our journey toward a better world around you: a report from herman miller, inc. 2009

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ceo letter 3 introduction 7 company overview 11 what we did last year 17

how we work: social responsibility 41 how we work: Environment 57

appendix 72 gri index 78

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on the cover: “we won’t stop until we’ve achieved nothing.” this image is

from a video on our website that explains why: we’re working to shrink our

operational footprint to zero by 2020. this year, we’re 83.5% of the way to

that goal.

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Herman Miller’s statement of corporate values is entitled “Things that Matter.” Our values are the basis for Herman Miller’s corporate community. One of the nine things that matters most to us is called “A Better World.” For us, contributing to a better world around you takes many forms—environmental advocacy, volunteering time and contributing to nonprofit groups, and the health and well-being of our community.

The previous year at Herman Miller and in our economy generally has been extremely challenging. Despite the tough economic conditions, we have continued to make progress toward our Better World goals. Are we perfect? Of course not. Building a better world is not so much a goal as an everyday fact of life.

Like volunteerism and health and safety programs, environmentalism has been alive and well at Herman Miller for a long time. Our formal environmental programs and Environmental

welcome to herman miller’s better world report

herman miller chief executive officer brian walker

A Message from Brian Walker

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Quality Action Teams started in the late 1980s when a group of employees pushed senior management to take a strong position on the environment and take actions to back up the words. Much of this report deals with our environmental actions—where we stand and where we intend to go.

This report also deals with other efforts aimed at building a better world. For me, the remarkable thing about these efforts at Herman Miller is their broad-based support. Widespread engagement on the part of Herman Miller employees has led to wide variety of recognition: One of Fortune’s

“100 Best Companies to Work For”, one of Sustainable Business.com’s top 20 “World Sustainable Stocks”; Dow Jones Sustainability Index; one of DiversityInc’s top ten supplier diversity programs in the U.S.; one of Business Ethic’s “100 Best Corporate Citizens.”

I’ll say again: Are we perfect? Not by any means. Will we constantly try to improve the performance of our customers’ environments? Yes. Will we continue to work toward the goals stated in this report and build on the progress we are reporting here? By all means. And I truly hope this report will give you some ideas about how you can join us.

Thank you,

Brian WalkerChief Executive Officer

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a group of herman miller employees from the 1920s. the millwright (at front,

with dark hat) has come to symbolize for us how important it is to include

the whole person in our community. max de pree, former herman miller ceo

and chairman, tells the entire story in his book leadership is an art.

At Herman Miller, many things matter—design, certainly, and both classic furniture and high-performance office systems and seating. We also place great importance on what makes a better world—environmental advocacy, community service, inclusiveness and diversity, and health and well-being.

The 3rd annual Better World report results from our corporate values (two of which are

“A Better World” and “Transparency”) and our determination to live up to them as we sustain our business into the future.

We have taken many factors into account in deciding what information to include in this report—our customers’ requests, our corporate goals, and our support for environmental advocacy and the Global Reporting Initiative (GRI) guidelines. Every year in November we report on our performance at building a better world, what we’ve accomplished during the previous year, and most important, our plans.

introduction

Sustaining a Better World

herman miller employees spend a sunny summer afternoon collecting

roadside litter as part of their local “adopt-a-highway” program.

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Every year we have tried to become more international in our reporting. The bulk of the measures we discuss here are the world’s measures; they are consistent with what we value and think matters most.

The first sections will give you an idea about who we are, what we believe, and what we do. We have included some basic financial information. Wherever possible, we have given you links to more details about Herman Miller and our attempts to create a better world around you.

The information here covers our fiscal year 2009 (June 2008 – May 2009).

Paul MurrayDirector of Environmental Health and Safety

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employees pose at our corporate headquarters for a photo in spirit,

our annual newspaper published by and for the herman miller community.

Taking our cue from our founder, our goal at Herman Miller is to improve the performance of human habitats and to make work life more meaningful, productive, and rewarding with our products and services.

As employee-owners, we share a commitment to satisfying our customers with products of uncompromising quality and with designs that solve problems. Our innovations in design and design services, information technology, human resource programs, and environmental practices have made us a leader—in our own industry and beyond.

We focus our resources and investments on what benefits our customers most: research, design, distribution, and services to increase the value of your workplace. Our manufactured components are produced through a strong and proven network of trusted and expert suppliers. With this approach, we maintain flexibility, efficiency, and cost effectiveness.

company overview

“A business is rightly judged by its products and services, but it must also face scrutiny as to its humanity.” – D. J. De Pree, founder, Herman Miller, Inc.

herman miller founder d.j. de pree

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We believe that this model—supported by continued product and service advances and the unmatched speed and reliability of our operations—is the best long-term approach for our organization and our customers.

To learn more about who we are and what we do, please visit About Us on HermanMiller.com.

our design heritage

Our reputation for integrity in product quality and business relationships has developed through our partnerships with some of the century’s most outstanding designers—Gilbert Rohde, George Nelson, Charles and Ray Eames, Alexander Girard, and Isamu Noguchi, to name just a few. As they have been for 70 years, our people and the designers they work with are concerned with more than fabricating furniture; they are concerned with making the world we work in better. As a result, Herman Miller is a globally recognized innovator in contemporary interiors and related technologies for office, home, healthcare, and higher education settings. This design heritage also has enabled Herman Miller employees to “design” better systems and processes that have led to our environmental legacy.

our products

Through innovative research and design, and in partnership with our subsidiaries and allied companies, Herman Miller offers:

• Office furniture systems and accessories

• Seating for business, healthcare, home, and higher education environments

• Freestanding furniture and filing and storage products for business, healthcare, home, and higher education environments

• Clinical and laboratory furniture and systems for healthcare

• Residential furniture

• Sound management technologies for open-plan work environments

• Modular and programmable power infrastructures for buildings

For more, please visit our Products page on HermanMiller.com.

20th century modern design pioneers including charles and ray eames (top),

alexander girard (bottom right), and gilbert rohde (bottom left) helped transform

herman miller into the industry’s leading manufacturer of modern furniture.

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our services

Herman Miller offers services that allow our customers to do more than install new furniture. We help our customers imagine, create, and sustain workplaces that attract and retain talented people, foster collaboration and innovation, enhance brand image, and incorporate their facilities into their strategic plan. We provide our services in a variety of ways, so that our customers can choose what works for them.

For more, please visit Services on HermanMiller.com.

our leadership

The Herman Miller Board of Directors takes its commitment to environ-mental and social initiatives seriously, and they review our performance on these initiatives every year. In addition, to monitor compliance with the company’s high ethical standards, the Directors and executives regularly complete detailed questionnaires to assess compliance with the Corporate Code of Conduct. Executives also live by their commitment: Their performance, and therefore compensation, is continuously measured against their ability to manage the business in a manner consistent with our values.

where we are

Herman Miller is a global company with operations, sales offices, dealers, and licensees in more than 80 countries in North America, Asia/Pacific, Europe, Middle East, Africa, and Latin America, serving customers virtually anywhere in the world. Our world headquarters is in Zeeland, Michigan. Our manufacturing facilities are located in the U.S., China, Italy, and the United Kingdom.

herman miller designs and manufactures furniture solutions for office,

healthcare, home, and higher education environments.

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2009 key data

Community Service:• Herman Miller employees logged 18,500

volunteer hours

• Herman Miller supported victims of both the China earthquake and the floods in Central U.S.

• Herman Miller sent 12 volunteers to India to work on outdoor construction projects for two schools

• 117 Herman Miller employees—the largest number of volunteers from any one company—volunteered for the eightieth annual Greater Ottawa County United Way “Day of Caring”.

• Over 60 Herman Miller women volunteered for a second year with Women for Women International

• Once again, as part of the Global Sales Conference, 79 Herman Miller employees donated 396 volunteer hours spent on sanding, painting, pulling weeds, and reading to senior citizens

• More than 100 kids gathered to make gifts for family and friends at a local “We Care” event

• 98 Herman Miller employees participated in the 7th annual Women’s Volunteer Day helping over a dozen nonprofit organizations

what we did last year

This section is to give you an idea of our progress and activities during the 2009 fiscal year (June 2008 through May 2009).

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our founder, dj de pree, said—and we believe—that “we are all

extraordinary.” the talents and skills of each and every herman miller

employee contribute in important ways to our collective achievements.

• Herman Miller volunteers helped build their fifth Habitat for Humanity house, a LEED Gold-rated accessible home

• Brought fresh water to 36 families in “water-stressed” countries by providing fresh water filter units

• Herman Miller Spring Lake employees mentored students in spelling, reading, writing, and math in the Learning Enrichment through Adult Participation (LEAD) program

• Herman Miller employees participated in Adopt-a-Highway along two different stretches of highway

• Herman Miller GreenHouse employees orchestrated a holiday food drive and participated in a local non-profit holiday toy and food distribution

• Herman Miller Zeeland Main Site employees donated food, gifts, supplies, and cash to several local non-profit organizations

• Geiger employees collected toys for a local shelter during the holidays

• Herman Miller employees participated in the Juvenile Diabetes Research Foundation (JDRF) Ride to Cure Diabetes

Environmental:• Herman Miller achieved fifth consecutive listing on Dow Jones Sustainability

World Index

• Herman Miller’s rePurpose program helped corporations realize benefits while doing the right thing by donating no longer needed office furniture and more to deserving nonprofit organizations

• Several fuel saving initiatives for employees were launched, including a “Carpooling Matching System” and “Bike Pooling Matching System”

• Herman Miller received the 2009 Recycling by Design award from the Institute of Scrap Recycling Industries, Inc.

• Herman Miller employees participated in the development of the Business and Institutional Furniture Manufacturer’s Association (BIFMA) e3 sustainability standard, the basis of the BIFMA level™ product certification program

• Aeron, Nala, Embody, Teneo, Tu, and Meridian filing and storage product lines received MBDC Cradle to Cradle Silver certification

• LEED-CI Gold certification earned for Main Site B-West building in Zeeland, Michigan and the ConVia showroom in Buffalo Grove, Illinois

• Herman Miller’s local fleet recognized as a U.S. EPA SmartWay Transport Partnership Certified Carrier

• Geiger received FSC Chain of Custody certification

• Greenhouse Gas Emissions third-party verified for second year

• Environmental Footprint reduced by 83.5% overall since fiscal 1994 (base year)

• Air emissions (VOCs) reduced by 93.0% since 1994

• Hazardous waste reduced by 95.4% since 1994

• Landfill reduced by 88.3% since 1994

• Process water use reduced by 77.7% since 1994

• 63% of all electrical energy used was from renewable sources

• 51% of our sales came from Design for the Environment (DfE) approved products

• 80% of our products received BIFMA e3 standard’s level certification

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• Herman Miller employees mentored students from several area schools on watershed ecology

Health and Well-Being:• Herman Miller Health Management Program continued to helps employees

improve their own health; the Program included a Health Risk Assessment and employee reward tracking on WebMD

• Herman Miller recognized by Occupational Hazards magazine (EHS Today) as one of America’s Safest Companies. It was one of 18 companies to achieve this distinction.

