Our Environmental Impact Report
A transparent, data-driven account of our environmental performance, sustainability initiatives, and commitment to building a circular economy in the pallet industry. Updated annually with verified metrics.
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2025 Environmental Highlights
Fresno Pallets has made environmental stewardship a core pillar of our business since our founding. Our commitment to sustainability is not just a marketing message; it is embedded in every operational decision we make, from sourcing raw materials to managing end-of-life pallets. This report provides a comprehensive overview of our environmental impact across all measurable dimensions, including carbon emissions, water usage, forest conservation, waste management, and energy consumption.
4,200+
Tons CO2 Avoided
Annual carbon reduction
12.8M
Gallons Water Saved
Compared to new production
18,500+
Trees Preserved
Through recycling programs
96.2%
Waste Diversion Rate
From landfill disposal
285K+
Pallets Recycled
Annually processed
7.3
Average Reuse Cycles
Per pallet lifetime
34%
Energy Reduction
Since 2020 baseline
142
Local Jobs Supported
In the Fresno community
Carbon Footprint Analysis
Emissions Per Pallet
The carbon footprint of a pallet varies dramatically depending on whether it is manufactured from virgin lumber or recycled from reclaimed materials. Our commitment to recycling and repair directly translates into measurable carbon reductions compared to a new-production-only model. The following data is based on lifecycle analysis (LCA) methodology consistent with ISO 14040/14044 standards, accounting for raw material extraction, transportation, manufacturing, and end-of-life processing.
* CO2e = carbon dioxide equivalent, including all greenhouse gases. Data based on 48x40 GMA stringer pallet. Fresno Pallets new production is lower than industry average due to local sourcing, efficient kiln operations, and renewable energy use.
Annual Carbon Reduction
Our annual carbon avoidance is calculated by comparing our actual emissions (a mix of new, repaired, and recycled pallets) against a scenario where the same volume of pallets were all manufactured new from virgin lumber. The difference represents the carbon emissions our recycling and repair operations prevent from entering the atmosphere each year.
| Year | Pallets Processed | CO2 Avoided (tons) | YoY Change |
|---|---|---|---|
| 2020 | 182,000 | 2,840 | Baseline |
| 2021 | 198,000 | 3,120 | +9.9% |
| 2022 | 224,000 | 3,540 | +13.5% |
| 2023 | 251,000 | 3,780 | +6.8% |
| 2024 | 272,000 | 4,020 | +6.3% |
| 2025 | 285,000 | 4,200 | +4.5% |
4,200 tons of CO2 is equivalent to taking approximately 910 passenger cars off the road for one year, or the carbon sequestered by 5,400 acres of US forest in one year.
Scope 1, 2, and 3 Emissions Breakdown
Following the Greenhouse Gas Protocol framework, we track and report our emissions across all three scopes. Scope 1 covers direct emissions from our operations (vehicles, kilns, equipment). Scope 2 covers indirect emissions from purchased electricity and heat. Scope 3 covers all other indirect emissions in our value chain (supplier transportation, customer use, end-of-life).
Scope 1 — 28%
680
tons CO2e
- Fleet vehicles (diesel and gasoline)
- Heat treatment kilns (natural gas)
- On-site equipment (forklifts, saws)
- Emergency backup generators
Scope 2 — 17%
420
tons CO2e
- Purchased electricity for facility operations
- HVAC systems for offices and breakrooms
- Lighting across warehouse and yard
- Air compressors and pneumatic tools
Scope 3 — 55%
1,340
tons CO2e
- Inbound lumber transportation
- Outbound pallet delivery logistics
- Supplier manufacturing emissions
- End-of-life processing of scrapped pallets
Water Conservation
In California's Central Valley, water is arguably our most precious natural resource. The pallet industry has a significant water footprint, primarily through the water consumed in growing the trees that become lumber. By recycling and repairing pallets instead of manufacturing exclusively from new lumber, we dramatically reduce the indirect water consumption associated with our products.
