Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy use by 20.6% from 2011 to 2014.
• Reduced greenhouse gas emissions by 22.7% from 2011 to 2014.
• Reduced normalized greenhouse gas emissions by 29.5% from 2011 to 2014.
• Installed solar panels at New Jersey facility, covering 80% of historic energy use.
• Increased recycling and decreased trash at Piscataway facility.
• Maintained over 75% recycling at Fresno facility despite a 39% production increase.

Social Achievements

• Partnered with WWF to protect 1.5 million acres in Cambodia.
• Donated over 10 tons of used furniture to charities and recycling through ANEW.
• Engaged in various community service initiatives (Prevent Child Abuse NJ, Denver Art Museum, Temple Beth-El Mekor Chayim, Power of Gospel Ministries).

Governance Achievements

• Took a strong stance in supporting Health Product Declarations (HPDs), completing HPDs for Cinto chair and Float table base.
• Developed a training program for suppliers on the importance of disclosing materials ingredients, training 40 suppliers.
• Expanded vendor evaluation for Human Rights to suppliers for all product lines, with over 75% responding.

Climate Goals & Targets

Environmental Challenges

• Difficulty in obtaining materials information from suppliers regarding chemical ingredients.
• Industry-wide use of hazardous materials (PVC, Formaldehyde, Chrome 6).

Mitigation Strategies

• Developed a supplier training program to address materials disclosure.
• Actively sought and implemented alternatives to hazardous materials in products (e.g., PVC replacement in Ballo stool).

Supply Chain Management

Supplier Audits: Over 75% of vendors responded to Human Rights evaluation.

Responsible Procurement

• Supplier training program on materials disclosure
• Commitment to UN Global Compact principles on human and labor rights

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: WRI GHG Protocol Corporate Accounting and Reporting Standard, EPA Climate Leaders Program

Certifications: Forest Stewardship Council (FSC), GREENGUARD, LEED offices/showrooms

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Ballo stool (using eco-friendly TPV material)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 64.6% since 2011
• Rainwater used for 100% of production water in North America
• Solar energy provided over 80% of electricity for main factory
• Achieved full Living Product Challenge certification for Float table and Diffrient Smart chair
• Piscataway facility earned New Jersey DEP Recycling Award

Social Achievements

• Created a Sustainability Champions group (HOME program) to promote sustainability within the company
• Launched a company-wide campaign for non-profit volunteer program
• Implemented an eco-friendly office supplies program
• Established a recycling and disposal program in each office

Governance Achievements

• No incidences of non-compliance with environmental regulations
• No incidences of non-compliance in product marketing and labeling
• Participation in the Health Product Declaration Collaborative’s (HPDC) third-party verification pilot program

Climate Goals & Targets

Environmental Challenges

• Reducing footprints and creating handprints
• Ensuring entire supply chain is net positive for water, energy and emissions
• Changing the culture of sustainability for 300 people
• Guiding end-of-life product disposal
• Managing the environmental and health impacts of materials and chemicals
• Ensuring ethical labor practices in the supply chain
• Addressing snaring in wildlife protection efforts

Mitigation Strategies

• Created the first “handprinting” job to focus on creating positive impacts
• Integrated Living Product Challenge criteria into standard practices
• Implemented enhanced recycling program at Piscataway facility
• Developed a new supplier audit program including environmental and social requirements
• Engaged in stakeholder engagement to understand concerns and guide report direction
• Developed a program to ensure production of Diffrient Smart chair and Float table creates handprints larger than their footprint (to launch in 2018)
• Working with local communities to encourage wildlife conservation

Supply Chain Management

Supplier Audits: New audit program developed at the end of 2017, quarterly audits starting in 2018

Responsible Procurement

• Code of Conduct, preference for local/domestic suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UNGC

Certifications: FSC, SCS Indoor Air Quality Gold, GREENGUARD Gold, LEED

Sustainable Products & Innovation

• Float table
• Diffrient Smart chair

Awards & Recognition

• Manufacturer Visionary Award (ILFI)
• Sustainability Leadership Award (Business Intelligence Group)
• Sustainable Innovation Award (Business Intelligence Group)
• Sustainable Champion (Business Intelligence Group)
• NJDEP Recycling Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Consumption
• Energy Consumption

Environmental Achievements

• Reduced carbon footprint through use of recycled aluminum in chair bases and exploring recycled polypropylene content.

Climate Goals & Targets

Environmental Challenges

• Data limitations, particularly regarding geographically specific datasets for various inputs.
• Lack of primary data for suppliers' energy use, waste, and transportation.

Mitigation Strategies

• Used conservative estimates and proxies where primary data was unavailable.
• Conducted sensitivity analysis to assess the impact of data limitations and assumptions.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14040, ISO 14044, TRACI 2.1, ReCiPe 2016 Midpoint (H), BIFMA PCR for Seating: UNCPC 3811, Version 3

Certifications: ANSI/BIFMA X5.1, ANSI/BIFMA LEVEL® 3, Declare: HSC-0007, HPD Label: 21145, VOC emission Indoor Advantage Gold: SCS-IAQ-05426

Third-party Assurance: WAP Sustainability