• Michigan Voluntary Protection Program (MVPP) awarded STAR status to Zeeland Main Site

• Herman Miller’s GreenHouse (Seating) facility and Midwest Distribution Center were recertified by the Michigan Voluntary Protection Program (MVPP)

• Safety Olympics event held at Zeeland Main Site

• On-site wellness classes included yoga, yogilates, and spinning.

• On-site health classes included “Healthy Living Tips” and “Eating for Wellness”

Inclusiveness:• Inclusiveness Resource Teams (IRTs) continued to recognize and welcome

difference

• Herman Miller received the National Minority Supplier Development Council’s Corporation of the Year

• Herman Miller received the top rating of 100 percent for a second consecutive year in the Human Rights Campaign Foundation’s seventh annual Corporate Equality Index.

• Herman Miller’s Inclusiveness and Diversity organization presented its second annual $2,500 scholarship to a youth in the local Boys and Girls Club

• Women’s Day Conference—with the theme of “Inspire. Inform. Involve.”—sponsored by the Women’s Initiative Network included a clutter expert, finan-cial planner, bookstore owner, designer, and the first female president of a local chamber of commerce.

• Male Inclusiveness Resource Team (IRT) once again held a company-wide online auction to benefit the local Boys and Girls Club.

• The Inclusiveness and Diversity community outreach team in conjunction with the Black IRT prepared and handed out 568 backpacks filled with school sup-plies.

community

“ Herman Miller is a quiet giant. When they make it possible for their employees to take time off and build houses for Habitat for Humanity, they don’t ask for anything in return--no PR, no recognition. Habitat gets skilled, hardworking volunteers, and West Michigan gets well-built houses for families that need them.” –Beth Hanis, Executive Director, Tri-Cities Habitat for Humanity

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We encourage our employees to contribute to their communities, and we are proud of their volunteer efforts ranging from building trails and houses to holiday food drives and fundraisers. Here are some examples of what our people did last year.

During July 2008, Herman Miller sent a team of 12 volunteers to two schools in southern India to work on various outdoor construction projects. One of the schools is in the city of Chinnakudi and the other, in the city of Tharangambadi. The schools are about 16 kilometers apart and serve a combined total of 500 students. At the first school, the projects included painting a boundary wall around the 2.7-acre campus; building a six-lane, 100-meter mud/gravel track, a sand volleyball court and ten bamboo huts to provide children some reprieve from the sun; and painting murals for five classroom walls. At the second school, the projects included building a sand volleyball court and ten bamboo huts plus painting an additional entryway mural. The athletic facilities will serve not only the students at these two schools, but also children in the 12 surrounding villages, with the long-term goal of organizing an annual sports competition for children. When embraced by the community, the tournaments will yield positive life change by veering young people away from television, gambling, and alcohol.

Eleven teams from West Michigan participated in the eighth annual Greater Ottawa County United Way Day of Caring and assisted local nonprofits with a wide range of service projects. With 117 employees, Herman Miller provided the largest number of volunteers for the event.

Over 60 women throughout Herman Miller volunteered for a second year with Women for Women International, an organization that

“mobilizes women to change their lives by bringing a holistic approach to addressing the unique needs of women in conflict and post-conflict environments.” Meeting monthly in small groups by facility, these women write letters to their “sisters” in Kosovo to support them in the rebuilding of their lives.

volunteer efforts

06/07 07/08 08/09 Met 2009 Goal

Number of Employee 27,473 20,434 18,520 Exceeded Volunteer Hours

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last year we built the steinhauer family a new, leed-rated home with habitat

for humanity, one of several homes we have built in west michigan over the

years. various energy-efficient features have resulted in energy bills as low

as $15 a month.

Once again, at this year’s Global Sales Conference in Alexandria, Virginia, seventy-nine employees donated 396 volunteer hours to the Old Town Alexandria area in six different locations. Herman Miller salespeople and employees sanded, painted, pulled weeds, and read to senior citizens.

For the eighth consecutive year, Herman Miller, Geiger, and the architecture and design community volunteered to participate in

“We Care”—a day of creativity and craft-making for underprivileged children in 23 cities across the U.S. At a local West Michigan event, over 100 local youth gathered to create gifts for family and friends. Herman Miller employees staffed the craft, wrapping, and snack stations. We are lucky to have a fabulous team of firms outside of Herman Miller that help make this event possible by donating their time, craft materials, and food.

The seventh annual Women’s Volunteer Day welcomed 98 volunteers from all over the company. Also involved were retirees, self-employed women, caregivers, and students. As part of the event, a raffle of works of art from talented women in the community raised funds donated to the local mission. The group also helped at least a dozen other nonprofit organizations.

Herman Miller connected with International Aid in Spring Lake, Michigan, in response to the world’s water crisis. Every day, across this planet, an estimated 5,000 children die from the lack of clean, potable drinking water. In particular, young girls living in rural Sub-Saharan Africa and other parts of the world must trek as many as six miles every day to retrieve water for their families and village. This time-consuming, manual labor keeps them from going to school and reduces their ability to earn an outside wage. Herman Miller employees raised enough money through the return of soda cans and bottles to purchase 36 water filters designed by one of our suppliers. Once a filter is filled with sand, gravel, and water, it can filter 47 liters per hour and provides a family with clean drinking water for over a decade.

Over the past five years, Herman Miller volunteers have helped build homes for Habitat for Humanity. This year’s home for a family of three has reported a $15-per-month energy bill. The house includes an energy-efficient furnace; double-paned windows to reduce energy draw; all energy-efficient light fixtures, light bulbs, and much more. Even the driveway and foundation were mixed with a waste byproduct, fly ash.

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at our global sales conference in washington, d.c. this year, 79 people donated

396 hours to various nonprofit groups in the old town alexandria area.

Herman Miller employees helped mentor students in a watershed ecology project, formerly known as Teach for Watershed (T4W). The program consisted of three events: introductory talks about watershed ecology and a science lab where students performed some of the same water quality test they did in the field; a field trip to a nearby creek or stream, where students performed the assigned water quality tests live; third, students pulled information together to present their findings to Herman Miller’s Environmental Health and Safety Team. One class studied invasive species for their project, a hands-on project in their classroom raising Purple Loosestrife and Garucella beetles. The beetles were released into the wild as a biological control to eliminate the invasive Purple Loosestrife.

health and well-being

Our continually improving injury rate for the last three years is less than one-third of the current industry average of 6.8 injuries per 100 employees. We continue to strive toward our goal of zero injuries.

Two key initiatives in our pursuit of zero injuries, excellence in safety performance, and elimination of unsafe behavior are our participation in the OSHA Voluntary Protection Program and Behavioral Based Safety.

osha voluntary protection program

On July 17, 2008, Herman Miller Zeeland Main Site was awarded status as a STAR participant in the Michigan Voluntary Protection Program (MVPP), awarded by the Michigan Occupational Safety and Health Administration (MIOSHA). The GreenHouse and Midwest Distribution Center are both recertified to the MVPP program. Both sites have STAR status. The MIOSHA Program is part of the Michigan Department of Labor & Economic Growth (DLEG). STAR recognition exemplifies the

health and safety

06/07 07/08** 08/09*

Total Case Incident Rate 2.6 2.5 2.2 per 100 Employees

Fatalities 0 0 0

*As of 2008/09, numbers include new subsidiary Brandrud as well as Ruskin **As of 2007/08, numbers include Herman Miller’s United Kingdom operations.

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250 employees participate in our bike and carpool programs. 344 have bought

bikes and 36 have bought fuel-efficient cars with company reimbursements of

$100 and $500. overall, we’ve eliminated 300,000 commuter miles and added

who knows how much to our collective health.

result of successful efforts by employees, management, and government in partnering for excellence in workplace safety and health. The MVPP Star Award is the most prestigious safety and health award given in Michigan. Zeeland Main Site is the fourth Herman Miller facility to receive MVPP STAR status, along with the GreenHouse, Midwest, and 171st.

behavior based safety

We currently have six manufacturing sites that are in various stages of implementation of the behavior based safety program. Each has a steering team of employees from the production floor that leads and manages the program. They are responsible for educating, coaching, problem solving, data collection and review, and implementing action plans for site improvements.

health risk management program

The Herman Miller Health Management Program is designed to help employees become more aware of their health and to be more involved in improving their overall health habits—and the opportunity to earn financial rewards for participating.

The program requires a Herman Miller employee to complete a Health Quotient and healthy Goal on WebMD, as well as a routine physical exam performed by the employee’s own physician. Employees are also required to complete four health promotion activities, including monthly Wellness Classes available in West Michigan. Employees can attend the classes in person, watch live webinars, or view a podcast at their convenience. Fitness classes include yoga, yogilates, and spinning. Other activities available to employees included The Holland Hundred,

“On the Move” Walking Program, on-site flu shots, and our on-site blood drive—to name only a few.

People who complete the Health Management Program still received a $300 incentive to help offset the cost of medical premiums. One enhancement to the program was the reward tracking on WebMD. To earn the $300 incentive, an employee needed to accumulate 300 points. There are over 30 ways one can earn points that are tracked using the WebMD rewards tracking program. Every time an activity is completed or the WebMD website is navigated, points are earned.

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Other enhancements to the program included:Health Coaching: All participants who received a “high-risk” score from the HealthQuotient received individual health coaching. This included informational packets of health information related to specific health needs. It also included unlimited telephone health coaching with an experienced health coach from WebMD. Spouses also received health coaching. A partner of any employee who is enrolled in our health plans can participate in the Health Management Program.

The Benefits Team hosted workshops in the manufacturing areas to assist employees with navigating WebMD.

inclusiveness

Several initiatives moved us toward our goal of becoming a more diverse and inclusive organization in the 2009 fiscal year.

At Herman Miller, inclusiveness and diversity (I&D) is a strategic business imperative, in addition to being a corporate value and the right thing to do for our employees and communities. Our corporate I&D strategy focuses on five critical areas: Supplier Diversity, Talent Acquisition and Retention, Education and Awareness, Dealer Distribution, and Community Outreach. We track our progress to annual goals in a score-card which is closely monitored by our senior leadership. We have seen improvements in all areas and are focused on executing this strategy to the fullest to create a more talented and inclusive workplace.

