Aisin Seiki, BMW Group, Bridgestone, Continental AG, Daimler AG, Denso, Dongfeng Motor 2012 Sustainability Reporting of the World’s Consumer Durables Group, Electrolux, Largest Motor Vehicle and Consumer Durables Companies Fiat, Ford Motor, Fortune Brands, Honda Motor, Hyundai Mobis, Hyundai Motor, Johnson Controls, Magna International, Mazda Motor, Michelin, Mitsubishi, Nissan Motor, Peugeot, Porsche, Renault, SAIC Motor, Suzuki Motor, Tata Motors, Toyota Industries, Toyota Motor, Volvo Group, and Whirlpool Pacific Sustainability Index Scores: A benchmarking tool for online sustainability reporting J. Emil Morhardt, Elgeritte Adidjaja, Simone Berkovitz, Carolyn Campbell, Jaclyn T. D'Arcy, Whitney Ellen Dawson, Karen de Wolski, Han Dinh,Elizabeth Duckworth, Erin Franks, Karina Gomez, Hilary Haskell, Alan Hu, Bukola Jimoh, Sam Kahr, Karun Kiani, Eric Robert King, Jordan Lieberman, Danielle L. Manning, Daniel Olmsted, Ashley Scott, 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 6 7 12 13 14 15 16 17 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 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 X Municipalities Oil and Gas Equipment X Petroleum & Refining X Pharmaceuticals X Scientific, Photo, & Control Equipment Telecommunications, Network, & Peripherals Transportation 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 66 2 0 1 0 X Energy & Utilities 36 2 0 0 9 X X Colleges/Universities Computer, Office Equipment, & Services Conglomerates Food & Beverages 35 2 0 0 8 X Banks, Insurance Chemicals 32 33 2 0 0 7 X Aerospace & Defense Airlines 18 19 20 21 22 23 24 25 26 27 28 29 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 Motor Vehicle and Consumer Durables Sectors 2012 Sustainability Reporting of World's Largest Motor Vehicle and Consumer Durables Companies Corporate Environmental and Sustainability Reporting Company Rankings Overall Grade A+ BMW Group (Germany) A Electrolux (Sweden) A- Whirlpool (USA) B+ Denso (Japan) B+ Daimler AG (Germany) B+ Peugeot (France) B+ Hyundai Motor (South Korea) B+ Ford Motor (USA) B Johnson Controls (USA) 38.57 B Mazda Motor (Japan) 38.49 B Toyota Industries (Japan) B Fiat (Italy) B- Toyota Motor (Japan) 36.15 B- Nissan Motor (Japan) 35.51 C+ Michelin (France) C+ Suzuki Motor (Japan) C+ Aisin Seiki (Japan) C+ Renault (France) C+ Volvo Group (Sweden) C+ Tata Motors (India) C+ Bridgestone (Japan) 53.72 BMW Group 49.89 Elec trolux 45.13 Whirlpool 41.31 Denso 41.00 Daimler AG 40.67 Peugeot Hyundai Motor Ford Motor 37.65 Johnson Controls Mazda Motor Toyota Industries 35.48 Fiat 32.60 Toyota Motor 29.76 Nissan Motor Mic helin 28.72 Suzuki Motor 28.56 C Continental AG (Germany) 28.44 C Honda Motor (Japan) C- Porsche (Germany) C- Hyundai Mobis (South Korea) Aisin Seiki 28.18 Renault Volvo Group 26.34 C- Fortune Brands (USA) Tata Motors 26.15 D+ Mitsubishi (Japan) D+ Magna International (Canada) F SAIC Motor (China) F Dongfeng Motor Group (China) 25.59 Bridgestone 23.75 Continental AG 22.64 Honda Motor 17.66 Porsc he 16.67 Hyundai Mobis 15.71 Fortune Brands 13.35 Mitsubishi 12.19 Magna International SAIC Motor 0.66 Dongfeng Motor Group 0.23 0 25 50 75 100 This report is an analysis of the voluntary environmental and social reporting of companies on the 2010 Forbes List 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: Draft sector report available for review: www.roberts.cmc.edu 8/1/2010 through 1/15/2011 1/25/2012 through 3/25/2012 3 Motor Vehicle and Consumer Durables 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, they 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 4 Motor Vehicle and Consumer Durables 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 5 Motor Vehicle and Consumer Durables Sectors 2012 Lead Analyst’s Commentary Environmental Reporting Topics) of companies analyzed provided information on this topic. The lack of reporting on this topic is also concerning due to its direct implications to greenhouse gas (GHG) emissions that result from the consumers’ usage of the Sector’s products. Concerning the Social Reporting Element of the PSI score, only 23.3% and 6.7% of companies report their Health and Safety Citations and/or Fines, respectively. In the manufacture of vehicles and consumer durables, this is disquieting in that it indicates a lack of transparency of companies’ initiatives and actions to protect their employees. Perhaps the most critical considerations in the sector, include product performance and end-oflife-cycle implications. Not only are these areas of corporate sustainability widely and well-reported, but they also represent some of the biggest and most unique challenges to the Sector as a whole. It is therefore important to consider these areas of corporate sustainability most thoroughly when evaluating the current status of the Sector’s corporate sustainability reporting, as well as recent developments in this constantly evolving field. In addition to discussing Climate Change/ GHG Emissions, Recyclability and Remanufacturing, and LCA, the Sector’s weakness in reporting Energy Used by Products must also be addressed. The rather sweeping range of environmental issues that are incorporated within the Consumer Durables and Motor Vehicle sector are mostly well reported and highly discussed in the majority of the companies’ sustainability reports. Climate Change/ Global Warming, Product Performance: Recyclability, Product Performance, Emissions; and Life Cycle Analysis are all heavily incorporated into the Sector’s corporate environmental sustainability reports. There is a definite need for improvement, concerning the Energy Used by Products, especially for consumer durable companies, for which the energy efficiency of its products are of both environmental and economic concern to consumers, as seen by the widely successful Energy Star program. Also, considering the current lack of federal legislation regulating climate change and GHG emissions directly, the need for the Consumer Durables and Motor Vehicle sector to be a leader in implementing stringent standards is only augmented further. By Hilary Haskel, CMC ‘14 T he Consumer Durables and Motor Vehicle sector faces a diverse array of sustainability issues, due not only to the nature of the Sector’s products and operations, but also due to the wide definition of products that “consumer durables and motor vehicles” encompasses. The Sector’s strength is in reporting on Climate Change/Global Warming, due to the Sector’s significant challenges associated with this area of environmental sustainability. Along the same lines, 70% or more of the companies analyzed reported Energy Used (Total); Product Performance, Recyclability; Greenhouse Gas or CO2 Equivalent (Total); Product Performance, Emissions; Nitrogen Oxides (NOx); and Life Cycle Analysis (LCA) for the Environmental Reporting Elements of their PSI Scores. This trend in reporting further reflects the Sector’s appropriate emphasis on the sustainability of the products they produce: in their emissions, recyclability, and LCA. Concerning the social sustainability of this Sector, it is interesting to note the relative prominence of community building activities within the companies analyzed for the Social Reporting Element of their PSI Scores. 86.7% of companies analyzed reported Community Development and Community Education activities. Eighty percent reported their companies’ Employee Volunteerism efforts. Furthermore, 76.7% of companies reported Product Performance, Safety, which is especially important to this Sector, because this industry deals with important safety concerns such as crash-test ratings. For the Sector as a whole, an area of environmental sustainability reporting that is considerably under emphasized for most companies is Energy Used by Products. This area is pertinent to the environmental sustainability of the Sector, because it is such an important consideration when it comes to efficiency of consumer durables relative to one another, and thus the decisions consumers face in choosing which products to purchase, especially when attempting to choose more sustainable or economical options. Only 11.8% (the lowest rate of all www.roberts.cmc.edu 6 Motor Vehicle and Consumer Durables Sectors 2012 monitoring; and vi) a limit curve for light ibid. commercial vehicles. Greenhouse Gas (GHG) Emissions and Fuel Economy Standards The E.U., unlike the U.S., has also implemented fiscal incentives, such as high fuel taxes and differential vehicle and fee taxes, to further curb greenhouse based emissions as well as increase fuel economy standards for vehicles.ibid. Electrolux, a consumer durables company, received the next highest overall PSI score with a grade of “A,” further reflecting a general emphasis on sustainability in the E.U. The United States is also a global leader in fuel economy and GHG emissions standards. However, the current overall GHG emissions and fuel economy standards in the U.S. lag behind the E.U., and in some respects, Japan and China. However, the U.S. may not trail other nations for long. Recently, the merge of Federal with California (propagated by the California Air Resources Board) fuel economy and GHG emissions standards initiated a wave of developments in these standards by the Department of Transportation (DOT) and Environmental Protection Agency (EPA), for light duty vehicles. These new standards reflect a “vehicle footprint” approach with fleet-average targets of “250 gCO2e/mile or 34.1 miles per gallon under the US CAFE combined driving test cycle (equivalent to 172 gCO2/km under NEDC cycle).” ibid. Furthermore, the departments have targeted a 2025 fuel economy standard ranging from 46 to 60 mpg, which is an equivalent of 102 - 133 gCO2/km (in terms of the EU reporting standard).ibid. As a final ruling, on July 29th, 2011, “President Obama today announced a historic agreement with thirteen major automakers to pursue the next phase in the Administration’s national vehicle program, increasing fuel economy to 54.5 miles per gallon for cars and light-duty trucks by Model Year 2025.”2 This compliance level would equate to 163 g/mi CO2 emissions, if all emissions reductions were achieved solely through fuel economy.3 The means to achieve Of particular interest and concern to many individuals, organizations, governments, and corporations alike are climate change and GHG emissions. For this reason, this environmental issue is at the forefront of consideration for many consumer durables and motor vehicle corporations worldwide. To most effectively address climate change and GHG emission challenges, one must take into account the fuel economy standards that these corporations must adhere to as well. BMW earned the highest overall PSI score of companies in the Motor Vehicles and Consumer Durables sector, receiving a score of “A+.” As a German company, BMW is subject to the European Union’s (E.U.) strict and effective fuel economy and GHG emissions standards. The E.U. tests vehicles for these standards through the European Union New Drive Cycle, in order to implement carbon dioxide limits measured in g/km on a weight-based limit value curve.1 Originally, the E.U. approached limiting GHG emissions and regulating corporate average fuel economy standards in a way similar to the U.S., with a voluntary program. However, the E.U. has now realized that this methodology is not the most effective, and has now opted for a mandatory (by 2012) carbon dioxide regulation approach, in light of its Kyoto Protocol agreement and the increased consistency achieved through this method. To further increase the efficiency of vehicles the EU adopted: On 23 April 2009 Regulation [EC] No. 443/2009 of the European Parliament and of the Council stipulating that by 2012, the fleet average to be achieved by all cars registered in the EU shall be 130 gCO2/km. Furthermore, 10 gCO2/km in savings had to be achieved through the implementation of: i) use of biofuels; ii) gear shifting reminders; iii) efficient air conditioners; iv) low rolling resistance tires; v) tire pressure 2 "President Obama Announces Historic 54.5 Mpg Fuel Efficiency Standard." The White House. N.p., n.d. Web. Apr.-May 2012. <http://www.whitehouse.gov/the-pressoffice/2011/07/29/president-obama-announceshistoric-545-mpg-fuel-efficiency-standard>. 3 United States. Environmental Protection Agency. Transportation and Climate Division:Office of Transportation and Air Quality U.S. Environmental Protection Agency.Transportation and Air Quality. Environmental Protection Agency, Mar. 2012. Web. 30 May 2012. 1 Feng, An, Robert Earley, and Lucia GreenWeiskel. United Nations Development. Proc. of Commission on Sustainable Development Nineteenth Session, New York. United Nations, 2011. Web. 1 June 2012. <http://www.un.org/esa/dsd/resources/res_pdfs/csd19/Background-paper3-transport.pdf>. www.roberts.cmc.edu 7 Motor Vehicle and Consumer Durables Sectors 2012 government to follow.4 Another case, National Traffic Highway Safety Administration (NHTSA) v. Center for Biological Diversity, established that “NHTSA’s failure to monetize the benefits of GHG emissions reductions was arbitrary and capricious, and that the environmental assessment performed by the agency under NEPA was deficient in its attempt to justify its refusal to complete an Environmental Impact Statement” ibid. This case, as well as the other cases mentioned, further signify that the U.S. government might side with a more stringent federal plan to regulate and reduce GHG emissions in order to soften the effect of drastic climate change. Although there “are currently no overarching federal laws that require the government or corporations to mitigate their impact on global climate change,” there is a “policy shift” that is occurring due to “state, regional, and local governments [that] are filling the void.” ibid. This void is being filled through mechanisms such as the cases outlined above and California Assembly Bill 32 (AB 32), the “granddaddy” of climate change legislation. This Bill establishes “a range of statewide programs to reduce greenhouse gas emissions and promote efficiency,” in order to “establish a statewide GHG emissions cap for 2020 based on 1990 emissions levels.” ibid. Through state efforts, on a smaller scale, there is new momentum and support for similar legislative efforts by the federal government. Nevertheless, progress towards allencompassing federal climate change legislation still faces an uphill battle. The most recent push for comprehensive federal climate change legislation ended on September 10th, 2010. Senator Reid, at a clean energy summit in Las Vegas, Nevada, broke the news “that the world’s greatest deliberative body would not consider legislation that limits emissions from stationary sources of greenhouse gasses...”5 the fuel economy and GHG emissions standards recently set in the U.S. will include the increased incorporation of “several advanced power train technologies” such as “gasoline direct injection,” “turbo-charging,” “cylinder deactivation,” and “both 6-speed and 7-speed transmissions. ” ibid. According to the EPA’s Light-Duty Automotive Technology, Carbon Dioxide Emissions, and Fuel Economy Trends: 1975 Through 2011, Executive Summary: Taken together, the MY 2011 CAFE standards, the MY 2012-2016 greenhouse gas emissions and CAFE standards, and the proposed MY 2017-2025 greenhouse gas emissions and CAFE standards are projected to save approximately 6 billion metric tons of greenhouse gas emissions and 12 billion barrels of oil over the lifetimes of the ibid. vehicles produced in MY 2011-2025. These recent legislative developments definitely indicate that the U.S., despite its failure to ratify the Kyoto Protocol, is moving towards implementing much stricter fuel economy standards upon the vehicle industry in order to make progress in the area of climate change and global warming issues. Global Warming Federal Legislation In a series of recent court cases and statewide initiatives, there is additional indication of the U.S.’s inclination to develop and enforce climate change and GHG emissions legislation, and not solely through fuel economy standards. For example, in the case of Massachusetts v. EPA, the Supreme Court found that despite the EPA’s denial of responsibility under the Clean Air Act (CAA) in regulating GHG emissions, the Agency was indeed required to regulate this non-traditional pollutant under the Act. This finding was reached because GHG emissions could “cause, or contribute to, air pollution which may reasonably be anticipated to endanger public health or welfare,” (CAA Section 202 (a) (1)) due to the effects that GHG have on rising sea levels, severe weather patterns, etc. In the case of Central Valley Chrysler Jeep v. Goldstene, the court found that “California’s GHG emission requirements were not preempted by federal fuel efficiency standards.” This decision thus set the precedent that state standards could pave the way for more stringent federal regulations, and be a model for the federal 4 Schmidt, Lauren E., and Geoffrey M. Williamson. "Recent Developments in Climate Change Law." The Colorado Lawyer 63 (Nov. 2008): n. pag. Brownstein, Hyatt, Farber, Shreck. Brownstein, Hyatt, Farber, Shreck, Nov. 2008. Web. 28 May 2012. <http://www.bhfs.com/portalresource/lookup/wosid/c ontentpilot-core-2301-7524/pdfCopy.pdf>. 