by Exec discusses the many earth-friendly initiatives the retailer has developed over the years, making it a leader in the field among its peers
GOLDEN VALLEY, Minn. — Lifestyle retailer Room & Board understands the value of a good story, whether it’s related to product, materials or processes.
For many years, that story has extended to its sustainability initiatives ranging from wood sourcing to its use of renewable electricity and recyclable packaging.
It’s a story that resonates with consumers of all types, ages and backgrounds, particularly those concerned about the future of the planet and how their purchases affect their individual carbon footprints.
Recently, Home News Now caught up with Emily McGarvey, the company’s director of sustainability, on the state of various initiatives it promotes on its consumer-facing website. Here in this Q&A, McGarvey shed light on these issues that continue to shape its product development in a way that’s helping preserve the planet now and in the future.
HNN: We understand the company is looking to use 100% sustainably sourced wood in its product mix by 2025. Can you tell us where this stands currently?
McGarvey: Currently, 95% of the wood we use meets our sustainable wood sourcing policy. Our sustainably sourced wood policy covers both case goods and upholstery, including wood legs, bases and frames.
Can you help us understand what you mean by 100% sustainably sourced wood? Is this Forest Stewardship Council Certified, urban wood or other reclaimed wood?
McGarvey: Wood is the most widely used material in Room & Board products, and we are committed to responsibly and sustainably sourcing this natural resource. Room & Board is extremely unique in the furniture industry with 85% of woods we use harvested in the U.S. and Canada and more than 90% of home furnishings manufactured in the U.S.
We work with our manufacturing partners on an ongoing basis to increase the amount of wood from responsibly managed North American forests and certified, reclaimed sources. Room & Board’s sustainable sourcing policy takes a risk-based approach based on country of origin. We implement this policy through our verification process and ongoing conversations with our manufacturing partners.
What are your primary sources of urban wood?
McGarvey: Urban wood is reclaimed in a variety of ways, including from homes and structures slated for demolition and trees removed for disease, maintenance or storm damage. What started as a project in Baltimore, Maryland, has now grown to include Detroit, Minneapolis, New York, Oregon and California.
Regarding urban wood or reclaimed wood, in particular, do you share the story with consumers of where the wood originates?
McGarvey: Yes! We enjoy sharing stories of our vendor partners. Each story lives on our Urban Wood Project landing page and we often spotlight these stories, especially when we expand the program through email newsletters and our social media pages.
Is there a quality or construction benefit associated with the use of sustainably sourced wood, or do you consider it primarily a story of sustainability, or environmentally friendly business practices?
McGarvey: As a 100% employee-owned, privately held company, we take a long-term view on our business decisions. By focusing on sustainably sourced wood and U.S. manufacturing, we are supporting the long-term health of our forests as well as building a more resilient supply chain. Both will support the financial health of Room & Board long into the future.
What kinds of woods are we speaking of?
McGarvey: Currently we are using urban wood from ash, cherry, oak, pine, Douglas fir, redwood and walnut trees. We work closely with partners in each city to understand the type of wood that is headed for the waste stream and then determine how to turn the urban wood into beautiful, heirloom-quality furniture.
Is sustainably sourced wood typically more expensive? And, if so, how does this impact the cost to the end consumer?
McGarvey: The majority of our wood comes from responsibly managed North American forests and does not carry a cost premium. As for urban wood sourcing, Room & Board is the first retailer to pursue using this at scale. We can expand this circular process because of our partnerships with urban wood processors and long-term relationships with manufacturers in the U.S. Currently urban wood does have a price premium, but we expect that to diminish as the supply chain grows and we have more supply of dimensionable lumber available.
Do you believe that consumers in general are willing to pay more for products that use sustainable materials?
McGarvey: We believe our customers want to buy products that represent value. To Room & Board, value means trend-proof style, quality construction, exceptional service, sustainable materials and a focus on American craftspeople.
Moving on to the use of renewable electricity in your operations, can you explain what this means? Are we speaking of solar panels, or other types of smart energy usage?
McGarvey: Currently, we are approaching renewable electricity in two ways. First, we are opting into wind and/or solar programs offered by our utility companies. Second, we are installing on-site solar panels. Earlier this summer, Room & Board worked with Cedar Creek Energy to design and install a 1.05 MW DC rooftop solar array on our central headquarters in Golden Valley, Minnesota. We will continue to explore on-site solar for our other locations where it makes sense.
Is the company still at more than 70% renewable electricity in your stores, warehouses and central offices?
McGarvey: We are currently at 71% renewable electricity. The remaining locations are in areas where the utility company doesn’t currently offer clean energy as an option. We will continue to check in with the utility to see if this changes, as we also explore other options such as on-site solar, etc.
Does the use of renewable energy come at a higher cost to the company that ultimately finds its way into product pricing?
McGarvey: As renewable energy grows quickly across the country, there is sometimes an additional cost and sometimes not. For example, on-site solar is a good financial investment that yields a positive return on investment.
Can you tell us about the status of the electrification of the delivery fleet?
McGarvey: We currently have a full electric vehicle repair van in Chicago and a yard truck in our Otsego, Minnesota, warehouse. We also have several hybrid box trucks in our fleet. We are waiting on EV box truck availability and will focus first on our California fleet due to upcoming regulations.
Can you briefly describe your use of recyclable packaging? If you are looking to be at 100% recyclable packaging by 2025, where does this stand now?
McGarvey: Room & Board’s aim is to design recyclable packaging that is made with more sustainable materials. Therefore, we work closely with our vendor partners on packaging that is both more sustainable and protects products through the supply chain. Protecting the product throughout the supply chain remains a core responsibility as we continue to shift to more sustainable packaging. We are currently at 50% recyclable packaging.
Finally, we understand that the company diverts 83% of its operational waste from landfills and plans to reach 90% by 2030. What types of materials does this include?
McGarvey: Our current operational diversion rate of 83% includes anything we recycle or donate. This could be cardboard and plastic film that we bale and sell as a commodity or mattresses and pallets that we recycle. The diversion rate also includes products we donate locally to our network of partners.
