Adidas, Avon Products, Beiersdorf, Christian Dior, Clorox, Coach, Inc., C o2012 l g aSustainability t e - P a l mReporting o l i v eof, the E nWorld’s ergizer Largest Household, Apparel,FUJIFILM & Holdings, Estée Lauder, Personal Products Companies Holdings Corporation, Hasbro, Henkel KGaA, Hermès International, Kao, Kimberly-Clark, L'Oréal Group, Luxottica, Mattel, Mead Johnson, Natura Cosmeticos, Newell Rubbermaid, Nike, Polo Ralph Lauren, Procter and Gamble, Reckitt Benckiser, SCA-Svenska Cellulosa, Shiseido, Swatch Group, Toray Industries, and VF. Pacific Sustainability Index Scores: A benchmarking tool for online sustainability reporting J. Emil Morhardt, Elgeritte Adidjaja, Gracie Beck, Simone Berkovitz, Leah Bross, Carolyn Campbell, Jaclyn T. D'Arcy, Karen de Wolski, Elizabeth Duckworth, Hilary Haskell, Alan Hu, Bukola Jimoh, Quentin Jones, Sam Kahr, Karun Kiani, Eric Robert King, Jordan Lieberman, Danielle L. Manning, Stephanie Oehler, Daniel Olmsted, Ashley Scott, Michael Handler Shoemaker, and Sachi Singh. Contents Topics Company Rankings PSI Overview PSI Scoring in a Nutshell Lead Analyst’s Commentary Environmental Intent Topics Environmental Reporting Topics Social Intent Topics Social Reporting Topics Environmental Intent Element of the PSI Scores Environmental Reporting Element of the PSI Scores Social Intent Element of the PSI Scores Social Reporting Element of the PSI Scores Environmental Intent Scores Ranking Environmental Reporting Scores Ranking Environmental Performance Scores Ranking Social Intent Scores Ranking Social Reporting Scores Ranking Social Performance Scores Ranking Human Rights Reporting Element Performance by Country Visual Cluster Analysis Relationship Between PSI Scores and Financial Variables Number of Explicit numerical goals Reported Number of Topics Showing Performance Improvement over Previous Year Data Number of Topics in which Performance was Better than Sector Average Analyst’s Comments, alphabetically listed by company name Appendix: PSI Questionnaire Page 3 4 5 6 13 14 15 16 17 18 The Roberts Environmental Center has been the foremost analyst of corporate sustainability reporting for over a decade. We analyze corporate online disclosure using our Pacific Sustainability Index (PSI) and publish the results online. Industrial Sector** 2 0 0 4 2 0 0 5 X Electronics & Semiconductors X X X X X X X X X X X Entertainment X Federal Agencies Food Services X X X X X General Merchandiser X Homebuilders X X X X X X X* X* X X X X X X X X X X Petroleum & Refining X Pharmaceuticals X Scientific, Photo, & Control Equipment Telecommunications, Network, & Peripherals Transportation X X Municipalities Oil and Gas Equipment Elgeritte Adidjaja, Research Fellow (909) 621-8698 (eadidjaja@cmc.edu) X X X Motor Vehicle & Parts Dr. J. Emil Morhardt, Director (emorhardt@cmc.edu) Roberts Environmental Center Claremont McKenna College 925 N. Mills Ave. Claremont, CA 91711-5916, USA Direct line: (909) 621-8190 2 0 1 2 X X X Household, Apparel, & Personal Products Industrial & Farm Equipment Mail, Freight, & Shipping Medical Products & Equipment Metals Mining, Crude Oil Questions should be addressed to: 2 0 1 1 X Forest & Paper Products 67 2 0 1 0 X Energy & Utilities 37 2 0 0 9 X Colleges/Universities Computer, Office Equipment, & Services Conglomerates Food & Beverages 36 2 0 0 8 X Banks, Insurance Chemicals 33 34 2 0 0 7 X Aerospace & Defense Airlines 19 20 21 22 23 24 25 26 27 28 29 30 2 0 0 6 X X X X X X X X X * Multiple-sector category was separated in later years. Departmental Secretaries: (909) 621-8298 The goal of corporate report analysis conducted by the Roberts Environmental Center is to acquaint students with environmental and social issues facing the world’s industries, and the ways in which industry approaches and resolves these issues. The data presented in this report were collected by student research assistants and a research fellow at the Roberts Environmental Center. Copyright 2012 © by J. Emil Morhardt. All rights reserved. www.roberts.cmc.edu 2 Household, Apparel, & Personal Products Sectors 2012 Sustainability Reporting of Worlds' Largest Household, Apparel, and Personal Products Companies Corporate Environmental and Sustainability Reporting Company Rankings Overall Grade 51.59 Natura Cosmetic os 44.21 Nike A+ Natura Cosmeticos (Brazil) A- Nike (USA) A- Kimberly-Clark (USA) B+ Toray Industries (Japan) Kimberly- Clark 41.20 B+ Clorox (USA) Toray Industries 40.36 B Kao (Japan) B Adidas (Germany) B Avon Products (USA) 37.62 Clorox Kao 35.01 B Procter and Gamble (USA) Adidas 34.53 B- Avon Produc ts 34.31 FUJIFILM Holdings Corporation (Japan) B- SCA-Svenska Cellulosa (Sweden) Proc ter and Gamble 33.51 B- Estée Lauder (USA) B- Henkel KGaA (Germany) C+ Shiseido (Japan) C+ Reckitt Benckiser (England) C+ Newell Rubbermaid (USA) C+ Beiersdorf (Germany) C+ Hasbro (USA) C Mattel (USA) 32.18 FUJIFILM Holdings Corporation 31.56 SCA- Svenska Cellulosa 29.97 Estée Lauder 28.16 Henkel KGaA 27.81 Shiseido Rec kitt Benc kiser 27.23 C Colgate-Palmolive (USA) Newell Rubbermaid 26.92 C- VF (USA) D+ Energizer Holdings (USA) D Luxottica (Italy) 25.24 Beiersdorf Hasbro 23.96 D Polo Ralph Lauren (USA) Mattel 23.34 D L'Oréal Group (France) D Mead Johnson (USA) D- Coach, Inc. (USA) F Hermès International (France) F Swatch Group (Switzerland) F Christian Dior (France) 22.99 Colgate- Palmolive 17.77 VF 14.81 Energizer Holdings 8.22 Luxottic a Polo Ralph Lauren 8.13 L'Oréal Group 7.43 Mead Johnson 7.25 4.38 Coac h, Inc . Hermès International 0.00 Swatc h Group 0.00 Christian Dior 0.00 0 25 50 75 100 This report is an analysis of the voluntary environmental and social reporting of companies on the Household, Apparel, and Personal Products Consumer Durables and Motor Vehicles sector lists. Data were collected from corporate websites during the initial analysis period (dates shown below). A draft sector report was then made available online and letters were sent to all companies inviting them to review the analysis, to identify anything missed by our analysts, and to post additional material on their websites if they wished to improve their scores. Analysis Period: 1/26/2011 through 11/30/2011 Draft sector report available for review: 1/20/2012 through 3/1/2012 www.roberts.cmc.edu 3 Household, Apparel, & Personal Products Sectors 2012 PSI Scoring in a Nutshell Our analysis of sustainability reporting has a set of basic topics applied to all organizations as well as a series of sector-specific topics. The topics are divided into environmental and social categories—the latter including human rights—and into three types of information: 1) intent, 2) reporting, and 3) performance. 1. Intent The “Intent” topics are each worth two points; one point for a discussion of intentions, vision, or plans, and one point for evidence of specific actions taken to implement them. 2. Reporting The “Reporting” topics are each worth five points and are either quantitative (for which we expect numerical data) or qualitative (for which we don’t). For quantitative topics, one point is available for a discussion, one point for putting the information into perspective (i.e. awards, industry standards, competitor performance, etc., or if the raw data are normalized by dividing by revenue, number of employees, number of widgets produced, etc.), one point for the presence of an explicit numerical goal, one point for numerical data from a single year, and one point for similar data from a previous year. For qualitative topics, there are three criteria summed up to five points: 1.67 points for discussion, 1.67 points for initiatives or actions, and 1.67 points for perspective. 3. Performance For each “Reporting” topic, two performance points are available. For quantitative topics, one point is given for improvement from the previous reporting period, and one point for better performance than the sector average (based on the data used for this sector report normalized by revenue). For qualitative topics, we give one point for any indication of improvement from previous reporting periods, and one point for perspective. The 11 “human rights” topics are scored differently, with five “reporting” points; 2.5 points for formally adopting a policy or standard and 2.5 points for a description of monitoring measures. In addition, there are two “performance” points; one point for evidence of actions to reinforce policy and one point for a quantitative indication of compliance. Distribution of Scores by topics www.roberts.cmc.edu 4 Household, Apparel, & Personal Products Sectors 2012 The Pacific Sustainability Index (PSI) Overview the PSI Scoring System The Pacific Sustainability Index (PSI) uses two systematic questionnaires to analyze the quality of the sustainability reporting—a base questionnaire for reports across sectors and a sector-specific questionnaire for companies within the same sector. The selection of questions is based on, and periodically adjusted to, the most frequently-mentioned topics in over 1,900 corporate sustainability reports analyzed from 2002 through 2009 at the Roberts Environmental Center. The Roberts Environmental Center The Roberts Environmental Center is an environmental research institute at Claremont McKenna College (CMC). Its mission is to provide students of all the Claremont Colleges with a comprehensive and realistic understanding of today’s environmental issues and the ways in which they are being and can be resolved-beyond the confines of traditional academic disciplines and curriculum--and to identify, publicize, and encourage policies and practices that achieve economic and social goals in the most environmentally benign and protective manner. The Center is partially funded by an endowment from George R. Roberts (Founding Partner of Kohlberg Kravis Roberts & Co. and CMC alumnus), other grants and gifts, and is staffed by faculty and students from the Claremont Colleges. Methodology Student analysts download relevant English language web pages from the main corporate website for analysis. Our scoring excludes data independently stored outside the main corporate website or available only in hard copy. When a corporate subsidiary has its own sustainability reporting, partial credit is given to the parent company when a direct link is provided in the main corporate website. We archive these web pages as PDF files for future reference. Our analysts use a keyword search function to search reporting of specific topics, fill out a PSI scoring sheet (http://www.roberts.cmc.edu/PSI/scoringsheet.asp), and track the coverage and depths of different sustainability issues mentioned in all online materials. Scores and Ranks When they are finished scoring, the analysts enter their scoring results into the PSI database. The PSI database calculates scores and publishes them on the Center’s website. This sector report provides an indepth analysis on sustainability reporting of the largest companies of the sector, as listed in the latest 2010 Forbes lists. Prior to publishing our sector report, we notify companies analyzed and encourage them to provide feedback and additional new online materials, which often improve their scores. What do the scores mean? We normalize all the scores to the potential maximum score. Scores of subsets of the overall score are also normalized to their potential maxima. The letter grades (A+, A, A-, B+, etc.), however, are normalized to the highest scoring company analyzed in the report. Grades of individual companies in the report might be different from grades posted online on the Roberts Environmental Center's website, since the normalization of scores of an individual company online is not limited to the companies analyzed in the sector report, but also includes other companies of the same sector irrespective of the year of analysis. Companies with scores in the highest 4% get an A+ and any in the bottom 4% get an F. We assign these by dividing the maximum PSI score obtained in the sector into 12 equal parts then rounding fractional score up or down. This means that A+ and F are under-represented compared to the other grades. The same technique applies to the separate categories of environmental and social scores. Thus, we grade on the curve. We assume that the highest score obtained in the sector and any scores near it represent the state-of-the-art for that sector and deserve an A+. www.roberts.cmc.edu 5 Household, Apparel, & Personal Products Sectors 2012 Lead Analyst’s Commentary Household, Apparel, and Personal Products sector are Natura Cosmeticos Nike, and Kimberly Clark. Each of these companies represents one industry from the Sector as a whole: Personal Products, Apparel, and Household Products, respectively. Another interesting consideration is that the four lowest scoring companies in the Sector, receiving grades of D- to F in their overall corporate sustainability, are brands that may be considered luxury products: Christian Dior, Hermes, Swatch, and Coach, Inc. The following topics represent some of the most controversial and highly discussed areas of sustainability related to the Household, Apparel, and Personal Products Sector, offering insight into best practices, legislation, activism by organizations, and other areas of concern. By Hilary Haskel, CMC ‘14 T oday, consumers are constantly faced with choosing between competing household, apparel, and personal products in their daily lives. Bombarded by advertisements for these products, consumers must consider not only which options suit their needs and preferences; are the best value; and match their budgets; but now, with the current impetus towards environmental and social sustainability, consumers must also consider whether these products are sustainable. However, there is a sea as large as the North Pacific Garbage Gyre of conflicting information, lack of standardization, and even “green washing” that may lead even the most savvy, sustainable consumers astray. Therefore, it is imperative that companies of the Household, Apparel, and Personal Products sector provide corporate sustainability reporting that is as transparent and thorough as possible. This initiative will improve not only their image and marketing as responsible corporations, but also the sustainability of the Sector as a whole. For the Household, Apparel, and Personal Products sector, the most critical Environmental Reporting Topics include Renewable Materials Used; Life Cycle Analysis (LCA); Materials Reused or Recycled: Packaging Materials; Waste: Packaging Materials; and Energy Used: Logistics. These areas are all underreported to a great extent, with companies reporting these topics only 46.7%-16.7% of the time. For the Environmental Intent aspect of the PSI Score, perhaps the most critical aspects include Environmental Labeling and Green Purchasing. These two areas of Environmental Intent are also quite underreported, considering only 50% of companies from the Sector reported data. Turning to the social responsibility aspect of corporate sustainability, the Social Reporting Topics of Customer Emergency Support and Customer Health and Safety are both sector-wide concerns. Customer Health and Safety is reported at a 60% rate by companies of the Sector; however, it is quite concerning that Customer Emergency Support is only reported at a 6.7% rate in comparison. The companies receiving the highest PSI score overall for corporate sustainability of the www.roberts.cmc.edu Green Labeling One of the most important initiatives that companies of the Household, Apparel, and Personal Products sector can take to make their products more sustainable and their reporting more transparent is to participate in the practice of environmental labeling. According to a study conducted to analyze consumer demand for different fiber origins, types, and production methods, “The growing use of such labels (e.g. organic or ‘locally grown’) suggests consumers have value for more transparency on many of the issues regarding...product’s origin, production methods, and environmental impacts.”1 This assertion is further supported by a study pertaining to the effects of eco-labeling on consumer behavior towards dolphin-safe tuna. In response to the dolphin-tuna crisis, where dolphins were being unnecessarily slaughtered due to being caught in nets when harvesting tuna, the study found “that the dolphin-tuna controversy and the subsequent implementation of dolphin-safe labeling affected consumer behavior...,”ibid and provided“...marketbased evidence that consumers can respond to ecolabels...” ibid. Not only is there pressure from consumers who are becoming increasingly concerned with the “environmental characteristics” of products, but also 1 Hustvedt, Gwendolyn, and John C. Bernard. "Consumer Willingness to Pay for Sustainable Apparel: The Influence of Labelling for Fibre Origin and Production Methods." International Journal of Consumer Studies 32.5 (2008): 491‐98. Print. 6 Household, Apparel, & Personal Products Sectors 2012 assessment of operations from ‘cradle to grave.’”2 However, she goes on to state that the “Green Ticke” model would remove the “identified gap in the market by providing an easily recognizable, independent, life cycle based sustainability certification.” ibid. Although this system is yet to be implemented, it still provides a basis for researching and implementing more effective green labeling systems, in order to increase the efficacy of this market intervention. Currently, without standardization, there exists an excess of confusion over veracity, reliability, and comparability of green labels. The Green Ticke study proposes that this could be avoided through a program similar to itself that embraces “independence; integrity; transparency; meaningful and verifiable standards; safety/health/environment; instant eco-label recognition; and certification of the certifier.” ibid. Currently, the International Standards Organization (ISO) is attempting to create standards to certify the third party endorsement in the green labeling process. Legislative initiatives that indicate a shift in U.S. policy towards green labeling are Proposition 65, the Toxic Release Inventory (TRI), and Safe Drinking Water Act. Although each of these pieces of legislation addresses different issues, there are commonalities between them. Proposition 65 required manufacturers to prove that ingredients in their products posed no significant risk of causing cancer or reproductive toxicity. If not, manufacturers are required to include a warning label on any product containing an ingredient "known to the state [of California]" to cause cancer or reproductive toxicity. In 2009, U.S. Senator Dianne Feinstein was interested in promoting legislation to “rein in the confusion proliferation of environmental product labels.”3This type of legislation would encourage consumers and manufacturers to voluntarily choose green label products to decrease environmental impacts from cradle to grave, and “provide to consumers accurate, non-deceptive, and scientifically based information on the environmental impact of products.” ibid. Furthermore, the EPA would have needed to create from “governments and nongovernment organizations [that] have also responded by organizing, implementing, and verifying eco-label programs” ibid. along with “international efforts to standardize environmental labeling schemes.” ibid. On this national to international scale, “From a policy perspective, one aim of eco-labels is to educate consumers about the environmental impacts of the products’ manufacture, use, and disposal, thereby leading to a change in purchasing behavior, and ultimately to a reduction in negative impacts.” ibid. Green labeling is a growing area of corporate sustainability reporting, and is especially important for personal and household products and apparel. This labeling system aids consumers in making informed decisions about the products that they choose to purchase in their daily lives, with sustainability in mind. However, it is still important to note that while green labeling can be effective in “decreas[ing] the search cost for the information and may signal the importance of the information,” and that “labeling may affect the implicit weights that consumers assign to each attribute,” ibid. according to the study, “...a change in awareness does not necessarily translate into a change in behavior.” ibid. The behavioral implications may occur over a relatively long time period, “as the label is noticed and the information diffuses through the population...” ibid. or that “...consumers who notice the label may initially doubt the veracity of the label information.” ibid. For this reason, there is still a need for improvement through standardization and governmental policies. If more companies inundate the Sector with green labeling initiatives, green labeling might come to be expected by consumers, and thus, become a more influential and integral aspect of consumers’ purchasing decisions. The study claims that “...if a significant portion of the consumer population demands environmentally friendly products, the presence of an eco labeling program may provide firms an incentive to differentiate and market their products along environmental characteristics.” ibid. It is beginning to become apparent that in order to move forward and improve current green labeling practices, there must be a single, standardized, thorough practice that embodies all necessary aspects of sustainability. In her study, Harris asserts that her proposed “Green Ticke!” certification system could be used as a model of doing so. She claims that she was unable to uncover any green labeling or “environmental certification systems” that included “....independent, full life cycle www.roberts.cmc.edu 2 Harris, Susan M. "Green Tick™: An Example of Sustainability Certification of Goods and Services." Management of Environmental Quality: An International Journal 18.2 (2007): 167‐78. Print 3 "Federal Eco‐Labeling Law Taking Shape." GreenSource Magazine. N.p., n.d. Web. 20 June 2012. <http://greensource.construction.com/news/2009/0 90223Eco‐Labeling.asp>. 