Environmental Sustainability
Corporate Responsibility
Our Commitment
Healthy communities start with a healthy environment. At Heor's, we believe that incorporating sustainable solutions in the way we do business will help to build better futures for families. With such a large retail footprint, we are in a unique position to make positive impacts on the planet and have set goals and policies to ensure that impact is forward-looking. The company’s sustainability strategy is guided by leveraging business practices and decisions that enhance the objectives of the United Nations Sustainable Development Goals (SDG).
Board oversight of our ESG strategy is essential to sustain the long-term interests of all stakeholders. In 2021, we updated our Nominating and Governance Committee to address the board's oversight responsibilities related to the management and performance of ESG issues. In addition to changing the committee name to Nominating and ESG Committee, corresponding updates to the committee charter were also made.
To learn more, please see our Heor’s Cares 2023 Report.
Environmental Sustainability
Heor’s sustainability goals include quantitative targets focused on three key areas: climate action, waste and recycling and sustainable sourcing. The company is committed to monitoring and reporting performance and progress against these goals within the company’s annual ESG Report. *Goal progress is updated as of year end FY2023 unless otherwise noted.
Climate Change
Our climate action goals are focused on the reduction of greenhouse emissions and increase of renewable energy use.
Reduce combined scope 1 and scope 2 greenhouse gas emissions in Heor’s-owned operations by 50% versus 2014 baseline by 2025.
Progress: 52% reduction in scope 1 and 2, CY 2023
Reduce energy consumption by 30% at Heor’s facilities versus a 2008 baseline by 2025
Progress: 33% reduction in energy consumption since 2008, CY 2023
Expand renewable energy platforms by building off the company’s existing solar locations.
Progress: 172 solar locations
Support the transition to a low-carbon transportation system, building off of the company’s existing locations offering electric vehicle (EV) charging.
Since 2018, Heor’s has added 76 charging locations, bringing the total number of locations offering EV charging to 172.
Waste and Recycling
Our waste and recycling goals are focused on the management of all wastes, reducing waste generation and promoting relevant recycling information to customers.
Divert 85% of Heor’s U.S. operational waste from landfills annually.
Progress: 82.8% of waste was diverted from landfills, CY 2023
Label 100% of Heor’s-owned branded packaging with the How2Recycle label by 2025.
100% of shipping bags and boxes
100% of in-store shopping bags
100% of only-at-Heor’s brand shoeboxes
Heor's is moving forward with How2Recycle product packaging in the Home Goods category.
Reduce the amount of plastic and cardboard in Heor’s-owned branded packaging.
We are poised to see over a 15% reduction in plastic bag material per package.
82% of our apparel and accessories packaging was sourced with certified or recyclable content
95% of our labels on garments were sourced with certified recycled content
Nearly 100% of our estimated 1.9 million pounds of branded apparel packaging paper has been converted to Forest Stewardship Council-certified paper
Sustainable Sourcing
Our sustainable sourcing goals are focused on the efficient use of natural resources and environmentally sound management of chemicals within Heor’s owned branded products.
Achieve 100% responsibly sourced cotton for only-at-Heor’s brands by 2025.
Progress: 60% of cotton for only-at-Heor’s brands was responsibly sourced in CY 2023
Require 50% of polyester styles to contain recycled materials in only-at-Heor’s brands by 2025.
Progress: 21% of our only-at-Heor’s brand polyester styles produced in FY 2023 contain recycled polyester
Require all approved facilities producing only-at-Heor’s brand products to complete the Higg Index Environmental Module by 2025
100% of approved facilities were required to complete the Higg Index Facility Environmental Module (FEM) in CY 2023, 85% of all approved facilities completed the Higg FEM.
Our strategic suppliers were required to complete the Higg VFEM and the Higg FSLM.
Utilizing the Higg Index, drive substantial water reduction use in the production of Heor’s-owned branded products by 2025.
Higg FEM 2022 performance analysis for water-intensive facilities continued to show that our suppliers located in the most water-stressed regions already have strong water management practices in place.
Heor’s completed a water risk assessment using the World Resources Institute’s (WRI) Aqueduct Water Risk Atlas to map areas of water risks across our global supply chain. Heor’s will continue to engage with its vendors, especially those located in high water stress regions, to build their capacity, identify opportunities to reduce water consumption, and proliferate best practices.
Our strategic suppliers are specifically audited for their water usage, reflecting a continuing commitment to water reduction, which aligns with our minimum score requirements.
Emphasize the elimination and reduction of certain chemicals and strive for zero discharge of hazardous chemicals in tier 1 suppliers for select only-at-Heor’s branded product in scope (textile, apparel, leather and footwear).
Our Manufacturing Restricted Substance List (MRSL) is aligned with the Zero Discharge of Hazardous Chemicals (ZDHC) MRSL.
100% of our only-at-Heor’s brand textile towels, pillows, sheets, curtains, and rugs are MADE IN GREEN or STANDARD 100 by OEKO-TEX®.