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diversity

06/07 07/08 08/09

Female Employees % 39.8 39.6 39.6

Minority Employees % 20 20.2 19.6

Female Employees 32.4 33.1 33.5Senior Management %

Minority Employees 9.5 9.2 8.8Senior Management %

Minority Spend % 12.35 14 13.44

corporate index and scorecard

Focus Area Objective Initiatives Possible Score

Actual Score

Supplier Diversity Initiative

Improve & grow industry-leading supplier diversity initiative

• Increase total % of minority-owned business spending

• Increase total % of women-owned business spending

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Dealer Distribution Network

Increase total dealer sales by enhancing the diversity of our distribution channel

• Increase the total sales volume of minority- and women-owned dealerships

• Increase the number of minority-owned Service Partners

• Ensure all of our dealers have active & measurable inclusiveness and diversity plans in place

• Build into our Certified Network requirements and Dealer Agreements a deliberate program to promote the recruitment and advancement of minorities and women in the dealerships, creating a pool of candidate s who will become managers, leaders and owners

• Increase the % of minor-ity- and women-owned dealerships

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Talent Acquisition Career Develop-ment & Retention

Lead industry in the recruitment, hiring, development, & retention of the most talented individuals avail-able regardless of race, gender, sexual orientation, religion or age

• Increase the % of minorities and women in all key positions

• Increase the % of minorities and women in development

• Reduce the % of turnover for minorities and women

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Focus Area Objective Initiatives Possible Score

Actual Score

Education & Awareness

Develop education and highlight awareness around creating a more inclusive work environment that respects & embraces the diversity of each employee

• Increase % of WTL’s par-ticipation in ID education

• Increase % of general employee population participating in ID education

• Improve % of ID aware-ness & satisfaction (survey results)

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Community Out-reach

Work in tandem with community resources to implement outreach initiatives beyond the walls of Herman Miller

• Reach top 50 companies for diversity in Diversity, Inc. magazine

• Establish external scholarship program for minorities & women

• Participate in at least 3 community diversity events each quarter

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Totals 100 59

• Supplier Diversity

- Held minority spend at 14% despite losing several suppliers due to downturn in economy

- Added 10 new minority-owned suppliers representing $2.8M worth of spend

- Herman Miller supplier Intex completed Herman Miller’s diverse mentor program and began to ship Aeron Arm Pads

- Completed 45+ diversity reports each quarter for customers with sales in excess of $350M

- Michigan Minority Business Development Council Corporation of the Year

• Talent:

- Achieved partial slate* performance of 51% exceeding the 40% goal

- Improved full slate** performance from 14% to 17%

- Implemented second phase of high potential hourly employee identification & engagement

* Partial slates: 1) Representation consistent with national availability for minorities or women but not both, or 2) representation of minorities and women at half of the national availability but neither represented at national availability

** Full slates: Representation consistent with national availability for both minorities and women

• Dealer Diversity:

- Increased total sales via diverse dealers from 12% to 15%

- Added 2 minority-owned dealer and 2 women-owned dealers for a total 58 diverse dealers

- Diverse dealer spend increased 7% from $201M to $214M29

• Education and awareness:

- Completed yearly diversity education for new Work Team Leaders

- Held several events to drive diversity such as Martin Luther King celebration, Women’s Day, etc.

- Finalized new diversity presentation and topic sheets for field sales

• Community Outreach:

- Sponsored 16 community-related inclusiveness events against a goal of 12

- Participated in 3 national diversity events supporting the efforts of the National Urban Leagues, Out-and-equal Workplace Advocates, and Employees with Disabilities

- Awarded second Boy’s & Girl’s Club Scholarship

For more, please visit Inclusiveness & Diversity at HermanMiler.com.

environment

We had another successful year at reducing our environmental footprint. In fact, we are happy to say that we not only surpassed our overall reduction goal of 75% by more than 8%, but we also exceeded each of our individual goals (for air, hazardous waste, landfill, process water use, and renewable electrical energy). Our overall footprint reduction for Fiscal 2009 was 83.45%. This is over a 4% improvement from last fiscal year. Our quest continues to be the elimination of all impacts from operations including solid waste to the landfill, air emissions (VOCs), hazardous waste, and process water use by 2020. We also plan to use 100% renewable electrical energy by 2020.

We are working hard to reach all our goals in 2010.

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2020 Goal Progress to Met Fiscal 2020 Goal* 2009 Target

VOC Air Emissions (tons) 0 tons 93% 4 Process Water Use (mil gal) 0 mil gal 78% 4 Hazardous Waste (tons) 0 tons 95% 4 Solid Waste (tons to landfill) 0 tons 88% 4 Renewable Electrical Energy 100%** 63% 4

Total Footprint Reduction 100% 83% 4

* Percent change from Base Year of 1993/94 as of May 31, 2007.

** % of total electrical energy use.

voc emissions to air

In 2008, we reported that we were expecting a new water-based finish line for veneer work surfaces. Herman Miller purchased a $3.2 million dollar U.V. (Ultra Violet) Finishing System for Zeeland Operations. Why the need for a new system? There were many reasons ranging from an old system in need of repair to a desire to convert from the solvent-based coating system to a water-based coating. So, updating to a new process that cost close to $1 million was a great solution. It was up and running by June 2008. We saw a dramatic drop in our VOC emissions by mid-year and ended below goal.

Nitrogen oxides (NOx) and sulfur oxides (SOx) emissions from our Energy Center operations have remained relatively unchanged for the past three calendar years, at approximately 20 tons and 0.5 tons, respectively.

process water use and quality

Reductions in process water use continued last year. Our footprint reduction for process water rose from 70% to 78%. Again, these additional reductions are a credit to our employees who continued to apply what we have learned over the past couple of years. One example is moving from a continuous flow of water on a gluing process to a “bath” process where water was only added or removed as needed.

solid waste to landfill

We also exceeded our landfill goal by over 100 tons. This was due to our continued focus. We always recycle as much as possible. For those things that are not recyclable at this time, we have resources assigned to finding alternative processes and/or materials.

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environmental performance by year

93/94 07/08 08/09 09/10 Actual Actual Actual Goal

VOC Air Emissions (tons) 276.08 33.53 19.4 19.21 Hazardous Waste (tons) 540.7 25.93 25.09 14.37Solid Waste (tons to landfill) 12,559.4 1,623.28 1,463.32 1,266.36Process Water Use (mil gal) 114.8 34.01 25.55 25.34% Renewable Energy (kWh) 0% 63% 63% 69%% Product Sales (meeting DfE criteria) 0% 28.84% 51% 50%

Total Footprint Reduction 80%

non-hazardous waste destination

To give you a better idea of how (and how much) we divert our waste materials from the landfill, here is a look at our total non-hazardous waste with a breakdown by destination:

hazardous waste destination

In light of new processes requiring purges and changeovers of our production lines, we still were able to outperform the goal. We suc-cessfully converted our largest wood finishing line to a non-hazardous, water-based finish. Now, that these changeovers are behind us, we expect to see a significant reduction in hazardous waste during the coming year.

climate change

renewable energy

We met our renewable energy goal—obtaining 63 percent of our total corporate electrical energy from renewable sources— by purchasing certified Renewable Energy Credits (REC’s), and entering into a long term Power Purchase Agreement (PPA) with our local electric provider. Our renewable energy portfolio consisted of 51 percent wind-generated electricity and 49 percent biomass in fiscal 2009.

energy use

Decreasing production volume and energy reduction projects, resulted in a net decrease in electrical energy and natural gas use. Included in

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06/07 07/08 08/09Recycled 27,644,735 26,416,760 22,465,832 Incinerated 26,423,564 25,755,238 19,989,791 Sent t0 Landfill 3,268,332 3,249,558 2,926,640 Composted 542,640 184,880 93,520Total (lbs) 57,879,271 55,606,436 45,475,783

the energy numbers are all leased facilities and facilities included in our carbon footprint calculations. By joining the EPA’s Energy Star program, purchasing renewable energy, and implementing company-wide energy efficiency programs, we continued to achieve significant savings in energy use and dollars during fiscal 2009, including an annual cost avoidance of over $1,100,000.

Our most successful energy efficiency projects have focused on the up-dating of our factory lighting systems. We have successfully proven that converting HID lighting to T8 fluorescent lighting and adding control technology to the lighting system can cut our lighting bills in half.

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06/07 07/08 08/0989

92

95

98

101

06/07 07/08 08/09380000

410000

440000

470000

500000

energy use Electric (kWh)(in millions) Gas (mmbtu)

greenhouse gas emissions Calendar 2008 Calendar 2008 Tonnes Tonnes (per MM$ Sales)

Total Scope One Emissions 28,053 17.2Stationary Combustion 33,600 17.5 Local Fleet 2,858 1.7 Company Vehicles 914 0.6 Subtotal Combustion Emissions* 27,340 16.8 Combustion Emissions** 713 0.4

Total Scope Two Emissions 65,178 40 Purchased Electricity*** 62,863 38.6 Subtotal Emissions from Purchased Electricity* 62,863 38.6Emissions from Purchased Electricity** 2,315 1.4

Renewable Energy Certificates (RECs) 40,599 24.9

Total Scope Three Emissions 33,686 20.7 Product Delivery* 33,686 20.7

CO2 from Biomass 17,340 10.6 (wood waste at Energy Center and Biodiesel)*

*North America. **Outside North America. ***Owned and Leased. Third-party verified.Note: 63% of our greenhouse gas emissions from electricity were offset by RECs.Note: The purchase and retirement of 56,927,122 kwh of RECs was third-party verified.

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Greenhouse gas emissions, gases that trap the heat from the sun in the earth’s atmosphere, include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), SF6, HFCs, and PFCs, as defined by the Intergovern-mental Panel on Climate Change (IPCC) and the Kyoto Protocol. Green-house gases are converted to and reported in units of carbon dioxide equivalent. CO2 equivalent is used to standardize greenhouse gas emis-sions and allow comparisons from year to year and across industries. The total amount of carbon emissions, in metric tonnes (2204 pounds), is an indication of the volume of greenhouse gas we are producing in a certain time period.

We are proud to offer our second year of third-party verified North American greenhouse gas emissions for calendar year 2008. Our veri-fied greenhouse gases for 2008 include direct emissions from sources we control including our local fleet and company vehicles (Scope 1), our purchased electricity (Scope 2), and emissions from burning biomass. Also verified were our renewable energy credits (RECs).

We believe it is important to report our optional emissions because shipping goods to our customers is a big part of our business. Therefore, we also continue to track and include optional emissions from product delivery miles (Scope 3).

Our long-term commitment to protecting the environment is reflected in the savings from the renewable energy from our wood-fueled boiler that we call the Energy Center. Since its installation in 1979, we have used this facility to heat and cool our Main Site building largely by burning biomass, therefore avoiding greenhouse gas emissions associated with burning natural gas.

greenhouse gas emissons CO2 eq (in tonnes)

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operational footprint reduction summary

In summary, we greatly exceeded expectations regarding our environmental footprint reduction. The 83% achieved—against our 75% goal—already nears our 84% goal for 2012, and that’s what we want. We would be very happy to achieve our 2020 goal of a 100% reduction (or zero footprint) before the year 2020.

This effort was accomplished by the work of many dedicated and committed employees at Herman Miller. It is also good that we can re-port that we have had zero significant spills, zero significant fines, and zero non-monetary sanctions for non-compliance with laws and regulations from 2005 to 2009.

our buildings

In January 2009, Herman Miller, Inc., achieved LEED-CI Gold certification for its Main Site B-West renovation. Originally designed by George Nelson in 1968, B-West encompasses 31,500 square feet within the company’s Main Site headquarters facility in Zeeland, Michigan. The distinguished Leadership in Energy and Environmental Design (LEED) certification of B-West, marked the company’s 13th LEED certified space to earn the recognition, which measures high-performance interiors designed to reduce environmental impact.