7 Household, Apparel, & Personal Products Sectors 2012 an “Eco-Labeling Board” to oversee this type of program. There are already independent organizations, such as Eco-Label Index that aim to “help clients deliver on sustainability promises, by working with them to navigate the complex and diverse international eco-label landscape, create and monitor green purchasing programs, and understand and meet the needs of stakeholders;”4 however, it is a widely held notion that perhaps it would be more effective and efficient to instate a nation-wide, federal program. that under the Resource Conservation and Recovery Act, many of the wastes created by textile manufacturing companies are considered hazardous. From a social sustainability perspective, “according to figures from the U.S. National Labor Committee, some Chinese workers make as little as 12-18 cents per hour working in poor conditions.” ibid. But, when considering a full cradle-to-grave approach in analyzing the apparel industry, the troublesome sustainability implications do not end with the product being handed off to the consumer. Instead, “the ‘national wardrobe,’ which is considered to represent a potentially large quantity of latent waste that will eventually enter the solid waste stream,” is only further concerning when considering end of life cycle implications of “fast fashion” ibid. Fortunately, groups like the Sustainable Apparel Coalition aim to create “An apparel industry that produces no unnecessary environmental harm and has a positive impact on the people and communities associated with its activities,”6 with its main “objective...[being] to measure the full lifecycle environmental…and social impacts and performance of all apparel and footwear products, and support supply chain decision-making and behavior change improvements in those areas,” ibid. with the hope that “Ultimately, the Index will drive business value throughout the supply chain by presenting opportunities for innovation, and by catalyzing sustainability education and collaboration.” ibid. In addition, there is a trend towards “going green” in the apparel industry—which of course implies its own problems. One will encounter a plethora of sustainability-themed slogans printed across t-shirts, handbags, even shoes when perusing any mall. Many apparel companies have begun to realize that it is the latest trend to assure some “green” customers that their products were produced sustainably. These “eco -fashions” are described by the International Standards Organization as “identifying the general environmental performance of a product within a product group based on its whole life-cycle in order to contribute to improvements in key environmental measures and to support sustainable production methods.” ibid. Still, as previously discussed, this Fashionably Unsustainable Green labeling, with its inherent discrepancies and lack of standardization, has even become trendy. But, this is far from being the only issue associated with the apparel industry. In the wake of the ever-evolving fashion scene, the apparel industry faces a unique challenge. Consumers are tempted to buy, shop, and spend more and more on clothing, resulting in an emphasis on a “race to the bottom” for manufacturers to market apparel that is cheap for consumers, yet profitable for the company. Unfortunately, this reality often results in unsustainable manufacturing processes. This includes poor supply chain screening and management as well as usage of unsustainable materials that do not take into account an entire cradle-to-grave approach for a piece of clothing. Without this complete accounting of externalities, consumers are unable to appreciate the true environmental and social costs of apparel that they take for granted. In the article “Waste Couture,” this troubling phenomenon is discussed in depth. The article cites globalization as the main underlying cause of the issue, making “it possible to produce clothing at increasingly lower prices, prices so low that many consumer consider this clothing to be disposable,” so much so to “make the purchase tempting and the disposal painless.”5 What is even more concerning is 4 "About | Ecolabel Index." About | Ecolabel Index. N.p., n.d. Web. 21 June 2012. <http://www.ecolabelindex.com/about/>. 5 Claudio, Luz. "Waste Couture: Environmental Impact of the Clothing Industry."Environmental Health Prospect 115.9 (2007): A449‐ 454. Environmental Health Perspectives. National Center for Biotechnology Information, U.S. National www.roberts.cmc.edu Library of Medicine, Sept. 2007. Web. 4 July 2012. <http://www.ncbi.nlm.nih.gov/pmc/articles/PMC19 64887/>. 6 "About Us ‐ Sustainable Apparel Coalition." About Us ‐ Sustainable Apparel Coalition. N.p., n.d. Web. June‐July 2012. <http://www.apparelcoalition.org/3.html>. 8 Household, Apparel, & Personal Products Sectors 2012 “green labeling” can lead to its own issues as far as standardization, reliability, and veracity are concerned. are often cognoscente of their impact. According to a study by Gam and Ma, “... they were aware of the environmental problems associated with dyeing and textile processing. However, interestingly, they did not regard themselves as responsible for correcting these problems,”10 making it even more important that companies of this Sector embrace green purchasing and sustainable manufacturing practices. This same study also found that for the apparel industry, procurement decisions usually rested mainly on maintaining consistent supplier relationships over the course of time, while choosing more sustainable procurement options was often second in importance. ibid. Today, much of the supply chain depends on importing garments and their components from developing countries. This trend was exacerbated in 2005 by the termination of the 1974 Multi Fiber Agreement (MFA). The top three exporters, 75% of which are developing nations, include Asia, South America, and Africa.11 Not only is clothing sourced from developing nations that lack sustainable production technology, but also, “cheap fashion uses cheap fibers, such as polyester and cotton...polyester is an oil-based commodity, [and]...cotton alone uses an estimated 22.5% of the world’s insecticides and 10% of all pesticides.” ibid. With all of this cheap fashion rushing from shelves, to consumers, to landfills, “quicker production lowers product quality, and lower quality garments are easier to dispose of” ibid. All of these consideration were a part of the Rio 2012 conference, where there was “really only one topic on the agenda for the fashion industry; how can they make their supply chains measurably more transparent?” ibid. LCA/Green Purchasing/Supply Chains But, there are ways to address the lack of sustainability present in the manufacturing and LCA of the Sector. Through consideration of LCA, in the stages of the supply chain and manufacturing, green purchasing and procurement come into play. According to the U.S. EPA, green purchasing of Environmentally Preferable Products (EPP) involves: Products or services that have a lesser or reduced effect on human health and the environment when compared with competing products or services that serve the same purpose... This comparison applies to raw materials, manufacturing, packaging, distribution, 7 use, reuse, operation, maintenance, and disposal. A study by Lyons from Rutger’s University Water Resources Program cites Green Purchasing as a practice that: Minimizes negative environmental effects through the use of environmentally friendly products, practices and attributes, is a way of adding environmental considerations to the price and performance criteria that businesses use to make purchasing decisions, [and] attempts to identify and reduce environmental 8 impact as well as maximize resource efficiency. For the Household, Apparel, and Personal Products sector, these considerations are especially important, due to the often toxic and/or hazardous chemicals that are involved in the supply chain and manufacturing process. This implication is recognized by the organization StopWaste, which explains that “green purchasing, [is] also known as environmentally responsible supply chain management.”9 For the apparel industry, companies Packaging Waste <http://www.stopwaste.org/home/index.asp?page= 837>. 10 Gam, Hae J., and Yoon J. Ma. "Research Briefs: Creating a Green Label for Reducing the Gap." Research Briefs. Universtiy of Deleware, n.d. Web. 01 July 2012. <http://www.udel.edu/fiber/issue6/researchbriefs/g reenlabel.html>. 11 Network, Ilaria Pasquinelli for the Guardian Professional. "Rio 2012: What Can the Fashion Industry Do to Become More Sustainable?" The Guardian. Guardian News and Media, 16 Jan. 2012. Web. 01 July 2012. <http://www.guardian.co.uk/sustainable‐ business/fashion‐industry‐sustainability‐strategy>. 7 "Basic Information." EPA. Environmental Protection Agency, n.d. Web. 26 June 2012. <http://www.epa.gov/epp/pubs/about/about.htm>. 8 Lyons, Kevin. Greening the Supply Chain, Green Purchasing and the Economic Challenges and Benefits Your State/Global Resource! Sussex County Green Infrastructure Program. Rutgers University, n.d. Web. June‐July 2012. <http://water.rutgers.edu/Projects/Sussex/Rutgers% 20Greening%20the%20Supply%20Chain%20(Sussex) %20b.pdf>. 9 "StopWaste.Org ‐ Green Purchasing." StopWaste.Org ‐ Green Purchasing. N.p., n.d. Web. May‐June 2012. www.roberts.cmc.edu 9 Household, Apparel, & Personal Products Sectors 2012 was revised again to allow new Member States transitional periods for attaining the recovery and recycling targets.” ibid. The original directive: Aims to harmonize national measures in order to prevent or reduce the impact of packaging and packaging waste on the environment and to ensure the functioning of the Internal Market. It contains provisions on the prevention of packaging waste, on theiruse of packaging and on the recovery and recycling of packaging waste. ibid. Furthermore, according to the EPA, put another way, this directive “require[d] manufacturers to play a role in mitigating the post-consumer environmental impacts of products from which they profit.” ibid. The success of the EU’s Directive can be seen in that “for all materials other than plastics, most EU member States achieved or surpassed the 1994 Directive minimum recycling and recovery targets well ahead of the June 2001 deadline” ibid. Not only is the EU often a leader in creating policies meant to promote sustainability, but California is also. Often, California takes the reins in producing statewide legislation or taking initiatives before the federal government does so, especially due to California’s comparatively large population. Cal Recycle, “ the state's leading authority on recycling, waste reduction, and product reuse” has created programs such as the “shipping and distribution partnership... a voluntary effort created to encourage businesses to adopt more efficient packaging and distribution systems that save money while preventing waste and improving operations.”15 Although some clothing may be so cheap to consumers that it is practically disposable, when it comes to the household and personal products that consumers purchase, almost always, the packaging of these products will indeed be disposable. Packaging waste, according to the EPA is defined as “any material that is used to contain, protect, handle, deliver and present goods.” 12 This issue has lead to a great deal of waste that could easily be prevented through rather easily implemented methods. CalRecycle cites that “simple ideas include eliminating packaging, reducing packaging, designing refillable or reusable packages, and producing recyclable packages and packages made of recycled materials.”13 According to the EPA, in “1999, 42 percent of all paper, 40 percent of all plastic soft drink bottles, 55 percent of all aluminum beer and soft drink cans, and 57 percent of all steel packaging were recycled in the United States.” This rate was achieved due to initiatives by the federal government, despite the fact that “many U.S. states and municipalities have enacted laws or programs to further these goals. U.S. policies and laws generally have not addressed packaging wastes, per se, as a distinct class.” ibid. Currently, the European Union (EU) has taken the lead in crafting legislation to address this issue. Obviously the U.S. has made some progress; however, in comparison, the EU’s “Directive 2004/12/EC, adopted in early 2004,” that “formally amends the 1994 Packaging Directive...” is by far a much more effective and stringent piece of legislation.14 Directive 2004/12/EC formed from the 94/62/EC Directive, modified the original directive by “clarifying the definition of the term 'packaging' and increas[ing] the targets for recovery and recycling of packaging waste.” ibid. Finally, in 2005, the Directive Social Sustainability: Apparel and Personal Products Environmental considerations are not the only aspects that play an important role in the manufacturing of products. For especially the apparel and textile industry, there is significant suspicion and concern over the notion of sweatshops, child labor, and horrific working conditions in many developing nations where much of the world’s apparels and textiles are manufactured. As previously mentioned, developing nations are the primary exporters of 12 "Recycling and Reuse: Packaging Material: European Union Directive." EPA. Environmental Protection Agency, n.d. Web. 02 July 2012. <http://www.epa.gov/oswer/international/factsheet s/200610‐packaging‐directives.htm>. 13 "Product Stewardship and Extended Producer Responsibility (EPR)." EPR and Stewardship Home: CalRecycle. N.p., n.d. Web. 01 July 2012. <http://www.calrecycle.ca.gov/EPR 14 "European Commission." ‐ Environment. N.p., n.d. Web. 01 July 2012. <http://ec.europa.eu/environment/waste/packaging _index.htm>. www.roberts.cmc.edu 15 "Manufacturers." :Efficient Transport Packaging and Distribution Systems. N.p., n.d. Web. 01 July 2012. <http://www.calrecycle.ca.gov/ReduceWaste/Packa ging/Manufacture/>. 10 Household, Apparel, & Personal Products Sectors 2012 textiles and apparel, comprising approximately 75% of the market. The apparel industry is best-known for being the main driver behind forced and child labor, especially in sweat shops. The Labor Rights Forum has even gone so far as to create the “2010 Sweatshop Hall of Shame” to raise awareness about the prominence of the issue in the apparel industry. The organization claims that: that are of concern to the environment and consumer health. In the European Union, the REACH (Registration, Evaluation, Authorization of Chemicals) Regulation is responsible for managing chemicals. Of course, this European legislation also applies to apparel and personal products, as well as any other industry that requires the use of chemicals in its manufacturing process. This legislation pressures industries in the EU to become more sustainable in the ingredients they use for their products, including those used in households. According to Fraunhofer, a European research group that embodies principles of sustainability in its work: Most of the companies listed employ laborers who toil for long hours under dangerous working conditions for poverty wages. When these workers attempt to form a union to voice their collective concerns, they face threats from management and risk being fired or even 16 beaten. More and more everyday products are based on renewable resources, with household cleaners now containing active cleaning substances (surfactants) made from plant oils and sugar. These fat and dirt removers are especially environmentally friendly and effective when produced using biotechnology, with the 18 aid of fungi and bacteria. Moreover, “Hall of Shame inductees are responsible for evading fair labor standards and often are slow to respond or provide no response at all to any attempts by the International Labor Rights Forum (ILRF), workers, or others to improve working conditions.” ibid. The importance of supply chain relationships upstream in corporate sustainability is also highlighted through the startling assertion that “Many of this year’s inductees [in the Sweatshop Hall of Shame] use suppliers that practice illegal tactics to suppress workers’ rights to organize.” ibid. In contrast, on a more commendable note, it is interesting that“recent data from Price Waterhouse Coopers highlights that cosmetic and personal care products companies contribute twice as much to charity in the U.S. as other manufacturing industries,”17 indicating a strong adherence to social community investment by these industries. Of course, this manufacturing trend remains in its infancy today. However, there is great potential and necessity for its growth, especially with the rise of green labeling and more environmentally conscious consumers. Legislatively, in 2009, there was a proposed Household Product Labeling Act that would have required “...that household cleaning products and similar products bear labels that state completely and accurately all of the ingredients of such products, and for other purposes.”19 This bill, however, died after being introduced. This legislation follows in the footsteps of Proposition 65, Safe Drinking Water and Toxic Enforcement Act of 1986, that aimed to protect California citizens “...from chemicals known to cause cancer, birth defects or other reproductive harm, and to inform citizens about exposures to such chemicals.” Household Products Sustainability Aside from green procurement by corporations and the environmentally conscious consumer, household products used in homes, restaurants, hotels, and hospitality industries alike contain many chemicals and even toxic ingredients 18 "Environmentally‐friendly Cleaning and Washing ‐ Research News March 2012 ‐ Topic 4."Environmentally‐friendly Cleaning and Washing ‐ Research News March 2012 ‐ Topic 4. N.p., n.d. Web. 01 July 2012. <http://www.fraunhofer.de/en/press/research‐ news/2012/march/environmentally‐friendly‐ cleaning‐and‐washing.html>. 19 "S. 1697 (111th): Household Product Labeling Act of 2009." Household Product Labeling Act of 2009 (2009; 111th Congress S. 1697). N.p., n.d. Web. 02 July 2012. <http://www.govtrack.us/congress/bills/111/s1697> . 16 "International Labor Rights Forum." 2010 Sweatshop Hall of Shame. N.p., n.d. Web. 02 July 2012. <http://www.laborrights.org/creating‐a‐ sweatfree‐world/sweatshops/resources/12211>. 