ESG REPORT
Acting now for a better future
Letter from the executive office
Challenges have multiplied in recent years since the pandemic, both in businesses and in our society and communities. South Shore Furniture, a third-generation family business founded in 1940 in Sainte-Croix-de-Lotbinière, is rooted in a close-knit community that has weathered many storms over time. Our mission to make a difference takes on real significance as we are aware of the difficulties faced by our partners, clients, consumers, and employees. Making a difference also means being attentive to the environmental, social, and governance (ESG) concerns of these same partners, clients, consumers, and employees.
Commitment, accountability, and ethics are at the core of our organization. The company aims to take responsibility for reducing greenhouse gas (GHG) emissions transparently, while becoming an agent of change in our ESG approach as an organization but also as a member of the community.
In recent years, we have taken the time to thoroughly assess the impact we have at all levels. We have conducted a comprehensive assessment of our carbon footprint, using various globally recognized tools and working with specialized firms. This foundational work was necessary to clearly define the actions to prioritize for the future. It has allowed us to set our ESG targets for the next five to ten years. The company will make every effort within its resources to reduce Scope 1 and 2 GHG emissions by 20% and Scope 3 emissions by 10% through various concrete actions. In collaboration with the South Shore Furniture Foundation, the company will ensure it makes a difference in society by dedicating at least 75% of its donations and community actions to youth in need and their families, with a goal of one furniture donation per day. South Shore Furniture will also promote equity, inclusion, and diversity, as well as the Workplace Health and Safety Program (WHS) within its extended family and community through various mobilization and education activities. Finally, the company will ensure that all ESG indicators are documented, closely monitored by management, and communicated to employees, while ensuring compliance with the regulatory requirements of supplier ethical audits.
We believe that together, we can act now for the future, just as we have done in the past to weather storms.
Our 2023 actions
Thinking sustainability
• Assessing the environmental footprint of our company
• Analyzing the impact of our new products by integrating an ecodesign tool with life cycle assessment (LCA)
• Implementing environmental initiatives from the green committee aimed at raising employee awareness of sustainable practices
Giving back to the community
• 60% of our donations and community actions aim to make a difference in the lives of youth and their families
• Furniture donations and the furnishing of 15 social housing units in collaboration with Banque de meubles Québec and the South Shore Furniture Foundation
• Furniture donations intended for immigrant families (e.g., Ukrainian refugees)
Working together
• Defining our ESG objectives with the management team
• Ensuring an inclusive and safe work environment through specific awareness activities (one activity per quarter)
Carbon footprint
Reducing our carbon footprint
Our greenhouse gas emissions inventory was prepared in accordance with the ISO 14064-1: 2018 standard, with the help of an external consultant, Enviro-accès, to quantify the extent of our emissions and to embark on an active process of reducing future emissions based on the results. This inventory includes both direct and indirect GHG emissions resulting from South Shore Furniture’s activities across all its sites and distribution centers for the period from January 1, 2022, to December 31, 2022.
The environmental impact is measured in tons of CO2 equivalent (tCO2e), allowing us to compare the impacts of greenhouse gases on the environment. Scopes 1 and 2 (8% of total tCO2e) mainly represent the energy consumption of the company’s buildings and vehicles, while Scope 3 (92% of total tCO2e) is related to the inputs and outputs of the supply chain, which can be divided into two main categories: transportation (30% of Scope 3 tCO2e emissions) and purchased products for furniture manufacturing (70% of Scope 3 tCO2e emissions). Waste materials are also included in this Scope.
The center diagram shows that our environmental impact is directly linked to Scope 3, which is common in the home products industry according to a study conducted by HEC Montreal. This inventory has allowed us to better target significant emissions and to develop an action plan for the short, medium, and long-term.
For over five years, we have closely monitored our energy and waste consumption in the factories and distribution centers. Each year, we strive to optimize our energy consumption and promote renewable energy, with electricity being our primary source. Regarding waste management, we adhere to the 3Rs principle by revalorizing materials (reduce, reuse, recycle). We continue to explore solutions to reduce our percentage of waste sent to landfills in line with our annual goals.
Product life cycle
Furniture built to last
The LCA is a tool that calculates the environmental impact at each stage of a product’s life cycle, helping to reduce the GHG emissions associated with its manufacturing. The diagram on the right illustrates a simplified life cycle of a piece of furniture made by South Shore Furniture.
The goal of applying this new eco-design strategy in the research and development of our new products is to offer you better-designed, more environmentally friendly furniture. But how do we achieve this?
1. By relying on the LCA to make informed choices regarding finishes and components;
2. By using recycled wood and by working with certified suppliers;
3. By reducing GHG emissions during shipment by seeking transportation and delivery optimization solutions;
4. By addressing the causes of returns at the source and offering parts replacement services to reduce the environmental impact of a piece of furniture by extending its lifespan;
5. By ensuring the durability of our products with warranties of up to 10 years.
END OF LIFE
Increase the product’s longevity with warranties of up to 10 years
DESIGN
Integrate the LCA into the development of new products
MANUFACTURING
USE
Provide a human customer service experience:
• Offer free service to replace missing or damaged components
• Offer free assistance during assembly
Choose high-quality, ecofriendly, and sustainable materials:
• Our particle boards are made from over 50% recycled wood
• 100% of our particle boards and medium-density fiberboards suppliers are certified under TSCA Title VI and by the Forest Stewardship Council
DISTRIBUTION
Explore the flexibility of our delivery methods by, for example, offering to let you pick up your purchases at a warehouse near you according to your schedule to reduce travel
Sold trees to employees at South Shore Furniture Juárez through the green committee
Implemented a “Bring Your Own Dishware” policy at gatherings to reduce waste, particularly plastic Offered a sustainable breakfast for employees with the app: TOO
Our Green Committee
Every action counts
In 2021, a green committee was established to promote sustainable development within the organization and to reduce our environmental footprint.