“Herman Miller’s commitment to build or renovate its spaces to LEED Silver inspires us to think differently about how to maximize our products and capabilities to surpass that goal,” said Ed Nagelkirk, Senior Manager of Workplace Strategy and Facilities.

Several notable details qualified B-West for LEED-CI Gold, including: • 40 new windows and seven new skylights

• C2 Climate Control desktop units for employees, rather than a complex HVAC system

• Locally manufactured materials

• Green housekeeping products

• 100 percent renewable energy

Additionally, the use of moveable plants and trees instead of walls brings employees closer to nature, while also serving as screens between high traffic pathways and private workspaces--a decision design leader Mark Gribbons sought to feature as an example of the company’s commitment to sustainability.

2007 2008

Total Scope 1

2007 2008

Total Scope 2

2007 2008

Total Scope 3

2007 2008

RECs

20000

35000

50000

65000

80000

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“The goal was to create an environment that could shape itself around its employees,” said Gribbons, a Senior Associate with IA Interior Architects. “We approached the project with modularity in mind, and natural elements, such as plants and trees, provide unmatched flexibility for space planning.” Originally utilized as Herman Miller’s seating production facility, Building B and its truck well underwent a dramatic conversion to office space in 1980 and became the company’s primary administrative center.

Reinforcing its commitment to sustainable design in September 2009, Convia, Inc./A Herman Miller Company announced its first showroom achieved LEED Gold CI Certification from the U.S. Green Building Council’s (USGBC) LEED-CI (Leadership in Energy and Environmental Design- Commercial Interiors). Located just outside of Chicago in Buffalo Grove, Illinois, the 7,500-square-foot facility constructed by West Michigan-based Owen-Ames-Kimball Co. fully incorporates the applications of Convia Sustainable Infrastructure—the company’s smart building platform—and provides a glimpse of a functional and adaptable office of the future.

Offices located within Convia’s LEED-gold showroom are completely programmable—from lights to window shades to temperature, which also allows for daylight harvesting and other key energy saving techniques.

“Our goal as a company is to not just provide a platform for sustainable building, but to also model that platform—to ultimately teach by doing,” said Randy Storch, president of Convia. “Convia’s showroom proves

‘going green’ can increase the convenience and usability of a space. Achieving LEED Gold CI Certification is paramount to our continued stance that implementing energy savings within facilities is easily achievable.”

“USGBC’s LEED rating system places strong emphasis on energy efficiency, and since approximately 30% of the energy in a typical office is related to lighting, we were determined to set the highest bar in our new LEED Platinum headquarters. Herman Miller’s Convia delivered everything we asked for and more, significantly reducing our energy requirements, providing high-quality, comfortable lighting for our staff, and giving us the capability to measure our use in real time.” –Rick Fedrizzi, President, CEO, and Founding Chairman, USGBC

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our products

“We take great pride and satisfaction in helping our customers reuse their non-standard furniture by donating or recycling these items— often helping them to earn LEED points to meet their certification requirements. At the same time, this helps non-profits in the greater Minneapolis area improve their offices in ways they never expected. Their gratitude is sometimes overwhelming, and I’m thankful Herman Miller and Intereum are part of this win-win situation for everyone— including the environment.” – Kim Wieber, Move Coordinator, Planning & Design, Medtronic

Operations Medtronic, Inc. Shoreview, Minnesota

Five more of our products earned Silver Cradle-to-Cradle certification this year, Tu and Meridian Filing and Storage along with Embody, Nala, and Aeron chairs. This brings our total to eleven products that are certified at Silver and Gold levels.

Herman Miller’s 2020 environmental goals include generating 100% of revenue from products approved by our Design for the Environment protocol. This protocol is based on McDonough Braungart Design Chemistry’s (MBDC) Cradle to Cradle (C2C) design strategy where we carefully evaluate the products by assessing material chemistry, design for disassembly, and recyclability. All of these elements are part of our Design for the Environment protocol. All new products are designed using this protocol and we continue to look at improving existing product lines as well. We are currently pacing at 51% for DfE approved products, up from 30% last year

Cradle to Cradle focuses on understanding the environmental and human health impacts of all chemicals in our products down to 100 ppm. We carefully screen our materials and work to eliminate the materials we feel are problematic.

The goal of Life Cycle Assessment (LCA) is to compare the full range of environmental and social impacts assignable to products and services, to be able to choose the least burdensome one. LCAs help to quantify how much energy and raw materials are used, and how much solid, liquid and gaseous waste is generated, at each stage of the product’s life.

An LCA involves making detailed measurements during the manufacture of a product, from the mining of the raw materials used in its production and distribution, through to its use, possible re-use or recycling, and its eventual disposal.

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The sum of all those steps—or phases—is the life cycle of the product. By using LCA, we are also now able to evaluate more of the environmental impacts associated with our supply chain.

Problematic materials have been successfully replaced on Meridian and Tu Filing and Storage products. We also replaced PVC arm pads on the Aeron chair with self-skinning polyurethane foam.

Through these efforts and resulting changes, we were able to end the year with 51% of our sales coming from DfE-approved products, already ahead of our 50% goal for the fiscal 2010 year.

Fiscal 2009 also saw our involvement in the development of a new sustainability-focused standard for commercial furniture, the BIFMA e3 standard. This standard was developed to harmonize sustainability standards for the office furniture industry and help distinguish environmentally-preferable business and institutional furniture. The standard applies to all business and institutional furniture, including moveable walls, systems furniture, desking systems, casegoods, tables, seating and accessories, and materials and components manufactured by suppliers to furniture manufacturers.

BIFMA and NSF partnered on the development of this standard over a year ago, gathering a diverse group of stakeholders to participate in the American National Standards Institute (ANSI) consensus development process. Representatives from academia, the architectural and design community, end-users, regulatory agencies, federal and state government, certification bodies, environmental groups, non-governmental organiza-tions (NGOs), manufacturers, suppliers, product designers and others have been engaged in development of the standard. Once companies, such as Herman Miller, satisfy the initial prerequisites, additional credits are granted based on compliance to various criteria in four key areas: materials, energy and atmosphere, human and ecosystem health and social responsibility.

Level™ is the certification program for the BIFMA e3-2008: Business and Institutional Furniture Sustainability Standard (BIFMA e3). The level conformance mark ensures a comprehensive, independent, and impartial assessment of the environmental and social impacts of a product’s manufacture. Level makes it easy to identify products that have been evaluated against the consensus-based, multi-attribute sustainability standard. The certification also provides benchmarks for continual improvement and innovation within the furniture industry. Level was

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developed by the Business and Institutional Furniture Manufacturers Association (BIFMA).

NSF International certified several Herman Miller product lines. The product lines certified at level 2 include Aeron, Mirra, Celle, Embody, Caper stacking, and Foray seating, as well as Tu and Meridian storage. The product lines receiving level 1 certification include Equa, Ergon, Reaction, and Ambi seating. Also receiving level 1 certification are the Action Office, Ethospace, Vivo Interiors, My Studio Environments, Resolve, Passage, Series 5000 and Abak furniture systems, as well as the company’s Eames tables, and Avive tables.

the herman miller employee experience

An organization’s culture is made up of the collective attitudes, aspirations, ideals, and experiences of the people who work there. At Herman Miller, “social responsibility” is more than a series of programs, initiatives, and measurements—although each has an important role to play. We believe that by fostering a meaningful employee experience every day, we can help create a transformational culture, both within our own organization and throughout the communities in which we live and work.

Different people describe a “meaningful employee experience” in different ways, but we believe that certain basic requirements have to be met in creating a good place to work. Employees must feel valued and have the opportunity to improve their work processes, learn, and advance. The workplace must be inclusive and diverse—to provide

how we work: corporate social responsibility

We have a responsibility to be a contributing member of the communities in which we live and work.

the watercarrier sculpture on herman miller’s main site campus honors

employees who have worked at the company for at least 20 years.

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a wide range of experiences and viewpoints throughout the company and prevent the tunnel vision that inhibits creativity and innovation. Employee health and well-being on the job has to be a primary focus of how we work. And employees need to feel supported—by having the charities that are important to them respected by the company, by receiving good and fair benefits for themselves and their families, and by knowing that they work under the umbrella of a commitment to high ethical standards.

More information on Herman Miller’s Employee Experience is available at HermanMiller.com.

opportunity

We believe that fostering the personal growth and development of our employees is not only the right thing to do, but good business as well. We want our employees to maintain ownership of their careers at Herman Miller and to be able to make the most of every opportunity. To this end, we maintain a policy of openness, providing employees with access to yearly performance reviews, internal job postings, an educational assistance program, and an ongoing series of workshops that allow them to build new skills. Employees are encouraged to work with their supervisors to build career development plans that support individual career goals.

lifelong learning programsOur company is built on a foundation of creativity and innovation, and we understand that creative people are curious and involved, and that they never stop learning. So we offer many different kinds of learning and development resources, including online self-studies and classroom learning opportunities. Our employees are encouraged to build proficiency in key areas through career development planning. And employees are also encouraged to identify and make use of other resources that can help them develop a necessary business skill.

education reimbursement Herman Miller provides financial reimbursement for employees who choose to continue their formal education to broaden their skills or keep current with business trends and practices.

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several years ago, a group of employees—supported by hundreds who donated

vacation time—helped refurbish a school in tharangambadi, india, which had

been leveled by a tsunami. On a second trip, herman miller employees painted

walls, built a volleyball court, and got to know the kids.

herman miller believes in a workforce made up of a diversity of backgrounds,

interests, and talents.

inclusiveness and diversity

“Each of us is needed. Each of us has a gift to bring. Each of us has a deep-seated desire to contribute.” – Max De Pree (Former CEO and Chairman Emeritus) Leadership is an Art

Like many other companies, Herman Miller believes in a workforce composed of people with a diversity of backgrounds, interests, and talents. Nondiscrimination is not only the law, but also the right thing to do, and work team leaders throughout our organization are required to exercise fair employment practices. But neither our beliefs nor our actions stop there. We know that a broader, more inclusive workforce means a broader perspective, and that leads to more problem-solving approaches and enhanced innovation.

In 2004 we formalized our commitment to inclusiveness and diversity by establishing a Corporate Inclusiveness and Diversity Team and creating the position of Director of Organizational Diversity. The team has created an overall strategy and specific metrics designed to reach our diversity goals by the year 2010. In December 2007, the Corporate Inclusiveness and Diversity team became part of the broader Corporate Social Responsibility organization, which also includes our Environmental, Health and Safety teams. Our definition of “diversity” extends beyond gender, race, ethnic background, and nationality; it encompasses people who differ in terms of their age, income, religion, sexual orientation, philosophy, personality style, education, and physical ability. And it applies not only to our on-site employees, but to our dealers and suppliers.