17 "New PwC Study Shows Increased Economic and Social Contributions of the Personal Care Products Industry in China‐‐ Study Projects Annual Growth Rate of 12% for the Industry." Personal Care Products Council. N.p., n.d. Web. 30 June 2012. <http://www.personalcarecouncil.org/newsroom/05 2412>. www.roberts.cmc.edu 11 Household, Apparel, & Personal Products Sectors 2012 Personal Products Sustainability purchasing decisions about products, to prevent “improperly labeled or deceptively packaged products and subject to regulatory actions” ibid. The FPLA deals specifically with “ingredient declarations” to assist consumers in making their purchasing decisions.” ibid. Concerning consumer health and safety, personal care corporations must also answer to the International Cooperation on Cosmetics Regulation, “a voluntary partnership among the health authorities of Canada...Europe...Japan... and U.S.” ibid. The personal products industry often faces a great deal of criticism as far as sustainability is concerned, due to the nature of its products, involving chemicals that wash down the drain, excessive disposable packaging, etc. Because of this issue, the Personal Care Products Council (formerly the Cosmetic, Toiletry and Fragrance Association), highlights the importance of “cosmetic and personal care products companies demonstrat[ing] their environmental commitment through programs focused on recycling and packaging reduction, and energy and water conservation...,”20 and that “many companies [conduct] life cycle assessments to minimize the environmental impacts of their product and manufacturing operations...”ibid. Furthermore, the Council states that “Personal care products companies have built eco-smart facilities and LEEDcertified buildings to complement their research, development and distribution operations” ibid. to further improve their sustainability image. The Personal Care Products Council has even adopted its own Sustainable Principles, which “...demonstrate the industry’s commitment to the three pillars of sustainability: Environment, Society, and Economy.” Consumer Safety Legislation Finally, it is also important to consider the safety of consumers in their usage of products from the Sector. The primary legislation responsible for regulating consumer safety is the Consumer Product Safety Act of 1972, overseen by the United States Consumer Product Safety Commission. For cosmetics, the primary regulatory legislation is the Food, Drug and Cosmetic Act, under jurisdiction of the Food and Drug Administration. In 2008, the Consumer Product Safety Act of 1972 was amended by the Consumer Product Safety Improvement Act (CPSIA), which “authorized a variety of new regulations and testing requirements for children’s products and some nonchildren’s products...” Furthermore, “The CPSIA fundamentally changed how product safety is regulated in the United States.”21 The main concerns facing the Household, Personal Products, and Apparel sector primarily encompass hazardous wastes, socially sustainable workplaces, transparent environmental labeling practices, and sustainable production with packing and end-of-life cycle implications in mind. As a sector with pertinent implications for everyday consumers, it has great potential for positively impacting sustainability issues and making sustainable choices part of an everyday lifestyle. ibid. The Personal Care and Products Council has been instrumental in legislative issues related to the personal care industry. The organization “... [has] also began to focus on environmental packaging and claims issues before state legislatures. Several states enacted regulations or statutes designed to reduce packaging, encourage reuse or incorporate recycled content into packaging.” ibid. Interestingly, the Council “...generally opposed legislative proposals mandating certain percentages of recycled content in packaging by certain dates. Rather, CTFA endorsed an integrated waste management approach.” ibid. Furthermore, the Personal Care and Products Council has also been involved with two key pieces of legislation related to packaging and labeling for consumer safety. Both the Federal Food , Drug, and Cosmetic (FD&C) Act and The Fair Packaging and Labeling Act (FPLA) are important in ensuring consumer awareness and safety when making 20 "Committed to a Sustainable Future." Personal Care Products Council. N.p., n.d. Web. 01 July 2012. <http://www.ctfa.org/about‐us/committed‐ sustainable‐future>. www.roberts.cmc.edu 21 N.p., n.d. Web. 04 July 2012. <http://www.cpsc.gov/about/cpsia/cpsia.html>. 12 Household, Apparel, & Personal Products Sectors 2012 Household, Apparel, and Personal Product Environmental Intent Topics Percent of possible points for all companies combined. Two possible points for each topic: Accountability 59.17 60 4 19 50.00 Management 47.92 50 16 20 21 23 43.33 40 * Report contact person * Environmental management structure 38.33 * Environmental education * Environmental management system * Environmental accounting * Stakeholder consultation Policy 9 10 11 12 13 259 30 20 * Environmental policy statement * Climate change/global warming * Habitat/ecosystem conservation * Biodiversity * Green purchasing * Environmental labelling Vision 10 * Environmental visionary statement * Environmental impediments and challenges Vision Product Responsibility Policy Management Accountability 0 5 6 Notes: * These numbers correspond to the numbers in the PSI questionnaire. Items with numbers higher than 99 are sectorspecific questions. Appendix 1 has the complete questionnaire. www.roberts.cmc.edu 13 Household, Apparel, & Personal Products Sectors 2012 Household, Apparel, and Personal Product Environmental Reporting Topics Seven possible points for each topic: Emissions to Air Percent of possible points for all companies combined. 83 119 43.33 45 Energy 26 27 103 40 35 38 39 30 40 163 24.22 3799 22.00 * Energy used: Logistics 146 147 20 16.40 14.50 144 30 32 106 5 107 * Eco-efficiency monitoring * Waste recycled: solid waste * Waste (office) recycled * Materials recycled: Wastewater * Materials reused or recycled: Packaging materials Waste Water Waste Recycling Products Materials Usage 0 Management * Renewable materials used * Life Cycle Analysis (LCA) Recycling 8.00 Energy * Green transportation initiatives * Raw material reduction Products 15 10 * Notices of violation (environmental) * Environmental expenses and investments * Fines (environmental) Materials Usage 20.17 Emissions to Air * Energy used (total) * Energy used (renewable) Management 34.00 25 * Greenhouse gases (or CO2 equivalents), total * Ozone depleting substances from refrigerant 34 35 37 109 * Waste (solid) disposed of * Waste (hazardous) produced * Waste (hazardous) released to the environment * Waste: Packaging materials Water 29 * Water used Notes: * These numbers correspond to the numbers in the PSI questionnaire. Items with numbers higher than 99 are sectorspecific questions. Appendix 1 has the complete questionnaire. www.roberts.cmc.edu 14 Household, Apparel, & Personal Products Sectors 2012 Household, Apparel, and Personal Product Social Intent Topics Two possible points for each topic: Percent of possible points for all companies combined. Accountability 51 69.44 70 54 * structure Third-party validation Management 60 17 18 47.50 50 52 53 40 * Health and safety, or social organizational 35.00 82 36.33 * Workforce profile: ethnicities/race * Workforce profile: gender * Workforce profile: age * Emergency preparedness program * Employee training for career development Policy 45 30 47 23.33 49 * Social policy statement * Code of conduct or business ethics * Supplier screening based on social or environmental performance/ supplier management 20 Social Demographic 10 80 * Employment for individuals with disabilities 42 Vision Social Demographic Policy Management Accountability Vision 0 43 * Social visionary statement * Social impediments and challenges Notes: * These numbers correspond to the numbers in the PSI questionnaire. Items with numbers higher than 99 are sectorspecific questions. Appendix 1 has the complete questionnaire. www.roberts.cmc.edu 15 Household, Apparel, & Personal Products Sectors 2012 Household, Apparel, and Personal Product Social Reporting Topics Seven possible points for each topic: Human Rights Percent of possible points for all companies combined. 1 7 50 46.44 8 58 45 59 40 60 * Sexual harassment * Political contributions * Bribery * Anti-corruption practices * Degrading treatment or punishment of employees * Elimination of discrimination in respect to employment and occupation 34.06 35 61 * Free association and collective bargaining of employees 30 62 63 22.33 25 * Fair compensation of employees * Elimination of all forms of forced and compulsory labor 20.56 64 20 65 Management 15 2 10 149 * Women in management * Customer Emergency Support Qualitative Social 5 67 Quantitative Social Qualitative Social Management Human Rights 66 0 * Reasonable working hours * Effective abolition of child labor 68 70 72 169 * Community development * Employee satisfaction surveys * Community education * Occupational health and safety protection * Employee volunteerism * Customer health and safety Quantitative Social 3 74 75 76 77 81 * Employee turnover rate * Recordable incident/accident rate * Lost workday case rate * Health and safety citations * Health and safety fines * Social community investment Notes: * These numbers correspond to the numbers in the PSI questionnaire. Items with numbers higher than 99 are sectorspecific questions. Appendix 1 has the complete questionnaire. www.roberts.cmc.edu 16 Household, Apparel, & Personal Products Sectors 2012 Household, Apparel, and Personal Product Environmental Intent Elements of the PSI Scores Environmental visionary statement 83.3% 80.0% Climate change/global warming 73.3% 73.3% Environmental management system 73.3% 61.7% Environmental policy statement 73.3% 71.7% Environmental management structure 63.3% 53.3% Stakeholder consultation 63.3% 60.0% 53.3% 50.0% Environmental education Environmental labelling 50.0% 43.3% Green purchasing 50.0% 45.0% Environmental impediments and challenges 46.7% 38.3% Biodiversity 33.3% 28.3% Habitat/ecosystem conservation 33.3% 31.7% 26.7% 23.3% Report contact person 23.3% 20.0% Environmental accounting 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% = Percentage of companies addressing the topics = Percentage of the total possible number of points awarded to all companies combined for each topic, indicating the depth of reporting coverage measured by PSI criteria for each topic. If both percentages are the same it means that each of those reporting companies reporting on a topic got all the possible points. www.roberts.cmc.edu 17 Household, Apparel, & Personal Products Sectors 2012 Household, Apparel, and Personal Product Environmental Reporting Elements of the PSI Scores 70.0% Energy used (total) 37.6% 66.7% Greenhouse gases (or CO2 equivalents), total 39.0% 63.3% Water used 3 1. 0 % 60.0% Waste (solid) disposed of 24.3% 53.3% Waste recycled: solid waste 19 . 0 % 53.3% Waste (hazardous) produced 13 . 3 % Waste: Packaging materials 13 . 3 % 46.7% 46.7% Raw material reduction Materials reused or recycled: Packaging materials 15 . 7 % 43.3% 11. 0 % 43.3% Life Cycle Analysis (LCA) 18 . 6 % 43.3% Renewable materials used 12 . 9 % 36.7% Ozone depleting substances from refrigerant 9.5% Energy used: Logistics 7.6% Materials recycled: Wastewater 7.6% 30.0% 26.7% 26.7% Fines (environmental) 10 . 5 % Environmental expenses and investments 10 . 5 % Notices of violation (environmental) Waste (hazardous) released to the environment 26.7% 26.7% 11. 4 % 23.3% 6.7% Green transportation initiatives 20.0% 10 . 5 % Waste (office) recycled 20.0% 3.8% Energy used (renewable) 20.0% 6.7% Eco-efficiency monitoring 16 . 7 % 5.7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% = Percentage of companies addressing the topics = Percentage of the total possible number of points awarded to all companies combined for each topic, indicating the depth of reporting coverage measured by PSI criteria for each topic. If both percentages are the same it means that each of those reporting companies reporting on a topic got all the possible points. www.roberts.cmc.edu 18 Household, Apparel, & Personal Products Sectors 2012 Household, Apparel, and Personal Product Social Intent Elements of the PSI Scores 83.3% 76.7% Code of conduct or business ethics Social visionary statement 73.3% 70.0% Supplier screening based on social or environmental performance/ supplier management 73.3% 63.3% Employee training for career development 70.0% 65.0% Social policy statement 70.0% 68.3% 50.0% 41.7% Workforce profile: gender 46.7% 31.7% Health and safety, or social organizational structure 43.3% 38.3% Third-party validation 40.0% 33.3% Emergency preparedness program 33.3% 28.3% Workforce profile: ethnicities/race Employment for individuals with disabilities 30.0% 23.3% Social impediments and challenges 30.0% 25.0% 20.0% 13.3% Workforce profile: age 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% = Percentage of companies addressing the topics = Percentage of the total possible number of points awarded to all companies combined for each topic, indicating the depth of reporting coverage measured by PSI criteria for each topic. If both percentages are the same it means that each of those reporting companies reporting on a topic got all the possible points. www.roberts.cmc.edu 19 Household, Apparel, & Personal Products Sectors 2012 Household, Apparel, and Personal Product Social Reporting Elements of the PSI Scores Employee volunteerism Community education 76.7% 47.1% Community development 73.3% 35.7% Bribery 66.7% 30.5% Effective abolition of child labor 66.7% 27.6% Anti-corruption practices 63.3% 31.0% Customer health and safety 60.0% 27.1% Social community investment 56.7% 15.7% Sexual harassment 26.2% Recordable incident/accident rate 26.7% Women in management 56.7% 56.7% 56.7% 29.5% Political contributions 53.3% 20.0% Fair compensation of employees 53.3% 23.8% Elimination of all forms of forced and compulsory labor 50.0% 21.0% Lost workday case rate 25.7% Free association and collective bargaining of employees 20.5% Reasonable working hours 15.2% Degrading treatment or punishment of employees 16.2% 46.7% 43.3% 40.0% 40.0% 36.7% 18.6% Employee satisfaction surveys Employee turnover rate Customer Emergency Support 76.7% 35.7% Occupational health and safety protection Health and safety fines 76.7% 33.3% Elimination of discrimination in respect to employment and occupation Health and safety citations 76.7% 37.1% 11.9% 30.0% 16.7% 4.8% 13.3% 3.3% 6.7% 2.4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% = Percentage of companies addressing the topics = Percentage of the total possible number of points awarded to all companies combined for each topic, indicating the depth of reporting coverage measured by PSI criteria for each topic. If both percentages are the same it means that each of those reporting companies reporting on a topic got all the possible points. www.roberts.cmc.edu 20 Household, Apparel, & Personal Products Sectors 2012 EI Score Rankings Environmental Intent Scores 92.9 Natura Cosmeticos Kao 85.7 A+ Natura Cosmeticos A Kao A FUJIFILM Holdings Corporation Henkel KGaA Toray Industries FUJIFILM Holdings Corporation 82.1 A A- Henkel KGaA 82.1 A- Avon Products SCA-Svenska Cellulosa Kimberly-Clark T oray Industries 75.0 AA- Avon Products 75.0 B+ Shiseido SCA-Svenska Cellulosa 75.0 B+ Adidas 75.0 B+ B+ Clorox Estée Lauder 71.4 B+ Procter and Gamble 71.4 B B- Nike Energizer Holdings Kimberly-Clark Shiseido Adidas Clorox 67.9 B- Beiersdorf Estée Lauder 67.9 B- Reckitt Benckiser 67.9 C+ C+ Mattel VF C+ Newell Rubbermaid C C- Hasbro Colgate-Palmolive D Luxottica D- Mead Johnson F F Polo Ralph Lauren Hermès International F Coach, Inc. F F Swatch Group Christian Dior F L'Oréal Group Procter and Gamble Nike 60.7 Energizer Holdings 57.1 Beiersdorf 57.1 Reckitt Benckiser 53.6 Mattel 50.0 VF 50.0 Newell Rubbermaid 42.9 39.3 Hasbro 28.6 Colgate-Palmolive Luxottica 17.9 Mead Johnson 7.1 Polo Ralph Lauren 3.6 Hermès International 0.0 Coach, Inc. 0.0 Swatch Group 0.0 Christian Dior 0.0 L'Oréal Group 0.0 0 25 50 75 100 Environmental intent scores include topics about the firm’s products, environmental organization, vision and commitment, stakeholders, environmental policy and certifications, environmental aspects and impacts, choice of environmental performance indicators and those used by the industry, environmental initiatives and mitigations, and environmental goals and targets. www.roberts.cmc.edu 21 Household, Apparel, & Personal Products Sectors 2012 ER Score Rankings Environmental Reporting Scores A+ Kimberly-Clark A Natura Cosmeticos 37.27 B+ B+ Avon Products FUJIFILM Holdings Corporation 35.15 B Adidas Nike SCA-Svenska Cellulosa 47.88 Kimberly-Clark 45.45 Natura Cosmeticos Avon Products FUJIFILM Holdings Corporation Adidas 31.82 Nike 31.51 B B SCA-Svenska Cellulosa 30.61 B Clorox B- Procter and Gamble Newell Rubbermaid Reckitt Benckiser Clorox 30.00 Procter and Gamble 29.70 BB- Newell Rubbermaid 28.48 B- Toray Industries Reckitt Benckiser 28.48 T oray Industries 26.97 C+ C+ Kao Estée Lauder Kao 25.45 C Shiseido C Henkel KGaA Colgate-Palmolive Beiersdorf Estée Lauder 22.73 Shiseido 20.91 C C- Henkel KGaA 20.61 D+ Mattel Colgate-Palmolive 20.00 D+ D Hasbro Energizer Holdings D Luxottica D- Polo Ralph Lauren DF VF Mead Johnson Luxottica 6.06 F Hermès International Polo Ralph Lauren 3.03 F F Coach, Inc. Swatch Group F Christian Dior F L'Oréal Group 15.15 Beiersdorf Mattel 11.21 Hasbro 10.00 Energizer Holdings 7.88 VF 2.73 Mead Johnson 0.91 Hermès International 0.00 Coach, Inc. 0.00 Swatch Group 0.00 Christian Dior 0.00 L'Oréal Group 0.00 0 25 50 75 100 Environmental reporting scores are based on the degree to which the company discusses its emissions, energy sources and consumption, environmental incidents and violations, materials use, mitigations and remediation, waste produced, and water used. They also include use of life cycle analysis, environmental performance and stewardship of products, and environmental performance of suppliers and contractors. www.roberts.cmc.edu 22 Household, Apparel, & Personal Products Sectors 2012 Environmental Performance Scores EP Score Rankings A+ Natura Cosmeticos 13.64 A- Kao Kao 11.36 A- Kimberly-Clark T oray Industries 9.09 B B Toray Industries Avon Products Avon Products 9.09 B Reckitt Benckiser Nike 9.09 B C+ Nike Hasbro Hasbro 6.82 C+ Clorox Clorox 6.82 C+ Estée Lauder Estée Lauder 6.82 C+ C+ Beiersdorf FUJIFILM Holdings Corporation C+ SCA-Svenska Cellulosa C+ C+ Colgate-Palmolive Henkel KGaA C- Adidas D Energizer Holdings D D Shiseido Procter and Gamble F Newell Rubbermaid Newell Rubbermaid 0.00 F F Mead Johnson Hermès International Natura Cosmeticos Kimberly-Clark 11.36 Reckitt Benckiser 9.09 Beiersdorf 6.82 FUJIFILM Holdings Corporation 6.82 SCA-Svenska Cellulosa 6.82 Colgate-Palmolive 6.82 Henkel KGaA 6.82 Adidas 4.55 Energizer Holdings 2.27 Shiseido 2.27 Procter and Gamble 2.27 Mead Johnson 0.00 F Polo Ralph Lauren Hermès International 0.00 F Coach, Inc. Polo Ralph Lauren 0.00 Coach, Inc. 0.00 F F Mattel VF Mattel 0.00 F Swatch Group VF 0.00 Swatch Group 0.00 F F Luxottica Christian Dior Luxottica 0.00 F L'Oréal Group Christian Dior 0.00 L'Oréal Group 0.00 0 25 50 75 100 Environmental performance scores are based on whether or not the firm has improved its performance on each of the topics discussed under the heading of environmental reporting, and on whether the quality of the performance is better than that of the firm’s peers. Scoring for each topic is one point if performance is better than in previous reports, two points if better than industry peers, three points if both. www.roberts.cmc.edu 23 Household, Apparel, & Personal Products Sectors 2012 SI Score Rankings Social Intent Scores T oray Industries 88.46 A+ A- Toray Industries Natura Cosmeticos Natura Cosmeticos 73.08 A- Procter and Gamble Procter and Gamble 73.08 Clorox Kao Clorox 69.23 B+ B+ Kao 69.23 B+ Nike 69.23 B+ Henkel KGaA 69.23 Shiseido Kimberly-Clark Nike Shiseido 61.54 B B Kimberly-Clark 61.54 B Estée Lauder BB- Hasbro Reckitt Benckiser B- Beiersdorf B- Avon Products BC+ Adidas Mattel C+ Newell Rubbermaid FUJIFILM Holdings Corporation SCA-Svenska Cellulosa Henkel KGaA Estée Lauder 57.69 Hasbro 53.85 Reckitt Benckiser 53.85 Beiersdorf 50.00 Avon Products 50.00 Adidas 50.00 Mattel 46.15 Newell Rubbermaid 42.31 C+ C+ FUJIFILM Holdings Corporation 42.31 C Energizer Holdings SCA-Svenska Cellulosa 42.31 C Mead Johnson C C- VF Colgate-Palmolive D+ Coach, Inc. 23.08 D+ D Luxottica Polo Ralph Lauren 23.08 D- L'Oréal Group F Hermès International F F Swatch Group Christian Dior Energizer Holdings 38.46 Mead Johnson 38.46 VF 34.62 Colgate-Palmolive 30.77 Coach, Inc. Luxottica Polo Ralph Lauren 15.38 L'Oréal Group 7.69 Hermès International 0.00 Swatch Group 0.00 Christian Dior 0.00 0 25 50 75 100 Social intent scores include topics about the firm’s financials, employees, safety reporting, social management organization, social vision and commitment, stakeholders, social policy and certifications, social aspects and impacts, choice of social performance indicators and those used by the industry, social initiatives and mitigations, and social goals and targets. www.roberts.cmc.edu 24 Household, Apparel, & Personal Products Sectors 2012 SR Score Rankings Social Reporting Scores Nike 64.00 A+ Nike 48.67 A B+ Natura Cosmeticos Clorox 48.40 B+ Toray Industries Kimberly-Clark Adidas Natura Cosmeticos 56.40 Clorox T oray Industries Kimberly-Clark 42.93 Adidas 42.53 B B Procter and Gamble 40.53 B Procter and Gamble SCA-Svenska Cellulosa 38.67 B- SCA-Svenska Cellulosa BB- Mattel Hasbro B- Kao BC+ FUJIFILM Holdings Corporation Estée Lauder C+ Shiseido C+ Colgate-Palmolive C+ C+ Beiersdorf Avon