ESG Policy

Environmental, Social, and Governance (ESG) and Corporate Social Responsibility (CSR) Policy

1. Introduction

At ADD, we recognise that our role as a leading furnishing solutions provider comes with a responsibility to operate in a sustainable, ethical, and socially responsible manner. We are committed to integrating Environmental, Social, and Governance (ESG) principles into every aspect of our business, from raw material sourcing and product design to manufacturing, distribution, and end-of-life management.

This policy serves as a framework for our sustainability commitments, outlining how we aim to reduce our environmental impact, foster a positive social impact, and maintain the highest ethical standards. By prioritising sustainability and corporate social responsibility (CSR), we strive to deliver high-quality, responsibly sourced furniture while positively contributing to the communities we serve and ensuring long-term business success.

2. Environmental Responsibility

As a furnishing solutions company, our operations directly impact natural resources, particularly forests, energy consumption, and waste generation. We are dedicated to minimising our ecological footprint by implementing responsible practices across our supply chain, production processes, and product lifecycle.

2.1 Sustainable Sourcing

• We prioritise sourcing wood and timber materials from sustainably managed forests, ensuring that our suppliers hold recognised certifications such as the Forest Stewardship Council (FSC) or Programme for the Endorsement of Forest Certification (PEFC).
• We actively seek to incorporate reclaimed, recycled, and upcycled materials into our furniture designs to reduce deforestation and minimise waste.
• Our procurement strategy promotes the use of low-impact materials, such as bamboo, cork, and responsibly harvested Floorings, which regenerate quickly and have a lower carbon footprint.

2.2 Eco-Friendly Production and Manufacturing

• Our manufacturing facilities prioritise energy efficiency by utilising renewable energy sources, such as solar and wind power, wherever possible.
• We employ low-emission production techniques, such as water-based adhesives, formaldehyde-free finishes, and eco-friendly stains, to reduce harmful emissions and indoor air pollution.
• By implementing lean manufacturing principles, we optimise material usage and minimise production waste, repurposing offcuts for new designs or secondary products.
• We are committed to reducing our reliance on plastics and petroleum-based materials, exploring biodegradable and plant-based alternatives for furniture components and packaging materials.

2.3 Circular Economy & Waste Reduction

• We design furniture with durability, modularity, and repairability in mind, ensuring that customers can easily replace components instead of discarding entire pieces.
• We offer furniture take-back programmes that allow customers to return old or unwanted furniture for refurbishment, donation, or responsible recycling.
• We actively work with waste management partners to divert furniture waste from landfill, repurposing materials into new products where feasible.
• Our packaging strategy prioritises biodegradable, recyclable, and reusable materials, eliminating unnecessary plastic and non-recyclable elements.

2.4 Carbon Footprint Reduction & Logistics Optimisation

• We invest in carbon offset programmes and reforestation projects to mitigate the environmental impact of our operations.
• Our logistics and transportation strategy emphasises route optimisation, consolidated shipments, and fuel-efficient or electric delivery vehicles to lower greenhouse gas (GHG) emissions.
• We encourage suppliers and partners to adhere to similar sustainability goals, promoting low-impact transportation methods such as rail and sea freight over air freight where possible.

3. Social Responsibility

As a company that impacts communities, workers, and customers, we prioritise fairness, inclusivity, and community engagement throughout our business operations. Our commitment to social responsibility includes ensuring ethical labour practices, supporting community development, and fostering a diverse and inclusive workplace.

3.1 Employee Welfare & Diversity

• We are committed to providing a safe, fair, and inclusive work environment for all employees, with zero tolerance for discrimination, harassment, or exploitation.
• We promote diversity and inclusion at all levels of our organisation, ensuring equal opportunities regardless of gender, race, ethnicity, or background.
• Our company upholds fair wage practices, adhering to or exceeding minimum wage requirements in all regions where we operate.
• We offer employees professional development opportunities, training programmes, and career progression pathways to support long-term growth and job satisfaction.
• Our health and wellness programmes promote workplace safety, mental health resources, and ergonomic support for employees handling furniture assembly and packaging.

3.2 Ethical Labour Practices & Supply Chain Responsibility

• We partner with ethical suppliers who comply with international labour standards, such as those outlined by the International Labour Organization (ILO) and the United Nations Global Compact.
• We conduct regular audits and assessments to ensure that our supply chain remains free from forced labour, child labour, and unsafe working conditions.
• We work closely with manufacturers to ensure that all workers in our supply chain are treated with dignity, receive fair wages, and work in safe environments.

3.3 Community Engagement & Social Impact

• We actively support local communities by donating furniture to schools, shelters, and disaster relief efforts, ensuring that essential furniture reaches those in need.
• Through our furniture donation and refurbishment programmes, we work with nonprofit organisations to extend the lifecycle of used furniture while reducing waste.
• We engage in educational initiatives that promote sustainable furniture design and craftsmanship, supporting vocational training programmes in underserved communities.

3.4 Customer Health & Well-Being

• We prioritise non-toxic and sustainable furniture options, using materials that are free from harmful chemicals such as volatile organic compounds (VOCs), formaldehyde, and flame retardants.
• Our ergonomic designs support health and comfort, ensuring that our furniture contributes positively to workplace productivity and home well-being.
• We provide clear product transparency, including detailed material disclosures, care instructions, and recyclability information for all Package addons.

4. Governance & Ethical Business Practices

Strong governance is essential to maintaining trust with stakeholders and ensuring long-term business integrity. Our commitment to good governance includes transparency, compliance, and ethical business conduct.

4.1 Transparency & Accountability

• We publish annual sustainability reports outlining our progress towards ESG goals and commitments.
• We engage in open communication with stakeholders, including customers, investors, and employees, ensuring that our ESG strategy aligns with their expectations.
• Our leadership team regularly reviews and updates sustainability targets, incorporating new research and best practices into our business model.

4.2 Supply Chain Integrity & Compliance

• We enforce a strict Supplier Code of Conduct, ensuring that all partners meet ethical, environmental, and labour standards.
• We conduct due diligence assessments to mitigate risks related to unethical sourcing, corruption, and human rights violations.
• Our compliance team actively monitors and updates policies to adhere to evolving global ESG regulations and industry standards.

4.3 Anti-Corruption & Business Ethics

• We maintain a zero-tolerance policy towards bribery, corruption, and unethical business practices.
• Our whistleblower policy ensures that employees and stakeholders can report ethical concerns confidentially and without fear of retaliation.
• All employees receive training on ethical business conduct, reinforcing our commitment to integrity and compliance.

5. Commitment & Implementation

At ADD, we integrate ESG and CSR principles into our corporate strategy and daily operations. Our approach includes:

• Setting measurable sustainability targets and tracking progress through key performance indicators (KPIs).
• Partnering with industry organisations and NGOs to advance responsible business practices.
• Encouraging employees, customers, and suppliers to participate in our sustainability initiatives.
• Continuously innovating and adapting to meet the highest environmental and social responsibility standards.

Through this policy, we reaffirm our dedication to making sustainable furniture solutions that benefit people, the planet, and future generations.