Innovation

Top Pallets has introduced an innovative approach to sustainability in the pallet industry by integrating circular economy principles into their core business operations. The company offers a program called “Pallet Repair and Return” that extends the lifespan of their wooden pallets through repair, reuse, and recycling. When pallets are damaged, they are retrieved from customers, repaired if possible, and then brought back into circulation. If pallets cannot be repaired, they are broken down into their usable components, then either repurposed as new pallets or transformed into products such as gardening mulch or animal bedding. This ensures that there is minimal waste created as a byproduct of production, as well as a significant reduction in the demand for new raw materials.

Top Pallet’s solution for excess waste aligns with the United Nation’s Sustainable Development Goals, particularly Goal #12: Responsible Consumption and Production, and #13: Climate Action. Aside from Top Pallets’ efforts to decrease deforestation and lower carbon emissions through the optimization of pallet life cycles and reducing landfill waste, they also promote industry-wide sustainability by collaborating with suppliers and customers, encouraging greener supply chain practices. During an interview, Chief Operating Officer Kathleen Trujillo says “We work within the Midwest, so that helps contribute to lowering our footprint in regards to freight. We use other freight management companies or secondary or tertiary suppliers in other states to supply the demand. So, we’re not shipping something from Illinois to Florida—if we have a customer in Florida, we have a pallet manufacturer there that will supply those pallets, lessening our carbon footprint.”

Top Pallets also incorporates sustainable hiring practices, ensuring inclusivity and a positive work culture that is multiethnic and multilingual, targeting Goal #10: Reduced Inequalities. Top Pallets’ Chief Revenue Officer Devin Soule states that they believe in providing workers with opportunities for upward mobility, setting employees up for success and creating an organization that allows everyone to “Learn, level up, and get the experience and confidence to build a flourishing life for themselves; whatever that looks like for them.” This indicates their dedication to Goal #8: Decent Work and Economic Growth. Lastly, with the objective to build a better world, Top Pallets has invested in energy-efficient manufacturing technologies, optimizing production whilst also reducing their ecological footprint. In addition, by embedding sustainability into every stage of its operations, the company not only enhances profitability but also sets the industry standard for responsible business practices—proving that financial success and sustainable development are not mutually exclusive ideas.

Inspiration

Starting out as a family business, Top Pallets’ community building, inclusion and collaboration are at the core of every decision they make. According to Chief Operating Officer Kathleen Trujillo, “Change and progress are something that my parents instilled from the very beginning. It’s something that we’re very serious about in continuing that theme in the growth of our company and its culture.” 

By promoting environmental stewardship, working closely with partners to promote a greener supply chain, and incorporating practices based in diversity, equity and inclusion, Top Pallets has built a network of trust within the industry. What drives their inspiration to continuously innovate and challenge the status quo? Kathleen states that, for the last 35 years, Top Pallets has been “Proud to be one of the only women-owned and operated pallet businesses in the country.” By becoming Women Business Enterprise (WBE) Certified, Top Pallets has proven that their business model is inspired by diversity-fueled innovation and that leading the way in DEI is “central in how we build relationships, solve challenges, and grow as a company. It is a key part of why we are leaders in our industry—we are very proud of our certification.” Not only are they women-owned, but Top Pallets is minority-owned, too: “As a minority-owned business as well, we emphasize the importance of building a team that brings diverse strengths, perspectives, and skillsets to achieving our goal of growing the best pallet service in the Midwest.” 

They understand that a key component of sustainability is by improving social quality, including areas such as social equity, community development, and education. They incorporate “Enhancing employee well-being through wellness programs, skill-building workshops, and fostering inclusivity, while deepening community involvement through partnerships and volunteer initiatives.” Through their unwavering commitment to sustainability through diversity, equity and inclusion, Top Pallets continues to set the industry standard for a collaborative and environmentally responsible supply chain, proving that with a little inspiration—business success and social impact can go hand in hand.

Overall impact

Top Pallets drives innovation and sustainability through embracing a full product life cycle, shifting toward a circular economy model that delivers both financial and environmental benefits. As a woman and minority-owned business, the company stands as an industry leader and a prime example of environmental stewardship, equality, and corporate responsibility. 

COO Kathleen Trujillo says that "Sustainability is woven into every aspect of responsible business practices." The company’s impact is clearly evident in both the short and long term. Initiatives like their “Pallet Repair & Return” reduce material costs by minimizing waste, recycling, and repurposing wood. Kathleen also states that Top Pallets "Reduces landfill waste and the need for new raw materials, aligning with circular economy principles." Additionally, integrating energy-efficient manufacturing technologies enhances their operational efficiency. While upfront costs may be high for energy efficient alternatives, this innovation ultimately minimizes energy consumption in manufacturing and yields long-term benefits for the company overall.

During the interview, Kathleen continues: "[Top Pallets’] sustainable practices lower raw material expenses, attract environmentally conscious clients, and provide financial advantages like tax incentives and increased demand for green products. These efforts ensure we stay competitive while remaining environmentally responsible." By incentivizing circular economy practices, the company encourages industry-wide change, fostering long-term sustainability while maintaining profitability. Additionally, Top Pallets promotes a collaborative work environment that encourages new, innovative ideas. These efforts are tracked through key performance indicators (KPIs) and environmental, social, and governance (ESG) reports, ensuring continuous improvement, accountability, and long-term success.

Business benefit

At Top Pallets, the Pallet Repair and Return program shows how caring for the environment can also help a business to succeed. This program is cost efficient, spares the excess usage of resources, and supports the idea of a circular economy by repairing and reusing damaged material instead of throwing it away. By shifting their focus onto sustainability, they have attracted customers who care about the environment and are looking to collaborate and help them achieve their mission.

As Top Pallets focuses on their eco-friendly practices, they are also making changes to their work force environment. New energy-saving equipment not only helps the environment by lowering the company's carbon footprint, but also makes repairs faster and easier for their workers. The equipment is meant to help Top Pallets in the long term, and creates a positive work environment where the employees can see the value Top Pallets offers, as well as the responsibility they take on to change their impact on the environment.

Social and environmental benefit

At Top Pallets, a central aspect of their business is to minimize their environmental footprint every step along the way. Their ‘Pallet Repair and Return’ program is not only cost effective, but has numerous environmental benefits—such as lowering the need for new source material, fully utilizing the life cycle of a product instead of perpetuating one-time-usage, transforming unusable wood waste into mulch and animal bedding. 

Top Pallets has high standards for their suppliers. They choose suppliers that do not contribute to high levels of deforestation by pairing with family businesses instead of large-scale lumber mills. This benefits both companies, and in turn also lowers their impact as no extra wood is being outsourced unethically. 

Other environmental benefit initiatives, such as planting one tree per trailer of pallets created, aims to offset the negative impacts of deforestation in pallet production. Chief Operating Officer Kathleen Trujillo says "[Top Pallets] have looked at plastic pallets, but the long term sustainable goals do not align with what the pallets can do. Plastic pallets are hard to recycle and are mainly a one-time use item." The company has examined other production options and weighed the negative outcomes of alternate pallet materials, keeping company values in mind. Plastic pallets will not last as long as the wood pallets do at the company: "Our pallets are at minimum recycled seven times before being assessed if it needs to be scraped." 

Top Pallets has the potential to be an industry standard among pallet companies, with how ahead they are in the environmental curve in the market. They are invested in seeing the entire manufacturing sector become transformed, as well as having a drive to help the environment whilst still maintaining profitability for the company and its shareholders. 

Interview

Kathleen Trujillo, COO