Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Design
• Sustainable Planet
• Sustainable Culture

Environmental Achievements

• Established a virtual power purchase agreement (VPPA) to address the carbon footprint of more than 90% of current total annual U.S. energy consumption, reducing overall electricity emissions by about 45%
• Maintained eight existing zero-waste-to-landfill facilities in the U.S.
• Sourced more than 74% of wood from renewable, plantation-grown sources.
• Received a High Score on the Wood Furniture Scorecard

Social Achievements

• Signed the CEO Action for Diversity & Inclusion pledge
• Donated a combined total of $2.7 million to non-profit organizations and communities
• Appointed Erika Alexander to the Board of Directors, resulting in 64% women and/or ethnically diverse directors as of June 2022
• Reduced OSHA Recordable Injury Rate by over 70% since 2012

Governance Achievements

• Updated Code of Conduct in 2021 to include inclusion
• Rolled out an updated Ethics Hotline in 2021
• Board of Directors oversees environmental and sustainability risks and is integrally involved in the net-zero emissions goal

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic (lack of component parts, freight shipping delays, slow manufacturing rebound)
• Climate-related risks (water stress, wildfire, extreme cold temperatures; increased GHG emissions pricing and operating costs)

Mitigation Strategies

• Increased production at U.S. manufacturing plants, invested in new production lines and added production capacity in Mexico
• Identifying additional, dependable sources for materials and components; diversifying components and adding supply from other regions
• Reducing reliance on specific supply streams (e.g., shipping raw wood components to North America for finishing)
• Renewable energy roadmap, VPPA for clean energy

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Supplier Requirements (legal and internal)
• Social Compliance Supplier Manual
• Supplier Inclusion Program

Climate-Related Risks & Opportunities

Physical Risks

• Water stress
• Wildfire
• Extreme cold temperatures

Transition Risks

• Increased pricing of GHG emissions
• Increased operating costs
• Carbon pricing risk associated with Scope 3 emissions

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: GREENGUARD Gold Certification, LEED Silver Certifications

Sustainable Products & Innovation

• Products made with conserve™ Sustainable Fabrics (from recycled water bottles); Series 30 and Series 40 bases using resourced steel from discarded railroad rails

Awards & Recognition

• Five-time recipient of the NSC Corporate Safety Culture Award
• NSC Green Cross for Safety Excellence award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Design
• Sustainable Culture
• Sustainable Planet
• Supply Chain Management
• Diversity & Inclusion

Environmental Achievements

• Improved waste and recycling programs
• Increased energy and water efficiencies
• Developed emissions reduction plans
• 89.4% of waste recycled
• 10.3% of waste sent to landfill (down from 31% in FY 2022)
• ~79% of electricity consumption in North America was renewable

Social Achievements

• Launched La-Z-Boy Compassion Fund
• Launched La-Z-Boy Cares Dollars for Doers program
• Summer of Caring and Season of Caring volunteer programs
• Received National Safety Council Corporate Culture of Safety Award
• Zero fatalities in FY 2023
• >70% Reduction in OSHA recordable injury rate since 2012
• 87% response rate on employee engagement survey with strong scores on quality, direction, and diversity

Governance Achievements

• Updated Code of Conduct and translated into multiple languages
• Annual compliance training for employees and vendors
• 90% of Board of Directors are independent
• 70% of Board comprised of women and/or ethnically diverse directors
• Board oversight of sustainability initiatives

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical and policy risks, including water stress)
• Scope 3 emissions (92% of total emissions)
• Supply chain disruptions
• Waste management

Mitigation Strategies

• Climate risk assessment aligned with TCFD
• Development of science-based decarbonization targets (planned for FY 2024)
• Collaboration with ESG Flo for Scope 3 emissions calculation
• TranZform project for lean manufacturing and operational efficiency
• Green scorecard for manufacturing facilities (planned for FY 2024)
• Partnerships with suppliers to promote circularity
• Hazardous waste minimization plan (planned for FY 2024)
• Improved emission accounting
• Renewable energy initiatives (VPPA, Mexico PPA, green tariffs)