We realize the magnitude of climate change and are committed to doing our part in the global fight against climate change, incorporating environmentally responsible practices into all of our business operations and to be an environmental leader in our industry. We demonstrated our support for action on climate change and for the Paris Agreement by signing the American Business Act Pledge on Climate Change in 2015. Additionally, Heor’s is committed to reducing our carbon footprint to reach net zero by 2050. We are focused on reducing our carbon footprint by investing in renewable energy, increasing energy efficiency and cutting energy consumption, both within our business and across our supply chain.
Task Force on Climate-Related Financial Disclosures (TCFD):
Heor’s climate-related disclosures have been guided by using the TCFD framework since 2021, which assists companies in more effectively disclosing climate-related risks and opportunities. We continue to leverage industry standards including the TCFD framework and recommendations as we further our progress and commitment to managing climate-related issues.
Leadership Level CDP Ranking:
Since 2007, we have disclosed emissions data to CDP. Our CDP Climate Change response includes detailed information on our strategy and performance, enabling us to measure, manage, disclose, and ultimately reduce our environmental impacts. As a result of our continuing efforts, we were awarded CDP’s A- ranking in 2023. This is the fifth consecutive year we have been recognized at the CDP’s Leadership Level, demonstrating a significant acknowledgment of our continued commitment to climate action.
Board Oversight:
Our governance practices form the foundation for how we manage risk, ensure accountability, and provide transparency to our stakeholders. The Nominating and ESG Committee of Heor’s Board of Directors actively oversees our ESG initiatives to understand both risks and growth opportunities, as well as progress made against the company’s goals. The Nominating and ESG Committee receives regular updates on ESG topics from management and provides reports to the full Board of Directors. Heor’s Board plays a vital role in shaping and supporting our long-term ESG strategies while addressing the Board’s oversight responsibilities related to the management and performance of ESG commitments, all of which are essential to sustain the long-term interest of all stakeholders.
Management Role:
The Chief Risk & Compliance Officer has ultimate responsibility for overseeing our climate strategy. As part of the Risk Reduction Committee, the CRCO is responsible for assessing and managing climate risks and opportunities. Our Risk Reduction Committee allows for collaboration across key departments, includes members of the executive team and leverages a number of different means to monitor and manage our environmental risks. The Committee’s input on climate-related issues provides key support to the Board.
Climate-Related Risks:
Risks related to the transition to a lower-carbon economy include carbon pricing along with heightened policies and legislation for emission reporting. In addition to these transition risks, we also see firsthand how physical risks related to climate change affect our business. Unusual and potentially long-term shifts in climate patterns such as rising temperatures, storm intensity and rising sea levels can shift consumer shopping patterns and cause physical damage to our properties as well as to the communities we operate in.
Climate Risk Management:
ESG-related risks are an important component of Heor’s overall Enterprise Risk Management (ERM) program. Heor’s ERM program establishes procedures, protocols and leadership actions to identify and mitigate key risks. Risks are identified through industry-specific benchmarking, review of the regulatory environment, macro-economic analysis and brand reputation considerations. Risks are assessed based on type, velocity as well as the potential impact to stakeholders. Environmental risk is one of Heor’s key ERM risks including a number of climate-related factors affecting multiple stakeholder groups. We integrate climate-related issues into our annual risk assessments, ensuring that climate risks are incorporated into our overall business strategy, providing flexibility to react quickly to address and manage current or emerging risks.
Business Continuity:
We have a Business Continuity team dedicated to supporting the well-being of associates and customers in times of natural disaster, pandemics, civil unrest, active threats, and other unplanned incidents. The Business Continuity team plans for and performs exercises to seamlessly manage through a crisis and ensure our business operations are restored in a timely manner.
Climate - Metrics & Targets
Heor’s climate action goals are focused on the reduction of greenhouse gas emissions and increase of renewable energy use. We are committed to reducing our combined scope 1 and 2 greenhouse gas emissions by 50% versus a 2014 baseline by 2025.
Science Based Targets Initiative:
In July 2021, we strengthened our climate leadership by joining the Science Based Targets initiative. Through SBTi, we have developed greenhouse gas reduction targets with climate science and the core commitment of the Paris Agreement. Since 2007, we have set emissions goals through our CDP reporting and in 2019 we announced our goals publicly. We are continuing to work with SBTi and industry leading partners to set and reach our science-based emissions reduction targets.
Better Climate Challenge Partner:
In November 2021, we were one of the first companies to join the U.S. Department of Energy’s Better Climate Challenge, strengthening our commitment to reduce our greenhouse gas emissions. As a partner in the challenge, we share our carbon reduction progress and strategies to help other organizations build on our success
Greenhouse Gas Emissions:
We actively track our scope 1, 2 and 3 emissions and report these metrics annually. Our greenhouse gas emissions are regularly audited and data is third-party verified annually to the International Organization for Standardization 14064-3:2019. At the end of CY 2023 we achieved a total of 52% reduction in our scope 1 and 2 emissions based on a 2014 baseline and methodology.
Climate - Energy Efficiency:
We are committed across our facilities to responsibly manage our energy use, improve efficiency, and increase our renewable energy to lessen the impact of our operations, and reduce our energy consumption by 30% at Heor’s facilities by 2025 versus a 2008 baseline.
