Partner Profile

Haworth, Inc
Location	Holland, MI
Goal	Haworth, Inc. pledges to reduce U.S. GHG emissions by 20 percent per dollar sales from 2004 to 2009.
Environmental Web Site
Company Description Founded in 1948, Haworth, Inc. is a global manufacturer of adaptable workspaces and interior architectural systems, including raised access flooring, movable walls, modular voice and data cabling systems, systems furniture, wood and metal casegoods, files, and seating products. Corporate headquarters are located in Holland, Michigan. Haworth owns and operates 9 manufacturing facilities in Michigan. Haworth also operates manufacturing facilities in North Carolina, Mississippi, Ontario, Quebec, and Alberta and multiple locations in Europe and Asia. Haworth developed its initial environmental policy statement in the 1990s and the company's current environmental mission is to be a sustainable corporation. In keeping with the principle of sustainability, Haworth's energy management practices aim to increase energy efficiency and utilize renewable energy alternatives with the long term objective of making the company climate-neutral. According to Bob Milstead, Director of Global Quality and Sustainability, "Haworth has a long standing commitment to environmental sustainability, including comprehensive recycling programs dating back to the early 1990s. We look forward to the opportunity to focus and improve our greenhouse gas (GHG) reduction efforts through the Climate Leaders program."
Reasons for Joining Climate Leaders The combination of customer demand and internal employee convictions led Haworth to commit to reduce the company's energy usage and GHG emissions. Management at Haworth decided to join Climate Leaders in 2005, in order to take advantage of the GHG inventory technical assistance available from EPA. This decision led to additional GHG discussions internally, and a cross-functional Sustainability Team including members from Product Development, Manufacturing, Marketing, and Logistics helped obtain the full corporate buy-in for its GHG goal-setting and tracking efforts, of which Climate Leaders is an important part. Participation in Climate Leaders has provided Haworth with expert assistance on inventory development and management, and a third party review and approval of its inventory. Customers and competitors alike are using environmental initiatives as a way to differentiate themselves in the marketplace. For Haworth, joining Climate Leaders has given the company an opportunity to stand out among its peers.
GHG Reductions Before Joining Climate Leaders While Haworth has been reducing energy consumption at its facilities since the 1990s, the company did not have a formal GHG emissions reduction goal when it started tracking its emissions in 2004. Prior to joining Climate Leaders, Haworth was involved in energy reduction activities through EPA's Green Lights and WasteWise programs, as well as through Michigan's Business Pollution Prevention programs. Various energy reduction opportunities included installing better controls on machinery and motion sensors to control lighting fixtures; conducting audits of compressed air systems; and reducing heat losses from ovens and hot water wash lines. Haworth also helps customers to achieve their lighting and HVAC energy efficiency goals through its comprehensive Adaptable Work Spaces product lines, which include underfloor air conditioning and adjustable air vents. The company's primary challenge in reducing emissions has been identifying projects that meet short payback requirements.
Approach to GHG Management For Haworth, climate change is a reality and a challenge that must be faced. The company is working on ways to control its energy consumption, decrease its GHG emissions, and reduce–with the eventual goal of eliminating–any negative environmental impact from the company on future generations. Through its high level commitment to reducing GHG emissions, Haworth hopes to encourage its customers and stakeholders to take action as well. Haworth's emissions inventory is straightforward; however, data collection brought several challenges. Haworth reports on emissions from those properties for which it has full operational control. While Haworth maintains 100 percent control over its production facilities, the company also has several small buildings and operations, from which gathering data proved difficult. Facility consolidation added more complexity to the challenge of assigning emissions to buildings and equipment that were divested or consolidated to existing facilities. Haworth acknowledges that without the help of the Climate Leaders base-year inventory support, the company may have missed several emissions reduction opportunities. All emissions from stationary and mobile source combustion of fossil fuel, HFCs from A/C, and purchased electricity were a part of the base-year inventory. While natural gas and electricity uses dominate the inventory, optional emissions such as corporate jet travel and employee travel are increasing at a significant rate. Once the company established its base-year inventory, it reviewed major facility users of electricity and natural gas and explored several projects in the planning stage that would reduce energy use. These projects and overall corporate strategy, coupled with the anticipated increase in sales, were considered during Haworth's goal-setting process. Available opportunities for reductions in energy use drove the development of the goal, and EPA helped to verify its credibility. Haworth announced its Climate Leaders reduction goal in January 2006, pledging to reduce domestic GHG emissions by 20 percent per dollar sales from 2004 to 2009. The company's management has been involved throughout the goal process. Initially, Haworth considered establishing a less aggressive goal because there was a major decrease in the overall market demand for office furniture, and capital expenditures on energy reduction projects were difficult to justify financially. However, market demand recovered and Haworth chose to establish a more aggressive goal that was (1) based on estimated energy reductions and (2) designed to significantly diminish the company's environmental footprint.
Progress Towards Goal Completion To reduce emissions, Haworth is investigating the use of heat exchangers and re-lamping. The company is also in the process of remodeling the corporate office to LEED Gold standards. Haworth also plans to purchase offsets or partake in a program to purchase renewable energy credits. Haworth determines the best emissions reductions opportunities using a combination of financial criteria and information about which opportunities offer the greatest source of emissions reductions. From its reduction activities, Haworth expects returns on investment of one to four years, with total savings ranging from $50,000 to $250,000 per year. These savings could increase based on increases in energy costs. The company also considers public recognition of its reductions activities to be an invaluable benefit.

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