Steelcase Commits to a Net-Zero Future by 2050

Rhea-AI Summary

Steelcase has announced a commitment to achieving a net-zero carbon emissions future by 2050, marking an industry-first with their detailed transition plan, "Power of Possibility: A Net-Zero Future Needs Us All." The company aims to reduce carbon emissions by over 90% across its value chain, including products, operations, and transportation. This initiative builds on their 2019 science-based targets to cut emissions by 50% in their operations by 2030, validated by the Science-Based Targets initiative. Steelcase is engaging its entire ecosystem—employees, dealers, suppliers, customers, and peers—to achieve this ambitious goal. They emphasize reducing their carbon footprint, designing for circularity, and responsible material usage. Steelcase has received accolades from CDP, EcoVadis, and the U.S. Department of Energy for its sustainability efforts.

Positive

• Steelcase commits to reducing carbon emissions over 90% by 2050, showing long-term dedication to environmental sustainability.
• The new net-zero target is validated by the Science-Based Targets initiative, adding credibility.
• Engagement of employees, dealers, suppliers, and customers in the net-zero initiative can enhance collaborative efforts and potentially drive industry-wide change.
• Steelcase has a history of achieving firsts in sustainability within its industry, including being the first to become carbon neutral and to set science-based targets.
• Recognition from CDP, EcoVadis, and the U.S. Department of Energy highlights Steelcase's leadership and credibility in sustainability efforts.
• Introduction of CarbonNeutral® certified products demonstrates innovative solutions for sustainable product offerings.

Negative

• The 2050 target date is distant, which may dilute the sense of urgency and immediate impact.
• The plan relies on the engagement and actions of external partners (suppliers, customers, etc.), introducing potential dependency risks.
• No detailed financial implications of the net-zero transition plan, presenting a risk to shareholders due to the potential high costs of implementation.
• Absence of short-term milestones beyond the 2030 mid-term target makes it difficult to track progress in the near term.
• Focus on broad industry recognition may mask specific areas where the company needs improvement or faces challenges.

Company unveils its industry-first transition plan to cut carbon emissions over 90% throughout its value chain.

GRAND RAPIDS, Mich., June 10, 2024 /PRNewswire/ -- Steelcase today announces its commitment to a net-zero future, reducing its carbon emissions over 90%* throughout its entire value chain – through its products, operations and transportation – by 2050.

Demonstrating transparency and accountability toward this goal, Steelcase released an industry-first net-zero transition plan, "Power of Possibility: A Net-Zero Future Needs Us All." This plan outlines how the company is taking bold and decisive action on its path to net zero. Steelcase aims to transform its entire business, reducing carbon emissions from the products it makes, how the products are made and the ways products are delivered. Steelcase also is using this moment as a call to action to accelerate its impact by engaging employees, dealers, suppliers, customers and peers to achieve a net-zero future.

This commitment builds on the organization's science-based targets set in 2019 to cut emissions in half in its own operations by 2030. The Science-Based Targets initiative, the leading authority guiding businesses on how much and how quickly they need to cut carbon emissions to reduce the impacts of climate change, validated the company's near-term and new net-zero targets.

"We are at a moment of transformation for our business and for the world we share. The reality of climate change demands that people and the planet are central to the choices we make to forge a more resilient future. This is why we already have established some of the most ambitious carbon-reduction goals at a greater global scale than anyone in our industry," says Sara Armbruster, Steelcase President and CEO. "Yet, we know there's more to do. We are going beyond thinking about sustainability one product at a time, to transforming the way we do business now and into the future. The commitment allows us to better serve our customers by helping them reach their own sustainability goals."

The company's long history of a commitment to designing better futures for the wellbeing of people and the planet is demonstrated through three key areas: reducing its carbon footprint, designing for circularity and choosing and using materials responsibly. Steelcase was the industry's first to become carbon neutral, first to set science-based targets to reduce its emissions from its operations 50% by 2030, first to set the industry's most ambitious supplier engagement targets, partnering with suppliers to set their own science-based targets, and first, and only, to offer CarbonNeutral^® certified products.

"Our long history of commitment to the planet laid the foundation for greater impact through collective action. Through this work, we are transforming our business to drive innovative solutions, engage our suppliers and discover new ways to serve our customers," said Armbruster. "The progress we've already made sets the foundation for a net-zero future."

Steelcase has been recognized by leading third parties for its work. CDP (originally the Carbon Disclosure Project) rated the company top in its industry for climate change disclosure and as a supplier engagement leader. Last year, Steelcase earned a Gold Rating from EcoVadis, a leading provider of business sustainability ratings, including a perfect score on its environmental scorecard, and received the Better Practice award from the U.S. Department of Energy Better Plants® program. Steelcase also continues to lead the industry with the most BIFMA, the Business + Institutional Furniture and Manufacturers Association, LEVEL® certified products, which certifies products to the highest standards for sustainable design.

To learn more about Steelcase and its work to create better futures for People and the Planet, visit Steelcase.com/people-planet.

*Our reductions are measured from a FY2020 base year.

Forward-looking Statements
From time to time, in written and oral statements, the company discusses its expectations regarding future events and its plans and objectives for future operations. These forward-looking statements discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to the company, based on current beliefs of management as well as assumptions made by, and information currently available to, the company. Forward-looking statements generally are accompanied by words such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "may," "possible," "potential," "predict," "project," "target" or other similar words, phrases or expressions. Although the company believes these forward-looking statements are reasonable, they are based upon a number of assumptions concerning future conditions, any or all of which may ultimately prove to be inaccurate. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements and vary from the company's expectations because of factors such as, but not limited to, competitive and general economic conditions domestically and internationally; acts of terrorism, war, governmental action, natural disasters, pandemics and other Force Majeure events; cyberattacks; changes in the legal and regulatory environment; changes in raw material, commodity and other input costs; currency fluctuations; changes in customer demand; and the other risks and contingencies detailed in the company's most recent Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission. Steelcase undertakes no obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.

About Steelcase
Established in 1912, Steelcase is a global design, research and thought leader in the world of work. We help people do their best work by creating places that work better. Along with more than 30 creative and technology partner brands, we design and manufacture furnishings and solutions for the many places where work happens — including learning, health and work from home. Our solutions come to life through our community of expert Steelcase dealers in approximately 770 locations, as well as our online Steelcase store and other retail partners. Founded in Grand Rapids, Michigan, Steelcase is a publicly traded company with fiscal year 2024 revenue of $3.2 billion. With approximately 11,300 global employees and our dealer community, we come together for people and the planet — using our business to help the world work better.

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SOURCE Steelcase

FAQ

What is Steelcase's net-zero carbon emissions target?

Steelcase aims to reduce its carbon emissions by over 90% across its value chain by 2050.

When will Steelcase achieve its net-zero carbon emissions target?

Steelcase plans to achieve net-zero carbon emissions by 2050.

What is the name of Steelcase's net-zero transition plan?

The transition plan is called "Power of Possibility: A Net-Zero Future Needs Us All."

What previous targets has Steelcase set for reducing carbon emissions?

In 2019, Steelcase set science-based targets to cut emissions by 50% in its operations by 2030.

Which organization validated Steelcase's net-zero targets?

The Science-Based Targets initiative validated Steelcase's net-zero targets.

What recognition has Steelcase received for its sustainability efforts?

Steelcase has been recognized by CDP, EcoVadis, and the U.S. Department of Energy for its sustainability efforts.