PCNA (asi/66887), a Top 40 supplier, has committed to going zero waste at its New Kensington, PA, campus by 2025.

That’s just one of many environmental and social responsibility highlights in the company’s just-released 2022 sustainability report, Leading the Way. PCNA noted in the report that it took a major step in integrating sustainability into its core mission by updating its charter and reincorporating as a public benefit corporation (PBC) – a change that means its board of directors is now required to include considerations of the company’s social and environmental mission into their fiduciary responsibilities.

“This report does not simply reiterate our commitment to social and environmental sustainability,” said Nick McCulloch, director of ESG at PCNA. “It codifies that commitment into a clear set of priorities and goals. In doing so we are committing to transparency and accountability. This report highlights the impact we are making, where we are going and how we are going to get there. It is also an invitation for the promotional products industry to join us in transforming our industry.”

PCNA outlined a number of operational changes it’s made to help reduce its carbon footprint and eliminate waste. For instance, last year, the company’s New Kensington campus consolidated its operating footprint from four buildings to three and relocated corporate offices – changes that resulted in an estimated annual reduction of roughly 250 metric tons of CO2 emissions. The supplier’s ETS Express (asi/51197) and Trimark facilities were able to avoid 782 metric tons of carbon emissions – the equivalent of taking 174 cars off U.S. roads for a year – by running on renewable electricity, according to PCNA.

The supplier also noted that it completed its annual carbon footprint assessment for direct Scope 1 and 2 emissions for the 2022 fiscal year, which PCNA plans to use as a baseline to set carbon-reduction targets and submit to the Science-Based Targets initiative (SBTi) for approval. PCNA plans to complete a Scope 3 footprint assessment in 2024, noting in the report that “a significant portion of our overall emissions footprint stems from our upstream and downstream activities.” Assessing Scope 3 emissions will help PCNA present a more comprehensive picture of its environmental impact, according to the company.

Waste reduction is also an important part of PCNA’s sustainability strategy. The supplier said its plan to reduce waste is twofold: “to capture and eliminate current waste streams and to design waste out of our products and processes.” In the report, PCNA noted that it actively seeks out ways to donate surplus inventory. Last year, the supplier partnered with the Singing Horse Trading Post, on the Pine Ridge Reservation in Ogala Lakota County, SD, to donate and distribute 2,000 pounds of new blankets, coats and backpacks.

Employees at its ETS Express facilities eliminated 54 tons of plastic waste in 2022 by developing a process to reuse inbound polybags on outbound products. The plastic avoidance is equivalent to the weight of four semi-trucks, according to PCNA.

Certifications are also critical. In 2022, PCNA, which has a silver rating from sustainability-assessment firm EcoVadis, said it sold more than 3 million pounds’ worth of third party-certified products and materials, which included items with Forest Stewardship Council (FSC), Global Organic Textile Standard (GOTS) and Global Recycled Standard (GRS) credentials.

As a 1% for the Planet partner, PCNA has donated $940,000 to nonprofits working to protect or restore nature. In addition, the supplier has had over 40,000 trees planted through its partnership with veritree.

PCNA also noted in its report that it’s committed to implementing a “comprehensive traceability program” for its products, and will be collaborating with its Netherlands-based subsidiary PF Concept to trace each phase of a product lifecycle to “gather valuable information on the chain of custody to gain a comprehensive view of their embedded carbon, water and chemical footprint.”

On the social and governance side, PCNA said it’s converted 22 fair-chance employees from temporary to permanent positions. Plus, 100% of its own suppliers have signed a United Nations and International Labour Organization-aligned code of conduct; 90% of production activities, by revenue, occurred at facilities compliant with Sedex Members Ethical Trade Audit (SMETA) four-pillar audits, which evaluates things like labor standards, health and safety, and business ethics.

Also of note in 2022, PCNA launched ProudPath, a platform to help distributors meet their customers’ environmental and social responsibility objectives.

“Last year was a transformative year for sustainability at PCNA,” said CEO Neil Ringel. “Moving forward, we will continue to create environmental, social and economic value for our stakeholders as we deepen our engagement with suppliers, distributor partners and most importantly – our employees.”

PCNA is the fourth-largest supplier in the industry, with 2022 North American promotional products revenue of $857.3 million, according to Counselor’s most recent list of top suppliers.

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