5 Goslin, Thomas, and Annemargaret Connolly. "Federal Climate Legislation Dies; EPA Prepares to Regulate." Climate Change Update (Sept. 2010): n. pag. Weil. Weil, Gotshal & Manges LLP, Sept. 2010. Web. 28 May 2012. <http://www.epa.gov/otaq/cert/mpg/fetrends/2012/42 0s12001.pdf> www.roberts.cmc.edu 8 Motor Vehicle and Consumer Durables Sectors 2012 new products.” ibid. Currently, the U.S. spends a mere “47 billion dollars” or “0.4 percent of GDP” on remanufacturing, compared to “ten percent of GDP spent on manufacturing,” ibid. thus representing a large market waiting to be realized. Society can benefit from remanufacturing, in that it provides “lower prices for consumers...thirty to forty percent less than new products,” “it reduces the volume of energy and natural resources” required to manufacture products, and as a “direct result of energy savings, remanufacturing is also extremely effective in reducing greenhouse gas emissions.” ibid. Due to these benefits of remanufacturing, and others, the U.S. is now taking more aggressive legislative initiatives to encourage the remanufacturing industry. For example, “in May 1998, the Federal Trade Commission formally began allowing remanufacturers to label their products as ‘recycled’ and ‘remanufactured in the U.S.’” ibid. Furthermore, “in 2000, Congress has been considering a twenty percent tax credit on the purchase of remanufacturing and recycling equipment.” ibid. However, according to the Automotive Parts Remanufacturers Association (APRA), due to the efforts of APRA and other associations “more legislators and government officials have become aware of the energy benefits which can be obtained from great manufacturing;”7 but, there is no current legislation to promote remanufacturing on a federal level. According to the Association, the main avenue available in legislation to pursue increased remanufacturing practices is through The Advanced Vehicle Technology Act of 2011, which has been reintroduced to Congress recently. This Act increases federal funding for advanced vehicle technology, which provides for “recycling and remanufacture of vehicle batteries and other vehicle components for reuse in vehicles.” ibid. Remanufacturing is wellreported, but under-realized as a profitable industry as it stands today, especially in the U.S. With the possibility that the legislation would pass, “Advocates for GHG-capping legislation had hoped that a bill focused solely on limiting emissions from utilities – rather than a more controversial bill limiting economy-wide emissions – could be brought to the Senate floor,” ibid. but this progress was brought to a halt. EPA, however, has far from abandoned its efforts to further GHG regulations, as discussed, through other existing avenues such as the CAA. The CAA regulates GHG emissions primarily through “New Source Review Prevention of Significant Deterioration (“PSD”) and Title V Operating Permit programs, requiring only the largest emitters of GHGs to obtain permits for their GHG emissions,” ibid. but not mobile sources that would affect the standards for emissions in the motor vehicle industry. Therefore, the CAA cannot be relied upon entirely to address the climate change issues that currently must be addressed in the U.S. Product Performance: Recyclability Recyclability is another major topic of environmental concern, yet well-addressed issue in corporate sustainability reporting. To approach recyclability of products, the E.U. has adopted standards that “no more than 15 percent of a scrap vehicle can be discarded in Europe, with that percentage dropping to 5 percent by 2015, coupled with the mandate that a percentage of automobiles sold each year must be remanufactured.” Furthermore, “The German Packaging Order and the German Recycling and Waste Control Act are models of how to establish green legislation to drive remanufacturing.”6 However, the industry for recyclability and remanufacturing is yet to be fully discovered globally. Remanufacturing is the “ultimate form of recycling,” because “it conserves not only the raw material content but also much of the value added during the process required to manufacture Resource Conservation and Recovery Act (RCRA) and Recycling/Remanufacture <http://www.weil.com/files/Publication/315b43d02f45-4d12-9518 61d9ff4a8213/Presentation/PublicationAttachment/b 8e074d9-b797-45b2-9db663d53831314e/Climate_Change_Update_September _2010.pdf>. 6 Giutini, R. "Remanufacturing: The next Great Opportunity for Boosting US Productivity."Business Horizons 46.6 (2003): 41-48. Print. www.roberts.cmc.edu The Resource Conservation and Recovery Act (RCRA) is an important aspect of Consumer 7 Colon, Michael. "APRA." APRA. Automotive Parts Remanufacturers Association, n.d. Web. 01 June 2012. <http://www.apra.org/Legislation/APRA_Positions.a sp>. 9 Motor Vehicle and Consumer Durables Sectors 2012 Durable and Motor Vehicle Life Cycle Analysis (LCA), in addition to recyclability. This Act was set forth in 1976 “to address the huge volumes of municipal and industrial solid waste generated nationwide.”8 The Act aims to “protect human health and the environment from the potential hazards of waste disposal, conserve energy and natural resources, reduce the amount of waste generated, and ensure that waste are managed in an environmentally sound manner.” ibid Much of the end-of –life wastes from the Consumer Durables and Motor Vehicles sector are covered by this Act, due to the fact that many of the resulting chemicals from disposal of these products are considered hazardous wastes. Hazardous wastes are regulated in order to “manage hazardous wastes from cradle to grave” ibid. under Subtitle C of RCRA. According to Section 1 of RCRA, RCRA also aims to conserve energy and natural resources, and to protect these resources from contamination by hazardous waste. Because of this provision by RCRA, a natural implication is that the Act also encourages resource recovery, or remanufacture and recycling, which is a major factor for the end-of life-cycle for consumer durables and motor vehicles. RCRA has even implemented initiatives to provide for a recycling and remanufacturing market, and furthermore, promulgated federal procurement requirements to increase demand for recycled or remanufactured products. RCRA, the main legislation for solid (including hazardous) wastes, is a key piece of legislation when considering the end-of-life-cycle and LCA for motor vehicles and consumer durables, now and in the future if remanufacturing becomes a larger part of GDP from the Sector successfully accomplish, provides a much more coherent picture of the overall environmental impact of these products. In the Communication for Car Manufacturers, it states that: Only when a vehicle’s total life cycle emissions are accounted for can a true picture of its environmental impact emerge. An LCA approach allows manufacturers to make design choices based on true environmental impact and economic value.9 With the recent impetus towards a shift to either hybrid or electric vehicles, there are important LCA considerations. According to the same publication, “While a typical gasoline-powered vehicle currently emits only around 15% of its GHG in production, the use of cellulosic ethanol or a shift towards battery or hybrid electric vehicles would dramatically increase the share of vehicle production emissions.” ibid. Although there is currently a lack of federal legislation mandating LCA by manufacturers, as it is evident from the PSI score for this topic, many corporations are already taking this important factor into consideration. The European Commission has taken more governmental initiatives for LCA, and even considers the LCA approach to be “the best framework for assessing the potential environmental impacts of products currently available.” ibid. This serves as another instance that suggests that the E.U. provides a model for the U.S. in crafting its own legislation to best address sustainability issues faced by the Consumer Durables and Motor Vehicles sector. Energy Used by Products and Energy Star Life Cycle Analysis For the Consumer Durables and Motor Vehicles sector, the Energy Used by Products Element of environmental reporting requires significant improvement. Currently, it is underreported, considering its relative importance to especially the consumer durables industry. Not only is energy efficiency an important aspect of sustainability, but also the implied reduction in GHG emissions from improving the energy efficiency of products. The United States can be considered as a While it is of course important to consider the GHG emissions and energy use of consumer durables and motor vehicles from there usage by consumers, incorporating a LCA approach when evaluating these parameters, as most companies 8 United States. Environmental Protection Agency. Office of Solid Waste/Communications, Information, and Resources Management Division. Port Compliance: Environmental Compliance for Port Tenants and Authorities. Port Compliance: Environmental Compliance for Port Tenants and Authorities, n.d. Web. 01 June 2012. <http://www.portcompliance.org/pdfs2/rcra%20orien tation%20manual%202006.pdf> www.roberts.cmc.edu 9 World Auto Steel. Communication for Car Manufacturers. N.p.: World Auto Steel, n.d.World Auto Steel. World Auto Steel. Web. 5 May 2012. <http://c315221.r21.cf1.rackcdn.com/LCAComm_Ca r_Manufacturer_a4_201203_FINAL.pdf>. 10 Motor Vehicle and Consumer Durables Sectors 2012 leader in promoting energy efficiency for consumer durables through its Energy Star program. This widely recognized program was developed to address energy efficiency issues through “a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy helping us all save money and protect the environment through energy efficient products and practices.”10According to the Energy Star and Other Climate Projection Partnerships Annual Report: Since 1992, the Energy Star program has served as a trusted source for voluntary standards and unbiased information to help consumers and organizations across the country adopt energyefficient products and practices as cost-effective strategies for reducing GHGs and protecting our climate.11 Some of the main highlights of 2010, according to the report, include that “EPA’s Energy Star efforts helped Americans: Save more than 240 billion kilowatt-hours (kWh)..., prevent 195 million metric tons of GHGs..., and save more than $20 billion on their energy bills.” ibid. To achieve this progress, “Energy Star continues to be regarded as the trusted source of unbiased information that helps Americans identify reliable, cost-effective, energy-saving solutions that protect the environment by reducing GHG emissions.” ibid. In addition, a primary focus of the Energy Star program is to incentivize consumer durable manufacturers to produce more energy efficient products. Achievements by the Energy Star program in this area include that, “more than 40,000 individual product models, produced by over 1,600 manufacturing partners, have earned the Energy Star across more than 60 product categories.” ibid. But it is not only the manufacturing of these products that has led to the notable achievements of the Energy Star program, for this program to be as widely successful as it has already been, it also required that “Americans purchased some 200 million Energy Star qualified products in 2010, bringing the total to about 3.5 billion since 2000, and EPA finalized third-party certification and enhanced product testing and verification procedures.” ibid. Despite these successes and the growing successes of the Energy Star program in the United States, across corporations globally, more initiatives must be taken by consumer durables manufacturers to enlighten consumers regarding the energy efficiency of their products. According to the Report, there have been many efforts to increase awareness and encourage participation with the Energy Star Program. The report cites that the: EPA engages in public outreach that encourages Americans to make energy-efficient changes at home, at work, and in their communities. The Energy Star program’s approach highlights both the financial and environmental benefits of energy efficiency and provides a forum to drive behavior change through a variety of elements—reaching millions of people through print, broadcast, and social media channels, events nationwide, and grassroots-to-national ibid. partnerships. To reach a wide audience and most effectively target consumers, EPA has implemented strategies such as “The national Change the World, Start with Energy Star campaign,” which has “continued to promote individual actions through the Energy Star Pledge in 2010.” ibid. The success of this program alone is seen in “more than 240,000 individuals [taking] the Energy Star Pledge in 2010, representing an estimated potential 3.7 billion pounds of GHG emissions prevented and more than 2 billion kWh saved.” ibid. The Energy Star program is a notable model for outreach and awareness, and by implementing a similar program in other nations, there would be more incentive for consumer durables corporations to report the energy efficiency of their products. 10 "About ENERGY STAR." : ENERGY STAR. Environmental Protection Agency, n.d. Web. 2 June 2012. <http://www.energystar.gov/index.cfm?c=about.ab_i ndex> 11 United States. Environmental Protection Agency. Air and Radiation. Energy Star. Environmental Protection Agency, 2010. Web. 5 May 2012. <http://www.energystar.gov/ia/partners/publications/ pubdocs/2010%20CPPD%20Annual%20Report.pdf? 118a-68b7> www.roberts.cmc.edu 11 Motor Vehicle and Consumer Durables Sectors 2012 Motor Vehicle and Consumer Durables Environmental Intent Topics Percent of possible points for all companies combined. Two possible points for each topic: Accountability 90 4 19 81.67 80 * Report contact person * Environmental management structure Management 71.67 16 20 21 23 68.75 70 60 * Environmental education * Environmental management system * Environmental accounting * Stakeholder consultation Policy 50.83 9 10 11 12 13 50 40 30 Vision 20 5 6 * Environmental policy statement * Climate change/global warming * Habitat/ecosystem conservation * Biodiversity * Green purchasing * Environmental visionary statement * Environmental impediments and challenges Vision Policy Management 0 Accountability 10 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 12 Motor Vehicle and Consumer Durables Sectors 2012 Motor Vehicle and Consumer Durables Environmental Reporting Topics Seven possible points for each topic: Emissions to Air Percent of possible points for all companies combined. 83 114 122 * Carbon monoxide (CO) * Nitrogen oxides (NOx) * Volatile organic carbon (VOC), concentration 123 124 * Particulate matter (dust) * Logistics emissions 118 121 70 63.33 60 * Greenhouse gases (or CO2 equivalents), total * Volatile organic compounds (VOCs) Energy 26 27 50 103 * Energy used (total) * Energy used (renewable) * Energy used: Logistics Management 40 35.78 35.67 35.51 38 31.90 39 28.93 30 40 * Notices of violation (environmental) * Environmental expenses and investments * Fines (environmental) Materials Usage 147 17.78 20 17.33 148 * Life Cycle Analysis (LCA) * Materials used: Non-returnable packaging Products 138 10 141 142 143 * Product performance, fuel efficiency * Product performance, recyclability Recycling Water Waste Recycling Products Materials Usage Management Energy Emissions to Air 0 * Energy used: Products * Product performance, emissions 30 32 106 107 184 * Waste recycled: solid waste * Waste (office) recycled * Materials recycled: Wastewater * Materials reused or recycled: Packaging materials * Remanufacturing of products Waste 34 35 37 109 110 * Waste (solid) disposed of * Waste (hazardous) produced * Waste (hazardous) released to the environment * Waste: Packaging materials * Waste water released to natural water bodies 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 13 Motor Vehicle and Consumer Durables Sectors 2012 Motor Vehicle and Consumer Durables Social Intent Topics Two possible points for each topic: Percent of possible points for all companies combined. Accountability 51 80 * Health and safety, or social organizational 73.89 54 67.50 70 Management 17 60 18 52 50 * structure Third-party validation 47.67 53 45.00 82 41.67 * Workforce profile: ethnicities/race * Workforce profile: gender * Workforce profile: age * Emergency preparedness program * Employee training for career development Policy 40 45 47 30 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 14 Motor Vehicle and Consumer Durables Sectors 2012 Motor Vehicle and Consumer Durables Social Reporting Topics Seven possible points for each topic: Human Rights Percent of possible points for all companies combined. 7 48.25 50 45 1 8 58 42.42 59 38.00 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 35 61 * Free association and collective bargaining of employees 30 62 25.11 63 25 * Fair compensation of employees * Elimination of all forms of forced and compulsory labor 64 20 65 * Reasonable working hours * Effective abolition of child labor Management 15 2 10 * Women in management Qualitative Social 66 5 68 Quantitative Social Qualitative Social Management Human Rights 67 0 70 72 151 152 156 * Community development * Employee satisfaction surveys * Community education * Occupational health and safety protection * Employee volunteerism * Product performance, noise * Consumer education program * Product performance, 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 15 Motor Vehicle and Consumer Durables Sectors 2012 Motor Vehicle and Consumer Durables Environmental Intent Elements of the PSI Scores Environmental management system 93.3% 88.3% Environmental policy statement 93.3% 88.3% Environmental visionary statement 93.3% 91.7% Climate change/global warming 90.0% 86.7% 86.7% 76.7% Stakeholder consultation 83.3% Environmental management structure 50.0% Environmental education 73.3% 70.0% Environmental impediments and challenges 73.3% 71.7% 70.0% 65.0% Green purchasing Biodiversity 63.3% 58.3% Habitat/ecosystem conservation 63.3% 60.0% 60.0% 51.7% Report contact person 46.7% 40.0% 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 16 Motor Vehicle and Consumer Durables Sectors 2012 Motor Vehicle and Consumer Durables Environmental Reporting Elements of the PSI Scores Energy used (total) 44.3% Waste (solid) disposed of 44.8% Product performance, recyclability 24.8% 46.2% Water used 45.2% Product performance, emissions 28.6% Nitrogen oxides (NOx) 28.6% Life Cycle Analysis (LCA) 80.0% 76.7% 70.0% 70.0% 63.3% 22.9% Volatile organic compounds (VOCs) 63.3% 34.3% Particulate matter (dust) 60.0% 18 . 