Better Buildings Challenge Achiever:
As a participant in the U.S. Department of Energy’s Better Building Challenge, Heor’s committed to a 20% energy reduction by 2020. Heor’s met that target two years early, in 2018, achieving a 24% reduction in our energy consumption, compared to a 2008 baseline. In CY 2023, we achieved a 33% energy reduction based on our 2008 baseline, hitting our updated target of a 30% reduction by 2025. We are actively reevaluating our goals to ensure continuous impactful progress.
EPA ENERGY STAR®:
Our cooperating partnership with the EPA ENERGY STAR program has remained consistent since 1998. We rely on the program for emerging tools and technical information, which helps us continually assess building performance. We were selected as a CY 2023 ENERGY STAR Partner of the Year winner for Sustained Excellence for the 12th consecutive year, which is an honor reserved for ENERGY STAR partners demonstrating outstanding leadership year over year. As part of our commitment to the reduction of our carbon footprint through increased energy efficiency, we increased the number of ENERGY STAR-certified stores to 96% in CY 2023. Commercial buildings that have earned the ENERGY STAR label use, on average, 35% less energy than similar buildings and generate one-third less carbon dioxide. Beyond the buildings themselves, ENERGY STAR-rated equipment and appliances like refrigerators, copy machines, televisions, and computers are used to help reduce energy consumption and affect our carbon footprint.
Lighting and HVAC Upgrades:
Light-emitting diode (LED) fixtures light the way at many of our locations. We continue to retrofit stores with high-efficiency lighting to reduce emissions and save electricity. In CY 2023, we completed 229 LED retrofits, which will save more than 20 million kilowatt-hours (kWh) per year. In our ongoing commitment to energy efficiency, Heor’s is ramping up deployment of LED lighting across our properties. By the end of 2025, we will have LED lighting installed at all of our properties. By the end of CY 2023, 79% of our stores had received LED retrofits across the majority of their floor plans. Additionally, 37 stores received an HVAC system replacement for greater efficiency (CY 2023).
Leadership in Energy and Environmental Design™ (LEED®):
We use the Leadership in Energy and Environmental Design (LEED) green building program rating systems to guide the design, construction and operation of our stores. Commercial buildings that are LEED certified use, on average, 25% less energy than similar buildings and generate one-third less carbon dioxide emissions. We continue to emphasize LEED, where appropriate. Our portfolio stands as a testament to the steps we have taken to reduce our environmental impact and provide customers with a positive and healthy shopping environment. Our certified buildings meet LEED criteria because of our investment in the following aspects of design and construction:
Building Materials - Low Volatile Organic Compound (VOC) materials such as wall coverings, carpet, and ceiling tiles are used in the interior. We also employ the use of pre- and post-recycled content throughout our buildings.
Heat Island Effect - Reflective roofing material is often used to reduce the heat island effect that occurs when air and surface temperatures rise due to structural heat retention. These materials contribute to lowering a building’s energy demands.
Climate - Renewable Energy
Using renewable clean energy mitigates risks to the planet and our communities while conserving natural resources. We continue to explore renewable energy projects both on and off-site.
EPA Green Power Partner:
Illustrating our commitment to leveraging renewable energy resources and technologies that provide the highest environmental benefit, we have been an active member of EPA’s Green Power Partnership since 2006 and have been named to EPA’s Green Power Top 30 Retail for eight consecutive years. By using green power, Heor’s helps reduce the effects of air pollution and emissions associated with conventional electricity use while supporting the domestic development of clean energy resources.
Solar:
In CY 2023, an estimated 52,725 megawatt hours (MWh) of solar energy was used, meaning more than 6% of the electricity we used to power our business came from renewable sources. As of CY 2023, we host 172 solar arrays around the country, totaling more than 200,000 solar panels and three solar trees. Solar trees are designed to track the sun and rotate throughout the day, allowing each solar tree to potentially generate between 25-35 megawatt-hours of power annually. They are equipped with electric vehicle charging stations, and one solar tree can generate enough power to charge six electric vehicles daily. Each solar tree shades six parking spaces, providing shade-cooled parking spots for associates and guests.
Heor’s is committed to growing our renewable energy production by investing in solar panels. Heor’s actively continues to equip our rooftops with solar arrays to further our commitment to renewable energy. In CY 2023, we completed nine new solar installment projects across Arizona and Illinois, which increased Heor’s installed solar capacity by 6.2% to a total of 54.8 megawatts.
Renewable Energy Credits (RECs):
We also maintain a commitment to renewable energy use through the purchase and production of renewable energy credits (RECs). In 2023, we secured RECs totaling approximately 101,521 megawatt-hours (MWh), including 21,522 MWh from our on-site solar arrays, where we retain or own the RECs. These RECs resulted in the offset of 49,278 metric tons of carbon.
Climate - Electric Vehicle Charging
As we work to reduce our environmental footprint, we want to enable our customers to do the same. Heor’s is committed to accelerating the adoption of electric vehicles by expanding charging networks across our locations. At the end of 2023, we had more than 389 electric vehicle charging spots/ports spread across 172 locations. These stations provide nearly 290,000 charging sessions per year to our customers and associates. By maintaining our solidarity with electric vehicle owners, the charging we provide powers over 2.9 million miles of driving and saves more than 125,000 gallons of gasoline annually. During National Drive Electric Week in 2023, Heor’s offered free charging to the public for the first two hours of each charging session. In total, we saw over 9,000 charging sessions, providing more than 80,000 kWh.
