2006 Roberts Environmental Center Pacific Sustainability Index Scores · 2019. 4. 2. · D- Jabil Circuit Co (U.S.) Hon Hai Precision Industries (Taiwan) F Analysis period: 9/12/2005

Roberts Environmental CenterClaremont McKenna College

J. Emil Morhardt

Pacific Sustainability Index Scores2006 Roberts Environmental Center

Electronics, Semiconductor, and Peripherals Sectors

Elgeritte AdidjajaHolly E. Allen-Young

William M. EllisonClaire Fowler EsbenshadeChristopher David Frantz

Kira Elizabeth GazaIna Hanna Labermeier

Emery L. MitchemJames H. Vanden BosElliott Vander Kolk

Price: $20.00

Publications from Roberts Environmental CenterContents

Company Rankings The Pacific Sustainability Index in a Nutshell Visual Cluster Analysis 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 Scores Ranking

Social Scores Ranking

Use of Environmental Indicators

Use of Social Indicators

Relationship between overall PSI Score and Companies' Economic Indicators

Use of Voluntary Guidelines and Partnerships

Analysts’ Comments, alphabetically listed by company name

Director’s Comments

Roberts Environmental Center, Claremont McKenna College, and The Claremont Colleges

The Roberts Environmental Center publishes analyses of corporate environmental and social reports—together called sustainability reports—on the web and in special reports.

We also write books about environmental and sustainability reporting, the first of which is Clean, Green, and Read All Over: Ten Rules for Corporate Environmental and Sustainability Reporting, available from ASQ Press, and publish articles in academic technical journals.

Existing sector reports available online at www.roberts.mckenna.edu:

2006 Electronics, Semiconductor, and Peripherals2006 Metals, Mining, and Crude Oil Production2006 Colleges and Universities2005 Forest and Paper Products2005 Consumer Food, Food Production, and Beverages 2005 Energy and Utilities2004 Motor Vehicles and Parts2004 Petroleum Refining2004 Electronics2004 Chemicals2004 Pharmaceuticals

To order printed copies of this report, please contact:

Dr. J. Emil Morhardt, DirectorRoberts Environmental CenterClaremont McKenna College925 N. Mills AvenueClaremont, CA 91711-5916USA

909-621-8190, Fax [email protected]


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Front Cover Photo: Walter Cook, technical staff at the Joint Science Department at the Claremont Colleges. (REC)

www.roberts.mckenna.edu 2006 Roberts Environmental Center Electronics, Semiconductor, and Peripherals Industry Report 2

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 2006 © by J. Emil Morhardt. All rights reserved.

2005 Fortune Global 500 and Fortune 1000

Electronics, Semiconductor, and PeripheralsCorporate Environmental and Sustainability Reporting

PSI Overall Grading

During the past decade, large corporations have begun affecting their companies and on how they deal with them. The addition of social issues to these reports has resulted in some firms designating them “sustainability reports.” Some firms produce these reports yearly, others only occasionally, and some not at all. We obtain these reports and any additional information exclusively from corporate web sites.This report covers all of the companies in the energy and utilities sectors of the 2005 Fortune Global 500 and all energy companies from the Fortune 1000 list, whether or not they produced formal environmental or sustainability reports. It is based on all environmental and social information available on their web sites during the period of our analysis from October 20, 2004 through April 18, 2005, including annual reports and, for American companies, 10-K forms. We extended the period of our analysis by incorporating feedbacks received from companies from May 20,2005 through June 15, 2005. The quality of the environmental and social reporting was characterized by students at the Claremont Colleges using the Roberts Environmental Center’s Pacific Sustainability Index (PSI).


Electronics, Semiconductor, and Peripherals

Company PSI Rankings

During the past decade, large corporations have begun to report voluntarily on the environmental issues affecting their companies and on how they deal with them. The addition of social issues to these reports has resulted in some firms designating them sustainability reports. Some firms produce these reports yearly, others only occasionally, and some not at all. We obtain these reports and any additional information exclusively from corporate web sites. This report covers the largest 30 companies in the Electronics, Semiconductor, and Peripherals sectors of the 2005 Fortune Global 500 and the Fortune 1000 lists, whether or not they produced formal environmental or sustainability reports. It is based on all environmental and social information available on their web sites during the period of our analysis. After we finished analyzing the companies' reports, we provided a draft sector report online to allow companies to review their score and provide comments. The quality of the environmental and social reporting was characterized by students at the Claremont Colleges using the Roberts Environmental Center’s Pacific Sustainability Index (PSI).