6 % Logistics emissions 56.7% 2 1. 0 % Energy used (renewable) 56.7% 18 . 1% Materials reused or recycled: Packaging materials 12 . 9 % Waste water released to natural water bodies 12 . 9 % Energy used: Logistics 14 . 3 % 2 1. 0 % Waste (hazardous) produced 20.0% Waste: Packaging materials 9.0% Materials recycled: Wastewater 9.0% 50.0% 50.0% 46.7% 46.7% 40.0% 40.0% 36.7% Fines (environmental) 11. 9 % Materials used: Non-returnable packaging 12 . 9 % Waste (hazardous) released to the environment 53.3% 46.7% 11. 0 % Environmental expenses and investments 16 . 7 % 36.7% 36.7% 20.0% 6.2% Volatile organic carbon (VOC), concentration 16 . 7 % 5.7% Carbon monoxide (CO) 16 . 7 % 5.2% Energy used: Products 83.3% 3 8 . 1% Waste recycled: solid waste Notices of violation (environmental) 83.3% 35.2% Product performance, fuel efficiency Waste (office) recycled 86.7% 83.3% Greenhouse gases (or CO2 equivalents), total Remanufacturing of products 90.0% 13 . 3 % 5.2% 11. 8 % 3.4% 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 17 Motor Vehicle and Consumer Durables Sectors 2012 Motor Vehicle and Consumer Durables Social Intent Elements of the PSI Scores 100.0% 90.0% Social visionary statement 86.7% 81.7% Supplier screening based on social or environmental performance/ supplier management 83.3% 76.7% Employee training for career development 80.0% 75.0% Social policy statement 76.7% 65.0% Code of conduct or business ethics Third-party validation 70.0% 55.0% Workforce profile: gender 70.0% 65.0% 60.0% Health and safety, or social organizational structure 35.0% Employment for individuals with disabilities 53.3% 41.7% Social impediments and challenges 53.3% 45.0% Emergency preparedness program 46.7% 36.7% Workforce profile: age 46.7% 35.0% 30.0% 25.0% Workforce profile: ethnicities/race 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 Motor Vehicle and Consumer Durables Sectors 2012 Motor Vehicle and Consumer Durables Social Reporting Elements of the PSI Scores Community development 45.7% Community education 45.2% Elimination of discrimination in respect to employment and occupation 46.7% Occupational health and safety protection 46.2% Employee volunteerism 83.3% 80.0% 76.7% 73.3% 46.7% Effective abolition of child labor 70.0% 34.3% Social community investment 66.7% 23.3% Free association and collective bargaining of employees 66.7% 33.8% Employee satisfaction surveys 30.5% Elimination of all forms of forced and compulsory labor 30.5% Bribery 31.0% Product performance, noise 63.3% 63.3% 63.3% 63.3% 15.2% Lost workday case rate 60.0% 30.5% Recordable incident/accident rate 60.0% 32.4% Sexual harassment 29.0% Consumer education program 31.4% Women in management 27.1% Fair compensation of employees 26.7% Political contributions 25.2% 56.7% 56.7% 53.3% 50.0% 50.0% 20.0% Reasonable working hours 46.7% 30.0% 12.4% Employee turnover rate Health and safety fines 86.7% 20.5% Anti-corruption practices Degrading treatment or punishment of employees 86.7% 41.0% Product performance, safety Health and safety citations 86.7% 23.3% 7.1% 16.7% 9.5% 6.7% 1.9% 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 Motor Vehicle and Consumer Durables Sectors 2012 EI Score Rankings Environmental Intent Scores Denso BMW Group A+ Denso 100.0 A+ BMW Group 96.2 A Bridgestone Daimler AG Mazda Motor Bridgestone 92.3 A A Daimler AG 92.3 A Toyota Motor Johnson Controls Aisin Seiki Mazda Motor 88.5 A A- T oyota Motor 88.5 A- Toyota Industries Johnson Controls 88.5 A- Peugeot Hyundai Motor Michelin Aisin Seiki 84.6 AA- T oyota Industries 84.6 A- Porsche Peugeot 84.6 Hyundai Motor AA- Fiat Ford Motor 84.6 B+ Electrolux 80.8 B+ Mitsubishi Porsche 80.8 B+ B+ Whirlpool Nissan Motor Fiat 80.8 B Honda Motor Ford Motor 80.8 B B- Renault Suzuki Motor Michelin 76.9 Electrolux B- Tata Motors 73.1 B- Volvo Group W hirlpool 73.1 C+ C Continental AG Hyundai Mobis Nissan Motor 73.1 C- Magna International D+ F Fortune Brands SAIC Motor F Dongfeng Motor Group Mitsubishi Honda Motor 69.2 65.4 Renault 61.5 Suzuki Motor T ata Motors 57.7 Volvo Group 57.7 50.0 Continental AG Hyundai Mobis 42.3 34.6 Magna International 26.9 Fortune Brands SAIC Motor 3.8 Dongfeng Motor 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 20 Motor Vehicle and Consumer Durables Sectors 2012 ER Score Rankings Environmental Reporting Scores A+ BMW Group A- Electrolux 38.89 AA- Whirlpool Denso 47.59 BMW Group 40.00 Electrolux W hirlpool Denso 38.16 A- Hyundai Motor Hyundai Motor 37.78 T oyota Industries 36.22 B+ B+ Toyota Industries Ford Motor Ford Motor 35.86 B+ Toyota Motor B+ Suzuki Motor Fiat Peugeot T oyota Motor 35.78 Suzuki Motor 34.71 B+ B Fiat 34.02 B Daimler AG Peugeot 33.56 Daimler AG 32.44 B B Mazda Motor Honda Motor B- Johnson Controls B- Michelin Aisin Seiki Nissan Motor 30.57 Mazda Motor Honda Motor 30.44 Johnson Controls 28.67 C+ C+ 27.56 C Porsche C C Renault Volvo Group C Continental AG C- Bridgestone Mitsubishi Tata Motors Michelin 24.14 Aisin Seiki Nissan Motor 22.00 Porsche 21.11 Renault 20.92 Volvo Group 19.54 CC- Continental AG 18.22 D+ Hyundai Mobis D D- Fortune Brands Magna International F SAIC Motor F Dongfeng Motor Group Bridgestone 16.00 Mitsubishi 14.89 T ata Motors 14.48 Hyundai Mobis 10.67 Fortune Brands 6.00 Magna International 2.76 SAIC Motor 0.00 Dongfeng Motor 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 21 Motor Vehicle and Consumer Durables Sectors 2012 Environmental Performance Scores EP Score Rankings A+ BMW Group A- Toyota Industries B+ Electrolux 18.33 BB- Peugeot Honda Motor Honda Motor 18.33 B- Denso Denso 17.24 Suzuki Motor 17.24 BB- Suzuki Motor Ford Motor Ford Motor 17.24 C+ Whirlpool 16.67 C+ Renault 15.52 C+ C+ Fiat Daimler AG C+ Toyota Motor C+ C Hyundai Motor Nissan Motor C Aisin Seiki C Volvo Group CC- Mazda Motor Continental AG D+ Bridgestone D+ D Porsche Michelin BMW Group 31.03 T oyota Industries 25.00 Electrolux 22.41 Peugeot W hirlpool Renault Fiat 15.52 Daimler AG 15.00 T oyota Motor 15.00 Hyundai Motor 15.00 Nissan Motor 13.33 Aisin Seiki 12.07 Volvo Group 12.07 Mazda Motor 10.34 Continental AG 10.00 Bridgestone 8.33 Porsche 6.67 D Johnson Controls Michelin 5.00 D- Hyundai Mobis Johnson Controls 5.00 DF Mitsubishi Magna International Mitsubishi 1.67 F Fortune Brands Magna International 0.00 Fortune Brands 0.00 F F Tata Motors SAIC Motor T ata Motors 0.00 F Dongfeng Motor Group Hyundai Mobis 3.33 SAIC Motor 0.00 Dongfeng Motor 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 22 Motor Vehicle and Consumer Durables Sectors 2012 SI Score Rankings Social Intent Scores A+ A Denso Peugeot A- Mazda Motor AB+ Bridgestone Fiat 73.08 B+ BMW Group 73.08 B+ Aisin Seiki Daimler AG Toyota Motor Denso 96.15 Peugeot 84.62 Mazda Motor 80.77 Bridgestone 80.77 Fiat BMW Group Aisin Seiki 69.23 Daimler AG 69.23 B+ B+ T oyota Motor 69.23 B+ Johnson Controls 69.23 B B Electrolux Michelin B Whirlpool B Continental AG B B Nissan Motor Hyundai Motor B- Ford Motor BC+ Suzuki Motor Tata Motors Johnson Controls Electrolux 65.38 Michelin 65.38 W hirlpool 65.38 Continental AG 65.38 Nissan Motor 65.38 Hyundai Motor 61.54 Ford Motor 57.69 Suzuki Motor 53.85 C+ Toyota Industries T ata Motors 50.00 C+ Hyundai Mobis T oyota Industries 50.00 Hyundai Mobis 50.00 C+ C+ Renault Volvo Group 50.00 C Magna International CC- Honda Motor Porsche D+ Fortune Brands D+ Mitsubishi DF SAIC Motor Dongfeng Motor Group Renault Volvo Group 46.15 Magna International 38.46 Honda Motor 34.62 Porsche 30.77 Fortune Brands 26.92 Mitsubishi 23.08 SAIC Motor 7.69 Dongfeng Motor Group 3.85 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 23 Motor Vehicle and Consumer Durables Sectors 2012 SR Score Rankings Social Reporting Scores Electrolux 71.54 W hirlpool 64.36 BMW Group 63.85 Johnson Controls 55.51 Daimler AG 52.05 Peugeot 51.15 A+ Electrolux A A Whirlpool BMW Group B+ Johnson Controls B+ B+ Daimler AG Peugeot Ford Motor 48.85 B Ford Motor Hyundai Motor 47.44 B Hyundai Motor Mazda Motor 46.02 B B- Mazda Motor Denso B- Tata Motors BB- Fiat Nissan Motor C+ Renault C+ Volvo Group C+ C Toyota Industries Continental AG C Michelin Bridgestone Toyota Motor Denso 43.59 T ata Motors 42.95 Fiat 40.64 Nissan Motor 38.85 Renault 38.08 Volvo Group 37.95 T oyota Industries 36.28 Continental AG 32.31 Michelin 31.15 Bridgestone 30.51 C C T oyota Motor 30.51 C Aisin Seiki Aisin Seiki 29.23 C Fortune Brands Fortune Brands 28.46 25.51 CC- Suzuki Motor Magna International Magna International 23.85 C- Hyundai Mobis Hyundai Mobis 23.33 D D Honda Motor Porsche Suzuki Motor Honda Motor 14.36 D Mitsubishi 9.23 F SAIC Motor SAIC Motor 0.00 F Dongfeng Motor Group Porsche 9.36 Mitsubishi Dongfeng Motor Group 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 24 Motor Vehicle and Consumer Durables Sectors 2012 SP Score Rankings Social Performance Scores BMW Group 46.15 Electrolux 38.46 Daimler AG 34.62 W hirlpool 30.77 A+ BMW Group A- Electrolux B+ B Daimler AG Whirlpool C+ Peugeot Fortune Brands Tata Motors Peugeot 23.08 Fortune Brands 21.15 C+ C+ T ata Motors 21.15 C+ Johnson Controls Johnson Controls 21.15 C Denso Toyota Industries Hyundai Motor Denso 19.23 T oyota Industries 17.31 CC- Hyundai Motor 17.31 C- Ford Motor 17.31 Michelin Nissan Motor Michelin 13.46 CC- Nissan Motor 13.46 D+ Mazda Motor 11.54 D+ Aisin Seiki 11.54 D+ D+ Renault Fiat D+ Volvo Group D D Toyota Motor Hyundai Mobis D Porsche D Suzuki Motor DD- Continental AG Bridgestone Continental AG 3.85 F Magna International Bridgestone 3.85 Magna International 0.00 F F Mitsubishi SAIC Motor Mitsubishi 0.00 F Dongfeng Motor Group SAIC Motor 0.00 F Honda Motor Ford Motor Mazda Motor Aisin Seiki Renault 11.54 Fiat 11.54 Volvo Group 9.62 T oyota Motor 7.69 Hyundai Mobis 5.77 Porsche 5.77 Suzuki Motor 5.77 Dongfeng Motor Group 0.00 Honda Motor 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 25 Motor Vehicle and Consumer Durables Sectors 2012 Motor Vehicle and Consumer Durables Human Rights Reporting Elements of the PSI Scores Percent of companies reporting* Human Rights Topics adoption reinforcement monitoring 73.3% 40.0% 36.7% 13.3% 63.3% 23.3% 16.7% 6.7% 16.7% 10.0% 6.7% 0.0% 70.0% 30.0% 13.3% 6.7% 63.3% 26.7% 13.3% 3.3% 86.7% 46.7% 23.3% 13.3% 50.0% 26.7% 10.0% 10.0% 66.7% 36.7% 10.0% 10.0% 50.0% 6.7% 6.7% 6.7% 46.7% 30.0% 10.0% 6.7% 53.3% 36.7% 13.3% 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 26 Motor Vehicle and Consumer Durables Sectors 2012 Motor Vehicle and Consumer Durables 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 Sweden South Korea Japan Italy Overall India Germany France China Canada Country N Canada 1 China 2 France 3 Sweden Germany India 4 1 South Korea Italy 1 Japan Japan South Korea 10 2 Sweden 2 USA 4 USA Italy Environmental India Germany France China Canada USA Sweden South Korea Japan Italy Social India Germany France China Canada 0 www.roberts.cmc.edu 5 10 15 20 25 30 27 35 40 45 50 Motor Vehicle and Consumer Durables 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 50 EP EI EI EP 50 EI EP 50 EI 50 25 25 25 0 0 0 0 SP SI SP SI SR SP SI SR Electrolux SI SR Whirlpool ER SP SR Denso ER Daimler AG ER ER 100 100 100 100 75 75 75 75 75 50 EP 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 Peugeot SI SR Hyundai Motor ER SP ER SP SI SR Ford Motor SP Mazda Motor ER ER 100 100 100 100 100 75 75 75 75 75 50 EP 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 Toyota Industries SI SR Fiat ER SP ER SP SI SR Toyota Motor SP Michelin ER ER 100 100 100 100 100 75 75 75 75 75 50 EP EI 25 EP EI 25 0 SI 50 SI SR ER SP SR SI SR SP SR Tata Motors ER ER 100 100 100 100 100 75 75 75 75 75 50 EP EI 50 EP EI EP 50 EI EP 50 EI 50 25 25 25 25 25 0 0 0 0 0 SP SI SP SI SR SR Bridgestone SR Porsche ER Hyundai Mobis ER ER 100 100 100 100 100 75 75 75 75 75 50 EP EI 50 EP EI EP 50 EI EP 50 EI 50 25 25 25 25 25 0 0 0 0 0 SI SP SR Fortune Brands www.roberts.cmc.edu SI SP SR Mitsubishi SI SP SR Magna International 28 EP SP SI SR Honda Motor ER SP SI SR Continental AG ER SP SI EP 0 SP Volvo Group ER 50 25 SI Renault ER EI 0 SI Aisin Seiki EP 50 25 0 SP SR Suzuki Motor EI 25 0 SP EP 50 EP SR Nissan Motor ER EP SR Johnson Controls ER EP SP 100 SI EI EP 25 0 ER EI 50 25 SR EI ER 100 75 BMW Group EI ER 100 75 SI EI ER 100 SI SP SR SI EP SP SR SAIC Motor Dongfeng Motor Group Motor Vehicle and Consumer Durables 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 Aisin Seiki BMW Group 28.44 53.72 22740 1.36 -260 17220 1.24 7740 0.89 74090 1.87 450 -0.35 139310 2.14 26830 1.43 Bridgestone 25.59 27940 1.45 10 -2.00 28720 1.46 14440 1.16 Continental AG Daimler AG 23.75 41.00 28790 1.46 -2360 32020 1.51 9010 0.95 110060 2.04 -3690 184490 2.27 45070 1.65 1.51 -860 29340 1.47 24050 1.38 Denso Dongfeng Motor Gro 41.31 0.23 32280 10360 1.02 590 -0.23 8640 0.94 12700 1.10 Electrolux 49.89 15240 1.18 360 -0.44 9800 0.99 6090 0.78 Fiat Ford Motor 35.48 38.49 71780 1.86 -1200 92760 1.97 13240 1.12 118310 2.07 2720 0.43 194850 2.29 41800 1.62 Fortune Brands 15.71 6210 0.79 240 -0.62 12370 1.09 6680 0.82 Honda Motor Hyundai Mobis 22.64 16.67 102820 2.01 1410 0.15 117240 2.07 63220 1.80 11110 1.05 840 -0.08 8300 0.92 12460 1.10 Hyundai Motor 38.57 63950 1.81 690 -0.16 81450 1.91 21840 1.34 Johnson Controls Magna International 37.65 12.19 29570 1.47 620 -0.21 23810 1.38 21410 1.33 17370 1.24 -490 12300 1.09 6400 0.81 Mazda Motor Michelin 36.15 28.72 26040 1.42 -730 20650 1.31 150 Mitsubishi 13.35 20270 1.31 Nissan Motor Peugeot 29.76 40.67 86650 Porsche Renault SAIC Motor Suzuki Motor 17500 1.24 4660 0.67 23670 1.37 10360 1.02 -560 11440 1.06 7990 0.90 1.94 -2400 102520 2.01 35650 1.55 69370 1.84 -1660 91190 1.96 5970 0.78 17.66 81310 1.91 -3600 300450 2.48 8880 0.95 28.18 0.66 47010 1.67 -4360 91690 1.96 11270 1.05 15440 1.19 100 -1.00 15770 1.20 21110 1.32 28.56 30860 1.49 280 -0.55 20590 1.31 11620 1.07 Tata Motors Toyota Industries 26.15 35.51 13610 1.13 -490 14290 1.16 7930 0.90 16270 1.21 -340 23450 1.37 8610 0.94 Toyota Motor 32.60 210840 2.32 -4490 292730 2.47 127100 2.10 Volvo Group Whirlpool 26.34 45.13 30490 1.48 -2060 44770 1.65 18310 1.26 17100 1.23 330 15090 1.18 6430 0.81 -0.82 -0.48 Source: www.roberts.cmc.edu 29 2010 Forbes List Motor Vehicle and Consumer Durables Sectors 2012 60 5 3 .7 2 50 4 9 .8 9 Overall PSI Scores 4 5 .13 4 1.3 1 40 3 5 .5 1 4 1.0 0 4 0 .6 7 3 8 .5 7 3 7 .6 5 3 6 .15 3 8 .4 9 3 5 .4 8 3 2 .6 0 30 2 9 .7 6 2 8 2.782.4 4 2 8 .5 6 2 6 .3 4 2 5 .5 9 2 3 .7 5 2 6 .15 2 8 .18 2 2 .6 4 20 17 .6 6 16 .6 7 15 .7 1 13 .3 5 12 .19 10 2 R = 0.1772 0 .6 6 0 .2 3 0 0 0.5 1 1. 5 2 2.5 Revenue Log10 $M 60 53.72 49.89 50 4 5 . 13 Overall PSI Scores 40 38.57 37.65 28.72 28.56 38.49 30 25.59 22.64 20 15 . 7 1 2 16 . 6 7 R = 0.0366 10 0.66 - 2.5 -2 - 1.5 0 . 203 -1 - 0.5 0 0.5 1 Profits Log10 $M www.roberts.cmc.edu 30 Motor Vehicle and Consumer Durables Sectors 2012 60 53.72 50 49.89 Overall PSI Scores 4 5 . 13 4 1. 3 1 40 4 1. 0 0 38.49 40.67 38.57 37.65 3 6 . 153 5 . 5 1 35.48 32.60 30 29.76 2 8 . 18 2 8 .24 842. 586. 7 2 2 6 . 15 25.59 26.34 23.75 22.64 2 20 R = 0.132 16 . 6 7 17 . 6 6 15 . 7 1 13 . 3 5 12 . 19 10 0.66 0.23 0 0 0.5 1 1.5 2 2.5 3 Asset Log10 $M 60 53.72 50 49.89 Overall PSI Scores 4 5 . 13 4 1. 3 1 38.57 37.65 40.67 40 3 6 . 15 35.51 4 1. 0 0 38.49 35.48 32.60 30 29.76 2 8 . 4 4 2 822.878.2.18 56 2 6 . 15 2 5 . 5 92 6 . 3 4 23.75 22.64 20 17 . 6 6 16 . 6 7 15 . 7 1 13 . 3 5 12 . 19 2 R = 0.0149 10 0.66 0.23 0 0 0.5 1 1.5 2 2.5 Market Value Log10 $M www.roberts.cmc.edu 31 Motor Vehicle and Consumer Durables Sectors 2012 Number of Explicit numerical goals Reported BMW Group 12 11 Ford Motor 9 Fiat 8 Denso 7 Mitsubishi 6 Toyota Industries 5 Johnson Controls 5 Toyota Motor 5 Mazda Motor 5 Honda Motor 5 Daimler AG 4 Fortune Brands 4 Electrolux 4 Nissan Motor 4 Peugeot Renault 4 4 Continental AG 4 Volvo Group 3 Aisin Seiki 3 Whirlpool 2 Hyundai Motor Porsche 2 Suzuki Motor 2 Michelin 2 Tata Motors 1 0 5 10 15 20 25 Explicit Goals Most Frequently Reported 1 Waste (solid) disposed of 13 2 Greenhouse gases (or CO2 equivalents), total 10 3 Water used 9 4 Product performance, recyclability 9 5 Energy used (total) 7 6 Product performance, emissions 6 7 Waste recycled: solid waste 6 www.roberts.cmc.edu 32 Motor Vehicle and Consumer Durables Sectors 2012 Number of Topics Showing Performance Improvement over Previous Year Data BMW Group 21 Toyota Industries 19 Denso 15 Daimler AG 14 Electrolux 14 Ford Motor 14 Hyundai Motor 11 Renault 11 Peugeot 11 Whirlpool 11 Fiat 10 Suzuki Motor 10 Toyota Motor 9 Johnson Controls 9 Aisin Seiki 9 Honda Motor 9 Mazda Motor 7 Volvo Group 7 Nissan Motor 6 Continental AG 6 Bridgestone 6 Michelin 5 Porsche 4 Hyundai Mobis 1 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 Water used Volatile organic compounds (VOCs) Energy used (total) Waste (solid) disposed of Greenhouse gases (or CO2 equivalents), total Product performance, emissions Recordable incident/accident rate Lost workday case rate Waste (hazardous) released to the environment Product performance, fuel efficiency Waste (hazardous) produced Nitrogen oxides (NOx) Logistics emissions Waste recycled: solid waste Materials used: Non-returnable packaging Women in management www.roberts.cmc.edu 17 16 16 15 15 13 11 9 8 8 7 6 6 5 5 5 33 Motor Vehicle and Consumer Durables Sectors 2012 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Occupational health and safety protection Employee satisfaction surveys Employee volunteerism Environmental expenses and investments Life Cycle Analysis (LCA) Employee turnover rate Energy used (renewable) Community education Waste (office) recycled Fines (environmental) Waste water released to natural water bodies Social community investment Energy used: Logistics Consumer education program Waste: Packaging materials Particulate matter (dust) Remanufacturing of products Materials recycled: Wastewater Product performance, safety Health and safety citations Product performance, noise Carbon monoxide (CO) Volatile organic carbon (VOC), concentration Product performance, recyclability Health and safety fines Notices of violation (environmental) Materials reused or recycled: Packaging materials Community development AA1000, AccountAbility www.roberts.cmc.edu 34 5 5 4 4 4 4 4 3 3 3 3 3 3 3 3 3 2 2 2 2 2 2 2 1 1 1 1 1 1 Motor Vehicle and Consumer Durables Sectors 2012 Number of Topics in which Performance was Better than Sector Average* Electrolux 4 BMW Group 3 Porsche 3 Toyota Motor 3 Honda Motor 2 Hyundai Mobis 2 Nissan Motor 2 Continental AG 1 Daimler AG 1 Denso 1 Hyundai Motor 1 Johnson Controls 1 Peugeot 1 Volvo Group 1 Whirlpool 1 0 1 2 3 4 5 *Sector averages are calculated from the materials scored for this report. www.roberts.cmc.edu 35 Motor Vehicle and Consumer Durables Sectors 2012 C+ Aisin 2010 Corporate Sustainability Report, 4th Environmental Plan, and 2011 Web Pages Aisin Seiki Aisin Seki demonstrates a clear commitment to corporate sustainability, as seen in its 2010 Corporate Sustainability Report, 2010 Web Pages, and 4th Environmental Action Plan. Much of its quantitative data, however, is not transparent. This is especially evident in Aisin Seki’s reporting of water usage and release to natural water bodies and logistics emissions. Only ten of twenty-three of Aisin Seki’s subsidiaries were reported.