue things together in a45:22few rare instances, but nature doesn't45:25glue.45:26The common design principle was that45:28they used gravity to help push it down.45:31It was gravity. And then at another45:33table, they were looking at bird45:35feathers.45:36And if you look at a bird feather and45:38you take it apart and you have a45:40magnifying glass, you'll realize that it45:42has hooks and barbules all along each45:44little mini strand and then along the45:47major strand. And that's how a bird when45:50it ruffles its feathers, it zips it back45:52together with its beak. It's because the45:54structure hooks back together naturally.46:00So that group said, you know what?46:02What if our carpet tiles46:05attached to each other? What if they46:08hooked end to end with each other? And46:10they started to think about how to do46:12that. And the group that had been46:14thinking about gravity stood up and46:15said, "Wait a minute. If you hook all46:17the carpet tiles to each other,46:20gravity holds the whole thing down."46:24And one thing led to another. And46:25eventually what we ended up developing46:27were the tactiles, which are the small46:30polyethylene squares of plastic that are46:33inserted underneath the carpet tile that46:36actually don't stick it to the floor at46:37all.46:39And if you put that at the corner of46:42four carpet tiles, you're essentially46:45holding those carpet tiles together.46:47So we kind of just revolutionized the46:49carpet tile installation and eliminated46:51that glue and all the associated46:53problems that come with glue. Not to46:55mention the indoor air quality issues46:57associated with glue.46:59Their goals, which were, you know,47:02reduced waste, reduced toxicity,47:04actually broke them out to a whole new47:06market, which was the residential47:08market. Cuz once you don't have to glue47:10it down, you can sell people carpet47:13squares to make dining room rugs, to47:16make area rugs essentially. And when you47:19say, "Well,47:21yeah, the idea came from lizards and47:23geckos and and bird feathers." Well, it47:27doesn't look anything like geckos. It47:28doesn't look, you know, but it's that47:30concept. It's that abstracted design47:32principle. Hold it down with gravity and47:35have all the pieces attached to each47:37other. And the question once you see it47:39is why hasn't everybody done it that47:42way?47:4311 years of this kind of new thinking47:45and innovation combined with a47:47determination to abandon the comfort of47:50the status quo can produce unimagined47:53results.47:55Yet it does not come naturally. Breaking47:58with we've always done it this way is48:00hard.48:02Colleague of mine in my doctoral program48:04brought me this article about this man48:06named Ray Anderson and this company48:08named Interphase. Is this the real deal?48:11And if it is the real deal,48:14how did you do it? How did Interface do48:17this? Because if we can show that, then48:19this can be a a roadmap, if you will,48:22for uh other business leaders.48:26I can report to you today that this48:27company over the last 11 years has48:30reduced its worldwide net greenhouse gas48:33emissions by 56%.48:35Twothirds of the reduction has come from48:38efficiencies.48:39The waste elimination effort has avoided48:41cost totaling some $300 million over the48:4411 years, more than covering all the48:46costs associated with R&D and process48:49changes and capital investments made in48:52pursuit of sustainability.48:54At Interface, we call it mission zero,48:57zero footprint by 2020. This mission is49:01a competitive advantage in an extremely49:04competitive marketplace as proof it49:06share prices moved from $2 to $15 in49:09three years as it has worked out of the49:12deepest recession in this industry's49:14history.49:15They were measuring it. They were49:17telling the world this is what we're49:18doing well. This is where we are. This49:20is where we need to go. Lot of49:21transparency, a lot of communications.49:24And guess what? All of that led to49:25innovation. the rest of the competitors49:28were going, "Hey, we got to get on49:30board."49:32We were on a mission and we knew that we49:36were on the forefront of it because we49:38kept getting requests from all these big49:42manufacturers, come tell us what you're49:44doing. British Petroleum,49:47Boeing Aircraft,49:49Walmart.49:51I went to Nike to start them on their49:53vision. I got a standing ovation. It was49:58amazing. They