Climate Change Data

Environmental Metrics

ESG Focus Areas

• Carbon Reduction
• Waste Reduction
• Sustainability
• Products
• Packaging
• Social Justice
• Occupational Health & Safety
• Employee Growth & Retention
• Ethical Leadership
• Ethics in Supply Chain
• Corporate Giving

Environmental Achievements

• Reduced carbon-based energy consumption by 40% annually at three major facilities through renewable energy.
• Began utilizing renewable energy sources at several facilities, including Sunset West (100%), Sam Moore (50% with a plan to reach 100% in 2024), and East Coast Warehouse (30%).
• Achieved a 20-30% reduction in electrical usage at domestic facilities by switching to LED lighting.

Social Achievements

• Provided an average of 28 hours of training per employee per year.
• Met or exceeded industry benchmark scores for manufacturing across all categories in the 2023 employee engagement survey.
• Donated $1.5 million in monetary and in-kind support to charities.

Governance Achievements

• Established a CARE team to create processes, metrics, and reporting methods to drive positive change.
• Implemented a Vendor Code of Conduct, with 96% of international suppliers signing (aiming for 100% by June 2023).
• Periodically review and maintain Code of Ethics and Vendor Code of Conduct; conduct regular Anti-Bribery/Anti-Corruption training.

Climate Goals & Targets

Environmental Challenges

• Climate change risks impacting operations through extreme weather events and supply chain disruptions.
• Need to minimize water consumption.
• Need to divert more waste from landfills.

Mitigation Strategies

• Developed an environmental policy outlining commitment to sustainable business practices.
• Implemented projects to reduce greenhouse gas emissions and increase energy efficiency.
• Initiated a water usage program and a Waste Management Project to identify and implement improvements.

Supply Chain Management

Supplier Audits: Multiple suppliers audited annually to ensure compliance with Vendor Code of Conduct.

Responsible Procurement

• Vendor Code of Conduct including: upholding the law, child labor policy, involuntary labor policy, non-discrimination, fair discipline, coercion, and harassment policy, health, safety, and the environment, compensation policy, working hours policy, responsible sourcing, monitoring transparency, and C-TPAT certification.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events damaging facilities and disrupting supply chains.

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: EFEC (all brands except Sunset West, aiming for certification in 2024)

Third-party Assurance: Third-party verification of GHG data in process (to be completed by June 2023)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• M brand furniture, with one tree planted for every piece purchased.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Responsibility
• Corporate Citizenship
• Diversity, Equity & Inclusion
• Health & Safety

Environmental Achievements

• Reduced emissions of volatile organic compounds (VOCs) at Sam Moore facility, resulting in reclassification under the Clean Air Act from an EPA Title V Major Source to a Synthetic Minor Source.
• Implemented process improvements in Shenandoah facilities, reducing energy consumption and landfill waste.
• Recycled, reused, or repurposed 100% of pallets.
• Repurposed 100% of wood chips and sawdust from Bradington-Young and Shenandoah facilities for farming (with plans to expand to HF Custom by 2025).
• Reduced plastic waste in cushion production by 100% at HF Custom.
• Reduced Styrofoam/packaging waste by switching to biodegradable packing.
• Reduced plastic bottle waste by 85% with bottle fill stations and recycling programs.
• Recycled 100% of leather scraps at Bradington Young (with plans to expand).
• Recycled 100% of fabric scraps from Shenandoah and Bradington-Young facilities (with plans to expand).

Social Achievements

• Established a new internship program focused on building a diverse pipeline of talent.
• Donated $1.4 million in monetary and in-kind support.
• Increased female representation in leadership development from 52% to 60% (2021-2023).
• Increased racial and ethnic diversity in leadership development from 11% to 24% (2021-2023).

Governance Achievements

• Annual review and maintenance of Code of Ethics.
• Annual Anti-Bribery/Anti-Corruption training for employees.
• Periodic review and maintenance of Vendor Code of Conduct.
• Annual audits of multiple suppliers and vendors to ensure compliance.

Climate Goals & Targets

Environmental Challenges

• Climate-related risks and their potential impact on operations.
• Need for inclusive leadership training and expanded management training.

Mitigation Strategies

• Diversifying sourcing channels, enhancing supply chain resilience, investing in renewable energy solutions.
• Partnering with The Diversity Movement (TDM) for inclusive leadership training and conducting employee listening sessions.

Supply Chain Management

Supplier Audits: Semi-annual audits of international suppliers.

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: EFEC (Enhancing Furniture’s Environmental Culture)

Certifications: EFEC (for most brands)

Third-party Assurance: Apex Company, LLC

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• BOBO Intriguing Objects using recycled and remnant materials.

Awards & Recognition

• Appalachian Power 2023 Top Performer for energy efficiency (Martinsville, VA)