•Aisin Seki’s commitment to stakeholders and promoting biodiversity are two highlights of Aisin Seki’s environmental responsibility. Also, the company promotes a balance of male and female employees, as seen in its Reduced Working Hours for Childcare Program to increase women in its workforce. To improve its PSI score, Aisin Seki needs to report more quantitative data, completely and transparently. 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 85 ES A E 48% S S 52% SSA 0 25 50 69 29 24 EI 75 ER 12 12 EP SI SR Aisin Seiki 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 Vision 4 4 100 Excellent Score Max Score % General Comment 10 49 20 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 8 21 38 Needs improvement Management 3 21 14 Needs substantial improvement Needs substantial improvement Materials Usage 1 14 7 Products 7 21 33 Needs improvement Recycling 4 35 11 Needs substantial improvement Waste 9 35 26 Needs improvement Water 0 7 0 Needs substantial improvement Score Max Score % General Comment 2 4 50 Good Management 6 10 60 Good Policy 4 6 67 Good Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 14 77 18 Needs substantial improvement Needs substantial improvement Social Intent Question Category Accountability Social Reporting Question Category Human Rights Management 0 7 0 Qualitative Social 16 56 29 Needs improvement Quantitative Social 14 42 33 Needs improvement www.roberts.cmc.edu 36 Motor Vehicle and Consumer Durables Sectors 2012 A+ BMW 2008 Sustainable Value Report and 2011 Web Pages BMW Group The 2008 BMW Sustainable Value Report covers a wide range of topics detailing its commitment to care for the environment and its communities. Although BMW has taken initiative in implementing top environmental management systems, its report did not include as much quantitative data as we prefer to score. The BMW Group has a high level of involvement with particular communities, describing a variety of social projects in the report. Social involvement is demonstrated through the Corporate Investment and Community Impact Award received by BMW from CiCi in March of 2009, and numerous community education projects such as SEED school in South Africa. Employees of BMW group receive a large amount of job and skill training, and surveyed as 89.2% very satisfied. • The BMW group chose to go above and beyond the environmental management system, ISO 14001, and sets higher standards for its effect on the environment, as well as for its suppliers. A separate report is created for BMW Group’s stance on climate change, and it details effective policy options for vehicle manufacturers to take in order to fight climate change. BMW also prides the recyclability of the vehicles produced, with close to the full vehicle recyclable. BMW group does not include any information of fine or violations received. Analyst(s): Whitney Ellen Dawson 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 96 73 E 45% ES A S 48 S 55% SSA 0 25 50 64 46 31 BMW Group EI 75 ER EP SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 3 4 75 Excellent Management 8 8 100 Excellent Policy 10 10 100 Excellent Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 28 49 57 Good Good Energy 11 21 52 Management 6 21 29 Needs improvement Materials Usage 6 14 43 Needs improvement Products 15 21 71 Good Recycling 11 35 31 Needs improvement Waste 6 35 17 Needs substantial improvement Water 4 7 57 Good Score Max Score % General Comment 1 4 25 Needs improvement Management 7 10 70 Good Policy 5 6 83 Excellent Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 42 77 55 Good Social Intent Question Category Accountability Social Reporting Question Category Human Rights Management 7 7 100 Excellent Qualitative Social 46 56 82 Excellent Quantitative Social 14 42 33 Needs improvement www.roberts.cmc.edu 37 Motor Vehicle and Consumer Durables Sectors 2012 C+ Bridgestone 2011 Environmental Report & 2012 Web Pages Bridgestone Bridgestone’s pervasive theme of “One Team, One Planet” is deeply rooted in its mission statement. TEAMS (Total Environmental Advance Management System) functions as Bridgestone’s overarching guide to ensure all global branches act in an environmentally and socially responsible manner. Bridgestone identifies three main areas of environmental progress: products and services, operations, and community activities. Within each category, Bridgestone provides a detailed discussion, as well as concrete examples, of how the company is continually striving towards a more environmentally sustainable future. Whether through higher quality products such as energy efficient tires or better operating logistics, Bridgestone reports efforts to improve its environmental performance. Bridgestone Americas requires all manufacturing facilities to obtain ISO 14001 certification within the first two years of ownership. The company also stresses the importance of employee volunteerism as a way to create a more environmentally conscious atmosphere in the communities in which it serves. Bridgestone implements several “eco-Projects” with four main points of emphasis: prevention of global warming, biodiversity protection, educating the next generation, and moving towards a recycling-oriented society. 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 Distribution of points Source of points E 92 E 43% ES A S S 57% SSA 0 25 50 81 31 16 EI 75 ER 8 EP 4 SI SR Bridgestone SP Environmental Intent Question Category Accountability Score Max Score % General Comment 4 4 100 Excellent Management 6 8 75 Excellent Policy 10 10 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 4 49 8 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 4 21 19 Needs substantial improvement Management 0 21 0 Needs substantial improvement Materials Usage 7 14 50 Good Products 4 28 14 Needs substantial improvement Recycling 2 35 6 Needs substantial improvement Waste 4 35 11 Needs substantial improvement Water 4 7 57 Good Score Max Score % General Comment 4 4 100 Excellent Good Social Intent Question Category Accountability Management 7 10 70 Policy 6 6 100 Social Demographic 0 2 0 Vision 4 4 100 Score Max Score % General Comment 8 77 10 Needs substantial improvement Needs substantial improvement Excellent Needs substantial improvement Excellent Social Reporting Question Category Human Rights Management 0 7 0 Qualitative Social 18 56 32 Needs improvement Quantitative Social 12 42 29 Needs improvement www.roberts.cmc.edu 38 Motor Vehicle and Consumer Durables Sectors 2012 C Continental AG 2011 Web Pages Continental AG Continental’s web pages demonstrate strong commitment to corporate sustainability reporting. Continental presents quantitative data on its energy usage, water usage, carbon dioxide emissions, and the extent to which the ISO 14001 management system has been implemented throughout Continental’s organization. Additionally, Continental presents interesting findings on the relationship between tire rolling resistance, CO2 emissions, and breaking performance. Continental provides basic information on its environmental management structure, but does not identify the individuals currently holding the positions. The company also fails to report important data such as NOX and VOC emissions. More data should be published and the web pages should be reorganized to avoid any overlap. 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 E 40% ES A S S 60% SSA 0 25 50 65 50 EI 75 32 18 10 ER EP 4 SI SR Continental AG SP Environmental Intent Question Category Accountability Score Max Score % General Comment 2 4 50 Good Good Management 4 8 50 Policy 3 10 30 Needs improvement Vision 4 4 100 Excellent Score Max Score % General Comment 8 49 16 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 6 21 29 Needs improvement Management 0 21 0 Needs substantial improvement Materials Usage 4 14 29 Needs improvement Products 3 28 11 Needs substantial improvement Recycling 0 35 0 Needs substantial improvement Waste 6 35 17 Needs substantial improvement Water 6 7 86 Excellent Score Max Score % General Comment 2 4 50 Good Management 6 10 60 Good Policy 5 6 83 Excellent Social Demographic 0 2 0 Needs substantial improvement Vision 4 4 100 Score Max Score % General Comment 14 77 18 Needs substantial improvement Needs improvement Social Intent Question Category Accountability Excellent Social Reporting Question Category Human Rights Management 3 7 43 Qualitative Social 16 56 29 Needs improvement Quantitative Social 8 42 19 Needs substantial improvement www.roberts.cmc.edu 39 Motor Vehicle and Consumer Durables Sectors 2012 B+ Daimler 2009 Sustainability Report, Integrity Code, Diversity Management at Daimler, and 2010 Web Pages Daimler AG Daimler AG makes a conscious effort to demonstrate near total transparency about its environmental impact and initiatives to offset that impact to the public. This effort is evident in the company’s strict adherence to the Global Reporting Initiative’s indicators of corporate sustainability and environmental impact. However, despite Daimler’s impressive GRI grade of an A+ and the large amount of detail in its 2010 Sustainability Report; the report was at times confusing to read and determine specific information from. Daimler publishes two versions of the report, a print version and an interactive online report, the latter containing more detailed graphs that offer the viewer the ability to customize the data that they wish to compare. While the print version contains the same printed information about Daimler’s environmental and social initiatives, goals, and impacts, it lacks the detailed graphs of the online report. The lack of easily accessible graphical data can make it challenging to find certain emissions data and to achieve a visual representation of the change in emissions over time. Both reports would benefit from the addition of quantitative data pertaining to a wider range of emissions and waste categories. Additionally, the printed report lacks sufficient tables containing data over a multi-year period to allow the reader to garner a sense of whether the net increase or decrease in waste or emissions was on a yearly basis or due specifically to the decrease in sales that resulted during 2009 in the midst of the global depression. One detail that is omitted from both reports is a figure for the safety ratings received by Daimler’s vehicles. This omission may be a result of the inability to accurately compare the safety of a passenger van, bus, passenger car, and truck to one another; however, the data could be compiled if done by percentage of the entire fleet of vehicles that meets the standards for the top safety rating offered by the ratings association for its relevant genre of vehicle. Going forward, Daimler should include more graphs and data tables in their printed report that demonstrate a trend over time for all quantitative data. The company should also be clearer about its social policy statement, as its current descriptions of the desire to make a social impact are very general. As Daimler runs an impressive number of social initiatives, publishing a more specific statement of social policy would help the public connect its global initiatives to one another and form a more unified approach to social impact. Analyst(s): Elizabeth Duckworth 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 92 E 4 1% ES A S 69 S 59% SSA 0 25 50 52 35 32 15 EI 75 ER EP Daimler AG SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 3 4 75 Excellent Management 8 8 100 Excellent Policy 10 10 100 Excellent Vision 3 4 75 Excellent Score Max Score % General Comment 20 49 41 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 8 21 38 Needs improvement Management 2 21 10 Needs substantial improvement Needs substantial improvement Materials Usage 3 14 21 Products 7 28 25 Needs improvement Recycling 7 35 20 Needs substantial improvement Waste 6 35 17 Needs substantial improvement Water 5 7 71 Good Score Max Score % General Comment 3 4 75 Excellent Good Social Intent Question Category Accountability Management 6 10 60 Policy 5 6 83 Excellent Social Demographic 0 2 0 Needs substantial improvement Vision 4 4 100 Score Max Score % General Comment 39 77 51 Good Excellent Social Reporting Question Category Human Rights Management 7 7 100 Excellent Qualitative Social 29 56 52 Good Quantitative Social 13 42 31 Needs improvement www.roberts.cmc.edu 40 Motor Vehicle and Consumer Durables Sectors 2012 B+ Denso 2009 Corporate Sustainability Report, 2015 Ecovision, and 2011 Web Pages Denso Denso Corporation’s commitment to corporate sustainability reporting is evident in its 2009 Corporate Sustainability Report, 2010 web pages, and 2015 Ecovision Report. The corporation provided thorough and transparent reporting on its actions and initiatives.• More quantitative data, especially about product performance should be included. Denso has already invested almost seventy seven-seven million dollars in 2009 alone on environmental expenses.• Denso is committed to employment without discrimination against race, gender, age, or disability. This is highlighted by profiles and initiatives. In addition, Denso emphasizes community efforts with its Denso Youth for Earth Action program and Denso Community Service Day. 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 Source of points Distribution of points E 100 ES A E 48% S S 52% SSA 0 25 50 96 44 38 19 17 EI 75 ER EP Denso SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 4 4 100 Excellent Management 8 8 100 Excellent Policy 10 10 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 17 49 35 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 6 21 29 Needs improvement Management 10 21 48 Needs improvement Materials Usage 6 14 43 Needs improvement Products 4 21 19 Needs substantial improvement Recycling 7 35 20 Needs substantial improvement Waste 12 35 34 Needs improvement Water 3 7 43 Needs improvement Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 10 10 100 Excellent Policy 6 6 100 Excellent Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 22 77 29 Needs improvement Social Reporting Question Category Human Rights Management 7 7 100 Excellent Qualitative Social 18 56 32 Needs improvement Quantitative Social 17 42 40 Needs improvement www.roberts.cmc.edu 41 Motor Vehicle and Consumer Durables Sectors 2012 F Dongfeng Motor Corporation 2011 Web Pages Dongfeng Motor Group Dongfeng Motor Corporation has shown almost no commitment to either social or environmental sustainability through any of its publicly accessible information. While the company does have a Corporate Social Responsibility Report in Chinese, the Roberts Environmental Center does not score reports that are not in English. Analyst(s): Alan Hu 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 4 S S 100% SSA 0 25 50 75 0 0 0 EI ER EP SI 0 0 SR SP Dongfeng Motor Group 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 Vision 0 4 0 Needs substantial improvement Score Max Score % General Comment 0 49 0 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 0 21 0 Needs substantial improvement Management 0 21 0 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Products 0 21 0 Needs substantial improvement Recycling 0 35 0 Needs substantial improvement Waste 0 35 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 1 4 25 Needs improvement Score Max Score % General Comment 0 77 0 Needs substantial improvement Social Reporting Question Category Human Rights Management 0 7 0 Needs substantial improvement Qualitative Social 0 56 0 Needs substantial improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 42 Motor Vehicle and Consumer Durables Sectors 2012 A Electrolux Group 2009 GRI Summary Report and 2011 Web Pages Electrolux Electrolux provides extensive data on its environmental and social sustainability online, but improvements could be made to make this information more readable and user-friendly. Rather than producing a designated sustainability report, Electrolux released only a brief GRI Summary Report, with additional data available online. Pages of small text and graphs, while highly informative, could use more explanatory notes.