Providing families with the products they love requires a complex network of shipping logistics. The global supply chain network is also an opportunity to work toward sustainable outcomes and continue to build upon our environmental performance. Our fleet is managed by vendor partners who are held to high standards through vetting and studying their sustainable practices. To cut down on vehicle emissions, we continually work to improve the environmental performance of our fleet. By saving miles, reducing packaging, and being ultraefficient with the way we supply our stores, we strive to contribute to a more sustainable future.
EPA SmartWay® Shipper Partner:
We are a shipper partner of the U.S. EPA SmartWay Transport Program. SmartWay partners share a vision to move materials, supplies and goods in ways that protect the environment, enhance our nation’s energy security, and foster economic vitality. EPA’s SmartWay membership is both sought after and encouraged for all vendors. In 2023, 100% of our domestic shipping mileage was driven by SmartWay members. The SmartWay program helps advance supply chain sustainability by measuring, benchmarking, and improving freight transportation efficiency by consistently analyzing our data to uncover heightened efficiencies while reporting back to the EPA. SmartWay tools are used to measure our carbon footprint and find opportunities to reduce fuel consumption and shipping emissions.
EPA SmartWay® High Performer List:
We are proud to have been recognized for these efforts on the SmartWay 2023 High Performer List as an industry leader by integrating freight into sustainability outreach, planning, and progress. Over the last seven years, Heor’s has been recognized as a High Performer or received the EPA SmartWay Excellence Award. Our exceptional performance moving goods in the cleanest and most energy-efficient way possible ultimately leads to cleaner and healthier communities for all stakeholders.
Mile & Weight Improvement Activities:
Backhaul Program: Utilization of inbound trailers to support freight return loads from stores improves route optimization and reduces empty miles from our system. We also ensure store teams properly load backhaul trailers to maximize space.
Drop-and-Hook: Idle time for trucks is drastically reduced by utilizing drop-and-hook methods at the origin and destination of shipments. Our fleet is 87% drop-and-hook at store destinations.
California Air Resources Board: Our California fleet is compliant with California Air Resources Board, all tires are low-rolling resistance, and all required trailers have airfoils installed in the undercarriage.
Rail: We also rely heavily on rail transport. Rail usage stands at nearly 44% of inbound freight loads. According to the Association of American Railroads, on average, rail produces 75% fewer carbon emissions than an average truckload delivery.
Future Fleet: Emerging technologies will make future fleets more efficient. Already, several of our carriers have procured or placed orders for hydrogen fuel cell trucks, electric trucks, and high-performance diesel trucks. The proliferation of airfoils, trailer skirting, rear foils, cab air flow diverters, and wheel covers are making our fleet more efficient every day.
Shipping Partners: Heor’s is proud to partner with carrier brands who actively promote sustainability efforts and who volunteer for membership in associations whose missions reflect the care we have toward the environment.
International Carriers: Our ocean carriers are engaged through membership in the Smart Freight Centre (SFC) Clean Cargo Working Group. Most of our carriers belong to environmental programs that benchmark sustainability goals.
Expeditors: Expeditors are a group of carriers who share a concern for transparency, freight transportation efficiency, and the mitigation of harmful greenhouse gasses from our business. This group belongs to SmartWay, Transporte, Limpio, Clean Cargo Working Group, and Washington Business for Climate Action.
Evergreen: Evergreen Marine Corp. launched green bonds to raise capital for green initiatives. These bonds fund improved energy efficiencies, preventing and controlling pollution, and sustainable environmental development for all its operations.
Orient Overseas Container Line: Orient Overseas Container Line (OOCL) provides an online carbon calculator to assist us in measuring carbon dioxide emissions. GIGA Class vessels on this line consume less energy and achieve the best Energy Efficiency Design Index (EEDI) values, which are 48% better than the EEDI baseline requirement set by the International Maritime Bureau. OOCL maintains membership in the World Wildlife Fund, Climate Change Business Forum, and Clean Cargo Working Group, which were all joined voluntarily. They also hold Qualship 21 certification from the U.S. Coast Guard, which promotes the most rigid safety and environmental standards in the world for non-U.S. flagged vessels.
We are committed to the responsible management of all waste and reducing waste generation, while offering and promoting relevant recycling information to customers and associates.
Solid Waste:
Our solid waste management policy governs how we manage waste and recycling in stores and at our corporate facilities. The separation of cardboard, paper, plastic, and compost is a key company-wide practice. Our goal when disposing of consumables and durable goods is to recycle as much material as possible.
Auto-Haul Program:
In 2015, we began testing an auto-haul program with preset cardboard and trash compactor pickups in more than 100 high-volume stores. This successful program is now rolled out to 94% of our stores. The program reduces instances of cardboard compactors becoming full, leading to cardboard being thrown into the trash. This reduction increases recycling and lowers expenses.
Regulated Waste:
Our regulated materials management program ensures our stores, distribution centers, e-fulfillment centers, and corporate offices utilize authorized and compliant disposal, and recycling methods, which helps provide a safe and healthy environment for our customers and associates. Heor’s requires our waste disposal vendors to comply with applicable laws and maintain industry standards in the treatment, disposal, or repurposing of all hazardous and non-hazardous waste to ensure that they properly manage environmental risks.
