Over the last few decades, the furniture industry has witnessed a significant increase in spending, driven by various factors like rising incomes, urbanization, and western influence. In India, the production of furniture primarily relies on plywood, which consumes about two-thirds of the wood used. However, sustainable factors involved in plywood production pose several risks, with waste generation being a major issue. A comprehensive study was conducted to assess the various threats posed by this essential industry, categorizing them as socio-economic, environmental, and occupational health issues. The study utilized the Multiple Criteria Decision-Making (MCDM)-based DEMATEL technique for a thorough analysis of the components and their interactions. The results showed that carbon footprint and health issues were the most influential factors out of the thirty analyzed in a plywood manufacturing facility. The findings of this study could provide valuable insights for plywood manufacturers.