invited me back the next50:01week to do it to the the rest of the50:02company. And the whole story for me was50:07how I was a designer just coping with50:10this, taking small steps.50:14You're not going to lose your creativity50:16if you start to go down this path. It50:18will actually be the opposite. You'll50:21come up with some things you would have50:22never dreamt of.50:26So if you look at the carbon footprint50:28of the overall carpet tile about 60% of50:32the carbon footprint resides in the yarn50:34and it's upstream from us it's the50:37impact of the manufacturer of the yarn50:39itself.50:41We looked at other fibers other than50:43nylon which was that uh one with the50:46most embodied energy.50:48We came out with PLA yarn which is made50:50out of corn. That was a huge investment50:53and a big splash.50:56It wasn't strong enough to hold up in a50:57commercial space. It actually burned50:59when you dragged your chair over it. So51:02that that one didn't work. And we had a51:05couple of failures that we kept trying51:08and we kept going back to nylon.51:12We ourselves did not really even believe51:14that you were going to get much recycled51:15content in yarn. The process to make51:17yarn is it extrusion process of really51:20fine strands. Nylon's really high51:22performance polymer. The challenges of51:26trying to add what might be seen as a51:28contaminant, a recycled content to the51:30yarn. It was very difficult technical51:32challenge. So we went to our suppliers51:34and said can you do this?51:35There was one supplier who really came51:37through.51:38Took years and years but they turned out51:41to be able to develop 100% recycled51:43content yard. And now we see that same51:47nylon that would be going into our51:49carpet is going into Adidas's shoes.51:52Levis's jeans. Stella McCartney is51:56making fashion. Gucci is using the same51:58fibers.52:02Now, can we work with the supply chain52:05to deliver recycled yarn in a way that52:07also has a positive social and52:09environmental benefit? And how that52:12ended up manifesting itself was working52:15with local communities in the52:16Philippines and then Africa to harvest52:18ghost fishing nets to package them,52:21clean them, send them to our yarn52:23supplier, and then have that made into52:25recycled yarn.52:27A ghost fishing net is a net that's just52:29cut off and left to drift. So, it's just52:32kind of like a passive killing machine.52:34And so finding a way to kind of utilize52:37those materials in a way that takes them52:40out of the marine environment and also52:42gives local communities an economic52:45benefit. And if we can do it on a small52:48scale, we can have the ambition to do it52:50on a big scale. Maybe that's how the52:53whole supply chain could operate.52:58You got permission to pursue and52:59permission to fail. But you better you53:02better learn from the failures and not53:04do it again.53:05[Music]53:08I was studying what shapes does nature53:10use and what shape should a carpet tile53:12be and I I landed on the hexagon because53:16it's very prevalent in nature. You'll53:18see it in honeycombs and lots of53:19different applications. And then when we53:22started trying to do installations with53:23them, uh there's no give in a a hexagon53:28uh pattern whereas in squares and53:31rectangles there's lots of give. Anyway,53:33it was a disaster53:36and in the end it actually caused a lot53:38more production waste.53:41You got to look at it as an innovation53:44journey. You got to look at it as you're53:46going to get goodwill in the marketplace53:48with your customers and they're going to53:50give you more business. So, you're going53:51to you're going to take more market53:52share53:54and you're going to inspire a culture53:56that really wants to do this.54:04So I got a job offer from uh from the54:06old company who probably had observed54:09how successful the operation was here54:12and wanted a some of the magic dust that54:14we had and I was offered a pretty darn54:17nice job which I was very interested in.54:21So I went to see Ray and told him that54:23I'd had a job offer and wanted to know54:26what he thought about it. And his54:28response was, "Scotty, you're going to54:32have to make up your own mind, but I'd54:35like you to know that I'm trying to54:37build something special here. I'd like54:40you to help me do it."54:43Park was going anywhere after that. You54:45know, how could you possibly turn down54:48an