Products C+ VF Newell Rubbermaid Reckitt Benckiser Mattel 36.53 Hasbro 36.27 Kao 35.20 FUJIFILM Holdings Corporation 34.93 Estée Lauder 34.40 Shiseido 34.27 Colgate-Palmolive 34.13 Beiersdorf 34.00 Avon Products 33.87 VF 32.80 Newell Rubbermaid 31.33 C+ C+ Reckitt Benckiser 29.87 C Henkel KGaA Henkel KGaA 28.40 D+ L'Oréal Group Polo Ralph Lauren Energizer Holdings L'Oréal Group 16.00 Polo Ralph Lauren 14.67 D+ D+ Energizer Holdings 13.73 D Mead Johnson D D- Luxottica Coach, Inc. Mead Johnson 11.47 Luxottica 10.67 Coach, Inc. 6.00 F Hermès International Hermès International 0.00 F Swatch Group Swatch Group 0.00 F Christian Dior Christian Dior 0.00 0 25 50 75 100 Social reporting scores are based on the degree to which the company discusses various aspects of its dealings with its employees and contractors. They also include social costs and investments. www.roberts.cmc.edu 25 Household, Apparel, & Personal Products Sectors 2012 SP Score Rankings Social Performance Scores Natura Cosmeticos 46.00 A+ Natura Cosmeticos B- Toray Industries Kao Nike T oray Industries 28.00 Kao 26.00 BB- Nike 26.00 C- Newell Rubbermaid Clorox Estée Lauder Newell Rubbermaid 16.00 Clorox 16.00 CC- Estée Lauder 16.00 C- Avon Products Avon Products 16.00 C- Adidas Adidas 14.00 Kimberly-Clark 14.00 CD+ Kimberly-Clark Hasbro Hasbro 12.00 D+ L'Oréal Group Polo Ralph Lauren 8.00 D D Polo Ralph Lauren Mattel Mattel 8.00 D Beiersdorf D Henkel KGaA D D Procter and Gamble Energizer Holdings D Coach, Inc. D D- Colgate-Palmolive Shiseido D- FUJIFILM Holdings Corporation D- SCA-Svenska Cellulosa DF Reckitt Benckiser Mead Johnson Reckitt Benckiser 2.00 F Hermès International Mead Johnson 0.00 Hermès International 0.00 F F VF Swatch Group VF 0.00 F Luxottica Swatch Group 0.00 F Christian Dior L'Oréal Group 12.00 Beiersdorf 8.00 Henkel KGaA 8.00 Procter and Gamble 8.00 Energizer Holdings 6.00 Coach, Inc. 6.00 Colgate-Palmolive 6.00 Shiseido 4.00 FUJIFILM Holdings Corporation 4.00 SCA-Svenska Cellulosa 4.00 Luxottica 0.00 Christian Dior 0.00 0 25 50 75 100 Social performance scores are based on improvement, performance better than the sector average, or statements of compliance with established social standards. www.roberts.cmc.edu 26 Household, Apparel, & Personal Products Sectors 2012 Household, Apparel, and Personal Product Human Rights Reporting Elements of the PSI Scores Percent of companies reporting* Human Rights Topics adoption reinforcement monitoring 63.3% 36.7% 6.7% 0.0% 66.7% 33.3% 6.7% 0.0% 40.0% 13.3% 3.3% 0.0% 66.7% 23.3% 6.7% 0.0% 50.0% 20.0% 3.3% 0.0% 73.3% 43.3% 3.3% 6.7% 53.3% 23.3% 6.7% 3.3% 43.3% 16.7% 6.7% 6.7% 53.3% 16.7% 0.0% 0.0% 40.0% 10.0% 3.3% 3.3% 53.3% 36.7% 3.3% 0.0% Anti-corruption practices Bribery Degrading treatment or punishment of employees Effective abolition of child labor Elimination of all forms of forced and compulsory labor Elimination of discrimination in respect to employment and occupation Fair compensation of employees Free association and collective bargaining of employees Political contributions Reasonable working hours Sexual harassment compliance Basis of Scores Adoption We assign one point for adoption of a policy standard or for an explicit discussion of an organization’s stance on each of 11 human rights principles. Reinforcement We assign one point for a description of reinforcement actions to make a policy stronger, such as providing educational programs, training, or other activities to promote awareness. Monitoring We assign one point for a description of monitoring measures including mechanisms to detect violations at an early stage, providing systematic reporting, or establishment of committee structure to oversee risky activities. Compliance We assign one point for a quantitative indication of compliance, such as a description of incidences of failure of compliance, or a statement that there were no such incidences. www.roberts.cmc.edu 27 Household, Apparel, & Personal Products Sectors 2012 Household, Apparel, and Personal Product Average Overall, Environmental, and Social PSI Scores Performance by Country This graph illustrates the average PSI in three categories--overall, environmental, and social-breakdown by countries. Since our sample size follows the world's largest companies from the Fortune list, several countries have only one company score to represent the whole country's sustainability reporting in the sector. USA Switzerland Sweden Japan Overall Italy Germany France England Brazil USA Switzerland Sweden Japan Environmental Italy Country N Brazil 1 England 1 France 3 Germany Italy 3 1 Japan 4 Sweden Switzerland 1 1 USA 15 Germany France England Brazil USA Switzerland Sweden Japan Social Italy Germany France England Brazil 0 www.roberts.cmc.edu 10 20 30 40 28 50 60 Household, Apparel, & Personal Products Sectors 2012 Visual Cluster Analysis Visual cluster analysis multivariate data of the sort produced by the PSI are difficult to summarize. Here we have created radar diagrams of the performance of each company analyzed in the sector by its environmental and social intent, reporting, and performance sorted by company ranking. Maximum scores will match the outer sides of the hexagon, which total up to 100 percent. EI = Environmental Intent, ER = Environmental Reporting, EP = Environmental Performance SI = Social Intent, SR = Social Reporting, SP = Social Performance ER EI ER 100 100 75 75 75 EP 50 EI EI EP 50 EI EP 50 EI 50 25 25 25 0 0 0 0 SP SI SP SI SR SP SI SR Nike SI SR Kimberly-Clark ER SP SR Toray Industries ER Clorox ER ER 100 100 100 100 75 75 75 75 75 EP 50 EI 50 EP EI EP 50 EI EP 50 EI 50 25 25 25 25 25 0 0 0 0 0 SP SI SR SP SI SR Kao SI SR Adidas ER SP ER SP SI SR Avon Products SP FUJIFILM Holdings Corporation ER ER 100 100 100 100 100 75 75 75 75 75 EP 50 EI 50 EP EI EP 50 EI EP 50 EI 50 25 25 25 25 25 0 0 0 0 0 SI SP SI SR SP SI SR SCA-Svenska Cellulosa SI SR Estée Lauder ER SP ER SP SI SR Henkel KGaA SP Reckitt Benckiser ER ER 100 100 100 100 100 75 75 75 75 75 EP 50 EI 50 EP EI EP 50 EI EP 50 EI 50 25 25 25 25 25 0 0 0 0 0 SI SP SI SR SP SI SR Newell Rubbermaid SI SR Beiersdorf ER SP ER SP SI SR Hasbro SP Colgate-Palmolive ER ER 100 100 100 100 100 75 75 75 75 75 EP 50 EI 50 EP EI EP 50 EI 50 EP EI 50 25 25 25 25 25 0 0 0 0 0 SI SP SI SR SP SI SR VF SI SR Energizer Holdings ER SP ER SP SI SR Luxottica SP L'Oréal Group ER ER 100 100 100 100 100 75 75 75 75 75 50 EP EI 25 EP EI 25 0 SI 50 SR Mead Johnson www.roberts.cmc.edu SI SR 50 EP EI 25 0 SP Coach, Inc. EI 25 0 SP EP 50 SP SR Swatch Group 29 SI 50 EP 25 0 SI EP SR Polo Ralph Lauren ER EP SR Mattel ER EP SR Shiseido ER EP SR Procter and Gamble ER EP SP 100 SI EI EP 25 0 ER EI 50 25 SR EI ER 100 75 Natura Cosmeticos EI ER 100 75 SI EI ER 100 0 SP SR SI SP SR Christian Dior Hermès International Household, Apparel, & Personal Products Sectors 2012 Relationships Between Overall PSI Score and Companies' Revenue and Profit Company Name Overall Score Revenue ($million) Revenue Log10 $M Profits Profits ($million) Log $M 10 Assets Assets ($million) Log $M 10 Market Value ($million) Market Value Log10 $M Adidas Avon Products 34.53 34.31 14870 1.17 350 -0.46 12140 1.08 10830 1.03 10380 1.02 630 -0.20 6830 0.83 13240 1.12 Beiersdorf 25.24 8230 0.92 540 -0.27 6510 0.81 15640 1.19 Christian Dior Clorox 0.00 37.62 24980 1.40 1110 0.05 48530 1.69 18220 1.26 5500 0.74 590 -0.23 4490 0.65 8630 0.94 Coach, Inc. Colgate-Palmolive 4.38 22.99 3340 0.52 640 -0.19 2870 0.46 11630 1.07 15330 1.19 2290 0.36 11130 1.05 41370 1.62 Energizer Holdings 14.81 4130 0.62 310 -0.51 6200 0.79 4100 0.61 Estée Lauder FUJIFILM Holdings C 29.97 32.18 7480 0.87 410 -0.39 5710 0.76 12240 1.09 25000 1.40 110 -0.96 28050 1.45 16270 1.21 Hasbro 23.96 4070 0.61 370 -0.43 3900 0.59 4920 0.69 Henkel KGaA Hermès International 28.16 0.00 18930 1.28 840 -0.08 22670 1.36 21030 1.32 2460 0.39 400 -0.40 3040 0.48 14180 1.15 Kao 35.01 13110 1.12 660 -0.18 10700 1.03 13790 1.14 Kimberly-Clark L'Oréal Group 41.20 7.43 19120 1.28 1880 0.27 19210 1.28 25290 1.40 24360 1.39 2500 0.40 33380 1.52 63050 1.80 Luxottica Mattel 8.22 23.34 7100 0.85 440 -0.36 10360 1.02 12150 1.08 5430 0.73 530 -0.28 4780 0.68 8030 0.90 7.25 2830 0.45 400 -0.40 2070 0.32 9780 0.99 51.59 26.92 2150 0.33 350 -0.46 1570 0.20 8220 0.91 5580 0.75 290 -0.54 6420 0.81 3840 0.58 Nike 44.21 18360 1.26 1470 0.17 13360 1.13 33630 1.53 Polo Ralph Lauren Procter and Gamble 8.13 33.51 4870 0.69 410 -0.39 4650 0.67 7970 0.90 76780 1.89 13050 1.12 135290 2.13 184470 2.27 Reckitt Benckiser 27.23 12530 1.10 2290 0.36 13790 1.14 37640 1.58 31.56 27.81 15480 1.19 670 -0.17 20990 1.32 10520 1.02 7090 0.85 200 -0.70 6020 0.78 9030 0.96 0.00 4960 0.70 730 -0.14 7450 0.87 15430 1.19 40.36 17.77 15110 1.18 -170 7220 0.86 460 Mead Johnson Natura Cosmeticos Newell Rubbermaid SCA-Svenska Cellulo Shiseido Swatch Group Toray Industries VF -0.34 14940 1.17 7620 0.88 6490 0.81 8650 0.94 Source: www.roberts.cmc.edu 30 2010 Forbes List Household, Apparel, & Personal Products Sectors 2012 60 5 1.5 9 50 Overall PSI Scores 4 4 .2 1 4 0 .3 6 4 1.2 0 40 3 7 .6 2 3 4 .3 1 3 5 .0314 .5 3 2 6 .9 2 2 9 .9 7 2 7 .8 1 3 3 .5 1 3 2 .18 3 1.5 6 30 2 8 .16 2 7 .2 3 2 5 .2 4 2 3 .9 6 2 3 .3 4 2 2 .9 9 20 17 .7 7 14 .8 1 10 8 .13 7 .2 5 8 .2 2 7 .4 3 4 .3 8 2 0 0 .0 0 0 0.2 0.4 0 .0 0 0.6 R = 0.0855 0 .0 0 0.8 1 1. 2 1. 4 1. 6 1. 8 2 Revenue Log10 $M 60 5 1. 5 9 50 44.21 4 1. 2 0 Overall PSI Scores 40 34.53 37.62 3345. 3. 011 3 2 . 18 29.97 33.51 3 1. 5 6 30 2 8 . 16 27.81 26.92 25.24 23.96 23.34 27.23 22.99 20 17 . 7 7 14 . 8 1 .22 8 8. 13 7.25 10 2 7.43 R = 0.0038 4.38 0.00 - 1.5 -1 - 0.5 00. 0 0 0.00 0 0.5 1 1.5 Profits Log10 $M www.roberts.cmc.edu 31 Household, Apparel, & Personal Products Sectors 2012 60 5 1. 5 9 50 Overall PSI Scores 44.21 4 1. 2 0 40.36 40 37.62 3 5 .3041. 5 3 34.31 30 33.51 3 1. 5 6 3 2 . 18 29.97 22 76 . 8. 9 12 25.24 2 3 . 9263 . 3 4 27.23 2 8 . 16 22.99 20 17 . 7 7 14 . 8 1 2 10 R = 0.0126 8.22 8 . 13 7.25 7.43 4.38 0 0.00 0 0.00 0.5 0.00 1 1.5 2 2.5 Asset Log10 $M 60 5 1. 5 9 50 Overall PSI Scores 44.21 4 1. 2 0 40.36 40 37.62 30 26.92 23.96 3 4 . 533345. 3. 011 3 2 . 18 3 1. 5 6 29.97 2 8 . 16 27.81 25.24 23.34 33.51 27.23 22.99 20 17 . 7 7 14 . 8 1 10 8 . 13 7.25 2 R = 0.0023 8.22 7.43 4.38 0 0 .00.00 0 . 0 0 0 0.5 1 1.5 2 2.5 Market Value Log10 $M www.roberts.cmc.edu 32 Household, Apparel, & Personal Products Sectors 2012 Number of Explicit numerical goals Reported Kimberly-Clark 11 Avon Products 9 Clorox 6 Toray Industries 5 Shiseido 5 Nike 5 Adidas 5 Natura Cosmeticos 4 Hasbro 4 FUJIFILM Holdings Corporation 3 Newell Rubbermaid 2 SCA-Svenska Cellulosa 2 Colgate-Palmolive 2 Kao 2 VF 1 Estée Lauder 1 Reckitt Benckiser 1 Beiersdorf 1 0 5 10 15 20 25 Explicit Goals Most Frequently Reported 1 Greenhouse gases (or CO2 equivalents), total 2 Recordable incident/accident rate 7 3 Water used 7 4 Energy used (total) 7 5 Lost workday case rate 6 6 Waste (solid) disposed of 5 7 Materials reused or recycled: Packaging materials 4 www.roberts.cmc.edu 10 33 Household, Apparel, & Personal Products Sectors 2012 Number of Topics Showing Performance Improvement over Previous Year Data Natura Cosmeticos 16 Kao 8 Avon Products 6 Nike 6 Toray Industries 6 Estée Lauder 6 Reckitt Benckiser 5 Henkel KGaA 5 Colgate-Palmolive 5 Kimberly-Clark 5 Beiersdorf 4 Hasbro 3 Adidas 3 FUJIFILM Holdings Corporation 3 Energizer Holdings 3 Clorox 3 Procter and Gamble 3 SCA-Svenska Cellulosa 3 Mattel 2 Newell Rubbermaid 2 Shiseido 2 0 5 10 15 20 25 30 35 40 Topics Most Frequently Reported as Having Improvements over previous year data 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Greenhouse gases (or CO2 equivalents), total Energy used (total) Water used Occupational health and safety protection Women in management Recordable incident/accident rate Lost workday case rate Waste recycled: solid waste Employee turnover rate Waste (solid) disposed of Environmental expenses and investments Fines (environmental) Community development Employee satisfaction surveys Employee volunteerism Social community investment www.roberts.cmc.edu 14 12 9 8 8 6 5 4 2 2 2 2 2 2 2 2 34 Household, Apparel, & Personal Products Sectors 2012 17 18 19 20 21 22 23 24 25 26 27 28 Energy used: Logistics Waste: Packaging materials Ozone depleting substances from refrigerant Renewable materials used Life Cycle Analysis (LCA) Customer health and safety Materials recycled: Wastewater Materials reused or recycled: Packaging materials Notices of violation (environmental) Waste (hazardous) produced Green transportation initiatives Community education www.roberts.cmc.edu 35 2 2 2 2 2 1 1 1 1 1 1 1 Household, Apparel, & Personal Products Sectors 2012 Number of Topics in which Performance was Better than Sector Average* Adidas 1 Avon Products 1 Kao 1 Kimberly-Clark 1 Toray Industries 1 0 1 2 *Sector averages are calculated from the materials scored for this report. www.roberts.cmc.edu 36 Household, Apparel, & Personal Products Sectors 2012 B Adidas Group 2009 Sustainability Report, Guide to Hazardous Material, Workplace Standard, SEA Team Structure Adidas The Adidas Group published information about its environmental and social practices in its most recent sustainability report entitled “Team Talk.” The report describes in detail Adidas Group’s vision and policies to achieve its sustainability goals. For example, the report discusses Adidas Group’s green purchasing and supplier screening processes. However, the report should discuss in more detail the distribution of Adidas workforce and also include a Code of Conduct. The section of the report entitled “Performance Data” outlines basic data about Adidas Group’s environmental impact including total energy use, water use, and greenhouse gas emissions. To make the report more thorough, Adidas Group should also include data on how much and which types of waste are recycled and its environmental expenditures. Another area of concern in the report is that a detailed analysis is done of emissions produced by shipping products via sea freight as oppose to airlines that Adidas Group now uses to ship their products from factories to consumers. Analyst(s): Karun Kiani Carolyn Campbell E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 71 E 46% ES A S 50 S 54% SSA 0 25 50 32 43 14 5 EI 75 ER EP SI SR Adidas SP Environmental Intent Question Category Accountability Score Max Score % General Comment 2 4 50 Good Management 6 8 75 Excellent Policy 6 10 60 Good Product Responsibility 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 6 14 43 Needs improvement Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 4 21 19 Management 10 35 29 Needs improvement Materials Usage 4 14 29 Needs improvement Products 0 7 0 Needs substantial improvement Recycling 0 28 0 Needs substantial improvement Waste 8 28 29 Needs improvement Water 4 7 57 Good Score Max Score % General Comment 2 4 50 Good Needs substantial improvement Social Intent Question Category Accountability Management 1 10 10 Policy 6 6 100 Social Demographic 0 2 0 Vision 4 4 100 Score Max Score % General Comment 28 77 36 Needs improvement Needs substantial improvement Excellent Needs substantial improvement Excellent Social Reporting Question Category Human Rights Management 3 14 21 Qualitative Social 18 42 43 Needs improvement Quantitative Social 10 42 24 Needs substantial improvement www.roberts.cmc.edu 37 Household, Apparel, & Personal Products Sectors 2012 B Avon Products 2011 Sustainability Report and 2011 Web Pages Avon Products Several progressive initiatives by Avon demonstrate a commitment to corporate responsibility, such as a program to increase supplier diversity, its Green Innovation Challenge, Employee Assistance Program, and the Avon Foundation's emergency and disaster relief funds. The Company's philanthropic focus is on bettering the livelihoods of women. Avon is the world's largest micro-lender to women, and it helps victims of breast cancer and domestic violence. •Avon recognizes that it could report more quantitative data. The company views this as unnecessary, but the inclusion of this information would greatly improve its transparency. Analyst(s): Ashley Scott Karen de Wolski E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Source of points Distribution of points E 75 ES A S 46% E 54% S SSA 0 25 50 50 37 34 16 9 EI 75 ER EP SI SR Avon Products SP Environmental Intent Question Category Accountability Score Max Score % General Comment 3 4 75 Excellent Excellent Management 7 8 88 Policy 9 10 90 Excellent Product Responsibility 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 5 14 36 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 8 21 38 Needs improvement Management 12 35 34 Needs improvement Materials Usage 2 14 14 Needs substantial improvement Products 2 7 29 Needs improvement Recycling 7 28 25 Needs improvement Waste 5 28 18 Needs substantial improvement Water 5 7 71 Good Score Max Score % General Comment 3 4 75 Excellent Good Social Intent Question Category Accountability Management 5 10 50 Policy 4 6 67 Good Social Demographic 0 2 0 Needs substantial improvement Vision 1 4 25 Needs improvement Score Max Score % General Comment 17 77 22 Needs substantial improvement Management 4 14 29 Needs improvement Qualitative Social 16 42 38 Needs improvement Quantitative Social 11 42 26 Needs improvement Social Reporting Question Category Human Rights www.roberts.cmc.edu 38 Household, Apparel, & Personal Products Sectors 2012 C+ Beiersdorf 2011 Web Pages Beiersdorf Beiersdorf presents data on its environmental and social impact through its online sustainability report. Statistics on energy used, water used, greenhouse gases emitted, and accident rates are clearly presented through well constructed graphs. Total waste is reported, but the numbers are not separated into water and solid waste. Beiersdorf reports briefly on many of its social development projects, but generally does not go in depth in their discussion. While a Code of Conduct is available, it was not accessible as it was posted online in a flash format. Beiersdorf also extensively reports the efforts of its internal auditing organization, ESMAS, but does not mention any third-party validation. Analyst(s): Alan Hu Carolyn Campbell E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Source of points Distribution of points E 57 E 40% ES A S 34 S 60% SSA 0 25 50 50 15 8 7 EI 75 ER EP SI SR Beiersdorf SP Environmental Intent Score Max Score % General Comment Accountability Question Category 4 4 100 Excellent Management 5 8 63 Good Policy 5 10 50 Good Product Responsibility 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 6 14 43 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 4 21 19 Needs substantial improvement Management 2 35 6 Needs substantial improvement Materials Usage 1 14 7 Needs substantial improvement Products 0 7 0 Needs substantial improvement Recycling 0 28 0 Needs substantial improvement Waste 3 28 11 Needs substantial improvement Water 4 7 57 Good Score Max Score % General Comment 2 4 50 Good Management 3 10 30 Needs improvement Policy 5 6 83 Excellent Social Demographic 1 2 50 Good Vision 2 4 50 Good Score Max Score % General Comment 18 77 23 Needs substantial improvement Needs substantial improvement Social Intent Question Category Accountability Social Reporting Question Category Human Rights Management 0 14 0 Qualitative Social 15 42 36 Needs improvement Quantitative Social 11 42 26 Needs improvement www.roberts.cmc.edu 39 Household, Apparel, & Personal Products Sectors 2012 F Christian Dior 2011 Web Pages Christian Dior Christian Dior 2011 website does not contain any sustainability information. Analyst(s): Hilary Haskell Carolyn Campbell E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E S 1% E 1% ES A S 0 0 0 0 0 0 EI ER EP SI SR SP Christian Dior SSA 0 25 50 75 Environmental Intent Question Category Accountability Score Max Score % General Comment 0 4 0 Needs substantial improvement Management 0 8 0 Needs substantial improvement Policy 0 10 0 Needs substantial improvement Product Responsibility 0 2 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Score Max Score % General Comment 0 14 0 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 0 21 0 Needs substantial improvement Management 0 35 0 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Products 0 7 0 Needs substantial improvement Recycling 0 28 0 Needs substantial improvement Waste 0 28 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 0 10 0 Needs substantial improvement Policy 0 6 0 Needs substantial improvement Social Demographic 0 2 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Social Reporting Question Category Score Max Score % General Comment Human Rights 0 77 0 Needs substantial improvement Management 0 14 0 Needs substantial improvement Qualitative Social 0 42 0 Needs substantial improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 