Ethan Allen Interiors Inc.
Climate Impact & Sustainability Data (2023, 2024)
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Social Responsibility
- Corporate Governance
- Environmental Stewardship
Environmental Achievements
- Continued work to cut carbon footprint, greenhouse emissions, electrical and water usage, and landfill waste; Prioritizing responsible forestry and environmentally friendly materials
- Ethan Allen’s upholstery manufacturing operation in Silao, Guanajuato, Mexico, has been named “Empresa Socialmente Responsable” (Environmentally and Socially Responsible) for the fourth consecutive year.
Social Achievements
- Ethan Allen was named America’s Best Retailer in the Premium Furnishings category and one of America’s Top 10 Retailers by Newsweek.
- 70% of retail division leaders and 65% of company leaders are women.
- Annual health fair for associates in Honduras named Best Health Fair for multiple years.
- Upholding federal Equal Opportunity Employment standards, ensuring freedom from discrimination.
- Multiple avenues for reporting inappropriate behavior, including a confidential whistleblower hotline.
- Support for diversity awareness and maintaining an inclusive environment.
Governance Achievements
- Commitment to good corporate governance
Climate Goals & Targets
Supply Chain Management
Responsible Procurement
- Most of the wood sourced for domestic production comes from responsibly managed Appalachian forests, and we have been Verified Sustainable and Legal by Appalachian Hardwood Manufacturers, Inc.
Climate-Related Risks & Opportunities
Awards & Recognition
- America’s Best Retailer in the Premium Furnishings category
- One of America’s Top 10 Retailers by Newsweek
Reporting Period: 2024
Environmental Metrics
ESG Focus Areas
- Social Responsibility
- Sustainable Operations
Environmental Achievements
- Use of responsibly harvested Appalachian woods, with over 25% of wood furniture sold sourced from reclaimed/recycled wood
- Use of finishes low in volatile organic compounds and hazardous air pollutants
- Elimination of heavy metals and hydrochlorofluorocarbons in all packaging
- Conversion to PFAS-free materials in mattresses, custom upholstery, area rugs, broadloom, draperies, and fabrics (where feasible)
- Investment in machinery and technology to reduce landfill waste
Social Achievements
- Named to Newsweek’s list of America’s Best Retailers 2024 (second year in a row)
- Mexican Center for Corporate Philanthropy and Alliance for Corporate Social Responsibility recognized Ethan Allen’s Silao upholstery operations as “Environmentally and Socially Responsible” for the fifth consecutive year
- 71% of retail division leaders and 67% of Company-wide leaders are women as of June 30, 2024
- Safety programs in place with training and education for employees
- Partnerships with local communities to provide transportation and low-cost meals in some North American manufacturing workshops
- On-site medical clinics staffed by doctors and nurses, including a pharmacy, in manufacturing facilities outside the U.S.
Governance Achievements
- Code of Conduct provides ethics standards for all employees, officers, and directors
- Confidential whistleblower hotline available to report inappropriate behavior
Climate Goals & Targets
Environmental Challenges
- Softening demand in the home furnishings market
- Ongoing inflationary pressures
- High interest rates
- Slow housing market
- Slower contract business
- Supply chain disruptions (past disruptions due to the COVID-19 pandemic)
- Labor challenges (competition for skilled employees, wage pressure, labor shortages)
- Climate change and related regulations (potential increased compliance costs and liabilities)
Mitigation Strategies
- Disciplined expense management
- Strong operating cash flow
- Robust balance sheet
- Selective price increases
- Reduced headcount through operational efficiencies
- Investments in technology to streamline workflows
- Alternative sourcing strategies
- Focus on operational efficiencies and leveraging technology
- Comprehensive cybersecurity program
Supply Chain Management
Responsible Procurement
- Suppliers must adhere to Ethan Allen's quality standards, specifications, and social responsibility requirements.
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- Products made with responsibly sourced wood, low-VOC finishes, PFAS-free materials (where feasible)
Awards & Recognition
- Newsweek’s America’s Best Retailers 2024
- Mexican Center for Corporate Philanthropy and Alliance for Corporate Social Responsibility’s “Environmentally and Socially Responsible” recognition