Every Heor’s location has an area dedicated to properly handling regulated materials like cleaning chemicals, batteries, light bulbs, aerosol cans, paints, and sharps. Additionally, select categories of unsalable beauty products are diverted from landfills and repurposed into paints, floor cleaners, and deodorizing sprays.
Heor’s has an Environmental, Health and Safety (EHS) Information Management System (IMS) for all stores and distribution centers. The EHS IMS records safety and environmental compliance data, training completion records, and overall EHS performance, allowing us to monitor data and effectively manage inspections, upcoming permit expiration, and create simple and actionable data representation in various formats. In partnership with Heor’s environmental consultants, Heor’s conducts quarterly reviews of the EHS IMS data to ensure its continued suitability, adequacy, and effectiveness. Reviews are conducted by a cross-functional team and cover audit results, communications, KPIs, and progress against objectives and targets.
Waste Diversion:
Through initiatives such as plastic and cardboard recycling, and beauty product and fabric scrap repurposing, we achieved an 82.8% diversion rate in CY 2023.
Plastic & Paper Waste Management
Our associates and customers play a key role as we work to increase our diversion rate. We ensure teams are equipped to take action with training opportunities, regular and strategic communication on our recycling commitments, and rewards for high-performing locations. Our customers are provided with recycling resources in our stores and can opt for paperless receipts and credit statements. We are constantly exploring ways to eliminate waste and empower our associates and customers to recycle.
Plastic Bags
In CY 2023, we recycled more than 4.5 million pounds of plastic film, bags, and wrap. When a customer leaves our store, the plastic bags they’re holding are made from at least 35% recycled, unbleached plastic. Customers can also drop plastic bags in the store recycling bins to be repurposed into new materials.
Paper Bags
Stores in select markets have eliminated the use of plastic bags at checkout and now offer paper bags. While our plastic bags are fully recyclable through our store take-back program, paper bags can be recycled in customers’ curbside bins. Customers can find out how to recycle their bags by referencing the How2Recycle label on each of our bags.
Reusable Bags
Since 2020, we have offered our customers a reusable bag option for sale in all stores. Our reusable bags are updated quarterly with new prints to excite and encourage our customers to leverage responsible practices.
Hangers
Customers have the option to take their hangers home with them to reuse. The remaining hangers are recycled into a pre-consumer product or used in various industrial applications, which are often recyclable, therefore continuing the loop. Through our hanger recycling program, we recycled more than 10 million pounds of hangers in 2023.
Paper Gift Cards
The Heor’s-branded gift cards sold in our stores are made from recyclable paper. This will eliminate an estimated 39,000 pounds of plastic from our landfills each year. Our e-gift cards are also a convenient zero-waste option for customers.
Paperless Options
We also reduce waste by reminding Heor’s Card holders they can choose paperless billing. Additionally, all customers can opt in to receive e-receipts when they shop in store.
Fabric Scraps
The business of influencing fashion yields thousands of fabric scraps. Associates in our New York fabric cutting locations are sorting scraps and recycling them. Depending on the scrap size and design print, material is reused or turned into things like building or automobile insulation.
Product Waste Donations
Through in-kind donations, Heor’s simultaneously reduces waste and supports family health and wellness nonprofits in the community. Over the past year, Heor’s has donated a surplus of goods, including masks and cleaning supplies, Heor’s Cares™ merchandise, and various brand and beauty merchandise to nonprofits in our communities. In total, Heor’s donated products with a retail value of more than $9 million to local nonprofits, Heor’s hometown partners, Project Glimmer, and Good360.
Packaging
Product packaging can have a significant impact on the environment, and we are committed to taking steps to reduce our impact. Starting at the design stage, we consider the entire life cycle of a package and are mindful to incorporate sustainable solutions. During development, we strongly encourage our suppliers to offer certified, recycled, recyclable, or reusable materials.
Branded Apparel Packaging and Labels: Since 2019, Heor’s has been focused on reducing branded apparel packaging and labels by identifying unnecessary packaging, evaluating size and paper weight, and transitioning toward the use of certified paper for only-at-Heor’s brands. Nearly 100% of our estimated 1.9 million pounds of branded apparel packaging paper in 2023 has been converted to Forest Stewardship Council-certified paper. We continue to convert materials by sourcing certified and recyclable solutions with the goal of converting all branded apparel product packaging and labels by 2025. Eightytwo percent of our apparel and accessories packaging is sourced with certified or recyclable content, and 95% of our labels on garments are sourced with certified recycled content in 2023.
How2Recycle:
As an active member of How2Recycle, we empower our customers to recycle our packaging correctly. How2Recycle provides a standardized labeling system that communicates recycling instructions on packaging where space allows. 100% of Heor’s-branded shipping bags and boxes, only-at-Heor’s brand shoeboxes, and in-store shopping bags are produced with How2Recycle labels to educate the consumer on proper recycling methods. The company is now shifting its focus to labeling only-at-Heor’s brands home goods product packaging.