45
gallons
Water consumed per new pallet in lumber production (growing, harvesting, and milling)
6.8
gallons
Water consumed per recycled pallet (cleaning, treatment, and processing only)
84.9%
reduction
Water savings per pallet when choosing recycled over new production
Annual Water Conservation Data
| Year | Pallets Recycled | Water Saved (gallons) | Equivalent Homes Supplied* |
|---|---|---|---|
| 2020 | 134,000 | 5.12M | 47 |
| 2021 | 148,000 | 5.65M | 52 |
| 2022 | 172,000 | 6.57M | 60 |
| 2023 | 210,000 | 8.02M | 73 |
| 2024 | 258,000 | 9.85M | 90 |
| 2025 | 285,000 | 12.80M | 117 |
* Based on average US household water consumption of approximately 109,500 gallons per year (USGS data). Water savings represent the difference between new pallet production water requirements and our actual consumption for recycled and repaired pallets.
Facility Water Management
Beyond the indirect water savings from recycling, we have implemented comprehensive water management practices at our Fresno facility to minimize direct water consumption and prevent contamination of local water resources.
Rainwater Harvesting
Our facility captures and stores approximately 85,000 gallons of rainwater annually from roof surfaces. This water is filtered and used for dust suppression in our pallet yard and equipment washing, reducing our demand on municipal water supplies.
Closed-Loop Cooling
Heat treatment kiln cooling systems operate on a closed-loop recirculation system, reducing water consumption by 92% compared to traditional once-through cooling. Annual water savings from this system alone exceed 340,000 gallons.
Stormwater Management
Our facility features bioswales, permeable paving in select areas, and sediment traps that filter stormwater runoff before it enters the municipal drainage system. Regular testing confirms that our discharge meets or exceeds California stormwater quality standards.
Drought-Resistant Landscaping
All facility landscaping uses native, drought-resistant California species that require no supplemental irrigation after establishment. This decision, made in 2021, eliminated approximately 48,000 gallons of annual irrigation water use.
Forest Conservation
Trees Saved Through Recycling
A standard 48x40 wooden pallet contains approximately 10-12 board feet of lumber. A mature, harvestable tree yields roughly 200 board feet of pallet-grade lumber (approximately 17-20 pallets per tree). Every pallet we repair instead of replacing with new saves a proportional fraction of a tree; every pallet we recycle from reclaimed lumber keeps that wood in productive use rather than consuming a new tree.
In 2025, our recycling and repair operations processed approximately 285,000 pallets. If all of those pallets had been manufactured from new lumber, it would have required approximately 18,500 trees. Instead, our operations preserved those trees while delivering pallets of equivalent functional quality.
Sustainable Forestry Partnerships
When we do source new lumber, we prioritize suppliers who practice sustainable forestry management. We work exclusively with mills that hold certification from one or more of the following recognized sustainable forestry programs. This ensures that the trees harvested for our pallets are replaced, that biodiversity is maintained, and that local communities and ecosystems are protected.
Sustainable Forestry Initiative (SFI)
The largest single forest certification standard in the world. SFI-certified forests are managed to protect water quality, biodiversity, wildlife habitat, and species at risk. Our primary lumber suppliers in Oregon and Northern California hold SFI certification.
Forest Stewardship Council (FSC)
The gold standard for forest management certification. FSC sets rigorous standards for environmentally appropriate, socially beneficial, and economically viable forest management. We offer FSC chain-of-custody certified pallets for customers who require this certification for their sustainability reporting.
Programme for the Endorsement of Forest Certification (PEFC)
The world's largest forest certification system by certified area. PEFC provides mutual recognition of national forest certification schemes. Several of our secondary lumber suppliers hold PEFC endorsement.
Cumulative Impact (2020-2025)
82,900
Total trees preserved
16.58M
Board feet conserved
415
Acres of forest equivalent
100%
New lumber from certified sources
Waste Diversion
Our goal is to achieve zero waste to landfill by 2028. We are on track. Through a combination of pallet repair, recycling, wood grinding, and partnership with secondary markets, we divert the vast majority of incoming material from landfill disposal. Every piece of wood that enters our facility is used, reused, or repurposed.