This committee is made up of several employees who are passionate about environmental and community issues. Together, they are catalysts for change and work diligently to help South Shore Furniture shine.
We are proud to share some of their environmental initiatives from 2023:
Organized a furniture donation and assembly day in collaboration with Banque de meubles Québec and our Foundation
a second life to furniture that was damaged during transport in our distribution centers and factories LAST CHANCE FURNITURE
New inclusion policy
Through this new policy on equity, inclusion, and diversity (EID) and in operationalizing our values of valuing our people, ethics, authenticity, and skill development, South Shore Furniture reaffirms its commitment to recognizing and promoting all talents, regardless of characteristics that may be subject to discrimination. 100% of our employees have signed the policy.
With this new initiative, we established a committee on equity, inclusion, and diversity to promote our alignment with EID. Employees from Canada, the United States, and Mexico serve on this committee to share the differences among their cultures.
Here are the activities organized to promote workplace inclusion in 2023:
• Sarassemble (hosting a common activity across CAN-US-MEX)
• Diversity Week (World Café, creation of a diversity logo, dissemination of the policy)
• Sending out a survey to gather demographic data about our employees
The importance of our employees’ well-being
At South Shore Furniture, we believe that the well-being of our employees starts with their health and safety at work. Here’s what we implemented in 2023 to continue ensuring their growth:
• Development of a prevention plan for all facilities
• Standardization of training and awareness across our different sites, particularly regarding the modernization of the Occupational Health and Safety Act
• Creation of a macro process for health and safety
Health and safety are everyone’s responsibility. We continue to promote good practices:
• Organization of a Health and Safety Week (walks, quizzes, wellness tips, photo booth, and healthy snack breaks)
• Sharing of health and safety tips (related to an accident or incident) in each facility
• Appointment of a health and safety representative for each Canadian facility
South Shore Foundation
Making a difference
The South Shore Furniture Foundation’s mission is to make a positive difference in the lives of youth and disadvantaged families. We are committed to facilitating their access to basic needs and a healthy, safe lifestyle.
We act as a connecting agent for existing resources in the community, philanthropic, and private sectors, creating strong and solid links between partners to take direct action.
Here’s what the Foundation accomplished in 2023 to give back to the community:
27 youth benefited from activities and follow-ups in the Young Leaders program
Over 130 youth participated in equestrian camps, a happiness day, and other off-campus activities
160 furniture donations were made to Banque de meubles Québec
The Young Leaders program aims to help young people with leadership potential who are in at-risk environments. The program spans three years, including an annual stay at Camp Kéno, activities throughout the school year, and access to tutoring and scholarships for some, in partnership with the Roméo Dallaire Foundation.
In partnership with Banque de meubles Québec, the South Shore Furniture Foundation donates furniture and organizes the furnishing of apartments for those in need, with the help of employees and members of the green committee who volunteer.
The foundation has also allowed youth under the care of the Youth Protection Department of Chaudière-Appalaches and Québec, who typically do not have such opportunities, to step outside their campus limits once a week to experience nature.
Our current contribution to Sustainable Development Goals
• 60% of our donations and community actions are aimed at making a difference in the lives of young people and their families
• Achievement of our target of one furniture donation per day (1.32 in 2023)
• Integration of people with disabilities in the workplace (Jules Dallaire Foundation)
• Promotion of physical and mental health and safety to eliminate workplace accidents (one activity per quarter)
• All full-time employees receive medical coverage
• Establishment of an inclusive workplace and promotion of diversity in the workplace through specific awareness-raising activities (one activity per shift)
• Workplace inclusion and cultural diversity policy, and establishment of an EID committee
• In-house recycling and reuse of materials and furniture (returns management)
• GHG measurement
• Over 50% recycled wood in our panels
• Control of our raw materials
2023-2029
Scope 1 and 2 GHG reductions:
• Replacing certain refrigerants
• Favoring renewable energy vehicles
• Optimizing our energy consumption
Our next actions
• Ensuring that at least 75% of our donations and community actions per year are aimed at making a difference in the lives of young people and their families
• Carrying out 12 community actions per year to make a difference for young people and their families
• Encouraging donations with a target of one piece of furniture per day
• Promoting OHS and workplace inclusion through activities
• Monitoring of ESG indicators
• Ensuring regulatory compliance with ethical audits of our suppliers
2023-2033
Scope 3 GHG reduction:
• Integrating recycling rate into corporate governance
• Working on areas for improvement, including product packaging and choice of raw materials
• Monitoring and documenting the environmental impact of new products
• Assessing the environmental impact of our new strategy-related projects