••One area where Electrolux performed extremely well was in human rights reporting. The Electrolux Workplace Standard outlines detailed policies and procedures for monitoring, preventing, and dealing with human rights issues such as forced or child labor, harassment, working hours, and fair compensation. These, and other Electrolux policy statements, are excellent examples of sound sustainability reporting. Although a few social programs are outlined, additional information regarding social community investment programs and employee volunteerism would increase Electrolux’s score. Other missing data include emissions of specific pollutants, such as volatile organic compounds, particulate matter, and nitrogen oxides. Overall, Electrolux shows a strong commitment to sustainability, but could improve the methods by which it conveys this information. Analyst(s): Erin Franks 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 77 E 39% ES A S SSA 25 50 72 38 22 S 61% 0 65 40 Electrolux EI 75 ER EP SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 4 4 100 Excellent Management 6 8 75 Excellent Policy 6 10 60 Good Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 9 49 18 Needs substantial improvement Good Energy 11 21 52 Management 6 21 29 Needs improvement Materials Usage 10 14 71 Good Products 9 21 43 Needs improvement Recycling 7 35 20 Needs substantial improvement Waste 15 35 43 Needs improvement Water 4 7 57 Good Score Max Score % General Comment 2 4 50 Good Management 5 10 50 Good Policy 6 6 100 Social Demographic 0 2 0 Vision 4 4 100 Score Max Score % General Comment 68 77 88 Excellent Needs improvement Social Intent Question Category Accountability Excellent Needs substantial improvement Excellent Social Reporting Question Category Human Rights Management 2 7 29 Qualitative Social 20 56 36 Needs improvement Quantitative Social 22 42 52 Good www.roberts.cmc.edu 43 Motor Vehicle and Consumer Durables Sectors 2012 B Fiat Group 2009 Sustainability Report, Business Code of Conduct, and 2010 Web Pages Fiat Fiat Group’s web pages and nearly 200 page sustainability report are proof of a clear commitment to sustainability and improved environmental performance. The company gives much relevant data about its initiatives in green technology and reduced levels of pollution from earlier periods. The website’s layout of initiatives and future goals in a table form is a very clear and easy way of analyzing the company’s sustainability policy. The only area that the company lacks sufficient data in is fines and notices of health, safety, and environmental violations and sustainable and environmental policy statements. While the data is organized in a clear manner, it can be overwhelming for a typical reader to find specific information due to its sheer volume. Analyst(s): Sam Kahr 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 Source of points Distribution of points E 81 ES A E 48% S S 52% SSA 0 25 50 73 41 34 16 EI 75 ER EP 12 SI SR Fiat SP Environmental Intent Question Category Accountability Score Max Score % General Comment 3 4 75 Excellent Management 8 8 100 Excellent Policy 8 10 80 Excellent Vision 2 4 50 Good Score Max Score % General Comment 16 49 33 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 6 21 29 Needs improvement Management 3 21 14 Needs substantial improvement Materials Usage 8 14 57 Good Products 4 21 19 Needs substantial improvement Recycling 6 35 17 Needs substantial improvement Waste 10 35 29 Needs improvement Water 5 7 71 Good Score Max Score % General Comment 3 4 75 Excellent Social Intent Question Category Accountability Management 6 10 60 Good Policy 6 6 100 Excellent Social Demographic 1 2 50 Good Vision 3 4 75 Excellent Score Max Score % General Comment 33 77 43 Needs improvement Good Social Reporting Question Category Human Rights Management 4 7 57 Qualitative Social 17 56 30 Needs improvement Quantitative Social 4 42 10 Needs substantial improvement www.roberts.cmc.edu 44 Motor Vehicle and Consumer Durables Sectors 2012 B+ Ford Motor Company 2009/2010 Sustainability Report, Code of Conduct, and 2011 Web Pages Ford Motor Ford Motor Company publishes a sustainability report each year that is specific to the current model year of its products. In its 2010/2011 report, the company focuses on greenhouse gas emissions and climate change. Ford explores the idea that operating in an environmentally friendly fashion is more than simply the company’s responsibility; it can also be fairly cost effective and lead to the generation of new profit for the company. Ford offers and explains its visionary statement for its environmental and social actions but the company could benefit from mentioning ways in which its actions have not been fully achieved as a result of difficulties encountered. The company is very positive about the effects it has had and the future effects it hopes to have on the communities its operations are based in and the people it employs; however, it is difficult to garner a truly accurate sense of the company’s achievements when no mention of failure is made. Ford’s published Code of Conduct is detailed and offers specific instructions of what to do and what not to do should they find themselves in an ethically unclear situation. The company utilizes yearly employee satisfaction surveys to determine how helpful the Code of Conduct is to its employees. Not included in the Code of Conduct, sustainability report or elsewhere on the Ford website is an evacuation or containment plan for emergencies that may occur at the company’s plants. Additionally, there is a lack of quantitative data pertaining to various types of emissions beyond CO2, water usage and waste produced by Ford’s plants. The company could benefit from publishing more quantitative data relating to the impacts made by its factories as opposed to continuing to only publish data about the impact its products have on the environment. Data about both components are necessary to create a more accurate picture of the company’s actual environmental impact. 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 81 ES A E 46% S 58 SSA 0 25 50 36 S 54% 49 17 EI 75 ER 17 EP SI SR Ford Motor SP Environmental Intent Score Max Score % General Comment Accountability Question Category 3 4 75 Excellent Management 5 8 63 Good Policy 9 10 90 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 11 49 22 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 8 21 38 Needs improvement Management 4 21 19 Needs substantial improvement Materials Usage 7 14 50 Good Products 9 21 43 Needs improvement Recycling 6 35 17 Needs substantial improvement Waste 12 35 34 Needs improvement Water 5 7 71 Good 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 4 4 100 Score Max Score % General Comment 29 77 38 Needs improvement Needs improvement Social Intent Question Category Accountability Excellent Social Reporting Question Category Human Rights Management 2 7 29 Qualitative Social 27 56 48 Needs improvement Quantitative Social 11 42 26 Needs improvement www.roberts.cmc.edu 45 Motor Vehicle and Consumer Durables Sectors 2012 C- Fortune Brands 2009 Annual Review, Code of Business Conduct and Ethics and 2011 Web Pages Fortune Brands The 2009 Annual Review published by Fortune Brands was aesthetically pleasing and easy to read; however, it did not contain much information about the company’s energy consumption or its waste and water management policies. The Statement of Environmental Stewardship and Global Citizenship Policy superficially stated the company’s stance on environmental and social issues respectively. It would be useful for Fortune Brands to flesh out a more detailed sustainability report, which contained information on the environmental and social impacts of the company, and also lists the measures it is adopting to reduce these impacts. Analyst(s): Sachi Singh 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 Source of points E Distribution of points E 20% ES A S 27 0 25 50 28 21 6 S 80% SSA 27 Fortune Brands 0 EI 75 ER EP SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 0 4 0 Needs substantial improvement Needs improvement Management 2 8 25 Policy 3 10 30 Needs improvement Vision 2 4 50 Good Score Max Score % General Comment 0 49 0 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 2 21 10 Needs substantial improvement Management 0 21 0 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Products 0 28 0 Needs substantial improvement Recycling 3 35 9 Needs substantial improvement Waste 2 35 6 Needs substantial improvement Water 2 7 29 Needs 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 3 4 75 Excellent Score Max Score % General Comment 36 77 47 Needs improvement Social Reporting Question Category Human Rights Management 0 7 0 Needs substantial improvement Qualitative Social 10 56 18 Needs substantial improvement Quantitative Social 2 42 5 Needs substantial improvement www.roberts.cmc.edu 46 Motor Vehicle and Consumer Durables Sectors 2012 C Honda Motors 2010 Environmental report Honda Motor Honda motors was sporadic in its reporting in their 2010 Environmental report. While some areas were meticulously reported such as environmental intent and quantitative data on waste and emissions, other areas such as social intent and social reporting went for the most part unmentioned. •Honda Motors' report suggests a clear commitment to helping protect the environment, with a goal of acting “as a responsible member of society whose task lies in the preservation of the global climate.” Honda’s thorough reporting of its waste, emissions, and product performance all help support this statement. In addition, its improvements in reducing energy use, waste, water use and carbon dioxide and volatile organic compounds emissions all show how Honda Motors is becoming a more environmentally responsible company. On the contrary, Honda Motors’ lack of reporting on topics including its social visionary statement, workforce profiles, fines and violations, and adoption of policies that promote proper employee treatment, show that the company is failing to fulfill its policy statement. Improvement in reporting of social aspects of the company will help improve Honda’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 S 30% ES A S 69 35 30 18 E 70% SSA 0 25 50 EI 75 ER EP 14 SI SR 0 Honda Motor SP Environmental Intent Score Max Score % General Comment Accountability Question Category 1 4 25 Needs improvement Management 5 8 63 Good Policy 8 10 80 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 11 49 22 Needs substantial improvement Energy 4 21 19 Needs substantial improvement Management 1 21 5 Needs substantial improvement Needs substantial improvement Environmental Reporting Question Category Emissions to Air Materials Usage 2 14 14 Products 9 28 32 Needs improvement Recycling 13 35 37 Needs improvement Waste 13 35 37 Needs improvement Water 4 7 57 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 5 6 83 Excellent Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 4 77 5 Needs substantial improvement Social Reporting Question Category Human Rights Management 0 7 0 Needs substantial improvement Qualitative Social 13 56 23 Needs substantial improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 47 Motor Vehicle and Consumer Durables Sectors 2012 C- Hyundai Mobis 2010 Sustainability Report and 2011 Web Pages Hyundai Mobis While the information contained on Hyundai Mobis’ sustainability web pages is limited; its 2010 Sustainability Report provides a considerable overview of the company’s practices and performance. The report describes materials used for its production, but little data are given about recycling or logistics. In addition, little data could be found about the company’s release of hazardous materials and volatile organic compounds. While the report does state what department is responsible for its publication, it does not provide information on who to contact specifically with questions. To improve its score, Hyundai Mobis must provide qualitative data about previous years to show improvement and trends toward increased sustainability. Also, the company should include an accessible code of conduct that details employee conduct and company policy. Analyst(s): Karun Kiani 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 36% ES A 23 S 11 S 64% SSA 0 25 50 50 42 EI 75 ER 6 3 EP SI SR Hyundai Mobis 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 Vision 2 4 50 Good Score Max Score % General Comment 12 49 24 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 3 21 14 Needs substantial improvement Management 0 21 0 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Products 1 28 4 Needs substantial improvement Recycling 0 35 0 Needs substantial improvement Waste 1 35 3 Needs substantial improvement Water 1 7 14 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 7 10 70 Good Policy 0 6 0 Needs substantial improvement Social Demographic 1 2 50 Good Vision 2 4 50 Good Score Max Score % General Comment 16 77 21 Needs substantial improvement Social Reporting Question Category Human Rights Management 0 7 0 Needs substantial improvement Qualitative Social 12 56 21 Needs substantial improvement Quantitative Social 3 42 7 Needs substantial improvement www.roberts.cmc.edu 48 Motor Vehicle and Consumer Durables Sectors 2012 B+ Hyundai Motor 2010 Sustainability Report and 2010 Web Pages Hyundai Motor Hyundai Motor Company (HMC) shows a clear commitment to development of sustainable vehicles, but its environmental and social reporting is incomplete. One of the main issues with the 2010 Sustainability Report is that much of the environmental data is reported only for domestic operations. As a global company, with factories in the US, China, India, and Europe, HMC should extend its reporting to cover all of its production and sales. Another topic that is noticeably avoided is the discussion of fines and citations for non-compliance with environmental or safety regulations. We would like to see companies be transparent in their sustainability reporting, including information on negative aspects as well as positive ones.••One area where HMC really shines is in its commitment to development of more environmentally-friendly vehicles, as evidenced by the significant reductions made in the level of emissions and increased fuel efficiency for models released in the last few years. One particularly notable initiative aims to improve recyclability of vehicles to 95% by 2015, and HMC has several innovative programs to use recycled materials such as PET bottles in its vehicles. HMC mentions programs to attract a more diverse workforce, but does not offer a description of what those programs include – more detailed coverage of this issue would be preferable. While HMC appears to have a genuine commitment to sustainability, incomplete reporting damages both its score and its appearance. Analyst(s): Erin Franks 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 85 ES A 62 E 47% S SSA 0 25 50 38 S 53% 47 15 EI 75 ER EP 17 SI SR Hyundai Motor SP Environmental Intent Question Category Accountability Score Max Score % General Comment 2 4 50 Good Management 6 8 75 Excellent Policy 10 10 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 16 49 33 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 8 21 38 Needs improvement Management 4 21 19 Needs substantial improvement Needs substantial improvement Materials Usage 3 14 21 Products 10 28 36 Needs improvement Recycling 10 35 29 Needs improvement Waste 10 35 29 Needs improvement Water 5 7 71 Good Score Max Score % General Comment 3 4 75 Excellent Social Intent Question Category Accountability Management 4 10 40 Needs improvement Policy 6 6 100 Excellent Social Demographic 1 2 50 Good Vision 2 4 50 Good Score Max Score % General Comment 36 77 47 Needs improvement Needs substantial improvement Social Reporting Question Category Human Rights Management 0 7 0 Qualitative Social 27 56 48 Needs improvement Quantitative Social 7 42 17 Needs substantial improvement www.roberts.cmc.edu 49 Motor Vehicle and Consumer Durables Sectors 2012 B Johnson Controls 2009 Business and Sustainability Report and 2010 Web Pages Johnson Controls Johnson Controls expressed its commitment to environmental and social responsibility in its Business and Sustainability Report. It designed a sustainable program that helps to manage and minimize environmental impact across product life cycle. The Global Environmental Sustainability Council leads efforts to reduce the environmental footprint of the company and improve eco-efficiency of the supply chain. Johnson Controls is also committed to renewable energy initiatives, specifically, solar photovoltaic, thermal, biomass, wind, and geothermal. It is also part of the Clinton Climate Initiative which helps municipalities improve their energy usage. Johnson Controls has goals to reduced its energy intensity by 30% by 2018. It is also the leading independent provider of hybrid battery systems that make vehicles more energy efficient and are focusing efforts on hybrid electric vehicles. The Conservation Leadership Corps offers internships and summer training crew opportunities to over 3,000 students per year. Community involvement is reflected in the company's work towards boosting the economy by offering teenagers jobs and decreasing unemployment. Johnson Controls has a limited information base regarding emission and energy output statistics. Despite reporting its United Nation human rights reporting, it has little information on social responsibility. Analyst(s): Jaclyn T. D'Arcy 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 88 E 38% ES A S 69 S 62% SSA 0 25 50 56 29 21 5 EI 75 ER EP Johnson Controls SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 3 4 75 Excellent Management 7 8 88 Excellent Policy 9 10 90 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 14 49 29 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 6 21 29 Needs improvement Management 10 21 48 Needs improvement Materials Usage 0 14 0 Needs substantial improvement Products 6 28 21 Needs substantial improvement Recycling 2 35 6 Needs substantial improvement Waste 4 35 11 Needs substantial 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 6 6 100 Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 22 77 29 Needs improvement Excellent Social Reporting Question Category Human Rights Management 3 7 43 Needs improvement Qualitative Social 32 56 57 Good Quantitative Social 20 42 48 Needs improvement www.roberts.cmc.edu 50 Motor Vehicle and Consumer Durables Sectors 2012 D+ Magna Corporate Constitution, Employee Charter, Health and Safety and Environmental Policy, Health and Safety and Environmental Committee Charter, and 2011 Web Pages Magna International Magna International is not transparent or thorough in reporting its environmental and social initiatives and actions. The company does not provide a corporate sustainability report or include a section in its annual report dedicated to discussing its environmental efforts. • Most of Magna International’s information is found on the current web pages; there is no sustainability report. The information they do present is vague and cursory. It does not provide many specific details. In addition, Magna International did not report any quantitative data. To improve its PSI score, Magna International should include this data. 