Environmental

We continue to delight our customers around the world while owning our responsibility for protecting our planet’s resources. This includes quantifying the greenhouse gas (GHG) emissions resulting from our operations and across our value chain. It also encompasses developing products more responsibly, reducing and recycling the waste they generate and decreasing the impact of our product lifecycle.

Highlights

4%

Reduction
in Energy Usage
from 2022 to 2023

1M

Square Feet
of Paper Saved in 2023

78%

Of Manufacturing Waste
Diverted from Landfill
in 2023

>130,000

Pounds of Material
Repurposed & Donated
in 2023

Products Responsibility

We have taken steps to minimize product lifecycle impacts along all stages, including design, materials sourcing, manufacturing, distribution and packaging, product use and end-of-life disposal.

Sourcing from well-managed forests and mills that take their environmental impacts seriously is one of our priorities. See more about our commitment to responsible sourcing in the 2024 Purpose & Impact Report. Our paper products are also printed with inks and coatings that are compatible with recycling programs.

We have also started looking at opportunities to provide circular products that incorporate recycled material, such as Spoonflower REPREVE®, recycled canvas, which is made from recycled bottles. In 2023, we shipped 26,000 yards of this recycled canvas to customers.

Climate & Energy Use

Shutterfly’s manufacturing operations are the primary source of our energy use, accounting for 59% of our Scope 1 and 2 emissions. In 2023, we took steps to implement more efficient processes in our manufacturing facilities, such as reducing the amount of time large machinery stays on when not in use. This effort reduced energy consumption in our pilot site by 7%.

We have also adopted certain other best practices in our facilities. In the buildings and facilities where we have operational control, our standard practice is to use an automated building management system with lighting timers and sensors, and climate control settings. The facilities teams at our manufacturing sites conduct energy audits at least annually. Additionally, twice a year we work with third-party energy vendors to participate in joint audits. These regular checkpoints help us pinpoint any problems and identify ways to implement more energy efficiency measures.

Increase Recycling and Reduce Waste

Because of our waste initiatives, in 2023 Shutterfly’s manufacturing platform achieved a 78% diversion rate, meaning out of all the waste that resulted from creating products, less than 25% ended up in a landfill or incinerator.

Because so much of our industrial waste can be recycled, we take extra care to reinforce good recycling practices through on-the-job training, signage and audits across all of our manufacturing sites. While we know these best practices are important and contribute to our high recycling rate, we aim to
reduce the amount of waste created in the first place. For example, we optimize our printing batch size to minimize partially-printed sheets while maintaining high print quality. In 2023, our Process Innovation Team reengineered our book and card printing process. As a result, we reduced paper consumption by more than 1 million square feet.

As a manufacturer, we accumulate unique process waste that can have qualities that make recycling a challenge, such as large-format toner cartridges made of a combination of plastic and aluminum. We collaborate with our supply chain partners to test and support recycling options for these materials. In 2023, these supplier-supported return programs recycled more than 5,200 pounds of material.

Reduce GHG Emissions

Shutterfly recognizes the impacts tied to increased Greenhouse Gas emissions and has taken on the responsibility of tracking and reducing these emissions. 

Shutterfly sources renewable energy through both grid renewable energy generation and Green Tariff programs, in which utilities give customers the option to meet their energy needs with renewable energy sources. Our Shutterfly manufacturing locations source a minimum of 5% of their energy from renewable sources.

Shutterfly’s Scope 3 emissions are indirect emissions from our value chain that we do not  directly own or control. In 2023, we completed a mapping activity to identify which of the fifteen Scope 3 categories are relevant to our operations, in accordance with the GHG Protocol. We then calculated the emissions from the relevant categories. This activity informed us that our Scope 3 emissions are estimated to contribute to over 92% of the company’s total emissions.

Material Donation Program

Manufacturing our products can result in usable scrap materials, and we take care to avoid wasting them. In 2023, Shutterfly donated more than 130,000 pounds of material including paper, fabric, wallpaper, picture frames and home décor items. These went to places such as Kids In Need Foundation, an organization that provides supplies to under-resourced teachers and students, and Habitat for Humanity’s ReStores, as well as a number of local creative reuse nonprofits like Tempe’s Treasures 4 Teachers.

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