0 25 50 75 100

Hon Hai Precision IndustriesJabil Circuit Co

OnexEmerson ElectricSPX Corporation

Tyco InternationalW hirlpool

Maytag CorporationLG Electronics

Sanmina Sci CorpSiemens

Flextronics InternationalSumitomo Electric Industries

MitsubishiRockwell Automation

Texas Instruments Inc.Schneider Electric

ElectroluxSolectron

Sanyo ElectricSamsung

ToshibaSony

SharpAdvanced Micro Devices Inc

Royal Philips ElectronicsIntel

Applied Materials Inc.Matsushita Electric Industrial

Hitachi

Hitachi (Japan)A+

Matsushita Electric Industrial (Japan)

A

Applied Materials Inc. (U.S.)A

Intel (U.S.)A

Royal Philips Electronics (Netherlands)

A

Advanced Micro Devices Inc (U.S.)

A-

Sharp (Japan)B+

Sony (Japan)B+

Toshiba (Japan)B+

Samsung (South Korea)B+

Sanyo Electric (Japan)B

Solectron (U.S.)B

Electrolux (Sweden)B

Schneider Electric (France)B

Texas Instruments Inc. (U.S.)B

Rockwell Automation (U.S.)B

Mitsubishi (Japan)C+

Sumitomo Electric Industries (Japan)

C+

Flextronics International (Singapore)

C

Siemens (Germany)C

Sanmina Sci Corp (U.S.)C

LG Electronics (South Korea)C

Maytag Corporation (U.S.)D+

Whirlpool (U.S.)D+

Tyco International (U.S.)D+

SPX Corporation (U.S.)D+

Emerson Electric (U.S.)D-

Onex (Canada)D-

Jabil Circuit Co (U.S.)D-

Hon Hai Precision Industries (Taiwan)

F

Analysis period: 9/12/2005 10/18/2005

Draft sector report available for review: 3/1/2006 4/17/2006

through

through



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 the most frequently-mentioned topics in over 500 corporate sustainability reports analyzed from 2002 through mid-2005 at the Roberts Environmental Center.

The philosophy of the PSI is described in detail in our book, Clean, Green, and Read All Over published by and available from the American Society for Quality Press**. The selection of PSI topics is constantly adapted to include topics discussed in the world’s best sustainability reports, raising the bar for better sustainability reporting in the future.

How do we collect our data?

Relevant English web pages are downloaded from the main corporate website for analysis. Our scoring excludes data independently stored outside the main corporate web site. 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 web site.

What does the score mean?

Although our scoring uses a uniform scoring guideline, analysts’ subjectivity plays a role in judging the transparency and comprehensiveness of a particular topic.

what is the weight of each category in the overall PSI Scores?

The pie diagram below shows the weight of each category in the overall PSI score. The weight for each category is based on the proportion of the maximum possible PSI scores of all questions in a category.

*PSI scoring sheets are available on our web site**http://www.qualitypress.asq.org/perl/catalog.cgi?item=H1145

The Pacific Sustainability Index (PSI) in a Nutshell*

What do we mean by intent?

Scores for intent include discussion of the environmental intent (EI) or social intent (SI) topics including vision, policies, and management strategies. In some industries, discussion of procedures, mitigation measures, and goals are also included in the intent category.

What do we mean by reporting?

Scores for reporting reflect presentation in the report of data on specific environmental reporting (ER) and social reporting (SR) indicators, but not on the quality of performance—they indicate transparency in reporting independent of success in making improvements.

