Sustainability Report
Our annual environmental impact assessment — measuring the real-world difference that pallet recycling, repair, and responsible wood management make for the planet.
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Executive Summary
At SD Re Pallet, sustainability is not a marketing slogan — it is the core of our business model. Every pallet we recycle, repair, and return to service is a pallet that does not end up in a landfill. Every board we salvage is a board that does not need to be cut from a living tree. This report quantifies our environmental impact for the most recent reporting period and lays out our commitments for continued improvement.
The pallet industry in the United States produces an estimated 500 million new pallets annually and recycles approximately 350 million. Despite this high recycling rate, roughly 150 million pallets still end up in landfills or are burned for disposal each year, representing approximately 3.2 billion board feet of usable lumber going to waste. Our mission is to push that recycling rate higher by making it easy, affordable, and reliable for businesses to buy recycled pallets, sell their used pallets back to the supply chain, and participate in circular pallet management programs.
Key Environmental Metrics
4,200
Tons of Wood Diverted from Landfill
6,580
Metric Tons CO&sub2; Offset
18.7M
Gallons of Water Saved
25,200
Tree Equivalents Preserved
Environmental Impact Detail
| Metric | 2022 | 2023 | 2024 | YoY Change |
|---|---|---|---|---|
| Pallets Recycled | 285,000 | 342,000 | 408,000 | +19.3% |
| Pallets Repaired & Resold | 198,000 | 247,000 | 312,000 | +26.3% |
| Wood Diverted from Landfill (tons) | 2,940 | 3,560 | 4,200 | +18.0% |
| CO&sub2; Offset (metric tons) | 4,600 | 5,570 | 6,580 | +18.1% |
| Water Saved (million gallons) | 13.1 | 15.9 | 18.7 | +17.6% |
| Tree Equivalents Preserved | 17,640 | 21,360 | 25,200 | +18.0% |
| Mulch / Biomass Produced (tons) | 420 | 480 | 540 | +12.5% |
| Landfill Diversion Rate | 93.2% | 95.1% | 96.8% | +1.7 pts |
2024 Monthly Breakdown
Our environmental impact is tracked monthly to identify seasonal patterns and measure progress toward annual targets.
| Month | Pallets Recycled | Pallets Repaired | Wood Diverted (tons) | CO&sub2; Offset (MT) | Diversion Rate |
|---|---|---|---|---|---|
| January | 28,500 | 21,200 | 294 | 462 | 96.1% |
| February | 29,800 | 22,500 | 307 | 482 | 96.3% |
| March | 33,200 | 25,100 | 342 | 537 | 96.5% |
| April | 35,100 | 26,800 | 362 | 568 | 96.6% |
| May | 37,600 | 28,700 | 387 | 608 | 96.8% |
| June | 38,200 | 29,400 | 394 | 618 | 97.0% |
| July | 37,900 | 29,000 | 390 | 613 | 97.0% |
| August | 36,400 | 27,800 | 375 | 589 | 97.1% |
| September | 34,800 | 26,600 | 359 | 563 | 96.9% |
| October | 35,500 | 27,200 | 366 | 574 | 96.8% |
| November | 31,800 | 24,200 | 328 | 514 | 96.7% |
| December | 29,200 | 23,500 | 296 | 452 | 96.5% |
| 2024 Total | 408,000 | 312,000 | 4,200 | 6,580 | 96.8% avg |
Seasonal variation reflects the broader economy: spring and summer see higher pallet volumes due to agricultural, beverage, and construction activity. December and January are typically the lowest-volume months.
Greenhouse Gas Emissions by Scope
We track our greenhouse gas emissions using the GHG Protocol corporate standard, categorized into three scopes. This transparency allows us to identify our largest emission sources and prioritize reduction efforts.
| Emission Source | Scope | 2023 (MT CO&sub2;e) | 2024 (MT CO&sub2;e) | Change | 2026 Target |
|---|---|---|---|---|---|
| Heat treatment kilns (natural gas) | Scope 1 | 185 | 198 | +7.0% | 30 (solar transition) |
| Delivery fleet (diesel) | Scope 1 | 312 | 328 | +5.1% | 200 (electric fleet) |
| Forklifts & yard equipment (propane) | Scope 1 | 42 | 45 | +7.1% | 20 (electric forklifts) |
| Purchased electricity | Scope 2 | 78 | 82 | +5.1% | 15 (solar + RECs) |
| Employee commuting | Scope 3 | 56 | 58 | +3.6% | 50 (carpool incentive) |
| Inbound pallet transportation | Scope 3 | 148 | 162 | +9.5% | 140 (route optimization) |
| Waste disposal (non-diverted) | Scope 3 | 18 | 14 | -22.2% | 8 |
| Total Operational Emissions | 839 | 887 | +5.7% | 463 |
Note: While our absolute emissions increased due to higher throughput volume (408,000 pallets vs 342,000), our emissions per pallet processed decreased from 2.45 kg CO&sub2;e to 2.17 kg CO&sub2;e, an 11.4% improvement in carbon intensity.
