A majority of the Scope 1 and 2 greenhouse gases we generate are produced through the burning of fossil fuels. As a result, we have implemented a very effective energy management program to reduce the consumption of fossil fuels. We are working diligently to reduce and manage our environmental footprint, including greenhouse gases.
Energy
We are committed to reducing our energy consumption, reducing costs, optimizing capital investment for energy efficiency, reducing environmental and greenhouse gas emissions, and conserving natural resources.
Our energy management program consists of the following elements:
Corporate Engineering & Facilities Manager
Plant Energy Champions
Analysis of energy data
Energy audits
Performance goals
Energy action plans
Energy monitoring
Success recognition
The amount of electricity and natural gas used by our utility monitored operations for Fiscal 2021* is as follows:
Total power used: 387 737 GJ
Electric used: 249 911
GJ
LZB Branded Manufacturing
150 709
LZB Distribution Centers
7 944
LZB Retail
61 647
LZB Casegoods
17 746
LZB World HQ
11 865
Natural gas used: 137 826
GJ
LZB Branded Manufacturing
34 398
LZB Distribution Centers
16 657
LZB Retail
64 111
LZB Casegoods
18 223
LZB World HQ
4 437
*unaudited
We continue to utilize on-site generated renewable wood fuels for the generation of steam used in production operations, heating and absorption cooling, and we sell excess wood residuals for further reuse by other industries. Wood fuel from sustainably managed forests is a renewable resource that helps reduce our use of fossil fuels, reduces greenhouse gas emissions and also reduces the volume of waste going to a solid waste landfill.
We have reduced the amount of electricity used by our LZB Branded Manufacturing operations by 27% compared with 2007 usage.
Renewable energy
Our Dayton, Tennessee manufacturing facility utilizes a biomass system to heat and cool the facility and provide steam to dry green lumber. This system produces approximately 21 million KW hour equivalent energy units. Our Severn, Maryland La-Z-boy Furniture Galleries store utilizes photovoltaic electricity.
Virtual Power Purchase Agreement
La-Z-boy entered into a 10-year resource-backed virtual power purchase agreement (VPPA) extending through the end of 2030 with AEP Energy Partners. The VPPA will support approximately 70 000 MWh of renewable energy per year from AEP’s principally owned Santa Rita East wind energy center throughout the term of the agreement. La-Z-boy will receive renewable energy certificates (REC) equivalent to roughly 16MW of wind power capacity representing more than 90% of La-Z-boy’s current total annual domestic energy consumption. The newly signed VPPA is expected to cover more than 90% of our Scope 2 emissions in the United States and reduce our overall Scope 1 and Scope 2 carbon footprint by approximately 45%.
GHG emissions
The amount of greenhouse gas emissions (natural gas, diesel fuel and electricity) from our utility monitored operations for Fiscal 2021* were:
Total scope 1 and 2 (natural gas, diesel fuel and electricity): 52 832 metric tons CO2 equivalents
Scope 1 direct (natural gas and diesel fuel): 23 585
Metric tons CO2 equivalents
LZB Branded Manufacturing
1 841
LZB Distribution Centers
838
LZB Retail
3 296
LZB Casegoods
917
LZB World HQ
223
LZB Transportation
16 470
Scope 2 (electric): 29 247
Metric tons CO2 equivalents
LZB Branded Manufacturing
18 365
LZB Distribution Centers
816
LZB Retail
6 760
LZB Casegoods
1 518
LZB World HQ
1 788
*unaudited
We do not currently measure our Scope 3 greenhouse gas emissions.
We are evaluating methods to capture other sources of Scope 1 and 2 greenhouse gas emissions but believe these are significantly less than those provided above.
A majority of our greenhouse gas emission sources are from off-site electricity generation with a lesser extent coming from on-site natural gas consumption. As a result, a majority of our greenhouse gas emission pollutants are carbon dioxide with insignificant emissions of nitric oxide and methane.
Technology and opportunity
We work to continually improve our environmental performance and promptly evaluate, prepare for and manage new environmental aspects of our business through our EFEC initiatives (American Home Furnishings Alliance).
Our World Headquarters and Dayton, Tennessee Innovation Center are Leadership in Energy and Environmental Design (LEED) Silver Certified from the U.S. Vert Building Council; we are currently applying for LEED Certifications for our new England Headquarters.
We recently enhanced our monitoring capabilities by entering a partnership with a third-party specialist for utility bill management, strategic energy sourcing and utilization of a comprehensive energy and sustainability data management system.