The maximum score for each topic in the reporting category is three points. In each category, one point is assigned when there is a mention of the topic: - Topics that should have quantitative information get two points if the discussion includes numerical data and an additional point if historical data are presented. - Qualitative topics get two points if there is a discussion a program or policy the company uses to implement the program and another point if there is a discussion on the benefits or advantages from the program - Philosophical topics get two points if there is a discussion about the company’s position on the ideology and another point if the company subscribes to at least one internal or external social program or policy that deals with this particular issue (e.g. the company's own code of conduct, the Global Compact.)

What do we mean by performance?

Topics analyzed in the reporting and performance categories are identical. The performance category is used to measure the performance of the reported environmental performance (EP) or social performance (SP) indicators. The maximum score for each topic in the performance category is two points:

- Quantitative topics get one point if there is a positive data trend and another point if data are shown to be better than peer average. An additional point is awarded if the company is clearly taking a leadership position for the sector, or if the data are at maximum performance (e.g. 100% recycling rate, 0 emissions, 0 injuries).

- Qualitative topics get one point if there is a discussion on the benefits or advantages from the program, another point if the program is continuously being monitored or improved by the company and another when the company is a leader or role model as evidenced by external recognition or awards.

- Philosophical topics get one point if the company subscribes to at least one internal or external social program that deals with a particular issue (e.g. Company's own code of conduct or Global Compact), another point when there is an active (action required) program or policy the company uses to enforce this principle such as a compliance mechanism, zero-tolerance ruling for non-compliance, external auditor, whistleblower program, certification program, etc., and another point if the company explicitly states that these guidelines or principles are being followed.

Key: EI (Environmental Intent), ER (Environmental Reporting), EP (Environmental Performance), SI (Social Intent), SR (Social Reporting), and SP (Social Performance).

EP19%

SI13%

SR19%

SP13%

ER28%

EI8%



Visual cluster analysis multivariate data of the sort produced by the PSI is difficult to summarize. Here we have created radar diagrams of the performance of each company analysed in the sector by its environmental and social intent, reporting, and performance. Maximum scores will match the outer sides of the hexagon which total up to 100 percent.

Visual Cluster Analysis

EI = Environmental Intent, ER = Environmental Reporting, EP = Environmental PerformanceSI = Social Intent, SR = Social Reporting, SP = Social Performance

Hitachi

0

2 5

5 0

7 5

1 0 0E R

E P

S P

S R

S I

E I

Matsushita Electric Industrial

0

2 5

5 0

7 5

1 0 0E R

E P

S P

S R

S I

E I

Applied Materials Inc.

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2 5

5 0

7 5

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E P

S P

S R

S I

E I

Intel

0

2 5

5 0

7 5

1 0 0E R

E P

S P

S R

S I

E I

Royal Philips Electronics

0

2 5

5 0

7 5

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E P

S P

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S I

E I

Advanced Micro Devices Inc

0

2 5

5 0

7 5

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S P

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Sharp

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S P

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Sony

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S P

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Toshiba

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E P

S P

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S I

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Samsung

0

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E P

S P

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Sanyo Electric

0

2 5

5 0

7 5

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E P

S P

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S I

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Solectron

0

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5 0

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E P

S P

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Electrolux

0

2 5

5 0

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E P

S P

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S I

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Schneider Electric

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2 5

5 0

7 5

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S P

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E I

Texas Instruments Inc.