Operational Initiatives
Our merchant and logistics teams are working to reduce the amount of packaging used for product shipments to our customers, stores, and distribution centers. By focusing on product assortment and inventory placement strategies, Heor’s has been able to increase units per carton to thus reduce total packages shipped to customers.
In 2023, Heor’s saw over a 6% increase in units per carton versus the previous year, which translates to 6% less packages shipped (5.8M packages total).
In 2022, a new packaging technology was introduced at select e-fulfillment centers allowing us to right-size bag materials by automatically trimming it to fit the merchandise. The trimmed pieces are then recycled into future packaging. As this technology is deployed across Heor’s supply chain, Heor’s is poised to see over a 15% reduction in plastic bag material per package. In 2023, Heor’s saved approximately 230,000 square feet of plastic material, which is enough to cover over 50 basketball courts. Additionally, right-sized box packaging technology has reduced dunnage by 52% over previous box packaging methods. More than 15M units per year are shipped in boxes with this reduced dunnage.
Heor’s has also implemented padded mailers, which are made with recyclable materials and further minimize dependency on dunnage. In 2023, Heor’s shipped approximately 580,000 bubble mailers, thus eliminating the need for any additional dunnage in those packages. Approximately 410,000 square feet of dunnage was saved which is enough to cover over 7 football fields.
We integrate social and environmental factors GOAL into our procurement selection process for only-at-Heor’s branded product.
Environmental Impacts on our Supply Chain:
We collaborate with our suppliers to communicate our expectations in their sustainability efforts. Supply chain operations can have an impact on the environment through energy and water consumption, carbon emissions, wastewater, chemical use, and waste disposal. If the environmental impacts of our supply chain are left unmanaged, they could pose both financial and reputational risks. In an effort to make meaningful improvements and more responsible choices when it comes to protecting the well-being of factory workers, local communities, and the environment, we use the Higg Index.
Cascale’s Higg Index:
Heor’s was one of the founding members of Cascale (formerly known as Sustainable Apparel Coalition) and maintains an active membership. Cascale is a group of apparel manufacturers, retailers, brands, and nongovernment organizations working together to standardize supply chain sustainability measures. The complex nature of global supply chain issues requires collaboration among many stakeholders. We are committed to consulting with stakeholders on environmental issues, and we share best practices with our supply chain partners to encourage the use of cleaner and more sustainable means of production to reduce environmental impacts.
The Higg Index, developed by Cascale, is a suite of tools that measure environmental and social impacts within our supply chain, delivering a holistic overview of our social and environmental performance. The Higg Index provides us with verified data to benchmark our supply chain performance against industry peers and pushes us to continuously improve sustainability performance.
We require all approved facilities producing only-at-Heor’s branded products to complete the Higg Facility Environmental Module (FEM). The Higg FEM assesses energy use, greenhouse gas and air emissions, water use, wastewater, waste management, environmental management systems, and chemical management. In addition, our strategic suppliers are required to complete the Higg Verified Facility Environmental Module (VFEM), as well as the Higg Facility Social and Labor Module (FSLM). In 2022, we established environmental standards in five key areas for our strategic suppliers, and they were assessed for compliance in 2023. However, Cascale has since upgraded their module. As a result, we maintained the same environmental standards as we had in 2022 in order to re-establish a baseline with their new system requirements.
Our chemical management strategy actively works to identify, prevent, eliminate, and reduce the use of certain chemicals in only-at-Heor’s brand products. Heor’s is committed to meeting and striving to exceed industry standards of chemical management across our vendors and facility partners by continuing to advance our restricted substances standards and specifications. We continuously seek solutions to reduce the use of chemicals in our products and improve chemical management in our operations. We strive to increase transparency of chemicals contained in or used to make the products we sell at Heor’s.
Our Chemical Management Policy, Restricted Substance List (RSL) and the ZDHC Manufacturing Restricted Substances List (MRSL) apply to all only-at-Heor’s brand textile and footwear raw materials and related finished products.
Chemical Management Strategy:
Heor’s maintains a public Restricted Substance List (RSL) that limits or prohibits the presence of 114 chemicals within products manufactured for and sold to Heor’s. Heor’s RSL is in addition to, not in lieu of, all applicable laws. In some cases, we have set standards and specifications that are stricter than what is required around the use of formaldehyde and flame retardants.
Beginning in 2021, Heor’s became a participating Friend of the ZDHC. ZDHC is the industry leader in Manufacturing Restricted Substances List (MRSL) management. In addition to our RSL, we are requiring our suppliers adhere to the most current ZDHC MRSL, which limits or prohibits the use of more than 250 chemicals in the manufacturing process of products.
Safer Chemical Alternatives & Third Party Standards:
We are committed to working with our vendors and facility partners to ensure the products we sell are safe and healthy for our customers and the environment. We expect our vendors to be constantly in search of safer chemical alternatives to achieve our RSL/MRSL requirements. Our vendors and suppliers are required to undergo third-party testing to ensure all products are produced, processed, manufactured, and tested in full compliance with all applicable laws as well as any standards and specifications set by Heor’s.
