Climate Change Data

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