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S P

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E I

Rockwell Automation

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5 0

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S P

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Mitsubishi

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2 5

5 0

7 5

1 0 0E R

E P

S P

S R

S I

E I

Sumitomo Electric Industries

0

2 5

5 0

7 5

1 0 0E R

E P

S P

S R

S I

E I

Flextronics International

0

2 5

5 0

7 5

1 0 0E R

E P

S P

S R

S I

E I

Siemens

0

2 5

5 0

7 5

1 0 0E R

E P

S P

S R

S I

E I

Sanmina Sci Corp

0

2 5

5 0

7 5

1 0 0E R

E P

S P

S R

S I

E I

LG Electronics

0

2 5

5 0

7 5

1 0 0E R

E P

S P

S R

S I

E I

Maytag Corporation

0

2 5

5 0

7 5

1 0 0E R

E P

S P

S R

S I

E I

Whirlpool

0

2 5

5 0

7 5

1 0 0E R

E P

S P

S R

S I

E I

Tyco International

0

2 5

5 0

7 5

1 0 0E R

E P

S P

S R

S I

E I

SPX Corporation

0

2 5

5 0

7 5

1 0 0E R

E P

S P

S R

S I

E I

Emerson Electric

0

2 5

5 0

7 5

1 0 0E R

E P

S P

S R

S I

E I

Onex

0

2 5

5 0

7 5

1 0 0E R

E P

S P

S R

S I

E I

Jabil Circuit Co

0

2 5

5 0

7 5

1 0 0E R

E P

S P

S R

S I

E I

Hon Hai Precision Industries

0

2 5

5 0

7 5

1 0 0E R

E P

S P

S R

S I

E I



Environmental Intent Topics

Electronics, Semiconductor, and PeripheralsEnvironmental Intent Element of the PSI Scores

Distribution of Environmental Intent Scores

This diagram shows the average percent of total possible score for each subcategory for all companies in the sector.

environmental intent Subcategories

Does the company describe the nature of its business, its sphere of influence, and include contact information.

A. Company Profile

How clearly does the company report its environmental vision, challenges faced by the industry, commitments to minimize consumption, and environmental impacts?

B. Vision

Has the company clearly stated its policies to address global environmental issues and internal environmentally-responsible business practices?

C. Policy

How clearly does the company describe its environmental management, accounting, and dealings with its stakeholders?

D. Management

A. Company Profile*Company financials1

Products, services, brands, and markets2

Divisions, facilities, and activities 3

Report contact person 4

B. Vision*Environmental Visionary statement5

Environmental impediments and challenges6

Commitment to minimize consumption7

Commitment to minimize environmental impacts 8

C. Policy*Environmental policy statement9

Climate change or global warming policy10

Habitat/ecosystem conservation policy11

Biodiversity policy12

Green purchasing13

Environmental goals 14

Supplier screening based on environmental performance15

Environmental education16

Voluntary memberships in internal or external environmental standards or rating organization

17

Voluntary environmental certifications18

D. Management*Environmental organization and strategy19

Environmental management system20

Environmental accounting, business case for following such a vision21

Voluntary environmental initiatives including donations and grants22

Stakeholders, consultation with, on environmental issues23

Stakeholders, external, use of environmental information from24

Stakeholders, internal, use of environmental information from25

Notes: * These numbers correspond to the numbers in the PSI questionnaire. Items with numbers higher than 99 are sector specific questions.

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20

30

40

50

60A. Company Profile

B. Vision

C. Policy

D. Management



Environmental Reporting Topics

Electronics, Semiconductor, and PeripheralsEnvironmental Reporting Element of the PSI Scores

Environmental Reporting Subcategories

Does the report include discussions on these environmental indicators, such as efforts to reduce impacts and minimize consumption, with its monitoring and performance data?

A-E. Energy, Water, Recycling, Waste, Emission to Air

Does the report include environmental expenses, investments, fines, and penalties, and efforts to enhance the natural environmental beyond what the law requires?

F. Management and Misc.


A. Energy*Energy used26

Energy used, from renewable sources27

Electricity consumption28

B. Water*Water used29

C. Recycling*Waste recycled30

Hazardous waste recycled31

Office recycling rate32

Recycled materials used105

D. Waste*Waste produced33

Waste disposed of34

Hazardous waste produced35

Hazardous waste disposed of36

Packaging materials waste109

Waste water released110

E.i. Emissions to air*Hazardous waste released37

Greenhouse gases, total111

Carbon dioxide (CO2)112

Volatile organic carbon (VOC)114

Sulfur hexafluoride (SF6)116

Nitrogen oxides (NOx)121

Particulate matter123

Sulfur oxides (SOx)127

E.ii. Emissions to soil*Emissions contaminating soil128

E.iii. Emissions to water*Emissions to water, total, including fuel spillage or leakage132