Water Usage & Conservation
Water usage at our facility is primarily for dust suppression during grinding operations, equipment washing, and employee facilities. Our direct water consumption in 2024 was approximately 245,000 gallons, down from 268,000 gallons in 2023, a 8.6% reduction achieved through a rainwater capture system installed in Q2 2024.
The more significant water impact is indirect: every recycled pallet we sell replaces a new pallet that would have required water-intensive lumber processing. New pallet manufacturing consumes an estimated 4.6 gallons of water per pallet for sawmill operations, kiln drying, and manufacturing processes. By repairing and reselling 312,000 pallets in 2024, we avoided approximately 1.44 million gallons of direct industrial water consumption. When factoring in the full water footprint of forestry (tree growth, logging road management, erosion control), the total water savings reach the 18.7 million gallon figure reported in our key metrics.
Our rainwater capture system collects roof runoff from our 42,000 square foot processing facility into a 15,000-gallon storage tank. This captured rainwater is filtered and used for dust suppression and equipment washing, reducing our municipal water demand by approximately 35% during the rainy season (November through April). We are evaluating a gray water recycling system for equipment wash water that would further reduce our municipal water consumption by an estimated 20%.
Waste Diversion Breakdown
Of the 4,200 tons of wood that entered our facility in 2024, here is how each fraction was handled:
| Disposition | Tons | % of Total | End Use |
|---|---|---|---|
| Repaired pallets resold | 3,210 | 76.4% | Returned to pallet supply chain as Grade A, B, or C recycled pallets |
| Salvaged boards (used in repairs) | 378 | 9.0% | Individual boards pulled from non-repairable pallets and used to repair other pallets |
| Mulch / landscape material | 298 | 7.1% | Ground and sold to landscapers, nurseries, and municipal parks departments |
| Biomass fuel | 142 | 3.4% | Sold to biomass energy plants for electricity generation |
| Animal bedding | 38 | 0.9% | Shaved into clean shavings for equine and poultry bedding |
| Metal recycling (nails, staples) | 12 | 0.3% | Ferrous metal separated magnetically and sold to scrap recyclers |
| Landfill (contaminated waste) | 122 | 2.9% | Wood contaminated with hazardous materials requiring licensed disposal |
| Landfill (non-recyclable debris) | ~0.3 | ~0.01% | Non-wood materials (plastic wrap, strapping, cardboard) found on pallets |
Employee Sustainability Initiatives
Sustainability starts with our team. We invest in training, incentives, and programs that make environmental responsibility part of our daily operations and company culture.
Green Team Program
A cross-functional team of 8 employees that meets monthly to identify waste reduction opportunities, propose process improvements, and track progress on sustainability goals. The Green Team implemented our cardboard and plastic wrap recycling program in 2023, which now diverts an additional 2.4 tons of non-wood waste from landfill annually.
Carpool Incentive
Employees who carpool or use public transit receive a $50 monthly transportation stipend. Currently, 38% of employees participate in the carpool program, eliminating an estimated 22,000 vehicle miles per year and reducing Scope 3 commuting emissions by approximately 9 metric tons of CO&sub2;e.
Sustainability Training
All new employees complete a 2-hour sustainability orientation that covers our environmental mission, waste sorting procedures, and the environmental impact of their daily work. Refresher training is conducted annually. Employees learn that each pallet they repair avoids 16.1 kg of CO&sub2;e — making the environmental impact of their work tangible and personal.
Efficiency Bonus
Repair technicians who exceed the team average board salvage rate receive a quarterly performance bonus. This incentivizes finding creative ways to save more boards from each disassembled pallet, which reduces both waste and new lumber purchasing. The average salvage rate increased from 72% to 81% after implementing this program in 2023.
Community & Industry Programs
Our environmental impact extends beyond our facility walls. We participate in community and industry programs that promote sustainability awareness and advance recycling infrastructure.
- Local school partnerships: We host annual facility tours for high school and community college students studying environmental science, logistics, and manufacturing technology. In 2024, we hosted 6 tours totaling 145 students, teaching them about the circular economy using pallets as a real-world example.
- Habitat for Humanity wood donation: We donate clean, end-of-life lumber to the local Habitat for Humanity ReStore for use in community building projects. In 2024, we donated approximately 8,500 board feet of usable lumber — equivalent to enough wood to frame two small outbuildings.
- Industry association membership:We are active members of the National Wooden Pallet and Container Association (NWPCA) and participate in their sustainability committee, which develops industry-wide recycling standards and tracks the pallet industry's collective environmental performance.
- Mulch donation to parks: We provide free mulch to local parks and community gardens. In 2024, we donated 45 tons of clean wood mulch to three municipal parks and two community garden programs. This mulch would otherwise have been sold commercially, but we prioritize community use for non-revenue material.