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 Source of points E Distribution of points E 22% ES A S 24 S 78% SSA 0 25 50 38 35 EI 3 0 ER EP 0 SI SR Magna International SP 75 Environmental Intent Question Category Accountability Score Max Score % General Comment 1 4 25 Needs improvement Needs improvement Management 2 8 25 Policy 4 10 40 Needs improvement Vision 2 4 50 Good Score Max Score % General Comment 0 49 0 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 1 21 5 Needs substantial improvement Management 0 21 0 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Products 1 21 5 Needs substantial improvement Recycling 1 35 3 Needs substantial improvement Waste 1 35 3 Needs substantial improvement Water 0 7 0 Needs substantial improvement Score Max Score % General Comment 1 4 25 Needs improvement Management 3 10 30 Needs improvement Policy 4 6 67 Good Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 16 77 21 Needs substantial improvement Social Intent Question Category Accountability Social Reporting Question Category Human Rights Management 0 7 0 Needs substantial improvement Qualitative Social 11 56 20 Needs substantial improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 51 Motor Vehicle and Consumer Durables Sectors 2012 B Mazda 2010 Sustainability Report, Mazda Supplier CSR Guidelines, and 2011 Web Pages Mazda Motor Mazda provides extensive information in its 2010 Corporate Sustainability Report, 2010 web pages, and Mazda Supplier Guidelines discussing its environmental and social initiatives and actions. However, much of the report either lacks substantiating quantitative data or only covers domestic subsidiaries.• Mazda has many initiatives to improve its products’ fuel efficiency and reduce both noise and emissions. However, the report does not offer adequate description within its manufacturing and production environmental initiatives. Additionally, little historical quantitative data is given, making it difficult to determine if progress has been made. Mazda’s reporting focuses primarily on the product performance and sustainability in areas such as recycling, alternative energy use, efficiency, and waste. • Mazda’s social contributions are notable, with both monetary donations to the community and employee volunteerism included in its social initiatives. 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 88 E 43% ES A S 46 S 57% SSA 0 25 50 81 31 10 EI 75 ER EP 12 SI SR Mazda Motor SP Environmental Intent Question Category Accountability Score Max Score % General Comment 1 4 25 Needs improvement Management 8 8 100 Excellent Policy 10 10 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 8 49 16 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 4 21 19 Needs substantial improvement Management 4 21 19 Needs substantial improvement Materials Usage 6 14 43 Needs improvement Products 11 21 52 Good Recycling 4 35 11 Needs substantial improvement Waste 11 35 31 Needs 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 2 4 50 Good Score Max Score % General Comment 32 77 42 Needs improvement Needs improvement Social Reporting Question Category Human Rights Management 3 7 43 Qualitative Social 22 56 39 Needs improvement Quantitative Social 6 42 14 Needs substantial improvement www.roberts.cmc.edu 52 Motor Vehicle and Consumer Durables Sectors 2012 C+ Michelin Group 2011 Web Pages Michelin Michelin Group has received recognition from various organizations for its commitment to road safety initiatives. It chairs the Global Road Safety Partnership, in addition to working with other organizations. The Group also creates fuel-efficient tires and provides consumers the opportunity to retread and regroove their tires. Michelin selects suppliers based on social and environmental practices, with an emphasis on corporate responsibility in developing countries. Michelin's web pages addressed most environmental and social initiatives in depth, but providing specific goals and/or targets would greatly improve the company's transparency. Analyst(s): Ashley Scott 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 Source of points Distribution of points E 81 ES A E 47% S S 53% SSA 0 25 50 65 31 28 13 5 EI 75 ER EP SI SR Michelin SP Environmental Intent Score Max Score % General Comment Accountability Question Category 3 4 75 Excellent Management 5 8 63 Good Policy 9 10 90 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 11 49 22 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 7 21 33 Needs improvement Management 3 21 14 Needs substantial improvement Materials Usage 4 14 29 Needs improvement Products 8 28 29 Needs improvement Recycling 2 35 6 Needs substantial improvement Waste 5 35 14 Needs substantial improvement Water 4 7 57 Good Score Max Score % General Comment 2 4 50 Good Management 7 10 70 Good Policy 3 6 50 Good Social Demographic 1 2 50 Good Vision 4 4 100 Excellent Score Max Score % General Comment 10 77 13 Needs substantial improvement Needs improvement Social Intent Question Category Accountability Social Reporting Question Category Human Rights Management 2 7 29 Qualitative Social 22 56 39 Needs improvement Quantitative Social 13 42 31 Needs improvement www.roberts.cmc.edu 53 Motor Vehicle and Consumer Durables Sectors 2012 D+ Mitsubishi Motors Social and Environmental Report 2008, Social and Environmental Report 2010, and 2011 Web Pages Mitsubishi Mitsubishi Motors is diligent in its publication of a Social and Environmental Report at the conclusion of each fiscal year. However, some of the reports are vastly more detailed than others. The 2008 Social and Environmental Report contained a detailed breakdown of the companies social and environmental initiatives, along with goals the company hoped to achieve in the next fiscal year, and graphs of quantitative data. In contrast, the 2009 and 2010 Social and Environmental Reports did not contain a detailed breakdown of all initiatives, goals, graphs, or quantitative data. Additionally, the 2009 and 2010 reports were significantly shorter than the 2008 report. The reports discussed the company’s social and environmental initiatives, but there is an absence of quantitative data from the last two years is a major obstacle in rating Mitsubishi Motors’ performance. Beyond the lack of quantitative data, Mitsubishi is very clear in its social and environmental policies and initiatives. The one area that the company was not clear about is how it treats its employees and the standard that those employees are expected to meet. A code of ethics is mentioned several times throughout the reports and the website; however, it is only mentioned in passing and no code can be downloaded or viewed online. Because there is no code of conduct, it is impossible to garner information about how the management treats employees, the gender and racial breakdown of the employees, and what rules the employees are told to follow when put in a situation where it would be easy to act unethically. Going forward, the company should publish quantitative data about its environmental impact at the end of each fiscal year, in addition to publishing its code of conduct and a breakdown of its workforce by gender and race. Analyst(s): Elizabeth Duckworth 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 E S 33% ES A S E 67% SSA 0 25 50 Distribution of points Source of points 73 23 15 EI 75 ER 2 EP SI 9 0 SR SP Mitsubishi Environmental Intent Question Category Accountability Score Max Score % General Comment 2 4 50 Good Management 6 8 75 Excellent Policy 7 10 70 Good Vision 4 4 100 Excellent Score Max Score % General Comment 6 49 12 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 1 21 5 Needs substantial improvement Management 0 21 0 Needs substantial improvement Materials Usage 4 14 29 Needs improvement Products 5 28 18 Needs substantial improvement Recycling 5 35 14 Needs substantial improvement Waste 2 35 6 Needs substantial improvement Water 0 7 0 Needs substantial improvement Score Max Score % General Comment 0 4 0 Needs substantial improvement Social Intent Question Category Accountability Management 0 10 0 Needs substantial improvement Policy 3 6 50 Good Social Demographic 2 2 100 Excellent Vision 1 4 25 Needs improvement Score Max Score % General Comment 0 77 0 Needs substantial improvement Social Reporting Question Category Human Rights Management 0 7 0 Needs substantial improvement Qualitative Social 10 56 18 Needs substantial improvement Quantitative Social 1 42 2 Needs substantial improvement www.roberts.cmc.edu 54 Motor Vehicle and Consumer Durables Sectors 2012 B- Nissan Motor Vehicles 2010 Sustainability Report, CSR handbook, and 2010 Web Pages Nissan Motor Nissan Motor Vehicles is committed to reducing the environmental impact of their operations; not just after their product has been purchased but throughout the product’s entire life-cycle. Nissan’s long-term goal is to create cars that will not have a cumulative impact more than what can be naturally absorbed by the earth. To reach this goal Nissan has centered its environmental initiatives around three Rs; reducing carbon dioxide emissions, reducing other emissions and recycling resources. The RRR framework is used throughout Nissan’s web pages and 2010 Sustainability Report to organize what initiatives the company is currently taking and is very effective in explaining the reasoning behind Nissan’s actions. • Nissan lacks transparency in certain areas related to how Nissan interacts with the environment such as the amount of wastewater the company discharges and how much money has been invested into environmental initiatives and to support social causes. Sometimes information is repeated in more than one place within their web pages but the numbers do not align when they should. Analyst(s): Danielle L. Manning Karina Gomez 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 73 E 42% ES A S 0 25 50 39 S 58% SSA 65 22 EI 75 ER 13 EP 13 SI SR Nissan Motor SP Environmental Intent Question Category Accountability Score Max Score % General Comment 1 4 25 Needs improvement Management 6 8 75 Excellent Policy 8 10 80 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 8 49 16 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 8 21 38 Needs improvement Management 0 21 0 Needs substantial improvement Needs substantial improvement Materials Usage 0 14 0 Products 10 28 36 Needs improvement Recycling 4 35 11 Needs substantial improvement Waste 7 35 20 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 Excellent Social Demographic 1 2 50 Good Vision 2 4 50 Good Score Max Score % General Comment 30 77 39 Needs improvement Good Social Intent Question Category Accountability Social Reporting Question Category Human Rights Management 4 7 57 Qualitative Social 16 56 29 Needs improvement Quantitative Social 7 42 17 Needs substantial improvement www.roberts.cmc.edu 55 Motor Vehicle and Consumer Durables Sectors 2012 B+ PSA Peugeot Citroen 2009 Sustainable Development Performance Indicators, Code of Ethics, and 2011 Web Pages Peugeot PSA Peugeot Citroën demonstrates a strong commitment to sustainability reporting. Their website provides a detailed mission statement and describes ongoing projects to decrease environmental impacts. The company indicated in its newer vehicles that there is a 95% recycling rate. With annual sales of more than a million vehicles with less than 140g/km of CO2, the company demonstrates its commitment to lowering carbon dioxide emissions. While the report does provide data for product performance in regards to emissions and fuel efficiency, the figures are presented per car and a company wide average is not presented. The website goes into specifics of its top priorities including green materials, controlling energy consumption, and lowconsumption vehicles. There is also a detailed Code of Conduct that is clear in its employee’s standards. However, PSA Peugeot Citroën fails to identify a specialized person who can answer questions regarding the company’s sustainability. While lacking in certain areas, the company remains exceptional in its scoring, with high standards of green consumption and production, outstanding employee outreach, and excellent overall reporting. Analyst(s): Han Dinh 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 85 E 42% ES A S 51 S 58% SSA 0 25 50 85 34 23 18 EI 75 ER EP Peugeot SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 1 4 25 Needs improvement Management 7 8 88 Excellent Policy 10 10 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 16 49 33 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 9 21 43 Needs improvement Management 2 21 10 Needs substantial improvement Materials Usage 6 14 43 Needs improvement Products 10 28 36 Needs improvement Recycling 6 35 17 Needs substantial improvement Waste 7 35 20 Needs substantial improvement Water 5 7 71 Good Social Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good 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 36 77 47 Needs improvement Good Social Reporting Question Category Human Rights Management 4 7 57 Qualitative Social 27 56 48 Needs improvement Quantitative Social 11 42 26 Needs improvement www.roberts.cmc.edu 56 Motor Vehicle and Consumer Durables Sectors 2012 C- Porsche 2009 Environmental Statement, Porsche and the Environment, 2010 Web Pages Porsche Porsche AG demonstrates a commitment to sustainability through its 2009 Environmental Statement, Porsche and the Environment Report, and the 2010 Web Pages. Overall, Porsche demonstrates this commitment, but the reporting is limited and lacks quantitative details and past years data. Porsche emphasizes their commitment to reducing 1.7% of carbon dioxide annually, which is the highest in the automotive industry, but Porsche’s reporting only presents carbon dioxide emissions from 2008 for the Zuffenhausen production facility and a graph showing the overall negative trend for carbon dioxide vehicle emissions from 1990 to 2006. Reporting states that the current Porsche fleet accounts for less than one tenth of one percent of the carbon dioxide emissions in Germany. It is also stated that the Porsche production process is regarded as an international model in terms of efficiency and environmental protection. For total energy used in the production process, a decrease over past years is shown, but no exact data is given for past years. There is no mention of materials recycled, renewable energy, logistics emissions, environmental investments, or environmental expenses. Porsche is in the process of developing a hybrid SUV, but the fuel consumption is still to be determined. • Porsche barely shows any commitment to social issues and has almost no social reporting. No code of conduct or business ethics is available on the web site, and therefore no social issues or rights of workers are addressed. The employees are rarely discussed at all. Porsche should vastly improve its social reporting. 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 E S 32% ES A S E 68% SSA 0 25 50 Distribution of points Source of points 81 21 EI 75 ER 31 7 EP SI 9 6 SR SP Porsche Environmental Intent Question Category Accountability Score Max Score % General Comment 3 4 75 Excellent Management 4 8 50 Good Policy 10 10 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 9 49 18 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 4 21 19 Needs substantial improvement Management 0 21 0 Needs substantial improvement Materials Usage 2 14 14 Needs substantial improvement Products 12 28 43 Needs improvement Recycling 1 35 3 Needs substantial improvement Waste 6 35 17 Needs substantial improvement Water 2 7 29 Needs improvement Social Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Management 4 10 40 Needs improvement Policy 0 6 0 Needs substantial improvement Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 2 77 3 Needs substantial improvement Social Reporting Question Category Human Rights Management 0 7 0 Needs substantial improvement Qualitative Social 8 56 14 Needs substantial improvement Quantitative Social 4 42 10 Needs substantial improvement www.roberts.cmc.edu 57 Motor Vehicle and Consumer Durables Sectors 2012 C+ Renault 2009 Annual Report, Safety Data Sheets, Environmental Data Sheets, Code of Conduct, and 2010 Web Pages Renault Although Renault does not provide a report specifically dedicated to environmental initiatives and actions, the company demonstrates sustainability through its 2009 Annual Report, 2010 web pages, safety data sheets, environmental datasheets, and Code of Conduct. Renault’s commitment to producing environmentally sustainable vehicles is clear in the recyclability, fuel efficiency, and low emission technology of its products. However, the company is not as transparent in its environmental reporting initiatives. •There is little quantitative information about energy use, recycling, waste, water, emissions, investments, or fines. Renault’s reporting focuses on the performance and sustainability of its products, not on the environmental and social performance of the company. The safety and environmental data sheets effectively communicate the products’ performance, and similar data sheets reporting the company’s performance would increase Renault’s overall score.