40 Household, Apparel, & Personal Products Sectors 2012 B+ Clorox 2010 Corporate Responsibility Report, Code of Conduct, and 2011 Web Pages Clorox The Clorox Company does a very good job of reporting its sustainability practices through its Corporate Responsibility Report and Code of Conduct. The Corporate Responsibility report contains an excellent amount of information about their supplier screening based on environmental performance and dedication towards protecting biodiversity. In addition, the company shows its dedication towards providing a safe and healthy working environment for their employees. The company also does a decent job in reporting quantitative data for energy and water used but could improve this section by including more information about waste recycled and hazardous materials produced. In addition Clorox could improve its score by including more details, specifically initiatives it is going to use in order to reinforce its basic policies. In terms of social sustainability, the company provides in-depth information about its policies against bribery, corruption and other basic social issues. Analyst(s): Eric Robert King Bukola Jimoh E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E E 4 1% ES A S 68 49 SSA 0 25 50 69 30 S 59% 16 7 EI 75 ER EP SI SR Clorox SP Environmental Intent Score Max Score % General Comment Accountability Question Category 2 4 50 Good Management 4 8 50 Good Policy 8 10 80 Excellent Product Responsibility 2 2 100 Excellent Vision 3 4 75 Excellent Score Max Score % General Comment 6 14 43 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 5 21 24 Needs substantial improvement Management 2 35 6 Needs substantial improvement Materials Usage 3 14 21 Needs substantial improvement Products 0 7 0 Needs substantial improvement Recycling 7 28 25 Needs improvement Waste 7 28 25 Needs improvement Water 6 7 86 Excellent Social Intent Question Category Score Max Score % General Comment Accountability 1 4 25 Needs improvement Management 8 10 80 Excellent Policy 6 6 100 Excellent Social Demographic 1 2 50 Good Vision 2 4 50 Good Score Max Score % General Comment 34 77 44 Needs improvement Social Reporting Question Category Human Rights Management 3 14 21 Needs substantial improvement Qualitative Social 21 42 50 Good Quantitative Social 10 42 24 Needs substantial improvement www.roberts.cmc.edu 41 Household, Apparel, & Personal Products Sectors 2012 D- Coach 2011 Corporate Governance Principles, Global Business Integrity Program, and 2011 Web Pages Coach, Inc. Coach does not have a corporate sustainability report with information about its environmental and social policies. It would be useful for the company to publish a report about its sustainability practices. Analyst(s): Sachi Singh Karen de Wolski E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 0% E ES A 23 S S 100% SSA 0 25 50 75 0 0 0 EI ER EP SI 6 6 SR SP Coach, Inc. Environmental Intent Question Category Accountability Score Max Score % General Comment 0 4 0 Needs substantial improvement Management 0 8 0 Needs substantial improvement Policy 0 10 0 Needs substantial improvement Product Responsibility 0 2 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Score Max Score % General Comment 0 14 0 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 0 21 0 Needs substantial improvement Management 0 35 0 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Products 0 7 0 Needs substantial improvement Recycling 0 28 0 Needs substantial improvement Waste 0 28 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Score Max Score % General Comment 0 4 0 Needs substantial improvement Needs substantial improvement Social Intent Question Category Accountability Management 0 10 0 Policy 4 6 67 Good Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Social Reporting Question Category Score Max Score % General Comment Human Rights 12 77 16 Needs substantial improvement Management 0 14 0 Needs substantial improvement Qualitative Social 0 42 0 Needs substantial improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 42 Household, Apparel, & Personal Products Sectors 2012 C Colgate Palmolive 2008 Sustainability Report, Code of Conduct, 2009 Annual Report and 2011 Web Pages Colgate-Palmolive Colgate Palmolive struggles to report practical environmental information in its 2008 Sustainability Report. The report, which consists of a collection of web pages from its website, is generally outdated and unfocused. Colgate Palmolive especially struggles to report quantitative data in the fields of waste and recycling. In addition, Colgate Palmolive fails to discuss many environmental intent topics. •Colgate Palmolive successfully reports on a number of social aspects and its code of conduct shows adoption of many important human rights practices. The company states in its Code of Conduct that it has “a civic responsibility to support the health, education and welfare of the community.” Throughout its website and in other reports there is a clear theme of supporting this statement of civic responsibility. Analyst(s): Jordan Lieberman Bukola Jimoh E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E E 40% ES A S 25 50 34 20 S 60% SSA 0 31 29 7 EI 75 ER 6 EP SI SR Colgate-Palmolive SP Environmental Intent Question Category Accountability Score Max Score % General Comment 0 4 0 Needs substantial improvement Needs improvement Management 2 8 25 Policy 4 10 40 Needs improvement Product Responsibility 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 4 14 29 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 5 21 24 Needs substantial improvement Management 6 35 17 Needs substantial improvement Materials Usage 1 14 7 Needs substantial improvement Products 0 7 0 Needs substantial improvement Recycling 3 28 11 Needs substantial improvement Waste 1 28 4 Needs substantial improvement Water 5 7 71 Good Score Max Score % General Comment 0 4 0 Needs substantial improvement Needs substantial improvement Social Intent Question Category Accountability Management 2 10 20 Policy 4 6 67 Good Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 18 77 23 Needs substantial improvement Needs substantial improvement Social Reporting Question Category Human Rights Management 3 14 21 Qualitative Social 11 42 26 Needs improvement Quantitative Social 11 42 26 Needs improvement www.roberts.cmc.edu 43 Household, Apparel, & Personal Products Sectors 2012 D+ Energizer Holdings 2011 Web Pages Energizer Holdings Energizer Holdings is the industry leader in eliminating heavy metals from batteries. Its new inventions in rechargeable batteries demonstrate efforts to reduce its carbon footprint. Its web pages are severely lacking in environmental data. There was no data on emissions or waste and water disposal. Furthermore, there was no information on human rights reporting or social responsibility. Analyst(s): Jaclyn T. D'Arcy Carolyn Campbell E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 57 ES A 38 E 48% S S 52% SSA EI 0 25 50 14 8 2 ER EP SI SR 6 Energizer Holdings SP 75 Environmental Intent Score Max Score % General Comment Accountability Question Category 2 4 50 Good Management 4 8 50 Good Policy 7 10 70 Good Product Responsibility 1 2 50 Good Vision 2 4 50 Good Score Max Score % General Comment 3 14 21 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 0 21 0 Needs substantial improvement Management 2 35 6 Needs substantial improvement Materials Usage 1 14 7 Needs substantial improvement Products 0 7 0 Needs substantial improvement Recycling 1 28 4 Needs substantial improvement Waste 3 28 11 Needs substantial improvement Water 0 7 0 Needs substantial improvement Score Max Score % General Comment 2 4 50 Good Needs substantial improvement Social Intent Question Category Accountability Management 0 10 0 Policy 6 6 100 Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 2 77 3 Needs substantial improvement Needs substantial improvement Excellent Social Reporting Question Category Human Rights Management 0 14 0 Qualitative Social 14 42 33 Needs improvement Quantitative Social 4 42 10 Needs substantial improvement www.roberts.cmc.edu 44 Household, Apparel, & Personal Products Sectors 2012 B- Estee Lauder 2010 Annual Report, Code of Conduct, and 2011 Web Pages Estée Lauder Estee Lauder provides clear information about its commitment to sustainability in its 2010 Annual Report, Code of Conduct, and its current web pages. Estee Lauder received the distinction of one of the United States greenest companies, by Newsweek. The company has been recognized for its commitment to occupational health and safety through numerous awards including NSC Occupational Excellence and NSC Perfect Record Award. A highlight of Estee Lauder’s environmental efforts includes its 100% Global No Landfill Policy where all excess waste is converted to ethanol. Estee Lauder emphasizes the importance of supplier compliance with human rights criteria in its 2010 reporting. However, Estee Lauder fails to explicitly state its own individual commitment to doing so. Additionally, Estee Lauder’s Breast Cancer Awareness Campaign, MAC AIDS Fund, and Aveda Fund demonstrate the company’s support of community development, but no total quantitative figure for community investment is reported. Other important areas are not included or not addressed in detail such as environmental accounting, social and environmental impediments and challenges, and anti-discriminatory practices for those with disabilities. Furthermore the GRI Index included at the end of the Annual Report indicates that certain reporting areas are included, yet are not found in the report. • To increase the overall score, more quantitative environmental data should be presented. Additional problems included data reported as percentages and bar graphs without exact values. Analyst(s): Hilary Haskell Bukola Jimoh E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 68 E 44% ES A S S 56% SSA 0 25 50 58 34 23 16 7 EI 75 ER EP SI SR Estée Lauder SP Environmental Intent Question Category Accountability Score Max Score % General Comment 2 4 50 Good Good Management 5 8 63 Policy 10 10 100 Product Responsibility 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 3 14 21 Needs substantial improvement Needs substantial improvement Excellent Environmental Reporting Question Category Emissions to Air Energy 5 21 24 Management 9 35 26 Needs improvement Materials Usage 3 14 21 Needs substantial improvement Products 0 7 0 Needs substantial improvement Recycling 2 28 7 Needs substantial improvement Waste 5 28 18 Needs substantial improvement Water 1 7 14 Needs substantial improvement Score Max Score % General Comment 1 4 25 Needs improvement Management 6 10 60 Good Policy 6 6 100 Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 18 77 23 Needs substantial improvement Needs substantial improvement Social Intent Question Category Accountability Excellent Social Reporting Question Category Human Rights Management 3 14 21 Qualitative Social 19 42 45 Needs improvement Quantitative Social 10 42 24 Needs substantial improvement www.roberts.cmc.edu 45 Household, Apparel, & Personal Products Sectors 2012 B- Fujifilm Holdings 2010 Sustainability Report and 2011 Web Pages FUJIFILM Holdings Corporation Fujifilm goes to great lengths in its reporting to effectively convey its dual corporate philosophy of contributing to people’s quality of life while achieving sustainable management. Fujifilm’s thorough Sustainability Report focuses primarily on its environmental and social activities. To help stakeholders better understand its CSR activities, Fujifilm includes a comprehensive set of quantitative information in its report. Several of the categories included show improvements over previous years. In terms of the environment, Fujifilm set several concrete goals such as reducing carbon dioxide emissions by 30% over fiscal year 2005 levels by fiscal year 2020. Although shrinking its carbon footprint is one major point of emphasis, Fujifilm devotes equal attention to reducing its water consumption, waste generation, and packaging materials. • •Fujifilm’s demonstrates the same level of commitment to fulfilling its social responsibilities as it does to environmental stewardship. Fujifilm primarily focuses on the fields of research and education. The company makes social contributions through its medical systems business by providing a range of diagnostic imaging equipment and pharmaceuticals. In order to expand its social contributions, the company formed a volunteer organization designed to increase •volunteerism among employees.•• Overall, Fujifilm’s willingness to enhance corporate transparency by actively disclosing information in its Sustainability Report and on its web pages warrants a solid score. Analyst(s): Daniel Olmsted Carolyn Campbell E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Source of points Distribution of points E 82 ES A S 44% E 56% S 42 35 35 7 4 SSA EI 0 25 50 ER EP SI SR FUJIFILM Holdings Corporation SP 75 Environmental Intent Question Category Accountability Score Max Score % General Comment 2 4 50 Good Management 8 8 100 Excellent Policy 8 10 80 Excellent Product Responsibility 1 2 50 Good Vision 4 4 100 Excellent Score Max Score % General Comment 6 14 43 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 4 21 19 Needs substantial improvement Management 7 35 20 Needs substantial improvement Materials Usage 3 14 21 Needs substantial improvement Products 2 7 29 Needs improvement Recycling 7 28 25 Needs improvement Waste 8 28 29 Needs improvement Water 5 7 71 Good Score Max Score % General Comment 0 4 0 Needs substantial improvement Management 3 10 30 Needs improvement Policy 5 6 83 Excellent Social Demographic 1 2 50 Good Vision 2 4 50 Good Score Max Score % General Comment 20 77 26 Needs improvement Needs substantial improvement Social Intent Question Category Accountability Social Reporting Question Category Human Rights Management 3 14 21 Qualitative Social 13 42 31 Needs improvement Quantitative Social 7 42 17 Needs substantial improvement www.roberts.cmc.edu 46 Household, Apparel, & Personal Products Sectors 2012 C+ Hasbro 2009 Corporate Philanthropy Report, Code of Conduct, and 2011 Web Pages Hasbro Hasbro’s social and environmental corporate responsibility efforts are communicated through its 2009 Corporate Philanthropy Report, Code of Conduct, and 2011 web pages. Overall, Hasbro lacks substantiating quantitative data; when data is presented it is only presented with percentages. Hasbro did report its lost workday case rate, but this information was outdated and in the form of vague bar graphs.•Hasbro’s transparency is not evident in its waste recycling efforts. Only percentages were reported, and only for subsidiaries in Massachusetts and Ireland. •Corporate philanthropy is emphasized in Hasbro’s reporting. The company provides an entire report dedicated to this aspect of corporate responsibility. •Other areas in which Hasbro excels are conducting audits and stakeholder consultation. It is a member of the International Council of Toy Industries (ICTI) and participates in ICTI’s Caring, Aware, Responsible, and Ethical (CARE) program to improve workplace conditions. Analyst(s): Hilary Haskell Karen de Wolski E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 54 E 30% ES A S 39 S 70% SSA 0 25 50 EI 75 36 10 7 ER EP 12 Hasbro SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 1 4 25 Needs improvement Good Management 4 8 50 Policy 4 10 40 Needs improvement Product Responsibility 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 2 14 14 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 3 21 14 Needs substantial improvement Management 0 35 0 Needs substantial improvement Materials Usage 2 14 14 Needs substantial improvement Products 0 7 0 Needs substantial improvement Recycling 4 28 14 Needs substantial improvement Waste 3 28 11 Needs substantial improvement Water 0 7 0 Needs substantial improvement Score Max Score % General Comment 3 4 75 Excellent Social Intent Question Category Accountability Management 3 10 30 Needs improvement Policy 6 6 100 Excellent Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 26 77 34 Needs improvement Needs substantial improvement Social Reporting Question Category Human Rights Management 0 14 0 Qualitative Social 18 42 43 Needs improvement Quantitative Social 7 42 17 Needs substantial improvement www.roberts.cmc.edu 47 Household, Apparel, & Personal Products Sectors 2012 B- Henkel Group, 2009 Sustainability Report, 2009 Code of Conduct, 2009 Corporate Code of Sustainability, 2009 Vision and Vaules, and 2011 Web Pages Henkel KGaA Henkel shows a strong commitment to sustainability and corporate social responsibility through its 2009 Corporate Social Responsibility and Sustainability Report and 2011 web pages. Henkel provides a clear environmental and social visionary statement, where the focal areas of energy and climate, water and wastewater, safety and health, social progress, and materials and waste are addressed. The 2011 web pages give specific examples of how these visions and values are being implemented at various production sites, but in the 2009 Corporate Social Responsibility and Sustainability Report various quantitative details and specific measures are missing. For example, materials and waste is a reported focal area, but data for hazardous waste and waste released to the environment is not given. Henkel speaks about the use of renewable energy, but provides no quantitative data on amount used or invested. Henkel reports that in 2009, 396 million Euros were spent on research and development, but does not state what type of research and development. In 2010, Henkel was declared the best sustainability brand by the German “Best Brands” ranking, as well as other International sustainability awards, but Henkel should provide a more detailed reporting available for the public. Analyst(s): Simone Berkovitz Karen de Wolski E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 82 ES A E 48% S S 52% SSA 0 25 50 69 28 21 EI 75 ER 7 EP 8 SI SR Henkel KGaA SP Environmental Intent Question Category Accountability Score Max Score % General Comment 4 4 100 Excellent Management 6 8 75 Excellent Policy 7 10 70 Good Product Responsibility 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 4 14 29 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 5 21 24 Needs substantial improvement Management 3 35 9 Needs substantial improvement Materials Usage 4 14 29 Needs improvement Products 0 7 0 Needs substantial improvement Needs substantial improvement Recycling 0 28 0 Waste 5 28 18 Needs substantial improvement Water 4 7 57 Good Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 10 10 100 Policy 5 6 83 Excellent Social Demographic 0 2 0 Needs substantial improvement Vision 3 4 75 Excellent Score Max Score % General Comment 12 77 16 Needs substantial improvement Management 7 14 50 Good Qualitative Social 15 42 36 Needs improvement Quantitative Social 3 42 7 Needs substantial improvement Excellent Social Reporting Question Category Human Rights www.roberts.cmc.edu 48 Household, Apparel, & Personal Products Sectors 2012 F Hermès International 2011 Web Pages Hermès International No sustainability information for the corporation was available. Hermès' website only showcases products and financial reports. Analyst(s): Ashley Scott Karen de Wolski E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E S 1% E 1% ES A S 0 0 0 0 0 0 EI ER EP SI SR SP Hermès International SSA 0 25 50 75 Environmental Intent Question Category Accountability Score Max Score % General Comment 0 4 0 Needs substantial improvement Management 0 8 0 Needs substantial improvement Policy 0 10 0 Needs substantial improvement Product Responsibility 0 2 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Score Max Score % General Comment 0 14 0 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 0 21 0 Needs substantial improvement Management 0 35 0 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Products 0 7 0 Needs substantial improvement Recycling 0 28 0 Needs substantial improvement Waste 0 28 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 0 10 0 Needs substantial improvement Policy 0 6 0 Needs substantial improvement Social Demographic 0 2 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Social Reporting Question Category Score Max Score % General Comment Human Rights 0 77 0 Needs substantial improvement Management 0 14 0 Needs substantial improvement Qualitative Social 0 42 0 Needs substantial improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 49 Household, Apparel, & Personal Products Sectors 2012 B Kao 2010 Kao CSR/Sustainability Report and 2011 Web Pages Kao Kao thoroughly communicates its sustainability efforts in its extensive 2010 CSR/Sustainability Report. Not only does Kao demonstrate a commitment to not only environmental sustainability, but also to social responsibility. Kao’s effort to report its actions and initiatives is concise and clear.