and the Environment A Look at Preservation and Stewardship

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1 and the Environment A Look at Preservation and Stewardship 1

2 Outline Introduction Environmental Mission Statement Environmentally Responsible Products Packaging Particleboard PVCs (Poly Vinyl Chlorides) VOCs (Volatile Organic Compounds) Backs Sustainable Processes Utilization of Wood Waste Emissions Controls Transportation Recycling Local Environment Current Environmental Initiatives Wood/Plastic Products Hydrogen Fuel Cells Recut/Recycled Returns Board Utilization Hollow Core Lower Density Panels Palletization Product Emissions Suppliers Fossil Fuels Reductions Electricity Usage Reduction Future Product Possibilities Summary 2

3 Introduction In 1934, Erie Sauder started a woodworking business in a barn behind his Archbold, Ohio home. Originally building custom cabinets and church pews, he began crafting small tables from what he called leftovers. Not wanting to waste scraps from expensive fine woods, the frugal businessman began producing inexpensive occasional tables. It was the middle of the Great Depression where nearly everything was scarce and taking good care of all that God had provided was essential. Erie built his company on these principles. Today, Erie s sense of responsibility and stewardship is engrained into our company culture, core beliefs, and values. 3

4 Environmental Mission Statement We believe our resources are given by God to be used for both our own needs and to serve others. We will be good stewards of our resources and share the responsibility of managing them in ways that sustain our world. 4

5 Sustainability Goals We will minimize our impact by focusing on: Products We will utilize environmentally sustainable materials to create products that exceed the consumer s perceived value for a green product at competitive prices. Processes We will continuously improve our processes to minimize waste in all its forms. 5

6 and Responsible Products 6

7 Packaging Materials All brown Kraft cartons are made from 100% postconsumer recycled corrugated material. Kla-white cartons are made from 100% post-consumer recycled material except the Kla-white liner which is 50% post-consumer recycled content. All virgin fiber is from FSC (Forestry Stewardship Council) certified sources. 7

8 Packaging Materials EPS (expanded polystyrene) foam contains 20% recycled material the highest percentage possible while maintaining product integrity. A local ISTA (International Safe Transit Association) accredited transit test lab allows for better packaging design and testing which eliminates excess materials without compromising the product protection. 8

9 Particleboard & Medium Density Fiberboard Particleboard and MDF are more environmentally sound than solid wood. The wood fiber for all panels contains more than 90% pre-consumer recycled content Uses 95% of a tree Can be made from small, fast-growing, low-quality trees Can be made from most any species of trees Can be made from shavings and wood waste of the lumber mills Can be made from other wood waste such as pallets All wood panels used in Sauder production are rated Environmentally Preferred Product (EPP) by the Composite Panel Association. 9

10 Particleboard & Medium Density Fiberboard In contrast, solid wood Typically uses less than 60% of a tree Requires premium quality trees that take generations to replace Can only come from a select number of tree species which potentially drain the supply when the demand is high 10

11 No Poly Vinyl Chlorides Sauder does not use PVC edgebanding or PVC laminating films. PVC contains ingredients that can be hazardous to disposal efforts Sauder uses ABS (acrylonitrile butadiene styrene) or polypropylene edgebanding at a higher cost, but does not present hazards at time of disposal. Sauder uses bio-degradable paper laminating materials. Sauder uses coatings and adhesives that are 100% solids or waterbased chemistry to avoid volatile organic compounds (VOCs). 11

12 Recycled Fiber Backs Sauder paperboard backs are made from ground up corrugate and used paper that might otherwise be landfilled. 100% of the back is made from recycled fiber. 12

13 Summary Sauder RTA (Ready-to-Assemble) products are made using: Backs from 100% recycled material Cartons from 100% recycled material Particleboard from 95% waste wood (EPP certified board) The only things in the laminate RTA that are not from recycled materials are the laminate papers. 13

14 and Sustainable Processes 14

15 Wood Waste Utilization Three carbon-neutral uses for wood waste: Co-gen fuel in Sauder s own power plant 59% of total Sold for animal bedding, etc. 10% of total The remainder is sold for boiler fuel 31% 250 tons/day total Medium Mixed Fine 15