opportunity for a man like that54:51asking you to help him build something?54:53There's just no way I was going54:55anywhere.54:58That was the feeling we all had with Ray55:00at the helm. All the world is fine with55:03our company.55:16Yeah, I can't remember the exact day,55:18but I remember Joanne uh his assistant,55:21she told me that they had uh suspected55:25that he had u cancer.55:29Hi folks. Yeah, it's Ray with a very55:32brief taped message in my best chemo55:34voice.55:37I55:38it wasn't a surprise because I had seen55:41Ry at at the last meeting at the55:43innovation summit. Uh he was very thin55:46at that time. He was very pale. I knew55:51that it was bad.55:53One of the things we did was we asked55:56everybody to fill out a commitment card55:58like what they were personally going to55:59do to you know contribute to the speed56:02at which we had to get up this mountain.56:05and uh he filled out one and he says um56:08I'm going to beat cancer so I can be56:09there to see when we're at the top of56:11the mountain.56:13Maybe I should take a minute and uh56:16bring you up to date on me so you know56:19firsthand.56:21The best indicator of how I'm doing is56:24the CT scan that I get every 3 months.56:28The last two have been frankly heading56:30in the wrong direction.56:32When my blood counts are good, I feel56:34good. Then I have gained weight56:37throughout the whole chemotherapy, which56:40is ridiculous.56:45That's the story. What's the bottom line56:47for me? I wish I knew.56:50Life is uh replete with uncertainties.56:56This I do know when the year 2020 gets57:00here, it will not mark the end of time.57:05202057:07will mark a way station on the journey57:09to fulfilling our company's ultimate57:12purpose.57:14So I say to you, dream big,57:18work hard, keep hustling, do good, not57:22just no harm.57:25and have fun along the way. I will be57:28with you every step of the way in body57:31and then in spirit.57:34God bless you.57:40I think I thought, okay, he'll beat57:43this.57:45He He's got this, you know. Uh he's57:48strong enough. Give me Give me before I57:51fall on my face. Thank you. But of57:55course, that's not what happened.58:00We've come to pay our respects. We've58:02come to grieve our loss.58:05I thought about the idea of coming here58:07to say goodbye.58:09And there's where I paused. I know I'm58:12not ready to say goodbye to Rey, and I58:15don't really think I ever will be.58:21Ry has entrusted us to fulfill his58:25legacy, to take interface to the top of58:28Mount Sustainability.58:30And with Ray spirit to guide us, it's up58:34to us to make the rest of the climb.58:40Thank you, Rey, for all you did for us58:43and for showing us the way.58:47Rey, we love you.58:52[Music]58:57I was really concerned when u when Ry58:59passed away about the mission and if we59:03would stay stay on course or not.59:10[Music]59:12You look at each other and and59:16you what are we going to do?59:19[Music]59:32Well, I think all of us after Ray's59:34passing were59:37in mourning.59:40[Music]59:42So there was a period of of loss, sense59:46of loss, and we didn't know the dream59:50team what would come of our59:52relationship.59:58[Music]1:00:00I was worried at that point that1:00:02somebody could come in and say 20201:00:06almost got there. we can rest on our1:00:08laurels. Let's just focus on the1:00:10business basics. Let's become every1:00:12other company,1:00:14but with this amazing, legendary past.1:00:20So, I'd been running the company 171:00:22years, and I just knew we needed a1:00:24management change uh at the top. And1:00:27then I met Jay Gold. Within 2 hours, I1:00:30said, "He's the guy in my head." He's a1:00:33very purpose- driven CEO. his whole life1:00:35as a a manager has been purpose- driven.1:00:40So Ray died in 2011 and the company just1:00:43flatlined after that. No revenue growth,1:00:45no earnings growth. So my job when I1:00:47came in was to really get the company1:00:49back on track financially.1:00:53Jay coming into the business was even1:00:55more of a concern to me than when Ray1:00:57passed away because he came from big1:01:00consumer brands CocaCola and Rubbermaid1:01:03and American Standard.1:01:06Most companies sustainability is in the1:01:08marketing function. It's stories you1:01:10tell, not stuff you do.1:01:14So I was pretty sure Jay was going to1:01:16come in and see sustainability as just a1:01:19marketing function. So, I was worried1:01:20that we were going to