Material Flow and Diversion Rates
| Material Stream | Annual Volume | Diversion Method | Diversion Rate | End Use |
|---|---|---|---|---|
| Repairable Pallets | 165,000 units | Professional repair | 100% | Returned to service |
| Non-repairable Pallets | 42,000 units | Dismantling & recycling | 100% | Components reused in repair |
| Scrap Wood (clean) | 1,850 tons | Grinding to mulch/biomass | 100% | Landscape mulch, bioenergy fuel |
| Sawdust and Shavings | 340 tons | Collection and baling | 100% | Animal bedding, composting |
| Metal (nails, fasteners) | 28 tons | Magnetic separation & recycling | 100% | Scrap metal recycler |
| Contaminated Wood | 86 tons | Licensed disposal / biofuel | 78% | Controlled combustion for energy |
| Office / General Waste | 12 tons | Recycling and composting | 72% | Material recovery facility |
| Shrink Wrap / Plastics | 8 tons | Baling and recycling | 95% | Plastic recycler |
Waste Diversion Rate Trend
Target: 100% diversion (zero waste to landfill) by 2028.
Where Our Wood Goes
When a pallet reaches the end of its useful life and cannot be economically repaired, we do not discard it. The wood is dismantled, sorted, and redirected into one of several secondary use channels. This closed-loop approach means that even "scrap" wood continues to deliver value and stays out of landfills.
- 38%
Landscape Mulch
Clean wood is ground into premium landscape mulch sold to nurseries, landscapers, and municipalities across the Central Valley.
- 27%
Biomass Energy
Wood chips are sold to biomass energy facilities that convert them to renewable electricity. This displaces fossil fuel generation on the California grid.
- 18%
Animal Bedding
Shavings and sawdust are collected, screened, and supplied to local dairy farms and equestrian facilities for animal bedding.
- 12%
Composting
Smaller wood particles and sawdust are supplied to commercial composting operations that blend them with green waste to produce agricultural compost.
- 5%
Other Secondary Uses
Includes fire kindling, erosion control wood fiber, and donations to community garden projects.
Energy Efficiency
Facility Improvements
LED Lighting Retrofit (2021)
Replaced all 400+ facility light fixtures with high-efficiency LED units, reducing lighting energy consumption by 68% and improving working visibility.
Kiln Insulation Upgrade (2022)
Added 4 inches of ceramic fiber insulation to all heat treatment kilns, reducing natural gas consumption per treatment cycle by 22% and cutting heat-up time by 35 minutes.
Variable Frequency Drives (2022)
Installed VFDs on all major motors including air compressors, dust collection fans, and conveyor drives. Annual electricity savings: approximately 94,000 kWh.
Building Envelope Improvements (2023)
Sealed air leaks, installed insulated overhead doors, and added reflective roof coating. Combined HVAC energy reduction: 28% for conditioned spaces.
Electric Forklift Transition (2023-2025)
Replacing propane forklifts with electric models. Currently 8 of 12 forklifts are electric, with full transition planned for 2026. Propane consumption reduced by 67%.
Renewable Energy
Solar Panel Installation (2023)
Installed a 185 kW rooftop solar array covering approximately 12,000 square feet of warehouse roof. The system generates approximately 296,000 kWh annually, offsetting 42% of our electricity consumption.
Solar Expansion Phase 2 (2025)
Added 120 kW of additional solar capacity on the office building and covered parking structures, bringing total solar generation to 305 kW and 65% electricity offset.
Battery Storage (Planned 2026)
A 250 kWh battery storage system will capture excess daytime solar generation for use during evening operations, reducing grid dependence during peak pricing hours.
Green Energy Procurement
For the remaining electricity purchased from the grid, we participate in PG&E's Solar Choice program, which sources 100% of purchased power from solar generation facilities.
Long-Term Goal
Achieve net-zero electricity by 2028 through a combination of on-site solar, battery storage, and certified renewable energy purchases.
Fleet Efficiency
Route Optimization (2021)
Implemented GPS-based route optimization software for delivery trucks, reducing total miles driven by 14% and diesel fuel consumption by approximately 8,200 gallons annually.
Idle Reduction Policy (2022)
Strict no-idle policy for all company vehicles with automatic engine shutoff after 3 minutes. Annual diesel savings: approximately 3,100 gallons.
