Koozie Group (asi/40480) is going carbon-neutral.

The Top 40 supplier and its sister company IMAGEN Brands (asi/93990) have pledged that by the end of 2024 they’ll be carbon-neutral on Scope 1 and Scope 2 emissions, as defined by the U.S. Environmental Protection Agency (EPA). The firms say they’re the first hard goods and stationery promotional products suppliers to set such an aggressive sustainability goal.

“We know that the health of our planet is important to our distributors and their customers, and it’s also important to our employees and their families,” said Pierre Montaubin, chief product and sustainability officer at Koozie Group. “We want to lead the promotional products industry in these efforts by going beyond just selling sustainable products to taking this next step in our corporate responsibility journey.”

In 2022, Koozie Group and IMAGEN Brands began measuring their Scope 1 and 2 emissions monthly. The EPA defines Scope 1 emissions as direct greenhouse gas (GHG) emissions generated from sources controlled or owned by the organization, including those associated with fuel combustion in boilers or furnaces. Scope 2 emissions are indirect GHG emissions associated with a company’s purchase of electricity, steam, heat or cooling.

With the help of legacy data, the companies employed an outside firm to trace carbon dioxide output on these two scopes back to 2018. The tracking showed that the companies’ carbon footprints have been shrinking already due to ongoing sustainability efforts, but Koozie Group and IMAGEN say they wanted to do more.

The companies plan to use a two-pronged approach to reaching their carbon-neutral goal. First, they will continue to work on internal projects that reduce GHG emissions, including undergoing annual EcoVadis audits to measure the success of ongoing company efforts against United Nations Sustainable Development Goals.

Second, they will invest in carbon sink projects that absorb more carbon from the atmosphere than they release. The companies expect to align themselves with projects that match their core business categories. For instance, afforestation programs that help create new forests on degraded lands are likely choices, since Koozie has a large calendar division.

Koozie and IMAGEN will purchase carbon offsets through a third-party partner that supports projects independently validated and verified to recognized global standards, including the Verified Carbon Standard and the Climate Action Reserve. These standards ensure that each credit issued represents one metric ton of carbon dioxide that has already been removed from the atmosphere and that credits have not been used more than once.

“We have been a leader in the promotional products industry when it comes to corporate social responsibility, and we want to keep leading the charge,” Montaubin said. “Becoming carbon-neutral on these two scopes by the end of 2024 is a lofty goal, and perfectly aligns with the foundational values we’ve outlined in Keep It. Give It.”

The companies plan to release its third corporate social responsibility annual report in the coming weeks.

The carbon-neutral announcement is the latest in a string of sustainability-related announcements Koozie Group has made since it launched its Keep It. Give It. social impact initiative in 2020. IMAGEN Brands, acquired by Koozie at the end of 2020, is now fully participating in the initiative as well. Earlier this year, the supplier announced that 77% of its current portfolio carries a KG Factor distinction, which identifies products designed to lessen environmental impact through longevity as determined by an impartial survey of end users.

The company received Forest Stewardship Council certification for all domestic facilities and Sustainable Forestry Initiative certification for its facility in Sleepy Eye, MN. Koozie and IMAGEN now produce over 500 items made from certified forest material. The companies have added hundreds of products made with recycled materials or sustainable resources to their portfolios, and Koozie Group continues to offer a large number of products made, printed or assembled in the United States. Koozie Group became a participating member of the Fair Labor Association and recently created the role of chief product and sustainability officer for Montaubin.

Based on reported 2021 North American promo product revenue of $300 million, Koozie Group ranked sixth on Counselor’s most recent list of the largest suppliers in the industry.

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