falter.1:01:24Now, I'm quite positive that the1:01:27employees at Interface were not very1:01:29excited when Dan hired me because I have1:01:31no sustainability credentials.1:01:34And so, I simply asked our experts to1:01:37define a very clear path forward. And1:01:40so, really by the late fall of 2015, we1:01:43had a pretty clear pathway to deliver on1:01:46mission zero.1:01:49I think he came in thinking, "This is an1:01:52amazing brand. This company has this1:01:54great legacy of sustainability. I'm1:01:57coming in at a really good time when1:01:59we're going to hit all the targets and1:02:01declare success." And I think he was1:02:04sort of surprised for us to be like, "Oh1:02:06no, we now we have to go further."1:02:10[Music]1:02:11If we were a business who said, "Wow, in1:02:141994 we felt compelled to do something.1:02:17How do we feel?" right now. I mean, we1:02:19feel like it's a much more urgent1:02:21situation.1:02:23Zero is not enough anymore.1:02:25We have to up the ante and we need to1:02:28set a bigger, more ambitious goal.1:02:31What we kept hearing from our employees1:02:33was we need to really address these1:02:36larger sustainability issues. We need to1:02:39be talking about global warming.1:02:42I didn't accept that at its face value1:02:44because, you know, perhaps I watched too1:02:46much Fox News. I don't know. I was1:02:48probably still a climate change skeptic.1:02:53I would say to my husband, I'm going to1:02:56kill this guy. I'm fighting for the soul1:02:58of this company.1:03:02I am willing to get fired to be that1:03:05person. Because here's the deal. I know1:03:07the guy who started the business. I know1:03:09who we are.1:03:17Well, we got an invitation to have the1:03:20dream team meet again with the incoming1:03:23CEO, Jay Gold. And1:03:27um we had already heard that basically1:03:30he didn't really want to meet with us,1:03:33that we were greenies and he didn't need1:03:36any greenies to run an industrial1:03:38company.1:03:43There was not trust going into the1:03:46meeting like a huge amount of skepticism1:03:48and a lot of stress associated with what1:03:52will the next mission be and how1:03:54ambitious will it be?1:03:57Whether Jay was going to be there or not1:03:59evidently it was a bit of a question1:04:01still.1:04:03The night before we weren't even sure1:04:05the meeting was going to happen.1:04:08[Music]1:04:13And so on the first day there was I've1:04:16get maybe 16 people, four of whom were1:04:19on the dream team.1:04:21Frankly, I was just looking for a high1:04:23five, a pat on the back, a way to go1:04:25Jay, because I felt confident we were1:04:28going to deliver on Ray's commitments.1:04:30And instead I got a very stern lecture1:04:34particularly from Paul who said Jay1:04:38Interface is the type of company that1:04:40takes on the world's greatest1:04:42challenges. And while I'm pleased that1:04:44you're delivering on having no negative1:04:46impact, you have to move to positive1:04:49impact. Naturally, I said, "Paul, I1:04:52mean, what would you expect of us? We're1:04:54a very small company." And he said,1:04:57"Global warming.1:05:04What we are heading towards in terms of1:05:05the climate is point of no return where1:05:09the warming increased to such an extent1:05:11that the earth starts to heat itself1:05:13without our help.1:05:18What we have been told is that we have1:05:2010 years in which to reduce our total1:05:23greenhouse emissions by 50%. That would1:05:26be 1% a month every month for 10 years.1:05:29It's not going to happen.1:05:32So what do we have to do? Everything we1:05:34can do in terms of avoiding more1:05:36emissions.1:05:38But in addition to that, increase and1:05:40accelerate the rate at which carbon is1:05:43cycled back to the earth.1:05:45It's always cycling back. 100 gatons per1:05:48year is cycling back into the land. It's1:05:51not carbon. It's not even CO2. It's1:05:54life.1:05:55Because it feeds forth, because it feeds1:05:57organisms, because it goes into the soil1:06:00where it creates life,1:06:04we actually get in alignment with that1:06:06life and accelerate the rate at which1:06:09life itself can bring back the carbon1:06:12which we have emitted over the past 2001:06:15years.1:06:20Life creates conditions conducive to1:06:22life. If we learn how to help the1:06:25helpers, we as human beings can have a1:06:28positive impact and actually enhance the1:06:30place we live.1:06:34And could we make our aspirational