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Article Number: 6147
Shaw’s 2nd Sustainability Report: Sustainability=Environmental+Social Efforts
By Liz Switzer
Shaw Industries’ second annual sustainability report significantly expands its focus on transparency with greater detail of its metrics, sustainable scope and social responsibility.

The new report comes in part as a response to architects’ and designers’ need for more clarity and deeper knowledge of the products they specify, according to Jeff West, director of sustainability and environmental affairs for Shaw’s commercial division. “Our annual sustainability reporting process has become a valuable tool for helping us evaluate our progress toward key goals and broader sustainability objectives,” he said. “As a result, we have been able to share more data this year than last — including expanded metrics for energy, greenhouse gas (GHG) emissions, water and waste.”

Shaw is heading toward a more granular level of sustainability reporting, West explained. The new report went from about 15 to 38 metrics this year, including those specific to Shaw. For example, detailed in the report is Shaw’s energy use by source: electric, 48%; natural gas, 41%; alternative energy, 4.8%; coal, 3.5%; and steam, 1.5%.

The report detailed Shaw’s new rail transport program — estimated to be three times faster than road use — resulting in improved shipping times, decreased fuel consumption and reduced greenhouse gas emissions. Shaw estimates the program saved 362 tons of CO2 per week in 2009.

With disclosure of key metrics for environmental and social responsibility, “Where Sustainability Is Personal” also offers data focusing on the personal commitment to social responsibility based on input from Shaw associates. The idea is that “sustainability is about more than just the nuts and bolts of operations,” said Emma Williams, Shaw’s environmental communications manager.

Collectively, Shaw associates last year reported more than 130,000 hours of personal time to community causes, including tutoring and mentoring in local schools and after-school programs, building homes and serving meals to the needy. Shaw employees also reported payroll deductions to the United Way of $1,435,912 with a corporate match of $683,000 for a total contribution of $2,118,912.

“From a holistic approach the attempt is to tell all the things going on and talk about sustainability through 25,000-plus Shaw associates,” West said. “A lot of times people talk about the environmental points but if you look at the triple bottom line [people, planet and profit] that has to include social responsibility.”

In addition to an expanded number of key environmental and social metrics, Shaw’s 2009 report also uses the Global Reporting Initiative (GRI) G3 guidelines for sustainability reporting. Shaw formally adopted the process for its second report to ensure the metrics and content disclosed met globally recognized standards for corporate sustainability reporting, according to David Wilkerson, director of sustainability and environmental affairs for Shaw’s residential division. “Adopting the GRI reporting protocol is another way we can help drive greater transparency for our customers and stakeholders — and for our own industry,” he said.

Also detailed in the report is Shaw’s biggest sustainable initiative, the launch of its Clear Path Recycling, a joint venture with DAK Americas. The facility began processing operations in Fayetteville, N.C., in September to produce recycled PET (RPET) from post-consumer PET bottles. By the end of the first phase of the project ramp-up, the operation will be able to use up to 160 million pounds of PET bottles, which will save more than 550,000 cubic yards of landfill space each year, according to Shaw, while energy savings related to the project will save an estimated 1.4 trillion BTUs annually.

The whole idea behind the initiative is to create a strategic business unit charged exclusively with the mission of creating innovative products from post-consumer carpet, West said, adding that Shaw recycled nearly 90 million pounds of carpet in 2009.

In addition to GRI conformance, the report also details further diversification of the company’s eco products, including it new cradle-to-cradle certified hardwood products.

“Last year, from a business standpoint, we didn’t have such a good year, but we really didn’t back off on our environmental efforts,” West said. “I think you are already beginning to see some big improvements in energy and green house gasses.”

Sustainability reporting for Shaw will continue to be an effort with growing importance, he added. “As you look across the landscape of leading companies, sustainability reporting is going to be viewed as a critical component of their communications and of what they do,” Williams said. “It speaks directly to the point of the value we see our report having in our market for all of our stakeholders. And the bottom line is it really cuts through the greenwashing.”