Interface Expands Recycling Capabilities in Europe to Advance Circularity Efforts

Rhea-AI Summary

Interface (NASDAQ: TILE) has expanded its recycling capabilities at its Scherpenzeel, Netherlands facility to advance circularity efforts. The plant now recycles post-consumer carpet tiles that can't be reused, immediately returning them to the production cycle for new carpet tiles in the European market. This initiative supports Interface's commitment to reducing carbon emissions and aligns with Paris Agreement goals.

Key points:

• 51% of materials used in Interface products are from recycled or bio-based sources
• Since 2016, Interface has collected over 31,750 tonnes of post-consumer carpet tile through its ReEntry program
• The expanded facility will facilitate the use of recycled content in new products, including the carbon-negative CQuest backing
• This investment supports Interface's climate goals and helps customers reduce their carbon footprint

Positive

• Expanded recycling capabilities at Scherpenzeel facility to recycle post-consumer carpet tiles
• 51% of materials used in Interface products are from recycled or bio-based sources
• Collected over 31,750 tonnes of post-consumer carpet tile since 2016 through ReEntry program
• Implementation of carbon-negative CQuest backing in European products

Negative

• None.

Insights

Environmental Sustainability Expert

Interface's expansion of recycling capabilities in Europe marks a significant step towards circular economy in the flooring industry. The innovative process to recycle post-consumer carpet tiles that can't be reused is a game-changer. This move aligns with global efforts to reduce carbon footprints and combat climate change.

The company's focus on direct carbon reductions and carbon storage throughout its supply chain demonstrates a proactive approach to sustainability. By prioritizing recycled content and bio-based materials, Interface is not only reducing its environmental impact but also setting a new industry standard.

The enhanced facility in Scherpenzeel will likely result in increased operational efficiency and reduced production costs in the long run. This investment could potentially lead to a competitive advantage in the European market, appealing to environmentally conscious consumers and businesses.

Financial Analyst

Interface's investment in expanded recycling capabilities is a strategic move that could yield long-term financial benefits. By increasing the use of recycled materials, the company may reduce raw material costs and mitigate exposure to price volatility in virgin materials.

The focus on sustainability aligns with growing consumer and regulatory demands, potentially enhancing brand value and market share. This could translate into increased revenue and customer loyalty in the environmentally conscious European market.

However, the initial investment and ongoing operational costs of the expanded facility should be monitored. The return on investment (ROI) will depend on the efficiency of the recycling process and the market demand for sustainable flooring solutions. Investors should watch for improvements in profit margins and market share in upcoming financial reports.

Market Research Analyst

Interface's expansion of recycling capabilities taps into the growing circular economy trend, which is gaining traction globally. This move positions the company as a leader in sustainable flooring solutions, potentially attracting environmentally conscious customers and partners.

The European market, in particular, has shown a strong preference for sustainable products. Interface's enhanced recycling facility in the Netherlands could lead to increased market penetration and customer acquisition in this region.

Moreover, as more companies set their own carbon reduction goals, Interface's low-carbon products could become increasingly attractive. This could result in new business opportunities and partnerships with companies looking to reduce their Scope 3 emissions through their supply chain. The market should watch for potential collaborations and contracts resulting from this sustainability-focused strategy.

ATLANTA--(BUSINESS WIRE)-- Interface, Inc. (NASDAQ: TILE), the global flooring solutions company and leader in sustainability, today announced continued efforts to develop a circular economy with expanded capabilities at its recycling facility in Scherpenzeel, Netherlands.

The Scherpenzeel recycling plant will now use an innovative process to recycle post-consumer carpet tiles that cannot be reused, supporting Interface’s commitment to circularity. This will enable the used products to be immediately returned to the production cycle and used to make new carpet tiles for the European market.

“We know the impact low-carbon products and circular solutions have on reducing our carbon footprint and helping keep global temperature increases in line with the reductions required under the Paris Agreement,” said Nigel Stansfield, Chief Innovation & Sustainability Officer at Interface. “This investment in our European facility is a critical step as we work to avoid, reduce, and store as much carbon as we can in our products, our business operations, and our supply chain. The upgrades made at the plant demonstrate our commitment to achieving our climate goals faster through direct carbon reductions.”

Interface is focused on direct carbon reductions and carbon storage internally and throughout its supply chain to meet the urgency of the climate crisis. The company continues to prioritize the use of recycled content and bio-based materials to reduce the carbon footprint of its products. The enhanced recycling facility in Europe is an important step in making it easier for used products to go directly back into the production cycle as a source for additional recycled content in new products.