Our programs, initiatives, goals, and metrics comprise a strategy that continues to focus on five critical areas: supplier diversity, talent, dealer distribution, education and awareness training, and community outreach.

Inclusiveness and Diversity metrics and a corresponding scorecard were established in 2005 to track and measure the company’s progress toward meeting our inclusiveness and diversity goals. Our CEO establishes measurable goals for each of his direct reports. Scores are based upon cumulative results toward the goals, and additional points are awarded as the goals are exceeded. Scorecard results are reviewed regularly by the company’s senior-level leadership and the Board of Directors.

Providing additional support for this work are the Corporate Diversity Council and seven Inclusiveness Resource Teams (IRTs): Asian; Black; Employees with Disabilities; Female; Gay, Lesbian, Bisexual,

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and Transgender; Hispanic; Male. The Corporate Diversity Council comprises representatives from each strategic area, an executive sponsor, and the lead from each IRT. Each IRT is charged with implementing key business initiatives that not only benefit our employees and communities, but also help Herman Miller to meet our business objectives.

Please visit Inclusiveness & Diversity and our Discrimination &Harassment policy at HermanMiller.com.

supplier diversity

For years we have worked to build a strong and diverse supplier network. Our long-term goal is to be the first office furniture manufacturer to achieve World Class designation for its Supplier Diversity Program. We seek to expand our base of qualified diverse suppliers not to win awards, but because it makes good business sense and builds a stronger community. Supplier sourcing and qualification, Tier 2 reporting, mentoring, community and business outreach, and training and education are among the strategies we use to strengthen our supplier diversity efforts.

We also participated as a corporate member of the Michigan Minority Business Development Council (MMBDC), attending events and meetings to discuss minority business opportunities.

As part of our commitment to diversity, all Herman Miller suppliers are screened for their human rights practices through on-site visits and registration requirements.

Please visit Supplier Diversity on HermanMiller.com.

health and well-being

safety

Herman Miller is committed to the highest standards in health and safety management. From the production floor to the workstation, from stacking prod-ucts to adjusting seats ergonomically, we focus on safety in everything that we do. Our Corporate Safety Vision is that “Herman Miller will establish a culture where safety expectations are driven by all employees with the understanding that all injuries are preventable”. Management commitment and employee involvement are highly visible through communication and collaboration.

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There is a consistent, verifiable, and ongoing identification and correction of problems and hazards.

our safety goals

• Zero injuries

• Excellence in safety performance

• Elimination of unsafe behavior

Two key initiatives in our pursuit of these goals are our participation in State and Federal OSHA Voluntary Protection Programs and Behavioral Based Safety.

osha voluntary protection program

Herman Miller leadership has committed to have all manufacturing sites participate in the State or Federal OSHA Voluntary Protection Program. Four of our manufacturing sites have received the highest State of Michigan recog-nition of STAR status. The Michigan Star program is designed for workplaces of Michigan that have an exemplary safety and health management system with injury and illness incidence rates below the industry average for the last three years, are best in practice with Management/ Leadership Commitment, Employee Involvement, Safety and Health Training, Hazard Prevention and Control, and Worksite Analysis.

behavior based safety

Herman Miller has committed to a corporate-wide behavior based safety program which was launched in 2006. We implemented this innovative work-place strategy at our Van Wagoner facility that reduced on-the-job injuries by 40 percent in the first year. The program relies on interactions and coaching between team members to reduce the kinds of accidents that account for 94 % of the injuries. The benefits of this program include reductions in at-risk behaviors that result in fewer injuries the programs design which encourages employee owners to take the lead in building the safety culture at HMI.

We currently have six manufacturing sites that have implemented the behavior based safety program. Each has a steering team of employees from the production floor that has leads and manages the program. They are responsible for educating, coaching, problem solving, data collection and review, and implementing action plans for site improvements.

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Behavior based safety is a systemic approach that identifies behaviors that can prevent incidents, reinforces and redirects these behaviors through observations and feedback, and measures the use of these behaviors and the reason for their use or the lack of use to predict and prevent incidents and injuries. This program and our traditional safety programs continue to move our culture and employees towards safety excellence.

safety best practices

Best practice is reflected in all aspects of our business, employees, and community in which we work and live. Together employee owners and leadership continue to strive in creating a safe work environment in which all employees, visitors, suppliers, and contractors will go home safely at the end of their day. We value each employees uniqueness, talents, strengthens, and contributions which has enabled us to become a leader and bench mark for safety.

a healthy workforce

Herman Miller is committed to valuing a healthy workforce. As the organization strives to capitalize on the strengths and knowledge of its workforce, the health of our population becomes a critical necessity. As healthcare expenses rise, it is important for us to continue to search for new ways to contain them. We recognize that understanding the health of our population is vital to not only understanding our health care costs, but also to increasing the awareness and understanding that our employees have regarding their own health.

Because the health of our employees is critical to our success, we continue to invest in tools that will help employees understand and improve their health. We also rewarded employees for participation in the Health Management Program with a $300 incentive for completing the requirements.

WebMD remains our partner to facilitate health awareness and education. WebMD is the number one resource of online health information and will provide our employees with a comprehensive set of tools to manage health. WebMD has created a personalized site for Herman Miller and employees can take their HealthQuotient and manage their health from this site.

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after doubling his business with us every year for the past four, nevin grace

of l&g industrial products is now working with our lean team to increase his

efficiencies even more. herman miller is fortunate to have him—and others

like him—as partners in our busines.

volunteer efforts

We encourage our employee-owners to seek out volunteer opportunities in the community, and we allow each of them sixteen (increased from eight) paid hours a year to work with the charitable organization of their choice. Herman Miller people regularly take part in initiatives ranging from highway and river clean-ups to youth mentoring programs. Herman Miller sets goals for the number of employee volunteer hours we contribute annually to our communities. We demonstrate our employees’ impact on the communities by reporting our progress in meeting these goals to the CEO.

benefits

Please visit The Benefits We Offer and Why Herman Miller at Herman Miller.com.

Years of experience in creating supportive workplaces has taught us a lot about keeping employees healthy, comfortable, and motivated. Herman Miller provides a wellness program to help our U.S. Herman Miller, Inc employees maintain their health and well-being.

human rights statement

As a matter of law and simple moral obligation, Herman Miller prohibits child labor, forced labor, harsh and inhumane treatment, abuse, and discrimination. We allow collective bargaining and enforce minimum working wages and maximum working hours. These practices are in keeping with the human rights statement of the International Labor Organization and the core labor standards of the United Nations Declaration of Human Rights (1946).

Herman Miller follows guidelines that we set for suppliers, such as labor and ethical business practices. Please see our Supplier Code of Conduct on HermanMiller.com.

ethics statement

Herman Miller’s own sense of ethics and fair trade practices condemn bribery, kickbacks, theft, and fraud. In addition, all work team leaders are trained in our code of ethics, respect, and community.

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each december, herman miller works with our dealers and local organizations

to sponsor we care events for local families and kids around the country. in

holland, michigan, last year, the team fed nearly 180 people and helped families

get ready for the holidays.

“we are all extraordinary.” – d. j. de pree, herman miller founder

See our Corporate Code of Conduct at HermanMiller.com.

All employees receive our “Employee Policies and Guidelines,” which also provides detailed information about ethical issues and problems. We maintain a confidential hotline through which employees can report ethical problems or suspected incidents of discrimination, harassment, theft, or fraud.

stakeholder engagement and communication

The people and organizations who have a stake in how Herman Miller works include customers, employees, architects and designers, dealers, suppliers, contractors, government bodies, nonprofits, investors, and debt holders. And we value their opinions about how the company operates.

Without a commitment to listening to our customers and providing the best service possible, we would be doing only half our job. Herman Miller gathers customer comments via our sales representatives and dealers, the corporate web site and internal and external auditing, and we incorporate our customers’ feedback into our products and services.

Our employee-owners are encouraged to ask questions and make suggestions about how the company is run via our intranet site and monthly staff meetings. Employees can also communicate directly with any company officer, including the CEO, through our global e-mail address listing. Our CEO discusses the company’s strategy and answers questions during an annual employee meeting. Our Investor Relations Officer actively seeks out feedback from shareholders through email, phone calls, meetings, and conferences.

safe and healthy products

Our concerns extend not only to our own employees, but to our customers, and we address their health and well-being in every step of product development, from idea conception through disposal. This commitment is evidenced by the materials we choose, our manufacturing processes, and our advances in ergonomic design.

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ergonomics

In 1968, after 10 years of research, HM introduced the first panel-based office furniture system. This major innovation introduced human factors and ergonomics to the office work environment, in part due to Robert Probst’s deep understanding of the human body and his concept of using movable parts to adapt the office to the individual inhabitant. In 1976, after 11 years of research, Herman Miller introduced modern ergonomics to the contract furniture industry with the Ergon® chair, the first truly ergonomic work chair. Today, proper ergonomics guides every Herman Miller design and designer.

We want to make every person comfortable, safe, and productive at work by applying the principles of good ergonomic design: fit the user in both size and capability; fit the task (placement of tools and equipment with regard to reach, duration, and intensity is essential to task performance); and allow for posture change and activity variety (muscles require movement to stay healthy).

By improving worker comfort and vitality in the workplace and reducing the likelihood of developing musculoskeletal disorders (MSDs), we contribute to a healthier, happier, and more successful work environment. Please visit Research at HermanMiller.com for more information.

labeling

To help ensure the satisfaction of our customers, all of our products have labels and/or barcodes that identify the product number, order number, manufacturing date and time, manufacturing location, and Herman Miller supplier. Our labeling follows the American Society for Testing Materials standards for labeling components. In addition, each box of Herman Miller, Inc., product comes with a Product Installation Sheet that details proper installation, care, and maintenance.

Herman Miller, Inc. has not suffered or received any administrative or judicial sanctions for failing to comply with laws or regulations, including international declarations, conventions, treaties, and federal, state, or local regulations concerning the provision and use of Herman Miller products and services.

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designer bill stumpf created ergon, the first ergonomic work chair, for

herman miller in 1976. stumpf later collaborated with designer don

chadwick to create herman miller’s iconic aeron® chair.

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environmental leadership

In the early 1950s, long before the “green” concept had even been formulated, Herman Miller founder DJ De Pree composed a statement of corporate values that declared that Herman Miller “will be a good corporate neighbor by being a good steward of the environment.” Mr. De Pree introduced several visionary corporate practices that today are regarded as environmentally sensible, such as placing windows in all company buildings, including manufacturing facilities, to let in natural light. He also specified that 50 percent of any Herman Miller corporate site must be set aside as “green space.” Succeeding generations of our company’s leadership and employee-owners have expanded upon DJ De Pree’s legacy. Today, “living with integrity and respecting the environment” remains one of our core values. Our business decisions are constantly guided by a sense of responsibility

herman miller and the environment

We believe that sustainability and commercial success should coexist in a mutually beneficial relationship.

