Ecofriendly Furniture Industry ESG Thematic Report, 2023

Environment, Social, and Governance (ESG) in Ecofriendly Furniture Industry

The trend of responsible and sustainable investments is driven by initiatives and policies around environmental, social and governance parameters. In line with this, leading companies in the ecofriendly furniture Industry are taking steps towards environmental and social sustainability by initiating environmentally responsible and socially inclusive policies and promoting eco-friendly ways of manufacturing.

The manufacturing of conventional furniture has caused environmental and social damages. On one hand, materials and energy used for manufacturing furniture and the effect of the emissions during the manufacturing create a negative environmental impact; on the other hand, this conventional furniture is made up of hazardous components that create a negative health impact on manufacturers and consumers thereby driving the market.

ESG Trends

Leading companies in the industry are using sustainable and renewable resources such as stones, bamboos, and other materials in the production process, creating a positive environmental impact. One of the leading manufactures in the ecofriendly furniture, has developed a policy on sourcing of raw materials from the manufacturer, wherein it necessitates the manufacturer to provide eco-friendly and contain recyclable material for manufacturing their products.

Companies in this market are focused on replacing Volatile Organic Compounds (VOC) like formaldehyde, which is used for gluing furniture with a more environmentally friendly component like water-based, low VOC products. Also, Heavy metals and toxic materials such as mercury are replaced with more environmentally friendly materials in manufacturing the ecofriendly furniture products.

Another leading company in the eco-friendly market has introduced an ISO environmental management system which inspects, and monitors waste produced during manufacturing. The system helps in identifying impacts in reducing the burden on environment by managing reduction of waste. Companies in this sector also have ESG initiatives that includes procedures such as life cycle assessment and impact assessment of the product, assessing the products life using a Cradle-to-grave methodology.

In terms of achieving positive social impacts, companies in the industry are focused on implementing policies such as employee health care as well as inclusion of local communities in the manufacturing, there by unequivocally supporting job creation in the society.

In terms of governance stewardship, top companies in the market are initiating policies that align with sustainable forestry initiative. This initiative helps in conserving forests by developing an impact assessment of the environment from where sourcing is done and ensure that it follows responsible and sustainable practices of work.

Growth of The Ecofriendly Furniture Market:

The ecofriendly furniture market at global scale, is valued at USD 35.3 billion in 2022, with a forecast of increase in value around USD 59.8 billion by 2027, with a compound annual growth rate of 6.8%. While environmental awareness amongst the producers and customers is a driving factor for demand in the market, the policies that deal with the conservation and rejuvenation of the environment and the inclusive social approach ones, makes the market more sustainable in terms of environment and social and responsible in terms of governance.

Key Companies in this theme:

    • Cisco Bros. Corp.

    • Manchester Woodcraft

    • Greenington

    • Lee Industries, Inc.

    • Williams-Sonoma Inc.

Scope of the Ecofriendly Furniture Industry ESG Thematic Report:

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Benefits Ecofriendly Furniture Industry ESG Thematic Report:

    • Offers a global perspective of leather goods market and the policies and measures taken by the players, for overcoming the challenges faced in terms of Environment, Social and Governance.

    • Key insights into the sustainability practices of major players in the market.