Designing for Reuse & Recycling

Interface has a 30-year history of introducing the programs, processes, and innovations needed to meet its sustainability commitments. In 1995, Interface established the ReEntry™ Reclamation & Recycling program to close the loop for its products in its U.S. manufacturing. Additionally, to enhance its ability to recycle products from customers at the end of their life, Interface actively works to eliminate materials that should not be recycled.

Since 2016, Interface has collected more than 31,750 tonnes of post-consumer carpet tile through ReEntry, helping facilitate a circular economy for its flooring products. Based on the returned material’s condition and composition, it is then diverted to its must sustainable option – reuse, recycle, or energy recovery.

“The direct reuse of our post-consumer carpet tiles by local partners, charities, or community projects remains the first and most important part of ReEntry,” said Liz Minné, Head of Global Sustainability Strategy. “However, these expansions at the facility in The Netherlands present an important milestone for us as we look to close the loop and lower the carbon footprint of our products.”

Using Recycled & Bio-based Materials

Designed with purpose, Interface uses recycled and bio-based materials in many parts of its carpet tile, resilient, and rubber products. Today, 51% of the materials used to make its products are from recycled or bio-based sources. By including bio-based content in its products, Interface keeps previously absorbed carbon from re-entering the atmosphere, which helps significantly reduce the products’ carbon footprint.

With the expanded recycling facility, it will be easier for Interface to return used carpet tile backings to the product lifecycle for the manufacture of new backing constructions, including the manufacturer’s carbon negative CQuest™ backing, which is standard on all products made in Europe.

“Many of our customers have declared their own carbon reduction goals, and we’re able to support them on their sustainability journey by lowering the carbon footprint of our products through innovation,” said Minné. “By continuing to invest in our manufacturing facilities, increase recycled content of our products, and drive adoption of circular models, we can drive absolute carbon emission reductions, helping support the long-term needs of our partners, customers, and the planet.”

About Interface

Interface, Inc., (NASDAQ: TILE) is a global flooring solutions company and sustainability leader, offering an integrated portfolio of carpet tile and resilient flooring products that includes Interface® carpet tile and LVT, nora® rubber flooring, and FLOR® premium area rugs for commercial and residential spaces. Made with purpose and without compromise, Interface flooring brings more sophisticated design, more performance, more innovation, and more climate progress to interior spaces. A decades-long pioneer in sustainability, Interface remains “all in” on becoming a restorative business. Today, the company is focusing on carbon reductions, not offsets, as it works toward achieving its verified science-based targets by 2030 and its goal to become a carbon negative enterprise by 2040.

Learn more about Interface at interface.com and blog.interface.com, nora by Interface at nora.com, FLOR at FLOR.com, and the company’s sustainability journey at interface.com/sustainability.

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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This news release contains forward-looking statements, including, in particular, statements about Interface’s plans, strategies, and prospects. These are based on the Company’s current assumptions, expectations, and projections about future events. Although Interface believes that the expectations reflected in these forward-looking statements are reasonable, the Company can give no assurance that these expectations will prove to be correct or that savings or other benefits anticipated in the forward-looking statements will be achieved. The forward-looking statements set forth involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including but not limited to risks and uncertainties under the heading “Risk Factors” included in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. You should also consider any additional or updated information included under the heading “Risk Factors” in the Company’s subsequent annual and quarterly reports. Forward-looking statements speak only as of the date made. The Company assumes no responsibility to update or revise forward-looking statements and cautions investors not to place undue reliance on any such statements. References and links to websites contained herein are for reference purposes only, and the content of such websites is not a part of this news release or incorporated by reference herein.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240903617078/en/

Christine Needles

Global Corporate Communications

Christine.Needles@interface.com

+1 404-491-4660

Source: Interface, Inc.

FAQ

What new recycling capabilities has Interface (TILE) added to its Scherpenzeel facility?

Interface has expanded its Scherpenzeel, Netherlands facility to recycle post-consumer carpet tiles that cannot be reused, allowing them to be immediately returned to the production cycle for new carpet tiles in the European market.

How much recycled or bio-based content does Interface (TILE) use in its products?

Interface currently uses 51% recycled or bio-based materials in the production of its carpet tile, resilient, and rubber products.

How many tonnes of post-consumer carpet tile has Interface (TILE) collected through its ReEntry program since 2016?

Since 2016, Interface has collected more than 31,750 tonnes of post-consumer carpet tile through its ReEntry Reclamation & Recycling program.

What is the CQuest backing that Interface (TILE) uses in its European products?

CQuest is Interface's carbon-negative backing, which is now standard on all products made in Europe. The expanded recycling facility will make it easier to return used carpet tile backings to the product lifecycle for manufacturing new backing constructions, including CQuest.