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every year, bees at our greenhouse site, originally invited in (instead of

pesticide) to rid us of paper wasps, furnish us with honey that we give to

visitors. our beekeeper keeps them happy, and they keep our wildflowers

blooming. (see the whole story, “herman miller tales,” on our web site.)

to the environment, to those who live in it, and to those who will follow.

Herman Miller follows an environmental policy statement that has been approved by the Herman Miller, Inc. Board of Directors. It states that at Herman Miller respecting the environment is more than good business practice—it is the right thing to do. We believe that continued economic growth and environmental protection are inextricably linked—that the quality of life depends on meeting human needs without destroying the environment on which all life depends.

Please see The Environment at HermanMiller.com.

In 2004, we established a new environmental mandate with our Perfect Vision program. This initiative set a target date of 2020 to meet the following sustainability goals:

• 100 percent reduction of VOC (volatile organic compound) emissions to air

• 100 percent reduction of process water use

• 100 percent reduction of hazardous waste

• 100 percent reduction of solid waste to the landfill

• 100 percent renewable electrical energy use

• 100 percent of sales from our Design for Environment (DfE)-approved products

• 100 percent of owned and/or leased company buildings meet or exceed USGBC’s LEED Silver certification

We measure our performance against these targets and regularly report our results to senior management.

our environmental quality action team (eqat)

In 1989 a group of our employees launched the Environmental Quality Action Team (EQAT), a committee that sets our corporate environmental priorities and improvement goals.

One important component of the EQAT initiative is our ISO 14001 Team, which includes Environmental Site Leads at all of our major office and manufacturing locations. The ISO 14001 and Environmental Low-Impact Processing (E-Lip) Team meets regularly to share information and to ensure that Herman Miller’s EMS requirements are maintained companywide. Team members monitor and report on their respective sites’ environmental activities in support of our goals.

For more details please see How We Do It.

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environmental focus

The following sections outline our environmental efforts in four specific areas—pollution reduction, climate change, product design, and green buildings. We are vigorously reducing our manufacturing waste and emissions. We also recognize, and have plans to deal with, the implications of climate change—for our business, our communities, and our world. We evaluate our products from their earliest design stages for their material chemistry, ease of disassembly, and recyclability. Finally, we continuously assess how the design of our buildings can be healthier and more energy efficient.

reducing waste and emissions

voc emissions to air

We manage volatile organic compounds (VOCs), which result largely from our finishing processes, under our Perfect Vision program. We’re targeting a 100 percent reduction of VOC emissions to air by 2020. Between 1994 and 2009 Herman Miller recorded more than 93 percent decline in VOC emissions.

Communications

Packaging/Transportation

Design forEnvironment

EnergyReduction

EnvironmentalAffairs

Indoor Air

Environmental Low-Impact Process

GreenBuildings

ISO 14001

We also track our nitrogen oxide (NOx) and sulfur oxide (SOx) emissions at our Energy Center, even though we do not include them in our 2020 goals. We burn scrap wood to create energy at our Energy Center.

process water use

The environmental impact of water use throughout our manufacturing operations is monitored constantly. While we recognize that meeting our 2020 goal of a 100 percent reduction of process water consumption in manufacturing is among our greatest environmental challenges, it’s one we will remain vigilant in pursuing. In the meantime, all process water that we discharge is monitored and tested regularly. All process water from our Michigan operations is sent to municipal treatment centers in Holland, Zeeland, and Grand Haven, Michigan. Process water from our Geiger operations in Georgia is trucked to a local treatment facility, Environmental Remedies.

We also look for every opportunity to upgrade and improve the ways in which we use water throughout our office buildings, from installing low-flush toilets and waterless urinals to reducing the amount of water used for lawn care.

hazardous waste

Eliminating the use of substances that produce hazardous waste in manufacturing is one of the best things we can do for the environment. To achieve our goal of zero hazardous waste generation by 2020, we have taken the important first step of reducing the use of hazardous materials in every aspect of the manufacturing process – from raw materials to building and equipment maintenance. Our hazardous material use has been steadily declining as we’ve introduced new manufacturing technologies and techniques to our processes. The number of our facilities that release toxic chemicals, defined by the EPA’s Toxic Release Inventory, has been reduced from seven to one and the number of toxic chemicals that we use in our facilities from twelve to one. The significant decrease in hazardous waste we have achieved so far is due in part to our switch to powder-coat paint for many metal product components and also to our reduced use of solvents in wood finishings.

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solid waste to landfill

The volume of solid waste being dumped in landfills represents one of the greatest environmental challenges the United States is facing. As the volume increases, more and more land has to be dedicated to trash, much of which will not degrade. Herman Miller is committed to help reverse this national trend. Our goal is to deposit no solid waste at all in landfills by 2020. By finding alternative uses for waste, we cut landfill costs, generate steam, earn revenue, and reduce the negative effects of solid waste on the environment.

climate change

As a publicly owned company pledged to environmental stewardship, Herman Miller is concerned with the economic, environmental and social implications of climate change. At this time it’s not possible to quantify how climate change may affect Herman Miller financially. We have been taking, and continue to take, the actions necessary to reduce our own impact on climate change by reducing our energy use, increasing our use of renewable energy, decreasing our transportation need, and designing our products to be energy efficient. This is our second year reporting our greenhouse gas emissions.

carbon footprint

We understand that measuring our greenhouse gas emissions is the first step in reducing them. In 2007 we began the process of creating a carbon footprint using the World Resources Institute (WRI)/World Business Council for Sustainable Development (WBCSD) Greenhouse Gas Protocol Corporate Standard and the Climate Registry’s General Reporting Protocol. We have used average emission factors provided by the GHG Protocol to calculate our Scope 1 direct greenhouse gas emissions that are under our control—namely, our natural gas usage and local fleet emissions. Scope 2 indirect emissions are calculated from our purchased electricity. We have also included the Scope 3 (optional) indirect emissions that result from over-the-highway trucks (all contractor-owned). Beginning with calendar 2008, our Renewable Energy Credits (RECs) are third-party verified. We will use this information to identify projects that will decrease our footprint in the future.

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the buffalo grove, illinois headquarters and showroom for convia and its

programmable environments. among other things, convia manages and helps

conserve energy.

energy conservation

Since 1999, we have followed the guidelines of the US Environmental Protection Agency’s Green Lights program and its successor, the Energy Star Building program. Under Energy Star guidelines, we employ a seven-step management program for energy conservation. Since 1999, we’ve achieved an average 40 percent return on investment, reduced energy costs, and increased energy efficiency in all of our North American production, office, and warehouse facilities. Our energy conservation projects have reduced our energy consumption costs by more than $1.1 million annually.

renewable energy

We’ve set a goal to use 100 percent renewable electrical energy for all corporate sites. As we work to reduce the impact our activities make on the environment, we are progressively phasing in the use of green electrical energy in our office and manufacturing facilities. To help achieve our 100 percent renewable electrical energy goal, we purchase Green-e certified renewable energy certificates. Green-e is a national certification organi-zation that audits and approves renewable energy sources. Our renewable energy certificates (RECs) are purchased with savings achieved from energy efficiency projects such as lighting upgrades, LEED projects, and manufacturing-related projects.

We have purchased over 51,000 Mwh of RECs and over 27,000 Mwh of 100% wind power from the Harvest Wind Farm located in Huron County, Michigan. The Harvest Wind Farm is a 52MW wind turbine project, devel-oped by John Deere Wind Energy and Wolverine Power Supply. This project is the largest commercial operating wind project in Michigan. Herman Miller, Inc. is the largest consumer of energy from this project, purchas-ing 27,000 Mwh annually. This represents 100% of the electric needs for Hickory and the 171st Street manufacturing facilities.

The Herman Miller Energy Center generates 100 percent of the steam needed by the Zeeland Main Site’s manufacturing operations, of which 92 percent comes from the incineration of wood waste. The emissions from wood waste at our Energy Center do not count toward our carbon footprint, but do reduce our overall greenhouse gas emissions because of the natural gas usage the burning of biomass replaces.

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At Herman Miller, designing our products with consideration for their environmental impact is a central corporate strategy. When it comes to product innovation, durability, and overall quality, we’ve been designing with the environment in mind for decades.

Today we’re focused on incorporating increasingly more environmentally sustainable materials, features, and manufacturing processes into our new product designs. Our Design for the Environment (DfE) Team, a committee of EQAT, is responsible for developing environmentally sensitive design standards for new and existing Herman Miller products. DfE performance is measured by the percent of sales dollars coming from DfE-approved products.

Working with McDonough Braungart Design Chemistry (MBDC), the DfE Team evaluates new product designs in the key areas of material chemistry and safety of inputs, disassembly, and recyclability. Today, all new Herman Miller products are designed using the DfE protocol and all pre-existing products are held to these standards as well.

The Design for the Environment group strengthens relationships with our material suppliers by conducting more than 200 face-to-face meetings designed to educate suppliers about our sustainability goals and requirements. These sessions explain our need to collect the chemical composition of parts to ensure that Herman Miller products are designed with the lowest possible environmental impact. The Environmental Department then works with the supplier to provide feedback on its parts and advice on substituting environmentally harmful materials.

Learn more about our DfE protocol on HermanMiller.com.

bifma level™

Many Herman Miller’s products are BIFMA level certified. Level is the certification program for the BIFMA e3-2008: Business and Institutional Furniture Sustainability Standard (BIFMA e3). The level certification process looks at material utilization, energy and atmospheric impacts, human and ecosystem health, and social responsibility.

greenguard

Herman Miller’s major lines of systems furniture, office seating products, and filing and storage, including Meridian® products, have earned

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transportation

We recognize that transporting Herman Miller products from our suppliers to our factories and to our customers increases air pollution and contributes to global warming. Our challenge is to reduce the effects of transportation on the environment while maintaining excellent customer service.

One of our transportation initiatives focuses on maximizing the volume of product that we fit in each product delivery trip by minimizing our product packaging and consolidating our use of space. We do this by shipping some of our products in bulk, securely enclosed in reusable blanket wrapping, and using wooden shipping pallets. These measures reduce the amount of packaging material by more than 50 percent and also reduce the flow of cardboard and plastic packaging to the landfill. Our long- distance shipping subcontractors serve Herman Miller and other customers simultaneously to reduce the number of trips. As reliable access to other cleaner-burning fuels increases, we look forward to incorporating these more environmentally friendly energy sources into our transportation operations.

energy-efficient products

We strive to create innovative products that reduce energy use for our consumers. One example is our ConviaTM Programmable Infrastructure, a modular and programmable electrical infrastructure that delivers

“plug-and-play” power virtually anywhere within a commercial space without requiring hardwiring of devices or switches. By allowing unlimited modifications in positioning and configuring energy-efficiency components, and optimizing occupancy, daylight, time, and temperature sensors, Convia provides personalized and cost-efficient control of power, data, HVAC and lighting systems. Convia also eliminates the landfill waste that is often created when buildings using traditional electric infrastructure are modified because 100 percent of Convia components are reusable.

our design for the environment initiative

“Herman Miller has been a pioneer in the environmental movement for decades. With their adoption of MBDC’s Cradle-to-Cradle design protocols, they have taken that commitment to a new and immensely more power-ful level, moving beyond eco-efficient to true sustainability.” – William McDonough

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GREENGUARD Indoor Air Quality Certification for low-emitting products.

sustainable wood

“Our customers are saying, ‘We want to buy a product that is environ-mentally friendly.’ And it’s great to give them the same quality, same look, same style in a product with a chain of custody certified by the Forestry Stewardship Council, proving that the sources of our materials are not hurting the environment.” –Duane Veldman, Herman Miller Options Program

We acquired Forest Stewardship Council (FSC) chain of custody certification at our Zeeland Main Site manufacturing facility in 2007. We can offer FSC-certified products in a variety of laminate and veneer work surfaces and tables.