F. Management*R&D on green technologies133

F. Management and Misc.*Environmental notices of violation38

Environmental expenses and/or investments39

Environmental fines40

Protection & enhancement of natural environment41

G. Products*Product stewardship or take-back139

Product environmental performance140

Eco-efficiency monitoring144

H. Materials usage*Hazardous material used145

Green Material Used146

Life Cycle Analysis (LCA)147

Packaging materials used148

0

5

10

15

20

25A. Energy

B. Water

C. Recycling

D. Waste

E.i. Emissions to air

E.ii. Emissions to soilE.iii. Emissions to water

F. Management

F. Management andMisc.

G. Products

H. Materials usage

Distribution of Environmental Performance Scores


0

10

20

30

40

50

60A. Energy

B. Water

C. Recycling

D. Waste

E.i. Emissions to air

E.ii. Emissions to soilE.iii. Emissions to

water

F. Management

F. Management andMisc.

G. Products

H. Materials usage

Distribution of Environmental Reporting Score




Social Intent Topics

Electronics, Semiconductor, and PeripheralsSocial Intent Element of the PSI Scores

Distribution of Social Intent Topics


Social Intent Subcategories

How clearly does the company discuss its social vision, challenges faced by the industry, and commitments to minimize staff turnover?

A. Vision

Has the company clearly stated its policies to address social issues faced by the management, employees, suppliers, and surrounding communities?

B. Policy

How clearly does the company describe its employee demographics, programs, and organizational communications?

C. Management

A. Vision*Social visionary statement 42

Social impediments and challenges43

Commitment to minimize staff turnover 44

B. Policy*Social policy statement 45

Social goals46

Code of conduct or business ethics47

Code of conduct compliance monitoring48

Supplier screening based on social performance49

Sustainable society50

C. Management*Social organization and strategy 51

Demographic nature of the workforce 52

Social organization and strategy53

Third party validation of environmental and sustainability report54

Social initiatives, including donations and grants 55

Stakeholders, external, use of social information from56

Stakeholders, internal, use of social information from57


05

1015202530354045

A. Vision

B. PolicyC. Management



Social Reporting Topics

Electronics, Semiconductor, and PeripheralsSocial Reporting Element of the PSI Scores

Social Reporting Subcategories

Does the report include a particular human rights ideology along with the company’s position on the issue, a company-wide policy, a reinforcement program, and a discussion of how the company is measuring progress on these issues?

A. Human Rights Performance

Does the report include discussion on social topics along with the company’s policies, rationale, monitoring program, and leadership as evidenced by external recognition and awards?

B. Qualitative Social Performance

Does the report include the how the company views, monitors, and improves quantifiable social data, such as level of employee satisfaction, proportion of women employee, or incident rates.

C. Quantitative Social Performance

A. Human Rights Topics*Business ethics / Anti-Corruption practices58

Corporal punishment of employees59

Equal opportunity/Elimination of Discrimation60

Free association and collective bargaining of employees61

Compensation of employees62

Forced labor of employees63

Working hours64

Use of illegal child labor65

B. Qualitative Social Topics*Community Development66

Employee satisfaction67

Community Education68

Customer health and safety69

Employee health and safety70

C. Quantitative Social Topics*Customer satisfaction71

Employee voluntarism72

Compliance with code of business conduct73

Incident Case Rate - TICR74

Lost Workday Case Rate - LWCR75

Health and safety citations76

Health and safety fines77

Employees, females in management78

Employees, women and minorities in management79

Employment for individuals with disabilities80

Social community investment81

Employees, trained82


Distribution of Social Reporting Scores

0

10

20

30

40

50

60

A. Human RightsTopics

B. Qualitative SocialTopics

C. Quantitative SocialTopics


0

2

4

6

8

10

12

A. Human RightsTopics

B. Qualitative SocialTopics

C. Quantitative SocialTopics

Distribution of Social Performance Scores




Environmental Intent Scores

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.

Ten Highest Ranked Scores

Environmental Intent

Environmental Reporting Scores

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.

Environmental Reporting

Environmental Performance Scores

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.

