Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Achieved 100% carbon neutrality by offsetting over 6,300 metric tonnes of carbon.
• Sourced 100% renewable energy for production and showroom.
• Reduced energy consumption (gas and electricity) per square foot of tile produced by 69% and 43% respectively over four years.
• Diverted 84.3% of waste and reduced trash volume by 78%.

Social Achievements

• Became a Certified Employee-Owned company with teammates owning over 30% of the company.
• Increased starting wage to $15.00/hour or more.
• Launched a teammate relief fund.
• Offered enhanced benefits including 12 weeks paid maternity leave and 4 weeks paid paternity leave.
• Maintained an 85% teammate recommendation rate and 87% satisfaction with manager treatment.

Governance Achievements

• Improved B Corp score to 115.4 (26% improvement).
• Completed an Environmental Product Declaration (EPD) and Life Cycle Assessment (LCA).
• Implemented a Partner Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Lead times for manufactured materials.
• Quality issues with glaze overspray recycling.
• Dust mitigation in ceramic manufacturing.

Mitigation Strategies

• Achieved 95% on-time delivery in Q4 2020.
• Exploring alternative uses for glaze overspray and improved cleaning/recycling methods.
• Transitioned to a velo/waterfall glaze application and invested in dust mitigation technologies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Partner Code of Conduct
• Preference for recycled materials

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: B Corp, Climate Neutral, LEED

Certifications: Certified B Corp, Climate Neutral Certified, EPD, LCA, Health Product Declaration (HPD) (preliminary)

Third-party Assurance: Third-party Environmental Auditor (California State qualified)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Recycled Clay Body tile

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Certified Climate Neutral, offsetting over 7,805 metric tonnes of carbon
• Procured 100% renewable energy for production facility and showroom
• Recycled all water used in factory operations
• Diverted 94.03% of waste, reduced trash volume by 78%

Social Achievements

• Increased starting wage to $16/hr (later to $17/hr)
• Introduced a company-wide bi-annual compensation review cycle
• Paid out over 15% of Adjusted EBITDA as a bonus to all teammates
• Launched Block Shop x Fireclay Tile Handpainted collection, donating 5% of proceeds to Allies in Arts
• Opened a new showroom in Berkeley, CA
• Provided over $1.4M in cash and in-kind contributions to the community
• Offered 15 days PTO (minimum) and 7 paid holidays for non-exempt employees, unlimited PTO for exempt employees
• Employee ownership increased to 30%

Governance Achievements

• Maintained B Corp certification with a score in the top 10% globally
• Board of Directors is 25% female

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions and increased demand due to the COVID-19 pandemic
• Challenges finding labor and managing price increases
• Transportation volatility
• High costs and regulatory challenges in California

Mitigation Strategies

• Effective communication with clients to manage lead times and expectations
• Maintained prices throughout the year
• Investment in factory expansion to increase capacity
• Commitment to staying in California despite challenges

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Partner Code of Conduct
• Focus on locally sourced materials
• Quality controls to reduce waste from vendors

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: B Corp, Climate Neutral, GLEC Framework

Certifications: Certified B Corp, Climate Neutral Certified, EPD

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Anthem Awards Silver Medal for Best in Diversity, Equity, & Inclusion - Partnership or Collaboration

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced natural gas emissions per square foot of tile produced from 513 to 464 MT CO2e

Climate Goals & Targets

Environmental Challenges

• High Scope 3 emissions (66% of total emissions), particularly from capital goods and purchased goods and services.
• Reliance on natural gas for manufacturing.

Mitigation Strategies

• Installing a solar array at the Aromas facility.
• Focusing on efficiency and reduction efforts at Aromas and Spokane facilities.
• Pursuing zero waste by 2023.
• Improving Scope 3 data availability and expanding LCA capabilities.

Supply Chain Management

Responsible Procurement

• Developing and communicating supplier requirements for information related to product climate impacts.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GHG Protocol Corporate Standard, GHG Protocol Corporate Value Chain Standard, Climate Neutral

Certifications: ISO 14064-1:2018

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Achieved climate neutral status for the entire organization in 2023 through carbon offsetting and renewable energy certificates.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GHG Protocol Corporate Standard, GHG Corporate Value Chain Standard, ISO 14064-1:2019

Third-party Assurance: Climate Neutral (now The Change Climate Project)