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Social Compliance Supplier Manual
• Responsible Wood Sourcing Policy
• Responsible Cotton Sourcing Policy
• Responsible Leather Sourcing Policy
• Supplier Inclusion Program

Climate-Related Risks & Opportunities

Physical Risks

• Water stress
• Wildfire
• Extreme cold temperatures

Transition Risks

• Carbon pricing
• Taxes on fuel or GHG emissions

Opportunities

• Renewable energy
• Energy efficiency improvements

Reporting Standards

Frameworks Used: SASB - Building Products and Furnishings Standard, TCFD

Certifications: GREENGUARD Gold, ISO 17025 (A2LA accredited)

Sustainable Products & Innovation

• Products made with Conserve™ Sustainable Fabrics (recycled water bottles)
• Products using FSC-certified wood

Awards & Recognition

• National Safety Council Corporate Culture of Safety Award
• Furniture Today’s list of 10 Best Places to Work in Furniture 2023
• High Score on the Wood Furniture Scorecard (two consecutive years)

Environmental Metrics

ESG Focus Areas

• Human-centered approach
• Sustainable supply chain
• Lean manufacturing
• Climate change

Environmental Achievements

• Nearly 90% of domestic wood suppliers were members of organizations promoting sustainable lumber practices (FY2024)
• 42% reduction in transportation miles for North American product deliveries
• 62% reduction in scope 1 emissions
• 62% reduction in scope 2 emissions
• 51% reduction in scope 3 emissions
• 96% recycle rate for all non-hazardous waste
• 64% global electricity consumption covered by renewable energy portfolio
• 20% reduction in year-over-year generation of hazardous waste
• 30% of leather hides sourced from eco-friendly suppliers (La-Z-Boy branded products only)
• 34% of corrugated packaging made from recycled content
• 9% of plastic packaging made from recycled materials

Social Achievements

• Received the prestigious Corporate Culture of Safety Award by the National Safety Council (2023)
• 1,000+ employees added to Learning Management System
• 52,722 estimated training hours in manufacturing
• $1.4M USD donated by La-Z-Boy Foundation (Calendar year 2023)
• Launched TranZform Initiative to improve efficiency and employee engagement
• Implemented a quarterly unconscious bias training
• Performed a company-wide pay equity assessment

Governance Achievements

• Established robust ethics and compliance programs including a Code of Conduct, Supplier Code of Conduct, and Ethics Hotline
• Third consecutive ‘High Score’ on the Wood Furniture Scorecard

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on supply chain (physical risks to facilities, material supply disruptions)
• Increasing average miles per shipment (prior to Home Plant project)

Mitigation Strategies

• Implementation of the Home Plant project, reducing average miles per shipment by 42%
• Expanded emergency management plans to include storms, floods, and wildfires
• Developed flood plans for all locations
• Incorporated water scarcity, storm prevalence, and climate change into manufacturing location decisions
• Engaging with suppliers on sustainability initiatives and goals
• Establishing partnerships to develop sustainable materials and promote circularity

Supply Chain Management

Supplier Audits: 3,062 visits; 51 audits (FY2024)

Responsible Procurement

• Supplier Code of Conduct
• Responsible Wood Sourcing Policy
• Responsible Leather Sourcing Policy
• Responsible Cotton Sourcing Policy
• Supplier Inclusion Program

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Hurricanes
• Wildfires
• Weather changes impacting material supply

Transition Risks

• Changing agricultural regions and droughts impacting timber supply

Opportunities

• Development of sustainable materials and processes
• Improved energy efficiency

Reporting Standards

Frameworks Used: SASB (Building Products and Furnishings Standard), TCFD

Certifications: GREENGUARD Gold (North American La-Z-Boy branded products)

Sustainable Products & Innovation

• Conserve™ Sustainable Fabrics (containing recycled water bottles)

Awards & Recognition

• Corporate Culture of Safety Award (2023)
• Featured in Furniture Today’s list of 10 Best Places to Work in Furniture (2023)