Thermosetting binders are used to impart shape, rigidity and communicative properties to nonwoven fibrous materials such as fiberglass insulation, ceiling tiles, air filters and particleboard. The most common thermosetting resins are century-old formaldehyde-based resin systems, including phenol-formaldehyde (PF), urea-formaldehyde (UF) and melamine-formaldehyde (MF). Aquaset™ technology offers an effective alternative and practical solution to many of the health, safety and environmental issues associated with use of formaldehyde-based resins. Aquaset technology is a complete redesign of existing thermoset binders, consisting of a simple but elegant combination of a polyol, polyacid and a hypophosphite catalyst to yield a rigid polyester network with water as the primary by-product. This chemical approach-by-design focuses on waste prevention rather than “end-of-pipe” clean-up. Rohm and Haas Company and Johns Manville collaboratively refined an Aquaset binder and adapted this water-based technology for the manufacture of fiberglass insulation. Since converting its entire line of building insulation products in 2002, Johns Manville has eliminated nearly 110 tons of formaldehyde emissions each year. In addition, phenol, methanol and ammonia emissions--common in the manufacture of formaldehyde-based resins--have been significantly reduced, if not completely eliminated. The development and implementation of environmentally smart Aquaset technology will be described.