Geiger International’s Fulton manufacturing facility in Atlanta, Georgia was granted FSC Chain of Custody Certification in 2009. This means Geiger can now contribute to customers’ LEED projects by offering FSC-certified veneers, particleboard, and medium-density fiberboard in products manufactured at the Atlanta facility.

recycled content

We pay close attention to our selection and use of raw materials. One aspect of our design and manufacturing criteria involves incorporating recycled materials into all of our products. This process includes carefully monitoring each product’s weight and the percentage of recycled content used. Occasionally, increasing the percentage of recycled content in our products conflicts with our desire to provide the most environmentally safe materials. Each product alteration is examined individually to maximize environmental responsibility over the product’s life cycle.

More information is available in our Environmental Product Summaries and LEED Credit Summaries at HermanMiller.com.

reclaiming used herman miller product

We design each Herman Miller product to last through many years of reliable performance before being recycled, in whole or in part, at the end of its useful life. And we help customers deal with the recycling of our products.

6766

the entire manufacturing facility producing our embody chairs sends only

one trashcan (77 pounds) of waste to the landfill every month, none of it

hazardous. 95% of each embody chair can be recycled, and the chair is mbdc

silver and greenguard certified.

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Engaging with the Herman Miller rePurpose Program helps corporations realize benefits while doing the right thing. Redirecting no longer needed furniture, equipment, and supplies through the rePurpose program achieves a number of positive social, environmental, and economic goals. These goals are becoming more important in today’s increasingly value-conscious business and professional communities.

The rePurpose program helps clients redirect their no longer needed facility assets, avoiding landfill disposition and redistributing assets to under-equipped schools and healthcare facilities as well as deserving not-for-profit organizations throughout North America (Canada, US, Mexico). The rePurpose program delivers positive internal and external public relations that contribute to each client’s human resource, corporate social responsibility, environmental, team building, and philanthropic initiatives.

Our rePurpose program involves a partnership with a company which has strong, established relationships with local charities and grassroots organizations interested in benefiting community and after-school programs. They are paying special attention to these and other needy local charities and worthwhile causes to ensure maximum potential benefit.

In addition to the environmental and social benefits, Herman Miller clients will benefit economically as well. Removal costs are virtually the same as if clients would conduct the process themselves. Herman Miller clients will be provided with a complete cost comparison based on straight disposal to landfill, recycling, and rePurposing.

green buildings at herman miller

Herman Miller founder D.J. De Pree’s recognition of the importance of green space around buildings and natural light within them foreshadowed the emergence in recent years of the green building industry. Not coincidentally, Herman Miller was a founding member of the U.S. Green Building Council (USGBC). We also helped formulate the USGBC’s LEED certification standards.

As the USGBC was launching in 1993, we hired environmental architect William McDonough (of MBDC) to design a new manufacturing facility on more than 45 acres of open land populated largely by wildflowers. In 1995, the USGBC used the building, which we named the GreenHouse, as a pilot for the development of the LEED guidelines. The USGBC ultimately awarded the GreenHouse LEED Pioneer status in light of its environmentally sound, aesthetically pleasing, and financially beneficial qualities.

68

last year we started our repurpose program to match used and unwanted

office furniture from customers with nonprofit groups around the country.

Removal costs are the same, landfill savings are significant, and customers

receive tax benefits.

71

Today, we are committed to building or renovating our facilities to achieve at least Silver LEED certification. In our home state, Herman Miller is among the top tier of Michigan-based companies with the most LEED-certified buildings.

For a complete list of our LEED-certified buildings, see Green Buildings at HermanMiller.com.

habitat restoration and protection

In following LEED guidelines, we encourage management practices that have the lowest environmental impact possible and that preserve ecological integrity and enhance biodiversity and protect wildlife, while supporting the performance of our buildings and integration into surrounding landscapes. Several of our West Michigan building sites feature native flowers and grasses, as well as retaining ponds that support a diversity of plant and animal life.

We use Integrated Pest Management (IPM) at all facilities to reduce pesticide use and minimize our impact on biodiversity and human health. Under the IPM system, we treat infestation and similar issues only as they arise—we don’t spray for preventive purposes. For facilities that require regular groundskeeping, we use a phosphorus-free fertilizer to prevent harmful runoff into surrounding natural areas.

None of Herman Miller’s operations directly affects the International Union for Conservation of Nature and Natural Resources (IUCN) Red List threatened species’ habitats.

awards and recognition

Although we’re not in business to win awards, along the way we’ve earned some much-appreciated accolades. To see a comprehensive list of our awards, please see Awards and Recognition at HermanMiller.com.

closing

Thank you for reading our Better World report. We hope it has given you some idea of the scope of our efforts to make our world a better place. We will update this report annually.

We welcome your feedback on this Report. Send your comments to the EnvironmentalAffairsGroup@HermanMiller.com.

70

at every herman miller site, our goal is to have the least possible impact on

the local habitat.

appendix

company overview

Please see our Annual Report for Herman Miller CEO Brian Walker’s statement on our performance for fiscal year 2009. We have not received significant financial assistance from the government in the past three years. We spend about 80 percent of our purchasing power on locally based suppliers at significant locations of operation.

employees

We are proud of the fact that almost one-third of our employees have been with us for more than 15 years. The number of temporary employees that we employed ranged from 80 to 500 a month, depending on the time of year and our production volumes.

72

employees

06/07 07/08 08/09

% Full - and Part-Time 90% 90% 86% U.S. Employees

# Non-U.S. Employees 10% 10% 14% Full and Part-Time

% Employees Covered 7% 4.2% 4.6% By CollectiveBargaining Agreements

Full -Time Employees 4.3% 8.9% 14.2%Turnover

Full -Time Employees 7.12 4.79 5.85 Training Hours

Training Cost .27% .25% .24% (as a percent of sales)

Employee Satisfaction 71% no survey survey(% Favorable on a 1-5 Scale) administered postponed

# of Hires 871 347 117

company sales

06/07 07/08 08/09 Actual Actual Actual

Total Net Sales ($ billion) 1.919 2.012 1.630Net Sales International ($ million) 278 323.5 238.4Net Sales North America ($ billion) 1.641 1.689 1.392Employee-Owners Stock Share 12.4% 10.8% 11.8%

our board of directors

corporate structure

leadership and governanceHerman Miller has a Board of Directors with a separate CEO and Chairman of the Board. The Directors are elected in staggered terms. A supermajority of the Board is required to amend the Board charter, but not to amend the bylaws or approve a merger. The company has shareholder rights plans and does not provide golden parachutes. None of our Directors resides on more than four other company or nonprofit boards.

Please visit the Board of Directors page at HermanMiller.com and our proxy statement for more information on our Board of Directors.

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board of directors

06/07 07/08 08/09

# of Women 2 2 2# of Minorities 1 2 2# of Independent 10 9 10

Total (# of Board Directors) 12 11 12

Chief Executive Officer

Executive Vice President

Chief Financial Officer

Director of Business Risk

Treasurer & Vice President of

Investment Relations

Senior Vice President of

People Services

Executive Vice President

Chief Administrative Officer

Director of Environmental

Health & Safety

Director of Inclusiveness &

Diversity

Senior Vice President of Legal

Services & Secretary

International Human Resource Director

business structureHerman Miller uses a variable-cost business model designed to weather the peaks and valleys of the contract furniture industry. It’s a “both/and” approach that keeps us healthy in the present and prepared for the future. Our model is built on cost structure that is not vertically integrated—in other words, we partner with suppliers, designers, dealers, and other companies, rather than bringing the work they do for us—and its attendant costs—in house.

Herman Miller, Inc., has been a publicly held company since 1970 and serves as parent to several wholly owned subsidiaries and licensees around the world. Our shareholders include full-time Herman Miller employees, which motivates us to create wealth for the organization while maintaining our set of values.

For information about our Executive Team, corporate divisions, subsidiaries, markets, and alliance partners please visit our proxy statement and Form 10-Kat HermanMiller.com.

We rely on the core strengths of problem-solving design and innovation, operational excellence, and building and leading quality designers, dealers, and supplier networks.

commitments to external sutainability initiatives

external sustainability initiatives we supportHerman Miller supports and participates in numerous sustainability- focused initiatives and programs, including: • GREENGUARD Certification • GREENGUARD Certification • ISO 14001 • ISO TC07 Environmental Standards Committee • Leadership in Energy and Environmental Design (LEED) Certification • McDonough Braungart Design Chemistry (MBDC) Cradle to Cradle

Certification and Protocols • Michigan Department of Environmental Quality Clean Corporate Citizen • Michigan Occupational Safety and Health Administration (MIOSHA)

Voluntary Protection Program • Supplier diversity initiatives • Sustainability Board of Advisors to the American Society of Interior

Designers (ASID) • University of Michigan ERB Sustainability Institute • US Environmental Protection Agency (EPA) Energy Star Building Program • EPA WasteWise Program • World Resources Institute (WRI) Protocol on Product Carbon Footprints

74 75

our membership in sustainability-focused organizationsHerman Miller holds memberships in many organizations for which sustainability is a primary precept, including: • Business and Institutional Furniture Manufacturer’s Association (BIFMA) • Five Winds International • International Design Center for the Environment (IDCE) • McDonough Braungart Design Chemistry (MBDC) • Society of Organizational Learning (SoL) • Tropical Forest Foundation – Charter member • U.S. EPA National Pollution Prevention and Toxics Advisory Committee (NPPTAC) • U.S. Green Building Council (USGBC) – Charter member • U.S. Green Building Council (USGBC) – Technical Advisory Groups • West Michigan Chapter, Air and Waste Management Association • West Michigan Environmental Action Council (WMEAC) • West Michigan Sustainable Business Forum – Charter member

sustainable investmentHerman Miller has been reviewed by several socially aware investment indexes and other research firms, including: • Dow Jones Sustainability Index • KLD* Domini Social Index (DSI) • KLD Global Climate Index (GCI100) • NASDAQ Global Select • 2007 Sustainable Business 20 (SB20) List: The World’s Top Sustainable Stocks • 100 Best Corporate Citizens by CRO Magazine

* Note: KLD Research & Analytics is a Boston-based independent research firm regarded as a leading authority on social research and indexes for institutional investors. More information on KLD can be found on HermanMiller.com.

dealers' survey of customer satisfaction

customer satisfaction*

* Average score on a scale of 1-5.