- Small business recycling access: We offer free pallet pickup for small businesses that generate fewer than 20 pallets per month. Many small businesses lack the volume to attract commercial recyclers, so their pallets end up in dumpsters. Our small-business program diverted an estimated 1,200 pallets from landfill in 2024.
Future Targets & Milestones
Our sustainability roadmap sets specific, measurable targets for 2025, 2026, and 2027 with quarterly milestones to ensure we stay on track.
| Target | 2024 Baseline | 2025 Target | 2026 Target | 2027 Target |
|---|---|---|---|---|
| Pallets recycled annually | 408,000 | 450,000 | 500,000 | 560,000 |
| Landfill diversion rate | 96.8% | 97.5% | 98.0% | 98.5% |
| Operational CO&sub2;e (MT) | 887 | 780 | 463 | 380 |
| CO&sub2;e per pallet (kg) | 2.17 | 1.73 | 0.93 | 0.68 |
| Electric fleet percentage | 0% | 15% | 35% | 50% |
| Solar energy generation (kWh) | 0 | 0 (install phase) | 185,000 | 190,000 |
| Water reduction vs 2024 | Baseline | -10% | -25% | -40% |
| Board salvage rate | 81% | 84% | 87% | 90% |
How We Calculate These Numbers
Transparency matters. Here is the methodology behind each metric:
Wood Diverted from Landfill: We weigh all incoming pallets on our truck scales and track the disposition of every pallet through our inventory system. Pallets that are repaired, resold, or converted to mulch are counted as diverted. Only pallets with hazardous contamination that must be disposed of by licensed waste handlers are counted as landfill-bound. Our 96.8% diversion rate reflects this strict accounting.
CO&sub2; Offset:We use the EPA’s WARM (Waste Reduction Model) methodology to calculate greenhouse gas reductions. Recycling one ton of wood pallets avoids approximately 1.57 metric tons of CO&sub2; equivalent emissions compared to landfilling the same wood (which produces methane as it decomposes) and manufacturing new pallets from virgin timber (which requires energy-intensive logging, milling, and transportation).
Water Saved: Manufacturing one new wooden pallet requires an estimated 4.6 gallons of water for lumber processing, kiln drying, and manufacturing. By repairing and reselling 312,000 pallets in 2024, we avoided the water consumption that would have been required to produce 312,000 new pallets. Additional water savings come from reduced lumber milling demand for the repaired boards within those pallets.
Tree Equivalents:The average mature tree yields approximately 333 board feet of usable lumber. A standard 48×40 pallet requires approximately 20 board feet of lumber. We calculate tree equivalents by dividing total board feet of wood saved through recycling by 333.
Goals & Commitments for 2025-2027
98% Landfill Diversion by 2026
We are investing in additional sorting and grinding capacity to process the small percentage of incoming pallets that are currently too damaged or contaminated for repair. Our goal is to convert virtually all non-repairable wood into mulch, biomass fuel, or animal bedding rather than sending it to landfill.
Current: 96.8% | Target: 98%
Solar-Powered Heat Treatment by 2026
Our heat treatment kilns currently run on natural gas. We are in the planning phase for a rooftop solar installation that will power electric kiln elements, reducing our Scope 1 emissions from heat treatment operations by an estimated 85%. The remaining energy demand will be met with renewable energy credits.
Electric Fleet Transition by 2027
We plan to transition 50% of our delivery fleet from diesel to electric or CNG vehicles by 2027. Our delivery routes average 85 miles round-trip, well within the range of current electric medium-duty trucks. This transition will reduce our transportation-related emissions by approximately 40%.
500,000 Pallets Recycled Annually by 2026
We are expanding our processing capacity to handle 500,000 pallets per year, up from 408,000 in 2024. This expansion includes additional sorting lines, automated nail removal equipment, and a second repair station. Reaching this target will divert over 5,000 tons of wood from landfill annually.
Current: 408,000 | Target: 500,000
The Circular Pallet Economy
Pallets are one of the most successfully recycled products in the industrial economy. Unlike many “recyclable” products that are actually downcycled into lower-value materials, a recycled pallet serves the exact same function as a new one. A Grade A recycled pallet carries the same load, fits the same racking, and rides in the same trucks as a brand-new pallet.
At SD Re Pallet, we facilitate every stage of the pallet lifecycle. We buy used pallets from businesses that no longer need them. We sort, inspect, and repair them to our published grading standards. We sell recycled pallets to businesses that need them. And when a pallet finally reaches the end of its useful life after 7-10 repair cycles, we grind it into mulch or biomass rather than sending it to a landfill.
This circular model is not just good for the environment — it is good for business. Recycled pallets cost 40-80% less than new pallets. Businesses that sell their used pallets back to the supply chain recover a portion of their original investment. And companies that participate in our pallet management programs achieve the lowest total cost of ownership by optimizing the buy-use-return-repair cycle for their specific logistics needs.
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Every recycled pallet your business uses reduces landfill waste, conserves trees, and lowers your carbon footprint. Let SD Re Pallet help you build a greener logistics operation.
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