The soaring significance of environmental, social and governance (ESG) strategies has encouraged mattress industry players to boost their sustainability quotient. Reporting on non-financial information has become pronounced across business verticals. Stakeholders are poised to take a quantum leap to embed ESG considerations into their portfolios. Companies are championing sleep as an invaluable pillar to underpin the work environment and emphasize talent attraction, equity, diversity and inclusion. Amidst increased responsibilities, demanding schedules and feelings of stress, the addition of ESG pillars to help people foster positive social change and improve health and well-being could provide impetus to an equitable and fair world.
There has been a palpable trend to recycle and reuse mattresses to minimize waste from landfills. Amidst climate change creating pressure on the planet, well-established players are expected to emphasize minimizing carbon footprint, sourcing raw materials sustainably and using resources more efficiently. Strategic aspirations and priorities could take center stage to provide sustainable sleep solutions. Companies are likely to seek ESG goals to expand their physical and digital footprint and provide customers with seamless products and services.
Discover more regarding the practices and strategies being implemented by industry participants form the Mattress Industry ESG Thematic Report, 2023, published by Astra ESG Solutions
As companies embark on the ambition to be more environmentally friendly and transparent, goals to attain carbon neutrality could receive an uptick with investments in ESG reports. A buoyant environment profile has become paramount to raising the bar for sustainability. In January 2023, Tempur Sealy International revealed its 2023 Corporate Social Values Report noting that it achieved around 3% dip in GHG emissions per unit produced at wholly-owned manufacturing and logistics operations. It kept the sustainable reporting in line with the Task Force on Climate-Related Financial Disclosures (TCFD) framework. The American manufacturer of mattresses suggested that 100% of waste was diverted from landfills from the U.S. wholly-owned manufacturing operations as of September 2022, up from 96% during the same month in the preceding year. It also bolstered its commitment to achieving zero landfill waste to include its research and development facilities and corporate offices by 2025.
Forward-looking companies are exploring opportunities to decarbonize operations and inject funds into boosting energy efficiency. To illustrate, in 2021, Sleep Country Canada rolled out a pilot project at three locations connecting AI-powered technologies to HVAC and lighting equipment at retail locations and warehouses. The company has also bolstered its efforts to minimize landfill waste under the aegis of recycling programs and mattress donations. It claims to have diverted more than 165,000 mattresses and foundations (in 2021) from landfills through recycling or donation. The Canadian retailer company claims around 91% of its mattresses and foundations have sustainable materials. It has also banked on several of its suppliers that use CertiPUR-US-certified mattress foam. The certified foam is made without flame retardants, ozone depleters, lead, mercury, phthalates, formaldehyde and low VOC emissions. Emphasis on environmentally responsible products will provide impetus to the use of sustainable materials, helping stakeholders use resources efficiently.
Stakeholders are recognizing the importance of underpinning programs that can bring a paradigm shift in the way corporate philanthropy achieves social performance. Concerted effort on workforce development targeting underemployed groups, and gender discrimination management has provided tailwinds for investors, manufacturers and suppliers. Leading players are poised to observe an inclination for equity, diversity, inclusion and belonging, retaining and recruiting talented people from diverse backgrounds and creating a safe work environment. Social performance has become a vital cog in reinforcing brand value and reputation. For instance, Avocado Green Mattress, in its 2021 Impact Report, alluded to developing a nationwide network (in the U.S.) of over 1,000 nonprofit partners, such as rehabilitation centers, local women’s shelters, centers for people with disabilities and refugee centers. The company donated 90% of returned mattresses to shelters and gave away 2% of annual revenue to environmental nonprofits.
Recognizing performance has become one of the most compelling factors to offer rewards, compensation packages and learning & development training. Key players have included LinkedIn Learning in their toolkits to offer access to thousands of courses to associates. Additionally, equity, diversity and inclusion training has also spurred, creating an aura of strong growth for mattress manufacturers and suppliers. To illustrate, Sleep Country Canada noted that 98% of associates were trained on diversity, harassment and respect in the office, while 24% identified themselves as visible minority leaders. Meanwhile, Tempur Sealy propelled the percentage of U.S. employees who self-identified as a minority to 49%. The prevalence of robust and inclusive culture could place companies vying to propel their ESG portfolios in the driver’s seat.
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Lately, good governance and strong ethics & compliance have come into the spotlight to ensure risk management, ESG accountability and performance. Embedding a robust culture of sustainability has become pivotal for buoyant governance standards. An emphasis on fostering corporate behavior, board diversity, anti-competitive practices, tax transparency and eradicating corruption could be the precursor of sound and sustainable governance. In April 2021, Serta Simmons Bedding promoted two major leaders and streamlined the organization’s structure. Venture capitalists, manufacturers and other stakeholders are expected to place bullish measures to address major ESG risks, such as cyber security, talent attraction and retention, reputation and shifting consumer behavior.
Integration of ESG priorities into the code of conduct has become prevalent across business verticals. Tracking and reporting of possible code violations and strengthening of cyber security could be pronounced. Companies are updating their information security policy, reporting policy and mitigating the ESG risks. Organizations are prioritizing data management and developing strategies that are in accordance with the law of the land and which can keep up with the demands of shareholders, venture capitalists and other major stakeholders.
The competitive landscape suggests industry players are likely to focus on brand strategies and develop retail partnerships. Industry-leading innovations that can provide customers with increased quality sleep could be the major selling point. To illustrate, in July 2022, Bryte raised USD 20 million under the aegis of Tempur Sealy. With mattresses being trendy, investments and revenue forecasts could be bullish. The global mattress market size is poised to garner significant gain in the ensuing period.
About Astra – ESG Solutions By Grand View Research
Astra is the Environmental, Social, and Governance (ESG) arm of Grand View Research Inc. – a global market research publishing & management consulting firm.
Astra offers comprehensive ESG thematic assessment & scores across diverse impact & socially responsible investment topics, including both public and private companies along with intuitive dashboards. Our ESG solutions are powered by robust fundamental & alternative information. Astra specializes in consulting services that equip corporates and the investment community with the in-depth ESG research and actionable insight they need to support their bottom lines and their values. We have supported our clients across diverse ESG consulting projects & advisory services, including climate strategies & assessment, ESG benchmarking, stakeholder engagement programs, active ownership, developing ESG investment strategies, ESG data services, build corporate sustainability reports. Astra team includes a pool of industry experts and ESG enthusiasts who possess extensive end-end ESG research and consulting experience at a global level.
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