Fleet Modernization (2022-2024)
Replaced 3 older trucks with Tier 4 Final diesel engines meeting the strictest EPA emissions standards. NOx emissions reduced by 85% per vehicle.
CNG Evaluation (2025)
Currently evaluating compressed natural gas (CNG) trucks for our highest-mileage routes. CNG would reduce fleet carbon emissions by approximately 20% and virtually eliminate particulate matter.
Electric Truck Pilot (Planned 2027)
Monitoring developments in medium-duty electric trucks for potential pilot program on local delivery routes under 50 miles round trip.
Energy Consumption Trend (2020-2025)
| Year | Electricity (kWh) | Natural Gas (therms) | Diesel (gallons) | Propane (gallons) | Solar Generated (kWh) |
|---|---|---|---|---|---|
| 2020 | 710,000 | 48,200 | 42,800 | 12,400 | 0 |
| 2021 | 685,000 | 46,100 | 39,200 | 11,800 | 0 |
| 2022 | 628,000 | 37,600 | 36,900 | 10,200 | 0 |
| 2023 | 592,000 | 35,100 | 35,400 | 6,800 | 296,000 |
| 2024 | 548,000 | 33,800 | 34,100 | 4,200 | 302,000 |
| 2025 | 510,000 | 32,200 | 33,600 | 3,100 | 488,000 |
Circular Economy Model
The pallet industry is one of the most successful examples of a circular economy in any sector. Unlike most industrial products that follow a linear "make-use-dispose" model, wooden pallets are designed to be repaired, refurbished, and recirculated multiple times before their wood is ultimately repurposed into secondary products. At Fresno Pallets, we are deeply integrated into every stage of this circular lifecycle.
Stage 1
Manufacturing
New pallets are manufactured from sustainably sourced lumber. We use PDS-optimized designs to minimize material use while meeting load requirements. Sawdust and offcuts are captured for secondary use.
Stage 2
Use and Distribution
Pallets enter the supply chain carrying products from manufacturers to distribution centers to retail. A typical pallet makes 5-15 trips in this phase depending on its grade and the care it receives.
Stage 3
Collection and Sorting
Used pallets are collected from retailers, warehouses, and manufacturers. Each pallet is inspected and sorted into categories: reusable as-is, repairable, recyclable (for components), or end-of-life.
Stage 4
Repair and Recirculation
Repairable pallets receive new boards, fasteners, or stringer reinforcement. They are re-graded and returned to the supply chain at a fraction of the cost and environmental impact of a new pallet.
Average Reuse Cycles by Pallet Type
The number of times a pallet can be reused before requiring repair or retirement varies significantly by pallet type, construction quality, and the demands of the supply chain it serves. The following data represents the average observed lifecycle performance from our operations over the past five years.
| Pallet Type | Avg Trips Before Repair | Avg Repair Cycles | Total Lifetime Trips | Lifetime (years) |
|---|---|---|---|---|
| New Grade A Stringer | 8-12 | 3-5 | 25-40 | 4-7 |
| New Block Pallet | 12-18 | 4-6 | 40-60 | 6-10 |
| Recycled Grade B | 5-8 | 2-3 | 12-20 | 2-4 |
| Heat-Treated Export | 3-6 | 1-2 | 6-12 | 1-3 |
| Custom Heavy-Duty | 15-25 | 5-8 | 50-80 | 8-15 |
| Pool Pallet (CHEP/PECO) | 15-20 | 6-10 | 60-100 | 8-12 |
Community Impact
142 jobs
Local Employment
Fresno Pallets directly employs 142 full-time team members, all from the local Fresno and Central Valley community. We provide competitive wages, comprehensive health benefits, paid time off, and opportunities for career advancement. Our average employee tenure is 6.3 years, reflecting our commitment to creating a workplace where people want to build their careers.
We prioritize hiring from underserved communities and provide on-the-job training for workers without prior manufacturing experience. In 2025, we promoted 18 team members to supervisory or management positions from within the organization.
24 students
Education Programs
Our workforce development program partners with Fresno City College and the Central Valley Job Corps to provide paid internships and apprenticeships for students interested in manufacturing, logistics, and sustainability careers. In 2025, we hosted 24 interns across our production, quality control, and sustainability departments.
