ISPA Sustainability Conference: Risks, Research, Regulation, & Recycling
By Angela Owen, CEO Suite Sleep, Inc.
When I started my business over 20 years ago, sustainability was at the very core of my mission. I had already been trying to live a more organic and sustainable lifestyle in the years prior, so it was simply an extension of our family’s values. The natural lifestyle industry was in its infancy back then with a large part of the population still in climate denial. It was hard to imagine industry-wide change at that time, so the few companies that made the health of people and planet their mission forged a path for the industry to follow.
For those of us who championed the ideas that lead up to the sustainability conference that just took place, it feels like it’s been a long time coming. The SSA championed the Green Initiative back in 2008 and many of the early adopters found a home with them to further the mission. Now, we can finally have a conversation with the industry leaders who could make a difference at a scale that will be necessary if we are to truly combat the complex issues facing our planet and the people who live on it. The following is a synopsis and some thoughts on the day long Sustainability Conference in Charlotte, NC.
The First Steps
ISPA (International Sleep Products Association) is the largest sleep industry association with a strong lobbying arm and stakeholders from every corner of the mattress industry. As ISPA’s president Ryan Trainer once said to me many years ago, “it’s a big tent.” ISPA started the Mattress Recycling Council more than a decade ago which was an important first step in starting the sustainability conversation. Sadly, it has taken that long to get just 4 states to pass comprehensive legislation around recycling mattress products. Through their hard work, ISPA created a blueprint for mattress recycling success that any state can adopt if there is the political will.
Focus
The Sustainability Conference focused on 4 key areas: Risks, Research, Regulation, & Recycling. First, we heard from the American Chemistry Council regarding the UN’s Sustainability Development Goals, then from an attorney who gave us a cautionary look at green marketing and the FTC Green Guides, next an in depth look at climate risk disclosures and ESG rules for larger publicly traded companies as well as the SEC’s Proposed Climate Risk Disclosure Rules, and finally the exciting new strides the Mattress Recycling Council has made. I was struck at how well attended this conference was and how eager our colleagues in the industry were to learn how to participate. With over 150 industry leaders in attendance, it gives me hope that we may be able to make a real difference together.
Angela Owen, Suite Sleep with Karsten Siewert, Enkev Gr. at the ISPA Sustainability Conference (Photo credit: Furniture Today)
Research & Risks
Let’s face it, almost all mainstream mattresses are made with a lot of chemicals – from polyurethane to polyester to polypropylene. The goal must be (the buzzword of the day) – circularity – if we are to make an impact in our sustainability goals as an industry. Mitchel Toomey VP, Sustainability and Responsible Care®, ACC (American Chemistry Council) and Former global director of the UN Sustainable Development Goals Action Campaign educated us on the UN Sustainability Development Goals and how the industry can use them to meet their own goals.
The UN SDG is based on an extensive amount of research and surveys of people all over the world and identifies 17 Goals and within each goal are 160 targets. Over 10 million surveys went out to people all over the world to help create the foundation of these 17 goals and targets. In the 2022 Edelman Trust Barometer 36,000 respondents across 28 countries say: “business is not doing enough to address societal problems.” People are no longer interested in the paternal approach countries and companies have taken to climate issues. They want transparency and inclusiveness with genuine progress through innovation. The UN SDG identified 5 sustainable priority areas: Climate, Water, Product Safety, Circularity, and Air. Manufacturers throughout the supply chain can use the 17 SDG goals and 5 priority areas to ensure that every decision they make is a sustainable one.
The following are few key takeaways from Mr. Toomey’s presentation:
· 77% of millennial investors say ESG Issues are a top priority
· 65% of people across the UK, US, China, Germany, and India want companies to have a strong social agenda
· People want companies and leaders to have a plan. “Plan for what’s coming tomorrow, not what’s happening today.”
· Move beyond GDP in a holistic manner
Climate Risk is another area of concern for companies looking to report their sustainability plan. Brian Tomlinson from Ernst & Young, LLP did a deep dive in the SEC Disclosure Rules. I won’t go into it here, but suffice it to say that investors want to know a company’s exposure to climate risks, their green-house gas emissions (GHG), and climate related costs. The SEC is creating a framework and guidelines to help large corporations navigate what they need to do to effectively communicate their climate risks to the SEC.
Regulation
The SSA has long championed the need to eradicate “green-washing” in the industry by offering extensive information regarding the FTC Green Guides and a Glossary of Terms Frequently Used in Environmental Marketing Claims
Greenwashing is…
“Some environmental marketing claims may be perceived as deceptive, misleading, or false when consumers could reasonably believe that either the entirety or portion of
a product, its packaging, or a service is more environmentally beneficial or “green” than in actuality” – Venable, LLP
Marketers are always looking for new ways to capture the attention of customers, but Leonard Gordon, Partner, Venable offered an in-depth primer for the industry writ large on how to avoid the pitfalls of sustainable marketing. Mr. Gordon walked us through a litany of case studies and the real risks of making false claims.
The biggest risk of making false claims is a risk to your company’s reputation. Litigation is costly and very disruptive to your business. While the FTC offers guidance, once you are faced with a lawsuit, it is all about substantiating your claims. Claims can be either concrete or implied and if you can’t substantiate it, then don’t make it – period. The FTC (Federal Trade Commission) is a bipartisan federal agency tasked to protect consumers, promote competition, and prevent deceptive and unfair acts or practices. The NAD (National Advertising Division) is a self-regulatory body with limited power, but will refer cases to the FTC to be reviewed if a company does not heed their warnings.
The key takeaway is to make sure you use concrete claims and be able to substantiate them with data. Most claims are specifically defined by the Green Guides – such as degradable, compostable, non-toxic, free-of, organic, natural, sustainable, etc. To avoid getting in trouble an industry best practice is to have a legitimate seal from a third-party certifier.
Recycling & Innovation
The most exciting presentation was about the great strides the MRC (Mattress Recycling Council) are making and insights from their work over the past decade. A major milestone was hit this year and MRC has recycled 10 million mattresses to date. While that is an admirable achievement it should be noted that 50,000 mattresses get sent to the landfill every day in the US and we have a lot more work to do. Additionally, creating durability in our mattresses rather than disposability will result in fewer mattresses needing to be recycled year over year.
While only 4 states have state mandated programs, several states offer a recycling option in major cities in order to keep these cumbersome items out of landfills and capture some of the raw materials for other uses. The MRC estimates that 77% of the total weight of mattresses is recycled in states where it is state law. The industry recognizes that first and foremost if we don’t figure this out, the regulators will come in and figure it out for us. It is better to get ahead of the issue rather than wait for government to impose and inefficient solution for us.
Historically, the only components of mattresses that get recycled are steel from coils and the foam which is ground up and formed into carpet padding. Some fabrics can be recycled but in a very limited way and it isn’t widely available. The MRC has a robust research arm that has been working hard to find new uses and ways to recycle mattress materials. The most promising is breaking foam down to its chemical components and using them for other industries. They are also working with manufacturers to reduce waste at the plant level and investigate new materials that are being developed now. It’s critical to see what’s going into mattresses now, so that the recyclers are ready when those mattresses end up in their facilities in 11 years. A “new materials working group” has been developed to investigate what may be on the horizon in years to come.
One promising technology that emerged from the conference’s small assembly of exhibiters is a polyester foam that can be recycled over and over. This technology is coming out of the Netherlands currently. While it will need a bit of infrastructure to support the circularity of this concept, we should stay tuned and see if it can be adopted in the US.