16 Co-Gen Power Plant Green energy (carbon neutral) Uses 59% of Sauder wood waste Supplies 1/3 of our electricity 7 Megawatts of electricity Low pressure steam supply for kiln drying lumber and for a foam expander 16

17 Benefits of Recycling Wood Waste Sauder has turned waste into electricity using the best available clean-burning power plant (a $15 million investment with long-term payback). Sauder has found places to use the left over wood waste for animal bedding and other uses. Sauder has not needed to pay to landfill any wood waste in over 10 years. 17

18 Emission Controls Bag house dust collector system Best available technology on the market today 99.8% effective capture of dust particles Clean air returned to plant, saving on natural gas usage for heating 18

19 Emission Controls Dust collectors at each building... Material transfer to central silos. 19

20 Transportation Our ability to transport three times more RTA furniture than case goods per truck load results in considerably less fossil fuel used and lower shipping cost per unit. 20

21 Recycling Fluorescent bulbs Computer equipment Electronics components Batteries Light ballasts Used oil Cardboard Paper Rags Used coolant Aerosol cans Stretch wrap Metal banding Glass Aluminum cans All types of metal Flammable liquids 21

22 Recycling Concrete All used concrete is crushed to ODOT 304 specifications on-site. The crushed material is used for building projects and/or machine foundations. 22

23 Local Environment Retention pond Created in 1990 to take run-off water from roofs and parking lots to prevent flooding of a local creek. 4.5 million gallon capacity. 23

24 Local Environment Wetlands preserve Created in 1992 as part of a major building program expansion 33-acre preserve. 24

25 Local Environment Sauder campus Environmental beautification throughout Sauder s 230-acre complex 25

26 and Environmental Initiatives 26

27 Current Environmental Initiatives Packaging materials working to eliminate the EPS foam from our packs. Starch-based foams, honeycomb paper products, and corrugated pads are all being investigated. Wind power studying the feasibility of using wind power to charge electric fork truck batteries. 27

28 Current Environmental Initiatives Board utilization - Added dedicated resources to work on reducing waste on each part through better cutting utilization (improved board yield) saving minimally 1.5 million ft 2 of board annually. Additional investigation is being done on these ways of improving board utilization: Combination cutting Offal utilization Thin kerf saw blades Full panel width utilization Reject and return reclamation 28

29 Current Environmental Initiatives Hollow core processing piloting the use of hollow core panels to reduce weight and material usage. Lower density panels working with board suppliers to utilize a lower density panel to reduce weight and material usage. Palletization working to optimize the load size on pallets to minimize pallet usage. Also exploring alternative pallet materials and palletizing methods to minimize waste. Product emissions supporting CARB (California Air Resources Board) laws and regulations to reduce emissions on products. 29

30 Current Environmental Initiatives Suppliers using our influence with suppliers to encourage them to follow environmentally sustainable practices. Fossil fuel reductions All Sauder over-the-road trucks are being equipped with generators that reduce fuel consumption at idle during rest periods. Sauder truck fleet is changing to smaller engines, further reducing fuel usage. Optimizing product transportation within our Archbold facilities to reduce material movement which reduced the number of shuttle truck miles. 30

31 Current Environmental Initiatives Electricity usage in Ohio dust collection systems are the largest single users of electricity within the company (34%). Eco-gate project Involves automated shut-off gates for the dust collection system. To date, two dust systems have been rebuilt to test this solution currently saving over 50% of the normally used electricity on these systems. At full implementation, this project is projected to save 16 million kilowatt hours of electric. 31

32 and the Future 32

33 Future Product Possibilities Alternative particleboard materials are being investigated: Phenolic resin board PureBond Flax seed board Bamboo Grass board Cane board Straw board Hemp board 33

34 Future Product Possibilities Alternative packaging materials are being investigated: Eliminate glossy carton labels Greencell foam to replace current inner pack (currently 800% cost increase) Try using another starch-based foam in place of inner pack Utilization of master packs or multipacks 34

35 Summary Since the founding of Sauder Woodworking Co. in 1934 there have been core values and beliefs that have molded the culture of the company to this day. The core value of stewardship has given Sauder a heightened sensitivity to environmental issues. Clearly, this value has been the driving force in what Sauder has done, is doing, and will continue to do to preserve the environment. 35

36 Commitment - Culture It s amazing what you can do when you don t know it can t be done. Erie Sauder ( ) 36