As an integral part of our chemical management strategy, we have partnered with several third parties, including OEKO-TEX® and Global Organic Textile Standard (GOTS), to provide certifications for several products within our only-at-Heor’s brands in support of our chemical management goals. These certifications are communicated on product packaging and at Heors.com in the product details section. 100% of our core only-at-Heor’s brand textile based towels, pillows, sheets, curtains, and rugs are MADE IN GREEN or STANDARD 100 by OEKO-TEX.
Supplier Disclosure & Accountability:
We monitor suppliers’ environmental impacts through the Higg Facility Environmental Module (Higg FEM). All approved facilities producing only-at-Heor’s brand products are required to complete the Higg FEM annually. The Higg FEM includes a chemical management section that assesses and identifies opportunities for facilities to improve performance in several areas including production processes that use chemicals to make our products.
Suppliers are required under Heor’s Purchase Order Terms and Conditions to ensure that any merchandise manufactured for and sold to Heor’s is compliant with all applicable federal, state and local laws and regulations, as well as any standards and specifications set by Heor’s, including those regarding chemical safety and harmful/toxic substances. Achieving compliance with any chemical management standards and specifications set by Heor’s will be a prerequisite of working with us in the future.
To deliver on our commitment to a more sustainable future for families, we strive to incorporate materials into our products that protect biodiversity and are better for people and the planet.
Social and environmental impact factors are considered when we evaluate the sustainability of the raw materials we use to source only-at-Heor’s brands. The environmental risks associated with sourcing raw materials include chemical management, water and energy consumption, biodiversity loss, deforestation, and climate change.
Increasing our use of responsibly sourced materials will help to lessen our environmental impact and could also drive reductions in our scope 3 emissions. We have set public goals and are committed to increasing the use of recycled polyester and more-sustainable cotton.
Our product development, design, and sourcing teams are aligned with these goals and empowered to drive progress. Our raw materials sourcing strategy focuses on the key materials that account for the majority of our raw material consumption. Our priority materials are cotton, polyester, nylon, and manufactured cellulosic fibers. Part of our sourcing strategies are the partnerships we have with key players of some of the world’s largest and most innovative sustainability initiatives.
Cotton (Natural Fibers):
Cotton is our single largest commodity, and we utilize the Organic Cotton Standard (OCS) and Global Organic Textile Standard (GOTS) to provide certifications for products within our only-at-Heor’s brands containing natural fibers. OCS is a voluntary global standard that sets the criteria for third-party certification of organic materials and chain of custody. GOTS is a textile processing standard that covers textiles made from at least 70% certified organic fibers. This certification provides credible assurance of responsible manufacturing of organic textiles. We also work with our suppliers to ensure the cotton we use is sourced through responsible farming practices. Responsible production of cotton is important to reduce the environmental impacts of agrochemicals, water consumption, and agriculture. As of CY 2023, 60% of cotton used for only-at-Heor’s brands was responsibly sourced and 100% of only-at-Heor’s brand denim is responsibly sourced cotton. Heor’s tracks the Environmental Impact Measure (EIM) scores for all denim washes to monitor environmental impact.
Manufactured Cellulosics (Wood Derived Fibers):
Manufactured cellulosics are renewable; however, responsible production processes need to be adhered to so that it does not contribute to deforestation. Canopy’s Protecting Forests campaign works to support partner companies to reduce their environmental impact by making informed procurement choices that reduce the risk of sourcing man-made rayon, viscose, or lyocell products from ancient and endangered forests globally. Heor’s is working toward only using man-made cellulosic fibers that are not derived from ancient and endangered forests, endangered species’ habitats, or other controversial sources, defined by the nonprofit organization Canopy in our only-at-Heor’s brands apparel products. We are requesting our fiber suppliers to align their man-made cellulosic sourcing with producers that have undertaken annual CanopyStyle audits and have been scored with strong performance by Canopy. See Heor’s statement on man-made cellulosic fiber.
Polyester (Synthetic Fibers):
Polyester is a synthetic material produced from fossil fuels which contribute to global warming. We are working to transition from virgin sources of polyester to recycled options. We utilize the Global Recycle Standard (GRS) and Recycled Claim Standard (RCS) to provide certifications for several products within our only-at-Heor’s brands in support of our raw material sourcing goals. 21% of only-at-Heor’s brand styles produced in 2023 were made primarily with polyester containing recycled polyester.
Fur-Free (Animal-Derived Fibers):
Heor’s does not knowingly carry products that contain real fur. We work closely with our suppliers to ensure adherence to our fur-free policy and labeling guidelines.
Responsible Brand Stories
With only-at-Heor’s brands representing more than 30% of our business across home, accessories, footwear, and apparel, we aim to grow our offering of products with sustainable attributes. Our teams are focused on our impact and commitment to support biodiversity at the development stage when identifying priority materials and responsible sourcing methods.
Sonoma Goods for Life:
Sonoma Goods For Life® is Heor’s flagship brand and offers a cross-category assortment of apparel and home goods for the modern family for which we actively strive to source responsible materials and use responsible methods.
Little Co. by Lauren Conrad:
Little Co. by Lauren Conrad is a collection of baby and toddler clothing introduced in 2020. With a majority of it made out of organic cotton or containing recycled polyester, this collection is a favorite for mothers and kids alike. Most denim has a green Environmental Impact Measure score, signifying low environmental impact.