• Use of renewable energy, recycling of wastewater, and total amounts of ozone-depleting substances are some areas where Kao lacks quantitative data. In addition, Kao does not seem completely transparent, in its lack of reporting of environmental violations and health and safety citations, and associated fines. • Kao has received the award for being one of the “World’s Most Ethical Companies,” by American ethics magazine Ethisphere, because of its “Find” survey. This survey measures compliance amongst employees. Kao communicates with its suppliers via surveys as well. However, Kao does not monitor its own employee’s satisfaction through surveys. Analyst(s): Hilary Haskell Bukola Jimoh E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 86 E 46% ES A S S 54% SSA 0 25 50 69 35 25 EI 75 26 11 ER EP Kao SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 2 4 50 Good Management 8 8 100 Excellent Policy 8 10 80 Excellent Product Responsibility 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 4 14 29 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 7 21 33 Needs improvement Management 3 35 9 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Products 0 7 0 Needs substantial improvement Recycling 4 28 14 Needs substantial improvement Waste 11 28 39 Needs improvement Water 4 7 57 Good Score Max Score % General Comment 2 4 50 Good Management 6 10 60 Good Policy 6 6 100 Excellent Social Demographic 2 2 100 Excellent Vision 2 4 50 Good Score Max Score % General Comment 30 77 39 Needs improvement Needs substantial improvement Social Intent Question Category Accountability Social Reporting Question Category Human Rights Management 3 14 21 Qualitative Social 19 42 45 Needs improvement Quantitative Social 6 42 14 Needs substantial improvement www.roberts.cmc.edu 50 Household, Apparel, & Personal Products Sectors 2012 A- Kimberly-Clark 2009 Sustainability Report, Life Cycle Assessment of Tissue Products, and 2011 Web Pages Kimberly-Clark Kimberly-Clark’s serious consideration of social and environmental sustainability is evident in its 2009 Environmental Sustainability Report and 2011 web pages. The company provides a very structured and detailed outline of its sustainability actions and goals in its new sustainability program, Vision 2010. It provides specific goals to improve sustainable manufacturing and processes in areas including energy, climate change and greenhouse gas emissions, waste, and water. While Kimberly-Clark develops many of its plans and efforts for decreasing its impact on the environment, the report sometimes lacks data to support its causes. Kimberly-Clark’s social policies are much less detailed than its environmental policies. The company provides benefits and programs, like their LiveWell health program, for its employees, as well as a statement of equal opportunity in hiring and in the workforce, however it lacks data to support this. Kimberly-Clark shows dedication to the community through its involvement with many organizations around the world to increase environmental awareness and fund education and other causes by partnering with Boys and Girls Clubs of America, UNICEF, Green Peace, and more. Kimberly-Clark could provide more quantitative data to support its sustainability efforts and about its employee diversity initiatives. Also, it could provide a more detailed Code of Conduct. Analyst(s): Quentin Jones Stephanie Oehler E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Source of points Distribution of points E 75 ES A S 47% E 53% S SSA 0 25 50 62 48 43 14 11 EI 75 ER EP SI SR Kimberly-Clark SP Environmental Intent Question Category Accountability Score Max Score % General Comment 2 4 50 Good Management 7 8 88 Excellent Policy 6 10 60 Good Product Responsibility 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 7 14 50 Good Environmental Reporting Question Category Emissions to Air Energy 9 21 43 Needs improvement Management 15 35 43 Needs improvement Materials Usage 7 14 50 Good Products 0 7 0 Needs substantial improvement Recycling 10 28 36 Needs improvement Waste 5 28 18 Needs substantial improvement Water 4 7 57 Good Score Max Score % General Comment 2 4 50 Good Management 6 10 60 Good Policy 6 6 100 Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 15 77 19 Needs substantial improvement Social Intent Question Category Accountability Excellent Social Reporting Question Category Human Rights Management 3 14 21 Needs substantial improvement Qualitative Social 24 42 57 Good Quantitative Social 18 42 43 Needs improvement www.roberts.cmc.edu 51 Household, Apparel, & Personal Products Sectors 2012 D L'Oreal Group 2011 Web Pages L'Oréal Group The L’Oreal Group reports have no information about its sustainability practices. On the website, they claim to have a section dedicated to sustainable development but the link takes the viewer back to the home page. The only useful information the company describes is in its code of business ethics, in which explains the policies against sexual harassment, bribery and discrimination. L’Oreal Group needs to get its sustainable development website up and running in order to receive a better score. Analyst(s): Eric Robert King Bukola Jimoh E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 0% E ES A 16 12 8 S S 100% SSA 0 25 50 75 0 0 0 EI ER EP L'Oréal Group SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 0 4 0 Needs substantial improvement Management 0 8 0 Needs substantial improvement Policy 0 10 0 Needs substantial improvement Product Responsibility 0 2 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Score Max Score % General Comment 0 14 0 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 0 21 0 Needs substantial improvement Management 0 35 0 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Products 0 7 0 Needs substantial improvement Recycling 0 28 0 Needs substantial improvement Waste 0 28 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Score Max Score % General Comment 0 4 0 Needs substantial improvement Needs substantial improvement Social Intent Question Category Accountability Management 0 10 0 Policy 2 6 33 Needs improvement Social Demographic 0 2 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Social Reporting Question Category Score Max Score % General Comment Human Rights 28 77 36 Needs improvement Management 0 14 0 Needs substantial improvement Qualitative Social 0 42 0 Needs substantial improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 52 Household, Apparel, & Personal Products Sectors 2012 D Luxottica Group Corporate Goverance Report and 2011 Web Pages Luxottica Luxottica Group does a poor job reporting its sustainability practices despite publishing a Corporate Governance Report and various web pages. Its report and web pages contain only the very basic policies for environmental and social sustainability and very rarely go into any detail about its initiatives. The problems in the sustainable reporting continue: Luxottica does not mention basic environmental principles such as biodiversity or climate change. Luxottica does promise proper waste management and plans to reduce waste at source but there is no discussion of how it will accomplish these goals. Additionally, there is no quantitative reporting at all. In terms of social sustainability, the company barely provides any information for basic ideas such as bribery and political contributions. Luxottica Group needs to improve its sustainability reporting and a good start would be to create a formal report to prove they care about environmental and social responsibility. Analyst(s): Eric Robert King Bukola Jimoh E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 23 E 40% ES A S 18 11 S 60% SSA 0 25 50 6 0 EI 75 ER EP 0 SI SR Luxottica SP Environmental Intent Question Category Accountability Score Max Score % General Comment 0 4 0 Needs substantial improvement Management 1 8 13 Needs substantial improvement Policy 1 10 10 Needs substantial improvement Product Responsibility 0 2 0 Needs substantial improvement Vision 3 4 75 Excellent Score Max Score % General Comment 0 14 0 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 0 21 0 Needs substantial improvement Management 2 35 6 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Products 0 7 0 Needs substantial improvement Recycling 2 28 7 Needs substantial improvement Waste 3 28 11 Needs substantial improvement Water 0 7 0 Needs substantial improvement Score Max Score % General Comment 1 4 25 Needs improvement Needs substantial improvement Social Intent Question Category Accountability Management 2 10 20 Policy 2 6 33 Needs improvement Social Demographic 0 2 0 Needs substantial improvement Vision 1 4 25 Needs improvement Social Reporting Question Category Score Max Score % General Comment Human Rights 4 77 5 Needs substantial improvement Management 0 14 0 Needs substantial improvement Qualitative Social 9 42 21 Needs substantial improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 53 Household, Apparel, & Personal Products Sectors 2012 C Mattel 2009 global citizenship report and 2009 annual report Mattel Mattel does relatively well in its social and environmental intent, along with its adoption of human rights practices. In addition, Mattel’s community involvement as outlined in their 2009 Annual Report on philanthropy programs is admirable. Programs such as “PLAYers” show Mattel’s commitment as a company to supporting children through more than just making toys. Mattel has a corporate mission of “positively impacting [its] people, [its] products and [the] world by playing responsibly” (p. 5). While it is clear from their 2010 Environmental report that Mattel has the intentions of “playing responsibly” both socially and environmentally, their actions do not always support their objectives. Mattel’s biggest downfall was their inability to report quantitative data to support their discussions of waste, energy use, and fines among others. While many graphs are provided to display progress in these fields, the graphs lack precise numerical data, instead giving a vague image of their progress. Simply giving the appropriate figures to support the many graphs in the report will help improve Mattel’s score greatly. Analyst(s): Jordan Lieberman Carolyn Campbell E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 50 E 32% ES A S 37 11 S 68% SSA 0 25 50 46 8 0 EI 75 ER EP SI SR Mattel SP Environmental Intent Score Max Score % General Comment Accountability Question Category 2 4 50 Good Management 3 8 38 Needs improvement Policy 6 10 60 Good Product Responsibility 0 2 0 Needs substantial improvement Vision 3 4 75 Excellent Score Max Score % General Comment 0 14 0 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 2 21 10 Needs substantial improvement Management 3 35 9 Needs substantial improvement Materials Usage 1 14 7 Needs substantial improvement Products 0 7 0 Needs substantial improvement Recycling 3 28 11 Needs substantial improvement Waste 2 28 7 Needs substantial improvement Water 1 7 14 Needs substantial improvement Score Max Score % General Comment 0 4 0 Needs substantial improvement Management 5 10 50 Good Policy 5 6 83 Excellent Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 18 77 23 Needs substantial improvement Needs substantial improvement Social Intent Question Category Accountability Social Reporting Question Category Human Rights Management 3 14 21 Qualitative Social 19 42 45 Needs improvement Quantitative Social 5 42 12 Needs substantial improvement www.roberts.cmc.edu 54 Household, Apparel, & Personal Products Sectors 2012 D Mead Johnson 2011 Web Pages Mead Johnson Mead Johnson’s 2011 Web Pages demonstrate their lack substantial information regarding environmental sustainability. Although the company has invested a significant amount of time and money in domestic and international community improvement initiatives –including the “Feeding Hope” program in the Philippines, the “Helping Hand” program in China, and the “Greenway Project” in Evansville, Indiana – the company fails to disclose an environmental policy, an environmental management system, or quantitative natural resource use data. In addition, the web pages do not provide the company’s Code of Conduct of business ethics, a workforce profile, or health and safety violations. To increase transparency, the company’s web pages need much more extensive environmental as well as internal social reporting. Analyst(s): Gracie Beck Michael Handler Shoemaker E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 12 % E ES A 38 S 11 7 S 88% SSA 0 25 50 75 EI 1 0 ER EP 0 SI SR Mead Johnson SP Environmental Intent Question Category Accountability Score Max Score % General Comment 0 4 0 Needs substantial improvement Management 0 8 0 Needs substantial improvement Policy 0 10 0 Needs substantial improvement Product Responsibility 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 0 14 0 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 1 21 5 Needs substantial improvement Management 0 35 0 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Products 0 7 0 Needs substantial improvement Recycling 0 28 0 Needs substantial improvement Waste 0 28 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Score Max Score % General Comment 1 4 25 Needs improvement Needs substantial improvement Social Intent Question Category Accountability Management 2 10 20 Policy 3 6 50 Good Social Demographic 0 2 0 Needs substantial improvement Vision 4 4 100 Score Max Score % General Comment 0 77 0 Needs substantial improvement Needs substantial improvement Excellent Social Reporting Question Category Human Rights Management 0 14 0 Qualitative Social 12 42 29 Needs improvement Quantitative Social 1 42 2 Needs substantial improvement www.roberts.cmc.edu 55 Household, Apparel, & Personal Products Sectors 2012 A+ Natura Cosmeticos 2009 Annual Report, 2010 Biodiversity Policy, and 2011 Web Pages Natura Cosmeticos Nautra Cosmeticos, a Brazilian brand, recognizes the direct link between their production of cosmetics and environmental harm. Drawing raw materials for many of their products directly from the Amazon, Natura focuses most of its sustainability efforts on issues such as biodiversity, habitat conservation, and waste disposal. Natura’s 2010 Biodiversity Policy is an expansion on Natura’s biodiversity procedures, and outlines in great detail the company’s efforts to preserve the Amazon. There was no environmental report separate from the 2009 Annual Report, but this was not an issue. The 2009 Annual Report was certified by the Global Reporting Initiative and was given an impressive A+ rating by third-party validation.•Though the 2009 Annual Report was quite thorough, it was obviously translated from Portuguese, made clear by many failed translations and un-translated Portuguese words in the report. Natura’s web pages were difficult to navigate, and material was not consistent between Portuguese, Spanish, and English versions. There was no Code of Conduct accessible to the public. Therefore, many basic human rights policies could not be scored. Analyst(s): Leah Bross Carolyn Campbell E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 93 73 E 45% ES A S 45 S 55% SSA EI 0 25 50 56 46 14 ER Natura Cosmeticos EP SI SR SP 75 Environmental Intent Question Category Accountability Score Max Score % General Comment 4 4 100 Excellent Management 6 8 75 Excellent Policy 10 10 100 Excellent Product Responsibility 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 7 14 50 Good Environmental Reporting Question Category Emissions to Air Energy 9 21 43 Needs improvement Management 7 35 20 Needs substantial improvement Materials Usage 8 14 57 Good Products 0 7 0 Needs substantial improvement Recycling 14 28 50 Good Waste 7 28 25 Needs improvement Water 4 7 57 Good Score Max Score % General Comment 4 4 100 Excellent Social Intent Question Category Accountability Management 6 10 60 Good Policy 3 6 50 Good Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 31 77 40 Needs improvement Management 5 14 36 Needs improvement Qualitative Social 35 42 83 Excellent Quantitative Social 22 42 52 Good Social Reporting Question Category Human Rights www.roberts.cmc.edu 56 Household, Apparel, & Personal Products Sectors 2012 C+ Newell Rubbermaid 2009 Environmental Sustainability Report, Code of Business Ethics, and 2011 Web Pages Newell Rubbermaid Newell Rubbermaid provides sustainability information in a brief 2009 Environmental Sustainability Report, information from its 2011 web pages, and Code of Business Conduct and Ethics. While Environmental and social initiatives and actions are reported for many areas most information is not thorough. • Newell Rubbermaid’s new headquarter building is a highlight of its sustainability efforts. It received two Green Globes from the Green Building Initiative. The company’s Green Office Program to encourage awareness and environmental responsibility with employees is also notable. Unfortunately, Newell Rubbermaid does not report much substantiating quantitative data. The quantitative data provided is only for the current year therefore making any performance trends indiscernible. • Newell Rubbermaid shows a commitment to improving safety by the demonstrated reduction in recordable incident rate. The company also demonstrates clear efforts to support its employees through its Employee Resource Groups, which allow individuals from different backgrounds to network and collaborate in a supportive environment. Analyst(s): Hilary Haskell Bukola Jimoh E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 43 E 45% ES A S SSA 25 50 31 16 Newell Rubbermaid 0 EI 0 42 28 S 55% ER EP SI SR SP 75 Environmental Intent Question Category Accountability Score Max Score % General Comment 0 4 0 Needs substantial improvement Good Management 4 8 50 Policy 4 10 40 Needs improvement Product Responsibility 2 2 100 Excellent Vision 2 4 50 Good Score Max Score % General Comment 3 14 21 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 3 21 14 Needs substantial improvement Management 7 35 20 Needs substantial improvement Materials Usage 4 14 29 Needs improvement Products 2 7 29 Needs improvement Recycling 3 28 11 Needs substantial improvement Waste 7 28 25 Needs improvement Water 2 7 29 Needs improvement Score Max Score % General Comment 2 4 50 Good Social Intent Question Category Accountability Management 2 10 20 Needs substantial improvement Policy 4 6 67 Good Social Demographic 1 2 50 Good Vision 2 4 50 Good Score Max Score % General Comment 30 77 39 Needs improvement Needs substantial improvement Social Reporting Question Category Human Rights Management 0 14 0 Qualitative Social 12 42 29 Needs improvement Quantitative Social 6 42 14 Needs substantial improvement www.roberts.cmc.edu 57 Household, Apparel, & Personal Products Sectors 2012 A- Nike, Inc. 2007-2009 Corporate Responsibility Report, Code Leadership Standard, Code of Conduct, and 2011 Web Pages Nike The Corporate Responsibility Report (CSR) published by Nike, Inc. is a thorough examination of the company’s environmental and social impact over the 2007, 2008, and 2009 fiscal years. By including data from three years in its CSR, the company is able to demonstrate the advances it has made in minimizing its environmental impacts and the progress it has made towards achieving its environmental goals. The report goes in depth about the impact the company has on the areas, both foreign and domestic, where its manufacturing or production elements are based. Nike offers many examples of how the implementation of its environmental and social policies has produced a positive effect, while also offering a wide range of specific environmental goals for various aspects of its production and manufacturing processes. However, Nike could improve the clarity of its graphical displays of data. Several of the graphs in the report, while visually pleasing, are unclear or offer data in terms that are not applicable to all of the products the company makes. For instance, the report contains several graphs that demonstrate the amounts of energy, CO2, and waste that are embedded in each pair of Pegasus Air running shoes. However, as Nike manufactures far more than just running, shoes these graphs are not representative of the company’s environmental impact and are somewhat misleading. Nike’s reporting includes a very detailed Leadership Standard, in addition to a Code of Conduct, that together provide employees and suppliers with specific expectations of environmental and ethical standards. Additionally, the company publishes a list of environmental and ethical awards it has won from major publications and auditing groups, demonstrating its desire to develop and