goal,1:06:36our moonshot, be that we were going to1:06:38actually reverse global warming?1:06:43Realizing we are in the stretch in which1:06:46we have to make a decision of whether1:06:49we're going to be in a climate that's1:06:50fit for life or not.1:06:53[Music]1:06:57It was a lot and we're very passionate.1:07:00Our feeling amongst each other after the1:07:04day wrapped up is that uh we were1:07:07screwed.1:07:10Like all this all this work, all these1:07:14years, all this effort1:07:17and1:07:20there was no more bread on that hook.1:07:25We all went home and slept on it.1:07:37The next morning, Jay comes in. I don't1:07:40know how lady stayed up. Maybe a little1:07:41bit worse for a wear.1:07:44Jay came back in the room. He had heard1:07:46from us and he had taken it in and he1:07:49said, "I'm ready to reverse global1:07:52warming. I want a climate fit for life.1:08:02The new goal would be to basically1:08:05reverse global warming.1:08:07And we're going, "What?" He's always1:08:10like, "What?"1:08:14I had never been forced to look at the1:08:16science and the reality of climate1:08:19change. And so Janine in particular took1:08:23me on a journey to understand the1:08:25science and therefore build an1:08:28optimistic spirit that we could do1:08:30something about it.1:08:33Humans messed up the environment by1:08:35accident. Imagine what happens when we1:08:39fix the environment with intent.1:08:43And we were just shocked. I mean, and um1:08:49moved1:08:51uh1:08:52I don't think we fully understood that1:08:55that could happen from what we1:08:57experienced with Jay the day before.1:09:01He got it.1:09:04Positive energy came up in that room.1:09:07Interfaces back. We're taking our cues1:09:10from native ecosystems and we're going1:09:12to create a world that is generous and1:09:16we're going to reverse climate change.1:09:21Global climate change is the issue of1:09:26our time.1:09:28The world is at a crisis and now1:09:33now is the time for us to act.1:09:37But where do we start?1:09:40Carbon is not the enemy.1:09:44We We are made of carbon.1:09:48Our carpet is made of carbon.1:09:52The Earth is made of carbon.1:09:54Regrettably, man has put carbon where it1:09:58shouldn't be,1:09:59in the atmosphere.1:10:02And now, now is the time to bring carbon1:10:05home.1:10:08Doing no harm1:10:10is simply not enough.1:10:14Now is the time to move to positive1:10:17impact1:10:20to bring carbon home together.1:10:25[Music]1:10:28I mean, it was an incredibly proud1:10:30moment for me to see him standing up1:10:32there and I know for everyone in the1:10:34company to to have him embrace it.1:10:41And so once again, what you have is a1:10:44company leading the way.1:10:57So in the summer of 2016,1:11:00we launched climate takeback.1:11:03One year later, the R&D team came up1:11:05with a prototype at the time, but it was1:11:07the first ever carbon negative carpet1:11:10tile.1:11:12It actually sequesters more carbon than1:11:14if we hadn't made the product at all.1:11:18So, by the summer of 2020, we will be1:11:21making and selling carbon negative1:11:24carpet tile all around the world.1:11:33So as part of climate takeback, the idea1:11:35is that we're going to increase our1:11:37impact because the impact could be1:11:39positive. And so we started this program1:11:41called factory is a forest.1:11:44What we say is that the factory and its1:11:47site should perform like the forest that1:11:49would be there if we weren't there.1:11:53So we go and we find a reference1:11:54habitat. We figure out what are the1:11:57benefits coming per acre.1:12:00How much water is being purified? That's1:12:02how much water needs to be purified at1:12:04the plant. How much air is being1:12:06cleaned? How much cooling? How much soil1:12:09is being built? How much habitat is1:12:12being supported? How many organisms are1:12:14being supported? You have a metric that1:12:16says we're going to get closer and1:12:18closer to the way this forest functions.1:12:22The goal is to be functionally1:12:24indistinguishable from the forest next1:12:26door. That's the journey that they're on1:12:28now.1:12:35I used to come to work every day trying1:12:37to find a way to, you know, develop a1:12:41product and change it so that it would1:12:43cost less or perform better. And that's1:12:46okay. But wow, to be able to come to1:12:49work every day and instead of trying to1:12:50make more money for the company, I'm1:12:53trying to make a difference in