•Notable consumer education initiatives include the “Safety for All” program and “ecodriving” to promote environmentally responsible driving practices. However, Renault does not report how much was spent on these programs, community involvement, or environmental expenses. Analyst(s): Hilary Haskell Karina Gomez 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 43% ES A S 65 S 57% SSA 0 25 50 50 21 EI 75 ER 38 16 EP 12 SI SR Renault SP Environmental Intent Question Category Accountability Score Max Score % General Comment 1 4 25 Needs improvement Management 6 8 75 Excellent Policy 6 10 60 Good Vision 4 4 100 Excellent Score Max Score % General Comment 10 49 20 Needs substantial improvement Energy 3 21 14 Needs substantial improvement Management 0 21 0 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Materials Usage 3 14 21 Needs substantial improvement Products 11 21 52 Good Recycling 4 35 11 Needs substantial improvement Waste 6 35 17 Needs substantial improvement Water 2 7 29 Needs improvement Score Max Score % General Comment 0 4 0 Needs substantial improvement Management 4 10 40 Needs improvement Policy 6 6 100 Excellent Social Demographic 0 2 0 Needs substantial improvement Vision 3 4 75 Excellent Score Max Score % General Comment 24 77 31 Needs improvement Needs improvement Social Intent Question Category Accountability Social Reporting Question Category Human Rights Management 3 7 43 Qualitative Social 26 56 46 Needs improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 58 Motor Vehicle and Consumer Durables Sectors 2012 F SAIC Motors 2011 Web Pages SAIC Motor The website of SAIC Motors is sparse. Little to no useful information could be gleaned from the website, as the company did not publish an environmental report or a code of conduct on their website. Additionally, the website does not contain any sort of interactive sustainability report. There is simply no information pertaining to sustainability to be found on the website. Perhaps that information was disregarded in the translation of the website from its original Chinese, but regardless, the company should add information about sustainability to its website in the future. It would be helpful for SAIC Motors to publish a code of conduct and a sustainability report with quantitative data in it; however, any additional sustainability data would be an enormous contribution to a website that contains essentially no information about the social and environmental impact of the company. Analyst(s): Elizabeth Duckworth 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 E 3 1% ES A S 8 4 S 69% SSA 0 25 50 EI 75 0 0 ER EP SI 0 0 SR SP SAIC Motor Environmental Intent Question Category Accountability Score Max Score % General Comment 0 4 0 Needs substantial improvement Management 1 8 13 Needs substantial improvement Policy 0 10 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Score Max Score % General Comment 0 49 0 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 0 21 0 Needs substantial improvement Management 0 21 0 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Products 0 28 0 Needs substantial improvement Recycling 0 35 0 Needs substantial improvement Waste 0 35 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 1 10 10 Needs substantial improvement Policy 0 6 0 Needs substantial improvement Social Demographic 0 2 0 Needs substantial improvement Vision 1 4 25 Needs improvement Score Max Score % General Comment 0 77 0 Needs substantial improvement Social Reporting Question Category Human Rights Management 0 7 0 Needs substantial improvement Qualitative Social 0 56 0 Needs substantial improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 59 Motor Vehicle and Consumer Durables Sectors 2012 C+ Suzuki 2009 Environmental and Social Report, Suzuki Green Procurement Guide, and 2010 Web Pages Suzuki Motor Suzuki Motors has put considerable effort in sustainability reporting through its 2009 Environmental and Social Report (ESR) and Suzuki Green Procurement Guide. The ESR is well organized and covers a broad range of materials with great depth. The only issues with its report include the lack of a well developed business ethics section (only a list of principles are listed; no initiatives are reported) and the lack of an energy used section. Analyst(s): Carolyn Campbell 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 ES A 62 S 42% E 58% S 54 35 26 17 6 Suzuki Motor SSA 0 25 50 EI 75 ER EP SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 1 4 25 Needs improvement Management 6 8 75 Excellent Policy 7 10 70 Good Vision 2 4 50 Good Score Max Score % General Comment 14 49 29 Needs improvement Energy 4 21 19 Needs substantial improvement Management 4 21 19 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Materials Usage 5 14 36 Needs improvement Products 5 21 24 Needs substantial improvement Recycling 8 35 23 Needs substantial improvement Waste 16 35 46 Needs improvement Water 4 7 57 Good Score Max Score % General Comment 1 4 25 Needs improvement Management 4 10 40 Needs improvement Policy 5 6 83 Excellent Social Demographic 2 2 100 Excellent Vision 2 4 50 Good Score Max Score % General Comment 16 77 21 Needs substantial improvement Needs substantial improvement Social Intent Question Category Accountability Social Reporting Question Category Human Rights Management 0 7 0 Qualitative Social 18 56 32 Needs improvement Quantitative Social 1 42 2 Needs substantial improvement www.roberts.cmc.edu 60 Motor Vehicle and Consumer Durables Sectors 2012 C+ Tata Motors 2011 Web Pages Tata Motors Tata Motors does an adequate job reporting its sustainability practices through various online documents including its Global Reporting Initiative Report, Global Compact Communication on Progress and Social Responsibility Annual Report. These reports contain an impressive amount of information about its green initiatives with their channel partner and a dedication towards recycling. The company also shows their understanding of the importance of climate change and has developed low carbon, fuel efficient technologies to reduce their greenhouse gas emissions. However, some of the information is difficult to find because it is scattered over these different reports, and the only quantitative data is found in the 2007 version of the Global Reporting Initiative. Of this quantitative data, little is provided about their renewable energy used or waste recycled. The company needs to strongly improve their quantitative reporting in order show its commitment environmental sustainability. In terms of social sustainability, Tata Motors provides in-depth information about its policies against bribery, corruption and other basic social issues. Analyst(s): Eric Robert King 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 58 E 29% ES A S 0 25 50 43 21 14 S 71% SSA 50 Tata Motors 0 EI 75 ER EP SI SR SP Environmental Intent Score Max Score % General Comment Accountability Question Category 3 4 75 Excellent Management 3 8 38 Needs improvement Policy 5 10 50 Good Vision 4 4 100 Excellent Score Max Score % General Comment 7 49 14 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 4 21 19 Needs substantial improvement Management 3 21 14 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Products 3 21 14 Needs substantial improvement Recycling 1 35 3 Needs substantial improvement Waste 1 35 3 Needs substantial improvement Water 2 7 29 Needs improvement Score Max Score % General Comment 2 4 50 Good Management 4 10 40 Needs improvement Policy 5 6 83 Excellent Social Intent Question Category Accountability Social Demographic 1 2 50 Good Vision 1 4 25 Needs improvement Score Max Score % General Comment 35 77 45 Needs improvement Social Reporting Question Category Human Rights Management 0 7 0 Needs substantial improvement Qualitative Social 31 56 55 Good Quantitative Social 2 42 5 Needs substantial improvement www.roberts.cmc.edu 61 Motor Vehicle and Consumer Durables Sectors 2012 B Toyota Industries 2011 Web Pages Toyota Industries Toyota Industries Corporation made huge strides in its efforts to become an environmentally friendly company. It has developed an Environmental Label Mark for products such that an environmental factor evaluation is used to assess improvements on environmental efficiency. To improve the greenness of its production techniques, it has developed environmentally-friendly lift trucks that meet new exhaust emissions standards and reduced the operating noise. Toyota Industries also promotes greening activities outside its plants to promote environmental pollution. It plants trees in the communities and has implemented a Green Fund at plant locations. Through this program, Toyota Industries requests donations from its employees to be used for government promotion of city-wide green activities. Another implementation at Toyota Industries is its Fourth Action Plan (2007-2011) that establishes targets for curbing global warming using resources more efficiently, reducing environmental risk factors, and consolidating management. In its environmental reporting web pages, it includes improved statistics on COD, Nitrogen, and Phosphorous emissions. While the environmental reporting is conclusive, there is a limited amount of human rights reporting. Analyst(s): Jaclyn T. D'Arcy Karina Gomez 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 85 ES A S 46% E 54% S SSA 0 25 50 36 EI 75 ER 50 25 EP 36 17 SI SR Toyota Industries SP Environmental Intent Question Category Accountability Score Max Score % General Comment 3 4 75 Excellent Management 7 8 88 Excellent Policy 10 10 100 Excellent Vision 2 4 50 Good Score Max Score % General Comment 23 49 47 Needs improvement Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 4 21 19 Management 8 21 38 Needs improvement Materials Usage 5 14 36 Needs improvement Products 7 28 25 Needs improvement Recycling 5 35 14 Needs substantial improvement Waste 11 35 31 Needs improvement Water 6 7 86 Excellent Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 2 10 20 Needs substantial improvement Policy 5 6 83 Excellent Social Demographic 1 2 50 Good Vision 2 4 50 Good Score Max Score % General Comment 14 77 18 Needs substantial improvement Social Reporting Question Category Human Rights Management 2 7 29 Needs improvement Qualitative Social 30 56 54 Good Quantitative Social 7 42 17 Needs substantial improvement www.roberts.cmc.edu 62 Motor Vehicle and Consumer Durables Sectors 2012 B- Toyota Motor Corporation 2010 Sustainability Report, Code of Conduct, Supplier Screening Guidelines, and 2010 Web Pages Toyota Motor Toyota Motor Corporation’s 2010 Sustainability Report clearly defines the company’s sustainability philosophy and initiatives. Data about the company’s energy use, recycling, and hazardous waste disposal are available. However, data about notices of violations, environmental fines, and product performance are not presented in the report. Another way Toyota could improve the report would be to include data regarding the breakdown of its workforce from an ethnic, gender, and age-oriented standpoint. It should go into more detail about programs made to ensure diversity including reporting its workforce profile for age, gender, and race. Toyota also demonstrates a commitment to improving traffic safety not only through improving its vehicles, but also through funding for traffic education. Additionally, the report also suggests a commitment to Toyota’s community through volunteer programs that range from disaster relief to community education outreach. However, Toyota should specify the amount of money it invests in its community to make its report more comprehensive. 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 88 69 ES A S 45% E 55% S SSA 0 25 50 36 31 15 EI 75 ER EP 8 SI SR Toyota Motor SP Environmental Intent Question Category Accountability Score Max Score % General Comment 1 4 25 Needs improvement Management 8 8 100 Excellent Policy 10 10 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 20 49 41 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 8 21 38 Needs improvement Management 3 21 14 Needs substantial improvement Materials Usage 7 14 50 Good Products 7 28 25 Needs improvement Recycling 3 35 9 Needs substantial improvement Waste 11 35 31 Needs improvement Water 4 7 57 Good Score Max Score % General Comment 3 4 75 Excellent Social Intent Question Category Accountability Management 5 10 50 Good Policy 6 6 100 Excellent Social Demographic 2 2 100 Excellent Vision 2 4 50 Good Score Max Score % General Comment 14 77 18 Needs substantial improvement Needs substantial improvement Social Reporting Question Category Human Rights Management 0 7 0 Qualitative Social 17 56 30 Needs improvement Quantitative Social 9 42 21 Needs substantial improvement www.roberts.cmc.edu 63 Motor Vehicle and Consumer Durables Sectors 2012 C+ Volvo Group 2009 Sustainability Report, Code of Conduct, The Volvo Way Report, and 2010 Web Pages Volvo Group Volvo Group’s website has clear commitment to sustainability and consumer and employee protection. For a company the size of Volvo Group, however, it has a relatively sparse sustainability report and very little environmental information. Most of the data given in the environmental report is incomplete and focuses on social policy instead of environmental information. Many of the initiatives given by the company to improve their environmental performance are very brief and do not include any quantitative information. The sustainability report does not include any information about preserving biodiversity and natural ecosystems affected by its operations. Very little quantitative information is given in the report, rather it is found in a separate supplement to the report. The information on the whole company is given in graph form with no precise numbers. The only way to get totals for the entire company, such as total energy consumption, it to add the numbers given by individual operations, of which there are 67. ••In addition, the company’s code of conduct, a meager 4 pages, hardly even touches on the rights of the company’s workers. Most topics, such as fair compensation of employees and the elimination of discrimination in the workplace, are given only a few brief sentences. Analyst(s): Sam Kahr 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 58 46 E 4 1% ES A S S 59% SSA 0 25 50 20 EI 75 ER 38 12 EP 10 SI SR Volvo Group SP Environmental Intent Question Category Accountability Score Max Score % General Comment 3 4 75 Excellent Good Management 5 8 63 Policy 4 10 40 Needs improvement Vision 3 4 75 Excellent Score Max Score % General Comment 12 49 24 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 6 21 29 Needs improvement Management 0 21 0 Needs substantial improvement Materials Usage 3 14 21 Needs substantial improvement Products 3 21 14 Needs substantial improvement Recycling 1 35 3 Needs substantial improvement Waste 6 35 17 Needs substantial improvement Water 4 7 57 Good Score Max Score % General Comment 1 4 25 Needs improvement Management 5 10 50 Good Policy 4 6 67 Good Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 28 77 36 Needs improvement Needs improvement Social Intent Question Category Accountability Social Reporting Question Category Human Rights Management 2 7 29 Qualitative Social 19 56 34 Needs improvement Quantitative Social 3 42 7 Needs substantial improvement www.roberts.cmc.edu 64 Motor Vehicle and Consumer Durables Sectors 2012 A- Whirlpool 2008 Sustainability Report, 2008 Global Reporting Intiative, Code of Ethics, 2011 Web Pages Whirlpool Whirlpool Corporation shows a clear commitment to environmental and social sustainability through its 2008 Sustainability Report, 2008 Global Reporting Initiative, Code of Ethics, and 2010 Web Pages. Whirlpool states that is was the first appliance manufacturer to announce a global GHG reduction target. Today over 300 energy star appliances are sold and manufactured. Reporting addresses almost all aspects of the PSI, but is lacking a sustainability contact person and an environmental management structure. Much of the data was shown as bar graph, but exact quantitative values should be given. The Atlanta and Columbus facilities are among the ten largest LEED certified distribution centers in the US, with the Atlanta facility receiving a gold LEED rating. Whirlpool reporting states that renewable energy is used in the production process, but no quantitative data or percentage is given. Reporting should give a clear amount of renewable energy used or state investments in renewable sources. Reporting also lacks a detailed reporting of environmental expenditures. • Whirlpool demonstrates a clear commitment to its workforce. The Code of Business Ethics is very detailed and includes monitoring and reinforcement in almost every aspect. Whirlpool demonstrates community invest and volunteerism. It is stated that over $50 million was spent for the Habitat for Humanity Project, but in a different section it is stated only $12 million was spent on community investment. Community