maintain a reputation as a responsible corporate citizen. One element that was noticeably absent from Nike’s CSR was a contact person to whom consumers could direct questions about the company’s environmental and social impact. Providing a sustainability contact would help Nike to clarify any questions that emerged from reading the CSR, especially the graphical portion, and would help the company solidify its reputation as a responsible actor, dedicated to addressing climate change. Analyst(s): Elizabeth Duckworth Bukola Jimoh E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E E 36% ES A SSA 25 50 64 32 S 64% 0 69 61 S 26 9 EI 75 ER EP Nike SI SR SP Environmental Intent Score Max Score % General Comment Accountability Question Category 2 4 50 Good Management 4 8 50 Good Policy 6 10 60 Good Product Responsibility 2 2 100 Excellent Vision 3 4 75 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 5 14 36 Needs improvement Energy 10 21 48 Needs improvement Management 3 35 9 Needs substantial improvement Materials Usage 9 14 64 Good Products 0 7 0 Needs substantial improvement Recycling 4 28 14 Needs substantial improvement Waste 6 28 21 Needs substantial improvement Water 1 7 14 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 1 4 25 Needs improvement Management 8 10 80 Excellent Policy 5 6 83 Excellent Social Demographic 2 2 100 Excellent Vision 2 4 50 Good Score Max Score % General Comment 58 77 75 Excellent Social Reporting Question Category Human Rights Management 2 14 14 Needs substantial improvement Qualitative Social 25 42 60 Good Quantitative Social 6 42 14 Needs substantial improvement www.roberts.cmc.edu 58 Household, Apparel, & Personal Products Sectors 2012 D Polo Ralph Lauren Code of Conduct and 2011 Web Pages Polo Ralph Lauren Polo Ralph Lauren provides information in its Code of Conduct and on its 2011 web pages. There is no environmental sustainability reporting; however, Polo Ralph Lauren does demonstrate a commitment to corporate philanthropy on its web pages. No substantiating quantitative data is provided for any area of corporate responsibility. Inclusion of this would increase Polo Ralph Lauren’s PSI Score. The many philanthropic projects of Polo Ralph Lauren are notable, and include Haiti Hope and Relief, Habitat for Humanity, Star Spangled Banner, Pink Pony, Polo Volunteers, and Cancer Care and Prevention. Analyst(s): Hilary Haskell Bukola Jimoh E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 15 % E ES A 15 15 8 S 4 S 85% SSA 0 25 50 EI 75 3 ER Polo Ralph Lauren 0 EP SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 0 4 0 Needs substantial improvement Management 0 8 0 Needs substantial improvement Policy 0 10 0 Needs substantial improvement Product Responsibility 0 2 0 Needs substantial improvement Vision 1 4 25 Needs improvement Score Max Score % General Comment 0 14 0 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 0 21 0 Needs substantial improvement Management 3 35 9 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Products 0 7 0 Needs substantial improvement Recycling 0 28 0 Needs substantial improvement Waste 0 28 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Score Max Score % General Comment 0 4 0 Needs substantial improvement Needs substantial improvement Social Intent Question Category Accountability Management 0 10 0 Policy 2 6 33 Needs improvement Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Social Reporting Question Category Score Max Score % General Comment Human Rights 16 77 21 Needs substantial improvement Management 0 14 0 Needs substantial improvement Qualitative Social 8 42 19 Needs substantial improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 59 Household, Apparel, & Personal Products Sectors 2012 B Proctor & Gamble 2010 Sustainability Report, Business Conduct Manual, and 2011 Web Pages Procter and Gamble Proctor & Gamble’s 2010 Sustainability Report clearly presents its social and environmental sustainability information in several well-organized sections. Important yearly statistics, such as greenhouse gas emissions, water usage, and waste disposal are presented in clear graphs accompanied by exact data. Proctor & Gamble mentions at the beginning of its report that its long term sustainability vision is to operate on 100% renewable energy. While this vision is laudable, renewable energy is only mentioned again briefly.• Proctor and Gamble also shows initiative in social sustainability through its many humanitarian efforts, including earthquake relief to Haiti and Chile, as well as additional programs in China. The company is transparent about its workforce profile, presenting comprehensive information on the breakdown of its employee population by gender and minority status. Also, an extensive occupational health and safety program is reported along with past and present quantitative data on incident and lost workday rates. Analyst(s): Alan Hu Karen de Wolski E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E S 50 8 2 EI 25 41 30 S 56% SSA 0 73 68 E 44% ES A ER EP SI SR Procter and Gamble SP 75 Environmental Intent Question Category Accountability Score Max Score % General Comment 2 4 50 Good Excellent Management 6 8 75 Policy 8 10 80 Excellent Product Responsibility 0 2 0 Needs substantial improvement Vision 3 4 75 Excellent Score Max Score % General Comment 7 14 50 Good Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 4 21 19 Management 10 35 29 Needs improvement Materials Usage 0 14 0 Needs substantial improvement Products 0 7 0 Needs substantial improvement Recycling 2 28 7 Needs substantial improvement Waste 7 28 25 Needs improvement Water 4 7 57 Good Social Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Management 8 10 80 Excellent Policy 5 6 83 Excellent Social Demographic 2 2 100 Excellent Vision 2 4 50 Good Score Max Score % General Comment 20 77 26 Needs improvement Management 7 14 50 Good Qualitative Social 13 42 31 Needs improvement Quantitative Social 9 42 21 Needs substantial improvement Social Reporting Question Category Human Rights www.roberts.cmc.edu 60 Household, Apparel, & Personal Products Sectors 2012 C+ Reckitt Benckiser 2008 Corporate Sustainability Report, Occupational Health and Safety Policy Document, Environmental Policy Document, Code of Business Conduct, 2011 Reckitt Benckiser Reckitt Benckiser’s 2008 Sustainability Report is a well-organized and third party checked study of its environmental and social figures. Reckitt Benckiser provides a sustainability contact person, complete with the name of the individual, physical address, and email address. Reckitt Benckiser also presents detailed information on its important environmental sustainability figures such as energy used, solid waste disposal, hazardous waste produced, water used, and greenhouse gas emissions. However, the company does not report significant social quantitative statistics such as employee turnover rate or social community investment. •Reckitt Benckiser also provides significant information regarding its efforts to aid children around the globe in its partnership with Save the Children. Overall, the report is well put together and quite thorough. To improve, Reckitt Benckiser should consider adding a segment stating its views on habitat/ecosystem conservation and biodiversity, and data on its environmental and social investment. Analyst(s): Alan Hu Carolyn Campbell E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Source of points Distribution of points E 54 ES A E 52% S S 48% SSA 0 25 50 54 28 30 9 EI 75 ER 2 EP SI SR Reckitt Benckiser SP Environmental Intent Question Category Accountability Score Max Score % General Comment 3 4 75 Excellent Good Management 4 8 50 Policy 4 10 40 Needs improvement Product Responsibility 2 2 100 Excellent Vision 2 4 50 Good Score Max Score % General Comment 4 14 29 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 5 21 24 Needs substantial improvement Management 6 35 17 Needs substantial improvement Materials Usage 3 14 21 Needs substantial improvement Products 3 7 43 Needs improvement Recycling 0 28 0 Needs substantial improvement Waste 9 28 32 Needs improvement Water 5 7 71 Good Score Max Score % General Comment 4 4 100 Excellent Social Intent Question Category Accountability Management 3 10 30 Needs improvement Policy 5 6 83 Excellent Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 16 77 21 Needs substantial improvement Needs substantial improvement Social Reporting Question Category Human Rights Management 2 14 14 Qualitative Social 11 42 26 Needs improvement Quantitative Social 5 42 12 Needs substantial improvement www.roberts.cmc.edu 61 Household, Apparel, & Personal Products Sectors 2012 B- SCA-Svenska Cellulosa 2009 Sustainability Report, Code of Conduct, and 2010 Web Pages SCA-Svenska Cellulosa Svenska-Cellulosa is dedicated to sustainability and transparency. Its concise and organized sustainability report is easy to read and clearly shows the company’s environmental goals and initiatives. The report effectively presents a great deal of quantitative data by organizing it all on one page rather than dispersed throughout the report. The data could be made clearer by including totals of such values as carbon dioxide emissions rather than data from individual plants. While the report contains quantitative social data, it does not mention any social initiatives or goals. In the introduction and CEO report there are clear environmental statements and goals, but both lack any information on the company's social commitments. This is further reflected in the very sparse code of conduct which does not clearly elaborate on the social agenda and policy of the company. Analyst(s): Sam Kahr Karen de Wolski E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 75 ES A E 5 1% S S 49% SSA 0 25 50 42 31 39 7 EI 75 ER EP 4 SI SR SCA-Svenska Cellulosa SP Environmental Intent Score Max Score % General Comment Accountability Question Category 4 4 100 Excellent Management 4 8 50 Good Policy 8 10 80 Excellent Product Responsibility 2 2 100 Excellent Vision 3 4 75 Excellent Score Max Score % General Comment 5 14 36 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 6 21 29 Needs improvement Management 3 35 9 Needs substantial improvement Materials Usage 7 14 50 Good Products 0 7 0 Needs substantial improvement Recycling 3 28 11 Needs substantial improvement Waste 9 28 32 Needs improvement Water 3 7 43 Needs improvement Score Max Score % General Comment 2 4 50 Good Management 4 10 40 Needs improvement Policy 5 6 83 Excellent Social Demographic 0 2 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Score Max Score % General Comment 21 77 27 Needs improvement Needs substantial improvement Social Intent Question Category Accountability Social Reporting Question Category Human Rights Management 3 14 21 Qualitative Social 15 42 36 Needs improvement Quantitative Social 10 42 24 Needs substantial improvement www.roberts.cmc.edu 62 Household, Apparel, & Personal Products Sectors 2012 C+ Shiseido 2011 Annual Report and 2011 Web Pages Shiseido Shishedo has a Corporate Social Responsibility Reports supplemented with a GRI content index. Much reporting is about social responsibility to its employee and society, less about the environmental issues. The Corporate seems to lay down strong foundation for sustainability and much of these are reflected by the programs and initiatives undertaken by the companies. The company also participate in the United Nations Global Compact, which give much support to the human rights oversight. Analyst(s): Sachi Singh Karen de Wolski E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 71 E 44% ES A S S 56% SSA 0 25 50 62 34 21 4 2 EI 75 ER EP SI SR Shiseido SP Environmental Intent Question Category Accountability Score Max Score % General Comment 0 4 0 Needs substantial improvement Management 6 8 75 Excellent Policy 10 10 100 Excellent Product Responsibility 2 2 100 Excellent Vision 2 4 50 Good Score Max Score % General Comment 6 14 43 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 5 21 24 Needs substantial improvement Management 2 35 6 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Products 0 7 0 Needs substantial improvement Recycling 7 28 25 Needs improvement Waste 3 28 11 Needs substantial improvement Water 1 7 14 Needs substantial improvement Score Max Score % General Comment 2 4 50 Good Management 6 10 60 Good Policy 6 6 100 Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 16 77 21 Needs substantial improvement Management 7 14 50 Good Qualitative Social 15 42 36 Needs improvement Quantitative Social 2 42 5 Needs substantial improvement Social Intent Question Category Accountability Excellent Social Reporting Question Category Human Rights www.roberts.cmc.edu 63 Household, Apparel, & Personal Products Sectors 2012 F Swatch Group 2011 Web Pages Swatch Group Swatch Group does not at this time have any explicit information on their web pages about the social or environmental commitment of the company. Analyst(s): Danielle L. Manning Karen de Wolski E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E S 1% E 1% ES A S 0 0 0 0 0 0 EI ER EP SI SR SP Swatch Group SSA 0 25 50 75 Environmental Intent Question Category Accountability Score Max Score % General Comment 0 4 0 Needs substantial improvement Management 0 8 0 Needs substantial improvement Policy 0 10 0 Needs substantial improvement Product Responsibility 0 2 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Score Max Score % General Comment 0 14 0 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 0 21 0 Needs substantial improvement Management 0 35 0 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Products 0 7 0 Needs substantial improvement Recycling 0 28 0 Needs substantial improvement Waste 0 28 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 0 10 0 Needs substantial improvement Policy 0 6 0 Needs substantial improvement Social Demographic 0 2 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Social Reporting Question Category Score Max Score % General Comment Human Rights 0 77 0 Needs substantial improvement Management 0 14 0 Needs substantial improvement Qualitative Social 0 42 0 Needs substantial improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 64 Household, Apparel, & Personal Products Sectors 2012 B+ Toray Industries Sustainability Report and 2011 Web Pages Toray Industries The products Toray Industries produces such as plastics, chemicals, and IT technology, have the potential to be very harmful environmentally. Toray has recognized this possibility and in response has minimized the potential negative consequences of some of its production by implementing Life Cycle Analysis into aspects of the production process. Toray has also endorsed and strives to model its practices around the social guidelines set forth in the UN Universal Declaration of Human Rights. Toray’s seriousness about enforcing the ethical policies of the company is reflected by its establishment of a Human Rights Promotion Committee and by providing human rights training workshops to its’ employees. • Toray is also committed to ensuring the products it produces are safe for the customers who purchase them, stating that, “we shall place priority on the various measures required to ensure product safety.” Toray’s website is well-organized and succinctly states company goals and values. When the company has not reached an official position the web pages also disclose that information. According to one statement, Toray is in the process of determining the companies’ official stance on biodiversity. Analyst(s): Danielle L. Manning Carolyn Campbell E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E S 48 27 S 62% SSA 0 25 50 88 75 E 38% ES A 28 9 EI 75 ER Toray Industries EP SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 2 4 50 Good Management 7 8 88 Excellent Policy 7 10 70 Good Product Responsibility 1 2 50 Good Vision 4 4 100 Excellent Score Max Score % General Comment 6 14 43 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 5 21 24 Needs substantial improvement Management 6 35 17 Needs substantial improvement Materials Usage 3 14 21 Needs substantial improvement Products 3 7 43 Needs improvement Recycling 4 28 14 Needs substantial improvement Waste 4 28 14 Needs substantial improvement Water 2 7 29 Needs improvement Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 8 10 80 Excellent Policy 6 6 100 Excellent Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 34 77 44 Needs improvement Management 6 14 43 Needs improvement Qualitative Social 27 42 64 Good Quantitative Social 10 42 24 Needs substantial improvement Social Reporting Question Category Human Rights www.roberts.cmc.edu 65 Household, Apparel, & Personal Products Sectors 2012 C- VF Corporation Code of Business Conduct, Global Compliance Principles, Environmental Compliance Guidelines, and 2011 Web Pages VF In 2009, VF adopted a corporate-wide commitment to sustainability. VF has recently established a global Sustainability Advisory Team, which identified four long-term goals for realizing its sustainability vision: carbon footprint/energy efficiency, waste, education/training/communication, and tools. Despite setting ambitious goals for these four main categories, VF’s plan to actually accomplish these goals is vague. For example, VF hopes to achieve a zero waste standard yet it has not even taken the necessary steps to measure the current amount of waste produced. Major gaps exist in VF’s quantitative reporting. With the exception of carbon dioxide emissions, VF fails to include any quantitative data whatsoever. It would behoove VF to expand upon these goals as well as establish some sort of baseline data in order to effectively monitor its progress. ••Although VF’s environmental reporting is lacking in many areas, its stance on corporate responsibility is much more pronounced. VF subscribes to Global Compliance Principles, which specifies acceptable working conditions for employees. In addition to the GCP, VF requires its factories to comply with rigorous safety requirements outlined in its Code of Business Conduct. Furthermore, VF will only conduct business with suppliers and vendors that meet GCP requirements. ••In terms of social responsibility, VF provides monetary support to a number of local charitable organizations. In order to encourage employee volunteerism, VF recognizes the top 100 associates who have accumulated the most community service hours each year. Overall, VF must address several more key environmental issues in greater depth before it can fully realize its vision of becoming a sustainable company. Analyst(s): Daniel Olmsted Karen de Wolski E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E E 27% ES A S 50 35 S 73% SSA 0 25 50 EI 75 3 0 ER EP 33 0 SI SR VF SP Environmental Intent Question Category Accountability Score Max Score % General Comment 1 4 25 Needs improvement Good Management 4 8 50 Policy 4 10 40 Needs improvement Product Responsibility 1 2 50 Good Vision 4 4 100 Excellent Score Max Score % General Comment 3 14 21 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 0 21 0 Needs substantial improvement Management 0 35 0 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Products 0 7 0 Needs substantial improvement Recycling 0 28 0 Needs substantial improvement Waste 0 28 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Score Max Score % General Comment 2 4 50 Good Needs substantial improvement Social Intent Question Category Accountability Management 2 10 20 Policy 3 6 50 Good Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 20 77 26 Needs improvement Needs substantial improvement Social Reporting Question Category Human Rights Management 0 14 0 Qualitative Social 14 42 33 Needs improvement Quantitative Social 1 42 2 Needs substantial improvement www.roberts.cmc.edu 66 Household, Apparel, & Personal Products Sectors 2012 Household, Apparel, and Personal Products Environmental visionary statement Environmental management structure 5 -Discussion: includes a clear visionary statement expressing an organizational commitment to good environmental performance. -Initiatives/actions: include measures to fulfill that commitment. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# Environmental impediments and challenges Initiatives/actions 6 Initiatives/actions 42 43 Initiatives/actions Discussion: of impediments and challenges faced by the organization in attempting to realize its social vision and commitments. Initiatives/actions: include measures taken to overcome them. Discussion Pg# Discussion Initiatives/actions 9 Initiatives/actions Initiatives/actions 45 21 -Discussion: of environmental expenditures. -Initiatives/actions: include detailed accounting of such expenditures. Discussion Pg# Discussion Initiatives/actions 4 Initiatives Pg# Third-party validation -Discussion: identifies the person specifically designated to answer questions about the report or sustainability issues. Investor relations or public relations contact representatives are not valid contacts for this question. -Initiatives/actions: to facilitate such contact, i.e. providing email address, phone number, or a link for feedback and questions. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# Environmental accounting Initiatives Pg# Report contact person 16 -Discussion: of efforts to promote environmental education and awareness of employees, the general public, or children. -Initiatives/actions: taken to provide such education. Discussion Pg# Discussion -Discussion: includes a formal statement of the company's social policy or plan. -Initiatives/actions: include a description of how the policy is being implemented. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# Environmental education Initiatives Pg# Social policy statement 23 -Discussion: of consultation and dialogue with stakeholders about the organization's environmental aspects or impacts. -Initiatives/actions: include identification of specific consultation activities. Discussion Pg# Discussion -Discussion: includes a formal statement of the organization's environmental policy or plan. -Initiatives/actions: include a description of how the policy is being implemented. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# Stakeholder consultation Initiatives Pg# Environmental policy statement 51 -Discussion: of organizational structure or staffing for ensuring health and safety or social responsibility. -Initiatives/actions: include identification of the individuals currently holding the staff positions. Discussion Pg# Discussion Initiatives Pg# Social impediments and challenges Initiatives Pg# Health and safety, or social organizational structure -Discussion: includes a clear visionary statement expressing an organizational commitment to good social performance. -Initiatives/actions: include measures taken to fulfill that commitment. Discussion Pg# Discussion Initiatives/actions 20 -Discussion: includes a statement of adoption of ISO 14001 or other formal environmental management system. -Initiatives/actions: include information on the extent to which the system has been implemented. Discussion Pg# Discussion Initiatives Pg# Social visionary statement Initiatives Pg# Environmental management system -Discussion: of impediments and challenges faced by the organization in attempting to realize its environmental vision and commitments. -Initiatives/actions: include measures to overcome them. Discussion Pg# Discussion Initiatives/actions 19 -Discussion: of the organization's environmental management structure or staffing. -Initiatives/actions: include identification of individuals currently holding the staff positions. Discussion Pg# Discussion 54 -Discussion: of the value (or lack thereof) of third-party auditing or validation. -Initiatives/actions: include formal auditing or validation by a qualified external third-party source. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# Initiatives Pg# Environmental labelling 259 Efforts to label products that are environmentally-friendly. Discussion Pg# Discussion Initiatives/actions www.roberts.cmc.edu 67 Initiatives Pg# Household, Apparel, & Personal Products Sectors 2012 Household, Apparel, and Personal Products Climate change/global warming Employment for individuals with disabilities 10 -Discussion: of the organization's position on climate change and/or global warming. -Initiatives/actions: include measures taken by the organization to decrease its contribution to climate change. Discussion Pg# Discussion Initiatives/actions Initiatives/actions 11 Initiatives/actions -Discussion: of the organization's position on biodiversity. -Initiatives/actions: taken by to the organization to foster biodiversity. Discussion Pg# Discussion Initiatives/actions 13 Initiatives/actions Initiatives Pg# Supplier screening based on social or environmental performance/ supplier management 26 Sum of the energy used by the organization in all different forms, including electricity, fuel, natural gas and others. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Initiatives Pg# Workforce profile: ethnicities/race Initiatives Pg# Energy used (total) 49 -Discussion: or description of procedures to evaluate and select suppliers on their ability to meet the requirements of the company's social or environmental policy and principles. -Initiatives/actions: include measures to implement or assure such screening or selection. Discussion Pg# Discussion Initiatives/actions 47 -Discussion: includes a formal organizational code of conduct or of ethical behavior. -Initiatives/actions: include measures to assure that the code of conduct is followed. Discussion Pg# Discussion -Discussion: about preferential purchasing of eco-friendly (non-polluting, recycled, recyclable, etc.) products. -Initiatives/actions: taken to implement such purchasing. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# Code of conduct or business ethics Initiatives Pg# Green purchasing 82 -Discussion: of training, skills and learning programs appropriate to support employees' upward mobility. -Initiatives/actions: taken to implement such training. Discussion Pg# Discussion 12 Initiatives/actions Initiatives Pg# Employee training for career development Initiatives Pg# Biodiversity 53 -Discussion: of emergency preparedness programs to prepare employees or the public to cope with potential emergencies at the organization's facilities. -Initiatives/actions: include measures taken to implement such programs. Discussion Pg# Discussion -Discussion: of the organization's position on conserving natural ecosystems and habitat. -Initiatives/actions: taken to increase conservation of natural ecosystems either associated with or separate from the organization's business activities. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# Emergency preparedness program Initiatives Pg# Habitat/ecosystem conservation 80 -Discussion: of appropriate actions to accommodate employees with disabilities. -Initiatives/actions: taken to implement such accommodations. Discussion Pg# Discussion Year 17 Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units -Discussion: of racial or ethnic distribution of workforce. -Initiatives/actions: taken to avoid racial or ethnic discrimination. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# Workforce profile: gender 18 -Discussion: of gender distribution of workforce. -Initiatives/actions: taken to avoid gender discrimination and achieve appropriate balance Discussion Pg# Discussion Initiatives/actions Initiatives Pg# Workforce profile: age 52 -Discussion: of age distribution of workforce. -Initiatives/actions: include measures taken to avoid age discrimination or to encourage a balanced age structure. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# www.roberts.cmc.edu 68 Household, Apparel, & Personal Products Sectors 2012 Household, Apparel, and Personal Products Energy used (renewable) Waste (office) recycled 27 Energy used from renewable sources such as wind, solar, hydroelectric, or other renewable sources. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Year Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Context Pg#: Goal Pg#: Improve Pg# Units Prev Quan Pg#: Improve Pg# Units Year Improve Pg# Units 35 Sum of all hazardous materials remaining after production, irrespective of final disposition. Hazardous wastes include items identified as TRI, PRTR, HAP (Hazardous Air Pollutants), and similar indices, and may include mercury or lead. Depending on the nationality of the organization, this could be labeled "TRI" (Toxic Release Inventory,) "substance releases" , or something else. Discussion Pg#: Discussion Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Units Year www.roberts.cmc.edu Data Values Goal Pg#: Quant Pg#: Prev Quan Pg#: Waste (hazardous) produced 30 Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous 34 Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Quant Pg#: Sum of all solid waste recycled, including hazardous waste. Discussion Pg#: Discussion Context Pg#: Context Data Values Goal Pg#: Quant Pg#: Prev Quan Pg#: Includes solid hazardous and non-hazardous waste landfilled, incinerated, or transferred. Discussion Pg#: Discussion Context Pg#: Context Discussion Pg#: Waste recycled: solid waste Year Context Pg#: Waste (solid) disposed of 103 Amount of fuel consumed for logistics purposes Data Values Data Values Discussion Pg#: Units Energy used: Logistics Year 32 Office recycling of paper, cardboard, metal, or plastic. 69 Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Household, Apparel, & Personal Products Sectors 2012 Household, Apparel, and Personal Products Waste (hazardous) released to the environment Waste: Packaging materials 37 Amounts of hazardous materials released into the environment, total (TRI, PRTR, HAP (Hazardous Air Pollutants), and similar indices), may include mercury or lead. Depending on the nationality of the organization, this could be labeled "TRI" (Toxic Release Inventory), "substance releases," or something else. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values 109 The amount of waste materials specified as packaging materials by the organization, and not reused or recycled. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Context Pg#: Goal Pg#: Quant Pg#: Year Prev Quan Pg#: Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Improve Pg# Units Green material used Materials recycled: Wastewater Materials used in production generated from recycled materials or easily recyclable or reusable after product life. Discussion Pg#: Discussion 106 Wastewater that is reused in a manufacturing process or otherwise recycled. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values 146 Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Year Improve Pg# Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Units Water used Materials reused or recycled: Packaging materials Sum of all water used during operations. 107 Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous The recycling of materials such as cardboard, plastics, or wood, used to package any goods received from a supplier or delivered to a distributor. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values 29 Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Year Data Values Discussion Pg#: Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Improve Pg# Units www.roberts.cmc.edu 70 Household, Apparel, & Personal Products Sectors 2012 Household, Apparel, and Personal Products Greenhouse gases (or CO2 equivalents), total Recordable incident/accident rate 83 The sum of all greenhouse gases released, which could include CO2, CH4 (methane), N2O (nitrous oxide), SF6 (Sulphur hexafluoride), PFCs (Perfluorocarbons) and HFCs (hydrofluorocarbons). The report should label this indicator as "greenhouse gases released", "CO2 Equivalents", or similar. Discussion Pg#: Discussion Context Pg#: Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values 74 Number of employee incidents or accidents, such as: “total case incident rate,” “incident rate,” or "accident rate." Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Year Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Units Lost workday case rate Ozone depleting substances from refrigerant Number of employee injuries or illnesses that resulted in one or more lost workdays. Discussion Pg#: Discussion 119 Total ozone-depleting substances include CFCs (Class I); and halons, carbon tetrachloride, methyl chloroform, and HCFCs (Class II), not a CO2 emission. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values 75 Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Year Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Units Social community investment Employee turnover rate Amount of money spent on community outreach, including education grants, donations, and relief effort funds. Discussion Pg#: Discussion 3 Annual employee turnover rate. Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values 81 Discussion Pg#: Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Year Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Units www.roberts.cmc.edu 71 Household, Apparel, & Personal Products Sectors 2012 Household, Apparel, and Personal Products Notices of violation (environmental) Health and safety citations 38 Notices of violation (NOVs) for environmental infractions. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Context Pg#: Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Year Environmental expenses and investments 39 Year Data Values Quant Pg#: Prev Quan Pg#: Improve Pg# Year Data Values 77 Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Life Cycle Analysis (LCA) 40 Government imposed fines for environmental infractions. Discussion Pg#: Discussion Context Pg#: Context Year Units Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Units Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Quant Pg#: Prev Quan Pg#: Improve Pg# Fines levied against a company for health and safety violations. Discussion Pg#: Discussion Goal Pg#: Fines (environmental) Data Values Context Pg#: Goal Pg#: Health and safety fines An accounting of money spent or invested specifically to decrease environmental damage or to benefit the environment. Discussion Pg#: Discussion Context Pg#: Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous 76 Number of health and safety citations or notices of violation. If it is stated that there were none, check lines 1,2,3, 4, and 6. Discussion Pg#: Discussion 147 Life Cycle Analysis (LCA) is a formal procedure that examines the environmental aspects and impacts of a process or product from "cradle to grave". To get credit here, it must be referred to as life cycle analyses or planning. Discussion Pg#: Discussion Initiative Pg#: Initiatives/Action Goal Pg#: Quant Pg#: Context Pg#: Context Improvement Over Previous Improve Pg#: Prev Quan Pg#: Improve Pg# Raw material reduction Units 3799 Does the report describe effort to reduce the company’s usage of raw materials? Discussion Pg#: Discussion Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: Women in management 2 Relative numbers of women in management. Discussion Initiatives/Action Context Improvement Over Previous www.roberts.cmc.edu 72 Discussion Pg#: Initiative Pg#: Context Pg#: Improve Pg#: Household, Apparel, & Personal Products Sectors 2012 Household, Apparel, and Personal Products Employee satisfaction surveys Eco-efficiency monitoring 67 Surveys to monitor employee satisfaction. Discussion Initiatives/Action Context Improvement Over Previous Discussion Pg#: Initiative Pg#: Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: Context Pg#: Improve Pg#: Occupational health and safety protection 70 Customer Emergency Support Efforts to provide a safe and healthy working environment at all sites. Discussion Pg#: Discussion Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: 72 Sexual harassment Efforts to promote employee volunteerism in social or environmental projects. Discussion Pg#: Discussion Initiative Pg#: Initiatives/Action Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance 163 Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance 66 7 Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: 8 Rejection of bribery Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Anti-corruption practices 68 Efforts to support education in the communities where the company is located. Discussion Pg#: Discussion 58 Efforts to uphold the highest standards of business ethics and integrity. May be found under a Code of Conduct. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: Customer health and safety Qty Perf Pg#: Bribery Efforts to participate in social activities that improve the quality of life of communities including that of indigenous people, where the organization operates. Discussion Pg#: Discussion Community education Initiative Pg#: Monitoring Pg#: Policy about political contributions. Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: Community development Policy Adopt Pg#: Political contributions Programs to encourage carpooling, mass transit or other reductions in total commuting. Discussion Pg#: Discussion 169 Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Fair compensation of employees Efforts to help improve the user's health and safety in using the products or service provided by the company. Some companies provide Material Safety Data Sheets (MSDS) with health and safety information about each product. Discussion Pg#: Discussion 62 Assurance that wages paid meet or exceed legal or industry minimum standard. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: www.roberts.cmc.edu 1 Rejection of any form of sexual harassment. Context Pg#: Context Improvement Over Previous Improve Pg#: Green transportation initiatives 149 Effort to help customers with medical emergencies involving the company's product. Discussion Pg#: Discussion Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: Employee volunteerism 144 Eco-efficiency is a numerical indicator to measure the degree of environmental impact caused relative to the scale of business activities. Many such indicators exist. Discussion Pg#: Discussion 73 Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Household, Apparel, & Personal Products Sectors 2012 Household, Apparel, and Personal Products Reasonable working hours 64 Compliance with applicable laws and industry standards on working hours, including overtime. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Degrading treatment or punishment of employees 59 Commitment to oppose any corporal/hard labor punishment, mental/physical coercion, or verbal abuse. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Elimination of discrimination in respect to employment and occupation 60 Commitment not to engage in any kind of discrimination based on ethnicity, caste, religion, disability, sex, age, sexual orientation, union membership, or political affiliation in hiring practices or employee treatment. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Free association and collective bargaining of employees 61 Efforts to respect the right of employees to form and join trade unions of their choice and to bargain collectively. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Elimination of all forms of forced and compulsory labor 63 Assurance that all employees enter employment with the company of their own free will, not by compulsion. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Effective abolition of child labor 65 Rejection of illegal child labor by the company or its affiliates. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance www.roberts.cmc.edu Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: 74 Household, Apparel, & Personal Products Sectors 2012 Adidas, Avon Products, Beiersdorf, Christian Dior, Clorox, Coach, Inc., Colgate-Palmolive, Energizer Holdings, Estée Lauder, FUJIFILM Holdings Corporation, Hasbro, Henkel KGaA, Hermès International, Kao, Kimberly-Clark, L'Oréal Group, Luxottica, Mattel, Mead Johnson, Natura Cosmeticos, Newell Rubbermaid, Nike, Polo Ralph Lauren, Procter and Gamble, Reckitt Benckiser, SCA-Svenska Cellulosa, Shiseido, Swatch Group, Toray Industries, and VF. Roberts Environmental Center The Roberts Environmental Center is a research institute at Claremont McKenna College, endowed by George R. Roberts, Founding Partner, Kohlberg Kravis Roberts & Co. The Center is managed by faculty and staff, and its research, including the material in this report, is done by students at the Claremont Colleges. Claremont McKenna College Claremont McKenna College, a member of the Claremont Colleges, is a highly selective, independent, coeducational, residential, undergraduate liberal arts college with a curricular emphasis on economics, government, and public affairs. The Claremont Colleges The Claremont Colleges form a consortium of five undergraduate liberal arts colleges and two graduate institutions based on the Oxford/Cambridge model. The consortium offers students diverse opportunities and resources typically found only at much larger universities. The consortium members include Claremont McKenna College, Harvey Mudd College, Pitzer College, Pomona College, Scripps College, Keck Graduate Institute of Applied Life Sciences, and the Clremont Graduate University which—includes the Peter F. Drucker and Masatoshi Ito Graduate School of Management. Contact Information Dr. J. Emil Morhardt, Director, Phone: 909-621-8190, email: emorhardt@cmc.edu Elgeritte Adidjaja, Research Fellow, Phone: 909-621-8698, email: eadidjaja@cmc.edu Roberts Environmental Center, Claremont McKenna College, 925 N. Mills Avenue, Claremont, CA 91711-5916, USA.