the1:12:55world. I'm actually trying to save the1:12:57world. You know, that's so1:12:59inspirational.1:13:01There were many moments where I felt,1:13:03"Oh my god, we're doing something really1:13:06big."1:13:08And many times it was just in front of1:13:10customers.1:13:11People would hug me. There are people1:13:14that would cry honestly when you just1:13:15tell them what you were doing.1:13:18[Music]1:13:20Allowing people to pursue their1:13:24livelihood in a way that connects to a1:13:26larger purpose1:13:29is really appealing to people across all1:13:32cultures. If we can all get up and go to1:13:34work in this company, whether we're in1:13:36Thailand or Australia or Northern1:13:38Ireland or Atlanta, and say, you know, I1:13:42do this for the paycheck for sure, but1:13:45I'm also contributing to something1:13:47bigger. That's what it comes down to.1:13:52You know, it's great to make money and1:13:54it's, you know, that's a good thing. Uh1:13:56but in the end, sustainability gives you1:13:59something to believe in more so than1:14:01just profit.1:14:15I'm not just making carpet, which is1:14:16isn't the be all and end all for me. I'm1:14:18making carpet for a company that has a1:14:20conscience about what their impact is1:14:22going to be in 100 years time.1:14:27It just makes total business sense. I1:14:30don't know how companies are going to1:14:31survive in the next 20 years if they're1:14:32not on this journey cuz people want to1:14:35know what you're doing for society and1:14:36the environment. It's not about making a1:14:39dollar. It's about all three.1:14:50So, I'm really proud to share with you1:14:53how far we've come over the last 251:14:55years.1:14:58We've reduced our factory water use 88%1:15:01since 1996.1:15:07We've reduced our waste to landfill 91%.1:15:15All of our factory locations today now1:15:19use 100% renewable electricity.1:15:23[Applause]1:15:24[Music]1:15:28And here's the big number, our favorite1:15:30number.1:15:33We've reduced the greenhouse gas1:15:34emissions of our business a whopping1:15:3796%.1:15:46I think we can say that we delivered on1:15:48our original mission to transform1:15:50interface.1:15:53[Music]1:15:58But I think we've actually gone even1:15:59further than that.1:16:02I think we've gone beyond zero and1:16:04started to go to positive.1:16:07Our1:16:09ripple effect has gone far beyond us to1:16:12fuel so many other missions. And I think1:16:15this is what Rey1:16:17[Music]1:16:21I think that's what Rey would have been1:16:23so proud to have seen.1:16:26Not just a transformed interface but the1:16:29transformation that we have had on the1:16:31rest of the world.1:16:35And I think we can say with humility1:16:37that we delivered on our mission,1:16:40inspired by Rey,1:16:42with Rey, and now for Rey, and for us1:16:46and for tomorrow's child.1:16:50[Applause]1:16:55without a name, an unseen face,1:17:00and knowing not your time or place,1:17:03tomorrow's child, though yet unborn.1:17:08I met you first last Tuesday morning.1:17:12A wise friend introduced us to and1:17:14through his shining point of view, I saw1:17:16a day that you would see, a day for you,1:17:20but not for me.1:17:23Knowing you has changed my thinking, for1:17:26I never had an inkling that perhaps the1:17:28things I do might someday somehow1:17:31threaten you.1:17:34Tomorrow's child, my daughter's son, I'm1:17:37afraid I've just begun to think of you1:17:40and of your good, though always having1:17:44known I should.1:17:46Again, I will to weigh the cost of what1:17:49I squander, what is lost, if ever I1:17:52forget, that you will someday come1:17:56and live here, too.1:18:05Where interface didn't have a map, we do1:18:08now.1:18:10If it has been done, it can be done. And1:18:12so now the challenge for leaders is not1:18:15can we do it. The question is are you1:18:17willing to do it.1:18:22Reinventing civilization is a tall1:18:25order.1:18:28So is starting the second industrial1:18:31revolution.1:18:32[Music]1:18:33Paul Hawkins says only business and1:18:35industry are strong enough to lead. We1:18:39agree.1:18:42Why not us?1:18:44Why not you and us?1:18:50It's the greatest play to win game1:18:54of all time.1:18:57Thank you.1:19:07[Music]1:19:37Heat.1:19:47[Music]1:19:54Heat.1:20:00Heat.1:20:08[Music]1:20:18Heat.1:20:24Heat.1:20:32[Music]1:20:44Heat.1:20:45[Music]1:20:49Heat.1:20:53[Music]1:21:04Heat.1:21:11[Music]1:21:22[Music]
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