investments should be made clearer. Analyst(s): Simone Berkovitz Karina Gomez 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 73 S 60% SSA 0 25 50 65 64 39 31 17 EI 75 ER EP W hirlpool SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 2 4 50 Good Management 6 8 75 Excellent Policy 7 10 70 Good Vision 4 4 100 Excellent Score Max Score % General Comment 15 49 31 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 7 21 33 Needs improvement Management 4 21 19 Needs substantial improvement Materials Usage 5 14 36 Needs improvement Products 9 28 32 Needs improvement Recycling 7 35 20 Needs substantial improvement Waste 17 35 49 Needs improvement Water 4 7 57 Good Score Max Score % General Comment 2 4 50 Good Management 4 10 40 Needs improvement Policy 5 6 83 Excellent Social Intent Question Category Accountability Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 60 77 78 Excellent Social Reporting Question Category Human Rights Management 2 7 29 Needs improvement Qualitative Social 21 56 38 Needs improvement Quantitative Social 15 42 36 Needs improvement www.roberts.cmc.edu 65 Motor Vehicle and Consumer Durables Sectors 2012 Consumer Durables: Motor Vehicles and Parts 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 6 Environmental management system Health and safety, or social organizational structure 43 Stakeholder consultation 9 Environmental education Environmental accounting 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 21 -Discussion: of environmental expenditures. -Initiatives/actions: include detailed accounting of such expenditures. Discussion Pg# Discussion Initiatives Pg# Report contact person Initiatives Pg# Initiatives/actions 45 -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 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 Initiatives Pg# Social policy statement Initiatives Pg# Initiatives/actions -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 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 Initiatives Pg# Environmental policy statement Initiatives Pg# 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 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# Initiatives/actions 42 -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# Initiatives/actions -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# Climate change/global warming 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 www.roberts.cmc.edu 66 Initiatives Pg# Motor Vehicle and Consumer Durables Sectors 2012 Consumer Durables: Motor Vehicles and Parts Habitat/ecosystem conservation Emergency preparedness program 11 -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 Employee training for career development 12 Initiatives Pg# Green purchasing Code of conduct or business ethics 13 Energy used (total) Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous 17 Year -Discussion: of racial or ethnic distribution of workforce. -Initiatives/actions: taken to avoid racial or ethnic discrimination. Discussion Pg# Discussion Initiatives/actions Quant Pg#: Prev Quan Pg#: Improve Pg# Units 18 -Discussion: of gender distribution of workforce. -Initiatives/actions: taken to avoid gender discrimination and achieve appropriate balance Discussion Pg# Discussion Energy used (renewable) 52 Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous -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 Year Initiatives Pg# Employment for individuals with disabilities 27 Energy used from renewable sources such as wind, solar, hydroelectric, or other renewable sources. Discussion Pg#: Discussion Context Pg#: Context Initiatives Pg# Workforce profile: age Initiatives/actions Data Values Context Pg#: Goal Pg#: Initiatives Pg# Workforce profile: gender Initiatives/actions 26 Sum of the energy used by the organization in all different forms, including electricity, fuel, natural gas and others. Discussion Pg#: Discussion Initiatives Pg# Workforce profile: ethnicities/race Initiatives Pg# Initiatives/actions 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 Initiatives Pg# Supplier screening based on social or environmental performance/ supplier management Initiatives Pg# Initiatives/actions -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 82 -Discussion: of training, skills and learning programs appropriate to support employees' upward mobility. -Initiatives/actions: taken to implement such training. Discussion Pg# Discussion -Discussion: of the organization's position on biodiversity. -Initiatives/actions: taken by to the organization to foster biodiversity. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# Initiatives/actions 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 Data Values Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units 80 -Discussion: of appropriate actions to accommodate employees with disabilities. -Initiatives/actions: taken to implement such accommodations. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# www.roberts.cmc.edu 67 Motor Vehicle and Consumer Durables Sectors 2012 Consumer Durables: Motor Vehicles and Parts Energy used: Logistics Waste (solid) disposed of 103 Amount of fuel consumed for logistics purposes Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Discussion Pg#: 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 Waste recycled: solid waste 30 Year Data Values Data Values Quant Pg#: Prev Quan Pg#: 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 Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Units Year Waste (office) recycled Context Pg#: Goal Pg#: Waste (hazardous) produced Sum of all solid waste recycled, including hazardous waste. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous 34 Includes solid hazardous and non-hazardous waste landfilled, incinerated, or transferred. Discussion Pg#: Discussion Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units 32 Office recycling of paper, cardboard, metal, or plastic. Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Discussion Pg#: Context Pg#: Goal Pg#: Waste (hazardous) released to the environment Quant Pg#: Prev Quan Pg#: Improve Pg# Units Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year www.roberts.cmc.edu 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 68 Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Motor Vehicle and Consumer Durables Sectors 2012 Consumer Durables: Motor Vehicles and Parts Materials recycled: Wastewater Materials used: Non-returnable packaging 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 Context Pg#: Goal Pg#: Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Quant Pg#: Prev Quan Pg#: Improve Pg# Units Year Materials reused or recycled: Packaging materials Year Data Values Goal Pg#: Improve Pg# 109 29 Data Values Discussion Pg#: Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Waste water released to natural water bodies The amount of waste materials specified as packaging materials by the organization, and not reused or recycled. Discussion Pg#: Discussion 110 Amount of waste water released into natural waters. Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units www.roberts.cmc.edu Improve Pg# Units Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Quant Pg#: Prev Quan Pg#: Waste: Packaging materials Data Values Prev Quan Pg#: Sum of all water used during operations. Year Year Goal Pg#: Quant Pg#: Water used Units Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Data Values Context Pg#: 107 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 Pg#: Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous 148 Materials such as cardboard, plastics, or wood, used to package any goods sold or delivered to a disributor or an end user. Likely to be specifically referred to as "packaging materials". Discussion Pg#: Discussion Year 69 Data Values Discussion Pg#: Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Motor Vehicle and Consumer Durables Sectors 2012 Consumer Durables: Motor Vehicles and Parts Greenhouse gases (or CO2 equivalents), total Nitrogen oxides (NOx) 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 121 Emissions of all nitrogen oxides to air. Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Goal Pg#: Quant Pg#: Year Prev Quan Pg#: Improve Pg# Data Values Discussion Pg#: Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Units Volatile organic carbon (VOC), concentration Volatile organic compounds (VOCs) The concentration of volatile organic compound emissions in and around production facilities. Discussion Pg#: Discussion Context Pg#: Context 114 Total emissions of volatile organic compounds, airborn chemicals most often released during the painting process. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values 122 Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Context Pg#: Goal Pg#: Quant Pg#: Year Prev Quan Pg#: Improve Pg# Data Values Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Units Particulate matter (dust) Carbon monoxide (CO) 118 Carbon Monoxide (CO) released. Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values 123 "Particulate matter" usually refers to all material emitted to air smaller than 10 microns in diameter (PM10). Smaller, more toxic material such as PM 2.5, smaller than 2.5 microns, may also be called out. Discussion Pg#: Discussion Context Pg#: Context Discussion Pg#: Context Pg#: Goal Pg#: Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Quant Pg#: Prev Quan Pg#: Improve Pg# Year Data Values Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Units www.roberts.cmc.edu 70 Motor Vehicle and Consumer Durables Sectors 2012 Consumer Durables: Motor Vehicles and Parts Logistics emissions Lost workday case rate 124 Emissions as a result of input and output transport of materials. Some companies report their CO2 logistics emissions while some only report logistics emission in general terms. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values 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 Quant Pg#: Prev Quan Pg#: Improve Pg# Year Units Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous 81 Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Goal Pg#: Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Notices of violation (environmental) 74 Number of employee incidents or accidents, such as: “total case incident rate,” “incident rate,” or "accident rate." Discussion Pg#: Discussion Data Values Units Amount of money spent on community outreach, including education grants, donations, and relief effort funds. Discussion Pg#: Discussion Discussion Pg#: Context Pg#: Recordable incident/accident rate Year Quant Pg#: Prev Quan Pg#: Improve Pg# Social community investment 3 Annual employee turnover rate. Data Values Data Values Context Pg#: Goal Pg#: Units Employee turnover rate Year 75 Number of employee injuries or illnesses that resulted in one or more lost workdays. Discussion Pg#: Discussion 38 Notices of violation (NOVs) for environmental infractions. Discussion Pg#: 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 Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Units www.roberts.cmc.edu 71 Motor Vehicle and Consumer Durables Sectors 2012 Consumer Durables: Motor Vehicles and Parts Environmental expenses and investments Health and safety fines 39 An accounting of money spent or invested specifically to decrease environmental damage or to benefit the environment. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Year Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Units Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Quant Pg#: Prev Quan Pg#: Improve Pg# 141 Year Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Units Product performance, fuel efficiency 76 Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous 142 Description of fuel efficiency of products 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 Data Values Improve Pg# Quantification of emissions in exhaust gases emitted by products Discussion Pg#: Discussion Context Pg#: Goal Pg#: Health and safety citations Year Goal Pg#: Quant Pg#: Prev Quan Pg#: Product performance, emissions 40 Government imposed fines for environmental infractions. Discussion Pg#: Discussion Data Values Data Values Context Pg#: Units Fines (environmental) Year 77 Fines levied against a company for health and safety violations. Discussion Pg#: Discussion Discussion 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 Discussion Pg#: Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Units www.roberts.cmc.edu 72 Motor Vehicle and Consumer Durables Sectors 2012 Consumer Durables: Motor Vehicles and Parts Product performance, recyclability Remanufacturing of products 143 Description of recyclability of products Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Discussion Pg#: 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 Product performance, noise Description of noise emissions by products Year Data Values Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Life Cycle Analysis (LCA) 151 Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous 184 Description of use of remanufactured or refurbished parts in products 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 Discussion Pg#: Context Pg#: Goal Pg#: Quant Pg#: Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: Prev Quan Pg#: Improve Pg# Women in management Units 2 Relative numbers of women in management. Discussion Initiatives/Action Context Improvement Over Previous Product performance, safety Improve Pg#: 67 Surveys to monitor employee satisfaction. Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Data Values Context Pg#: Employee satisfaction surveys 156 Description of safety of products Year Discussion Pg#: Initiative Pg#: Discussion Pg#: Discussion Initiatives/Action Context Improvement Over Previous Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Discussion Pg#: Initiative Pg#: Context Pg#: Improve Pg#: Occupational health and safety protection 70 Efforts to provide a safe and healthy working environment at all sites. Discussion Pg#: Discussion Units Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: Employee volunteerism 72 Efforts to promote employee volunteerism in social or environmental projects. Discussion Pg#: Discussion Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: www.roberts.cmc.edu 73 Motor Vehicle and Consumer Durables Sectors 2012 Consumer Durables: Motor Vehicles and Parts Community development Fair compensation of employees 66 Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: Community education Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: 152 Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Initiative Pg#: Monitoring Pg#: Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Qty Perf Pg#: 7 59 Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: 60 Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Free association and collective bargaining of employees Initiative Pg#: Efforts to respect the right of employees to form and join trade unions of their choice and to bargain collectively. Monitoring Pg#: Qty Perf Pg#: Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance 8 Rejection of bribery 61 Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Policy Adopt Pg#: Elimination of all forms of forced and compulsory labor Initiative Pg#: Monitoring Pg#: 63 Assurance that all employees enter employment with the company of their own free will, not by compulsion. Qty Perf Pg#: Anti-corruption practices Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance 58 Efforts to uphold the highest standards of business ethics and integrity. May be found under a Code of Conduct. www.roberts.cmc.edu Monitoring Pg#: Qty Perf Pg#: Policy Adopt Pg#: Bribery Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Initiative Pg#: 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. Policy Adopt Pg#: Policy about political contributions. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Policy Adopt Pg#: Elimination of discrimination in respect to employment and occupation 1 Rejection of any form of sexual harassment. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance 64 Commitment to oppose any corporal/hard labor punishment, mental/physical coercion, or verbal abuse. Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: Political contributions Qty Perf Pg#: Degrading treatment or punishment of employees Effor to educate consumer of the reponsible usage of the product. For example education on road safety in automobile and parts sector or responsible drinking in food and beverage sector. Discussion Pg#: Discussion Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Initiative Pg#: Monitoring Pg#: Compliance with applicable laws and industry standards on working hours, including overtime. Efforts to support education in the communities where the company is located. Discussion Pg#: Discussion Sexual harassment Policy Adopt Pg#: Reasonable working hours 68 Consumer education program 62 Assurance that wages paid meet or exceed legal or industry minimum standard. 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 Policy Adopt Pg#: Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Effective abolition of child labor Initiative Pg#: Monitoring Pg#: 65 Rejection of illegal child labor by the company or its affiliates. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Qty Perf Pg#: 74 Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Motor Vehicle and Consumer Durables Sectors 2012 Aisin Seiki, BMW Group, Bridgestone, Continental AG, Daimler AG, Denso, Dongfeng Motor Group, Electrolux, Fiat, Ford Motor, Fortune Brands, Honda Motor, Hyundai Mobis, Hyundai Motor, Johnson Controls, Magna International, Mazda Motor, Michelin, Mitsubishi, Nissan Motor, Peugeot, Porsche, Renault, SAIC Motor, Suzuki Motor, Tata Motors, Toyota Industries, Toyota Motor, Volvo Group, and Whirlpool 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.