06/07 07/08 08/093.5

3.625

3.750

3.875

4

Customer satisfaction is measured and tracked. Continuous improvement plans are generated based on these results. In 2009, the score went up due to significant increases in customer satisfaction on categories such as Field Sales Support and Order Processing.

industry performanceWe closely monitor the statistics reported by BIFMA, our industry trade association, and consider them among the key indicators of industry-wide sales and order performance. We also analyze this information over several quarters as a benchmark for our U.S. business.

More information on our core strengths and business conditions is available on pages 19-21 of our Form 10-K.

business risk assessmentLike all businesses, Herman Miller faces a host of challenges and risks every day. The world changes and we have to change with it. We believe our core strengths and values, which provide the foundation for our strategic direction, have prepared us well to respond to the challenges we face now and those that will inevitably occur in the future.

The potential for fraudulent, unethical, and/or illegal acts is considered within our overall enterprise risk assessment process, which is conducted annually. This formal risk assessment essentially covers all the company’s business units and significant business processes, and the results are shared by management with the Audit Committee of the Board of Directors.

Essentially all employees of the company, management and nonmanagement, are educated about the company’s standards regarding fraud and ethics through new employee orientation, following management’s lead and ongoing distribution of written policies, which clearly communicate relevant company-wide standards.

All investigations and any necessary follow-up actions related to alleged fraudulent behavior and/or illegal activities are typically reported confidentially to the company’s Legal Services and/or Business Risk Assurance (internal audit) offices. Procedures are in place to disclose these activities and the corporation’s response to the Board of Directors on a regular basis and to our external independent audit firm when relevant. Any potentially significant risks and management’s response to them related to litigated and unlitigated corruption are also disclosed within public documents filed with the Securities & Exchange Commission as appropriate under U.S. financial reporting requirements.

Please refer to page 38 of our fiscal 2008 10-K Report for further discussion of some risk factors.

76

legalHerman Miller willingly complies with local, national, state, and provincial legislation governing the function of businesses. We often exceed legal standards when our own standards for corporate behavior, based on our values and philosophy, require it.

about this report

This is Herman Miller’s third official Better World Report, our effort to document not only what we do that relates to environmental activities, but also relevant social and financial initiatives. It’s also a direct response to requests from our customers, dealers, and other stakeholders. In preparing this report, we followed guidelines issued by the Global Reporting Initiative (GRI). For more de-tail, go to www.globalreporting.org. For our fourth sustainability report we have focused primarily on Herman Miller’s North American operations. We continue to develop details on our international business. Our environmental data includes subsidiaries and leased facilities that we manage.

This information covers fiscal years 2007, 2008, and 2009 (June 1, 2006 – May 30, 2009) with a section that focuses on fiscal year 2008/2009. Our last report covered fiscal 2007/2008 and was published on November 20, 2008. We will produce an updated Better World Report annually.

The information in this report has not been externally assured.

GRI Self Declared B

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gri index

strategy and analysis

G3 Disclosure Description Page # Other Source

CEO statement.

Key impacts, risks, and opportunities.

Name of the organization.

Primary brands, products, and/or services.

Operational structure of the organization, including main divi-sions, operating companies, subsidiaries, and joint ventures.

Location of organization’s headquarters.

Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

Nature of ownership and legal form.

Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

Scale of the reporting organization.

Significant changes during the reporting period regarding size, structure, or ownership.

Awards received in the reporting period.

Annual Report

HM.com

10K

HM.com, 10K

HM.com, 10K

10K

10K

HM.com

3

7, 77

Cover

12, 15

15, 77

15

15

73

12

72, 73,

72, 73, 74

71

1.1

1.2

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8

2.9

2.10

organizational profile

78 79

G3 Disclosure Description Page # Other Source

Reporting period (e.g., fiscal/calendar year) for information provided.

Date of most recent previous report (if any).

Reporting cycle (annual, biennial, etc.).

Contact point for questions regarding the report or its contents.

Process for defining report content.

Boundary of the report.

Limitations on the report scope or boundary.

Reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities.

Data measurement techniques.

Re-statements of information provided in earlier reports.

Significant changes from previous reporting periods.

Table identifying location of the Standard Disclosures.

External assurance.

10K

77

77

77

71

77

77, 15

7, 8

74

77

77

7, 8, 77

78–85

77

3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

3.10

3.11

3.12

3.13

report parameters

81

economic performance

G3 Disclosure Description Page # Other Source

Economic value generated.

Financial implications, risks, and opportunities of climate change.

Coverage of organization’s defined-benefit pension plan.

Financial assistance from government.

Standard entry level wage compared to local minimum wage.

Spending on locally based suppliers.

Procedures for local hiring.

Infrastructure investments and services for public benefit.

Indirect economic impacts.

Materials used by weight or volume.

Recycled input materials used.

Direct energy consumption.

Indirect energy consumption.

Energy saved due to conservation and efficiency improvements.

Initiatives to provide energy-efficient products and services.

Initiatives to reduce indirect energy consumption.

Water withdrawal by source.

10K

10K

10K

72, 75

61

NR

72

NR

72

NR

NR

NR

NR

67

33

33

33

36, 64

36, 64

NR

EC1

EC2

EC3

EC4

EC5

EC6

EC7

EC8

EC9

EN1

EN2

EN3

EN4

EN5

EN6

EN7

EN8

environmental performance

80

governance, commitments, and engagement

G3 Disclosure Description Page # Other Source

Governance structure of the organization.

Chair of highest governance body.

Independent members of highest governance body.

Shareholder and employee recommendations to highest governance body.

Compensation of highest governance body.

Process for highest governance body to avoid conflicts of interest.

Process for determining qualifications of highest governance body.

Internally developed mission relevant to economic, environmental, and social performance.

Procedures for highest governance body to oversee organization’s management of economic, environmental, and social performance.

Processes for evaluating highest governance body.

Explanation of how organization addresses precautionary approach.

Externally developed, voluntary economic, environmental, and social initiatives organization subscribes to and/or endorses.

Significant association memberships.

List of stakeholder groups engaged by organization.

Basis for identification and selection of stakeholders.

Approaches to stakeholder engagement.

Key stakeholder issues and concerns.

HM.com

10K

HM.com

HM.com

10K

73, 15

73

73

53

15

15

73

53

15

73

74

74

75

53

53

53

53

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

4.10

4.11

4.12

4.13

4.14

4.15

4.16

4.17

83

social performance

G3 Disclosure Description Page # Other Source

Products sold and packaging materials reclaimed

Noncompliance with laws and regulations

Environmental impacts of transporting products

Environmental protection expenditures

Workforce by employment type and region

Employee turnover by age group, gender, and region

Benefits provided to full-time employees not provided to temporary or part-time employees

Collective bargaining agreements

Minimum notice periods regarding operational changes

Management-worker health and safety committees

Rates of injury

Education, training, counseling, and prevention programs regarding serious diseases

Health and safety topics covered in formal agreements with trade unions

Training per year per employee

Skills management and lifelong learning programs

Performance and career development reviews

10K

10K

64-71

35

33, 61, 62, 64

NR

72

72

50

74

77

25, 26, 46, 47

25

50

NR

72

42

42

EN27

EN28

EN29

EN30

LA1

LA2

LA3

LA4

LA5

LA6

LA7

LA8

LA9

LA10

LA11

LA12

82

G3 Disclosure Description Page # Other Source

Water sources significantly affected by water withdrawal.

Water recycled and reused.

Land adjacent to protected areas.

Impact of activities on biodiversity in protected areas.

Habitats protected or restored.

Strategies for managing impacts on biodiversity.

IUCN Red List species affected by operations.

Direct and indirect greenhouse gas emissions.

Other relevant indirect greenhouse gas emissions.

Initiatives to reduce greenhouse gas emissions.

Emissions of ozone-depleting substances.

NOx, Sox, and other significant air emissions .

Water discharge, quality and destination.

Waste by type and disposal method.

Significant spills.

Transported, imported, or exported hazardous waste .

Water bodies and related habitats affected by water discharge and runoff.

Initiatives to mitigate environmental impacts of products.

NR

NR

NR

NR

71

71

71

33

33

32, 33

NR

31

31, 60

32

35

31, 32

NR

37-39, 64-66

EN9

EN10

EN11

EN12

EN13

EN14

EN15

EN16

EN17

EN18

EN19

EN20

EN21

EN22

EN23

EN24

EN25

EN26

85

G3 Disclosure Description Page # Other Source

Fines and nonmonetary sanctions for laws and regulations.

Health and safety improvements to products and services.

Noncompliance concerning health and safety effects of products and services.

Product and service information required by procedures.

Noncompliance with regulations concerning product and service information and labeling.

Practices related to customer satisfaction.

Adherence to laws and standards related to marketing communications.

Noncompliance with regulations concerning marketing communications.

Substantiated complaints regarding breaches of customer privacy.

Noncompliance with laws and regulations concerning products and services.

32

53, 54,

NR

54

NR

75, 76

NR

NR

NR

NR

SO8

PR1

PR2

PR3

PR4

PR5

PR6

PR7

PR8

PR9

84

G3 Disclosure Description Page # Other Source

Composition of governance bodies and employees according to diversity indicators.

Ratio of basic salary of men to women.

Investment agreements that include human rights clauses.

Human rights screenings of suppliers and contractors.

Human rights policies and procedures training for employees.

Incidents of discrimination.

Incidents of freedom of association and collective bargaining.

Incidents of child labor.

Incidents of forced compulsory labor.

Human rights policies and procedures training for security personnel.

Incidents of violations involving rights of indigenous people.

Impact of operations on communities.

Business units analyzed for corruption-related risks.

Anticorruption policies and procedures training for employees.

Response to incidents of corruption.

Public policy development and lobbying.

Financial and in-kind contributions to political parties.

Anticompetitive behavior, antitrust, and monopoly practices.

Supplier Code of Conduct

Supplier Code of Conduct

Supplier Code of Conduct

73

NR

NR

50

NR

NR

50

50

50

NR

NR

NR

76

76

76

NR

NR

NR

LA13

LA14

HR1

HR2

HR3

HR4

HR5

HR6

HR7

HR8

HR9

SO1

SO2

SO3

SO4

SO5

SO6

SO7

© 2009 Herman Miller, Inc., Zeeland, Michigan

® L, Y, Action Office, Abak, Aeron, Ambi, Avive, Caper, Celle, Convia, Eames, Embody, Equa, Ergon, Ethospace, Foray, Geiger, Nala, Meridian, Mirra, My Studio, Passage, Reaction, Resolve, Series 5000, Teneo, Tu, and Vivo are among the registered trademarks of Herman Miller, Inc.SM Cradle-to-Cradle is a service mark of McDonough Braungart Design Chemistry.™ BIFMA level is a trademark of BIFMA International.