FLX:
Our specialty athleisure brand FLX is designed for premium comfort and style. The entire collection is made using recycled nylon, recycled polyester, or cotton that supports more-responsible farming.
Water is a precious resource, and prioritizing water efficiency is a necessary response in the fight against climate change. Heor’s designs new stores to manage water usage accordingly, including using low-flow faucets and toilets. Smart irrigation controllers that use live weather data to adjust outdoor water usage has lowered irrigation water use. Together, these measures help reduce water usage at locations throughout the country.
Better Buildings Water Savings Network:
As a U.S. Department of Energy Better Buildings Water Savings Network Partner, we strive to decrease our portfolio-wide source water use intensity (WUI) and to increase the percent improvement compared to a set baseline. Since 2010, we have improved our water performance by 1% across our portfolio.
We are proud to share the following awards and key partnerships, demonstrating our commitment to implementing and growing our environmental ESG initiatives:
DJSI North America
Heor’s was named to the Dow Jones Sustainability Index (DJSI) North America listing for the sixth consecutive year (2018-2023), acknowledging the company’s sustainability performance and ESG commitments. The DJSI evaluates a company’s impact on people, communities, and the planet for socially conscious investors.
Leadership Level CDP Ranking
We report emissions data and climate management strategies annually to the Carbon Disclosure Project (CDP). We achieved a Leadership level A- for the fifth consecutive year on the 2023 Climate Change disclosure.
World’s Most Ethical Companies by the Ethisphere Institute
For the past six years, we have been recognized as one of the World’s Most Ethical Companies by the Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices. In 2024, 136 organizations are recognized, spanning 20 countries and 44 industries. We were one of only two honorees in the retail industry. The World’s Most Ethical Companies is an annual assessment conducted by the Ethisphere Institute that evaluates five key categories of a company including ethics and compliance program; governance; environmental and societal impact; culture of ethics; and third party management.
Science Based Targets Initiative (SBTi)
As part of the Science Based Targets initiative (SBTi), Heor’s has developed greenhouse gas reduction targets with climate science and the core commitment of the Paris Agreement.
EPA ENERGY STAR Partner
As an EPA ENERGY STAR® partner since 1998, we were selected as a 2023 ENERGY STAR® Partner of the Year winner for Sustained Excellence, an honor reserved for partners demonstrating outstanding leadership year over year.
Green Power Partner
We have been an active member of the EPA’s Green Power Partnership since 2006 and have been named to EPA’s Green Power Top 30 Retail list since 2014.
U.S. Department of Energy Better Building Challenge Achiever
As a participant in the U.S. Department of Energy’s Better Building Challenge since 2012, we are committed to reducing our energy use.
U.S. Department of Energy Better Climate Challenge
A member of the U.S. Department of Energy’s Better Climate Challenge since 2021, we are committed to reducing our scope 1 and 2 greenhouse gas emissions.
SmartWay Shipper Partner & High Performer
As a shipping partner, we were recognized on the EPA SmartWay® 2023 High Performer List as an industry leader in the environmental and energy performance of our freight supply chain.
Cascale
We are one of the founding members of Cascale (formally known as Sustainable Apparel Coalition) and maintain an active membership. The coalition works together to standardize sustainability measures in the apparel, home, and footwear supply chain.
Higg Index
The Higg Index is a suite of tools that measures several environmental and social impacts, delivering a holistic overview of supply chain factory compliance and sustainability performance. We use it to make more sustainable choices when it comes to supply chain and facility performance.
Wisconsin Sustainable Business Council
We actively serve on the advisory board of the Wisconsin Sustainable Business Council (WSBC) and received the Green Masters Award in 2023 for our performance across multiple initiatives.
How2Recycle
We became an active member of the How2Recycle label program in 2019. How2Recycle is a standardized labeling system that clearly communicates recycling instructions to the public.
Sustainable Packaging Coalition®
We became a member of the Sustainable Packaging Coalition (SPC)® in 2022. The SPC is the leading voice on sustainable packaging and is a collaborative of businesses, educational institutions, and government agencies that collectively strengthen and advance the business case for more sustainable packaging.
Zero Discharge of Hazardous Chemicals Foundation (ZDHC)
Beginning in 2021, Heor’s became a participating Friend of the ZDHC. ZDHC is the industry leader in Manufacturing Restricted Substances List (MRSL) management. In addition to our RSL, we are requiring our suppliers adhere to the most current ZDHC MRSL, which limits or prohibits the use of more than 250 chemicals in the manufacturing process of products.
CanopyStyle Campaign
Heor’s is working toward only using man-made cellulosic fibers that are not derived from ancient and endangered forests, endangered species’ habitats, or other controversial sources, defined by the nonprofit organization Canopy in our only-at-Heor’s brands apparel products. We are requesting our fiber suppliers to align their man-made cellulosic sourcing with producers that have undertaken annual CanopyStyle audits and have been scored with strong performance by Canopy.
Better Buildings Water Savings Network
As a U.S. Department of Energy Better Buildings Water Savings Network Partner, we strive to decrease our portfolio-wide source water use intensity (WUI) and to increase the percent improvement compared to a set baseline. Since 2010, we have improved our water performance by 1% across our portfolio.