We also support environmental education through partnerships with local elementary and middle schools. Our annual "Sustainability Day" event hosts over 200 students for facility tours, recycling demonstrations, and hands-on learning about the circular economy.
$127,000
Charitable Contributions
In 2025, Fresno Pallets contributed $127,000 in direct financial donations and in-kind contributions to local organizations. Major recipients include the Fresno Community Food Bank (pallets and monetary donations), the Central California SPCA (animal bedding from our sawdust program), and Habitat for Humanity Fresno (lumber and material donations).
Our team also contributed over 860 volunteer hours to community service projects, including park cleanups, Habitat builds, and food bank distribution events. We match employee charitable donations up to $500 per year per employee.
2025–2030 Sustainability Roadmap
Our environmental achievements to date are significant, but we view them as the foundation for more ambitious goals. The following roadmap outlines our sustainability commitments through 2030, organized by timeline and category.
Complete electric forklift transition
In ProgressReplace remaining 4 propane forklifts with electric models, achieving 100% electric material handling.
Install battery storage system
Planned250 kWh battery system to store excess solar generation for evening and cloudy-day operations.
Achieve 97% waste diversion
On TrackEliminate remaining contaminated wood landfill disposal through new processing partnerships.
Launch pallet tracking pilot
PlannedRFID-based pallet tracking system to improve lifecycle data collection and optimize reuse cycles.
Electric delivery truck pilot
PlannedDeploy first electric medium-duty delivery truck for local routes under 50 miles round trip.
Achieve 98% waste diversion
PlannedContinue waste stream refinement targeting remaining disposal streams.
Carbon-neutral facility operations
PlannedAchieve carbon neutrality for Scope 1 and Scope 2 emissions through renewable energy and offsets.
Water recycling system
PlannedInstall closed-loop water recycling system for all facility water uses including cleaning and dust suppression.
Zero waste to landfill
PlannedAchieve 100% diversion of all waste streams from landfill disposal.
Net-zero electricity
PlannedGenerate or offset 100% of electricity consumption through on-site solar, storage, and certified renewable purchases.
Expand recycling capacity 40%
PlannedInvest in new processing equipment to handle 400,000+ pallets annually.
Science-based emissions target
PlannedSet and begin executing a formal Science Based Targets initiative (SBTi) commitment for Scope 1, 2, and 3 emissions aligned with 1.5 degree C pathway.
Community solar garden
PlannedPartner with local community organizations to develop a 500 kW community solar garden providing clean energy to low-income households in the Fresno area.
50% fleet electrification
PlannedElectrify 50% of delivery fleet, subject to vehicle availability and charging infrastructure development.
Biodiversity offset program
PlannedLaunch a tree-planting program in partnership with the Sequoia Riverlands Trust to offset our cumulative lumber consumption and enhance local biodiversity.
Certifications and Partnerships
SFI Chain of Custody
Certified chain of custody for sustainably sourced lumber. Our SFI certification ensures traceability from forest to finished pallet, verifying that our wood comes from responsibly managed forests.
Certified since 2019
ISPM-15 Heat Treatment
USDA APHIS-certified heat treatment facility for export pallets. Our kilns are regularly inspected and calibrated to ensure compliance with international phytosanitary requirements.
Certified since 2015
NWPCA Member
Active member of the National Wooden Pallet and Container Association. Our membership demonstrates commitment to industry best practices and ethical business conduct.
Member since 2012
California Green Business
Certified by the California Green Business Network for implementing environmentally responsible practices in energy efficiency, waste reduction, water conservation, and pollution prevention.
Certified since 2021
EPA SmartWay Partner
Participant in the EPA SmartWay Transport Partnership, committing to improved freight transportation efficiency and reduced emissions in our delivery operations.
Partner since 2022
Fresno County Recycling Award
Recipient of the Fresno County Business Recycling Achievement Award for outstanding waste diversion performance and community recycling leadership.
Awarded 2023, 2024, 2025
Partner with a Sustainable Pallet Provider
Choosing Fresno Pallets means choosing a partner that takes environmental responsibility seriously. Every pallet you purchase or recycle with us contributes to the numbers on this page. Let us help you meet your own sustainability goals.