Environmental Performance

IntelA+HitachiA+Matsushita Electric IndustrialASharpARoyal Philips ElectronicsATexas Instruments Inc.AAdvanced Micro Devices IncAToshibaA-Sanyo ElectricA-SamsungA-

HitachiA+Applied Materials Inc.AMatsushita Electric IndustrialA-SonyB+SharpB+SamsungBAdvanced Micro Devices IncBSanyo ElectricBToshibaBIntelB-

HitachiA+Applied Materials Inc.A+Matsushita Electric IndustrialBRoyal Philips ElectronicsBAdvanced Micro Devices IncBSharpB-SamsungB-IntelB-LG ElectronicsCSanyo ElectricC-

0 25 50 75 100

Hon Hai Precision Indust r iesJabil Circuit Co

OnexSPX Corporat ion

Whir lpoolEmerson Elect r ic

Mayt ag Corporat ionTyco Int ernat ional

LG Elect ronicsSanmina Sci Corp

Flext ronics Int ernat ionalSumit omo Elect r ic

Rockwell Aut omat ionSiemens

Mit subishiApplied Mat er ials Inc.

Schneider Elect r icSolect ronElect rolux

SamsungSony

Sanyo Elect r icToshiba

Texas Inst rument s Inc.Advanced Micro Devices Inc

Royal Philips Elect ronicsSharp

Mat sushit a Elect r icHit achi

Int el

0 25 50 75 100

Hon Hai Precision Indust r iesJabil Circuit Co

Emerson Elect r icOnex

Tyco Int ernat ionalWhir lpool

SPX Corporat ionMayt ag Corporat ion

Flext ronics Int ernat ionalSiemens

Mit subishiSanmina Sci Corp

Schneider Elect r icSolect ronElect rolux

Texas Inst rument s Inc.Rockwell Aut omat ion

LG Elect ronicsSumitomo Elect r ic Indust r ies

Royal Philips Elect ronicsInt el

ToshibaSanyo Elect r ic

Advanced Micro Devices IncSamsung

SharpSony

Mat sushit a Elect r icApplied Mat er ials Inc.

Hit achi

0 25 50 75 100

Hon Hai Precision Indust r iesMayt ag Corporat ion

Tyco Int ernat ionalSPX Corporat ion

Jabil Circuit CoEmerson Elect r ic

Solect ronOnex

Mit subishiSiemens

Sumitomo Elect r ic Indust r iesWhir lpool

Flext ronics Int ernat ionalRockwell Automat ion

Sanmina Sci CorpSchneider Elect r ic

Texas Inst rument s Inc.Toshiba

SonySanyo Elect r ic

Elect roluxLG Elect ronics

Int elSamsung

SharpAdvanced Micro Devices Inc

Mat sushit a Elect r ic Indust r ialRoyal Philips Elect ronics

Applied Mat er ials Inc.Hit achi



Social Intent Scores

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.

Ten Highest Ranked Scores

Social Intent

Social Reporting Scores

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.

Social Reporting

Social Performance Scores

Social performance scores are based on improvement, performance better than the sector average, or statements of compliance with established social standards.

Social Performance

HitachiA+Matsushita Electric IndustrialA+Applied Materials Inc.A+IntelAToshibaAAdvanced Micro Devices IncASharpARoyal Philips ElectronicsA-SamsungA-ElectroluxA-

IntelA+Schneider ElectricARoyal Philips ElectronicsAMatsushita Electric IndustrialA-SolectronA-Advanced Micro Devices IncA-Rockwell AutomationB+ElectroluxB+SonyBFlextronics InternationalB

Royal Philips ElectronicsA+SolectronBIntelB-Rockwell AutomationB-HitachiC+SiemensCSchneider ElectricCTexas Instruments Inc.CAdvanced Micro Devices IncCMatsushita Electric IndustrialC-

0 25 50 75 100

Hon Hai Precision Indust r iesEmerson Elect r ic

Jabil Circuit CoOnex

LG Elect ronicsSumitomo Elect r ic Indust r ies

Whir lpoolSPX Corporat ion

SiemensTyco Int ernat ional

Rockwell Aut omat ionMayt ag Corporat ion

Schneider Elect r icMit subishi

Sanyo Elect r icTexas Inst rument s Inc.

Flext ronics Int ernat ionalSony

Sanmina Sci CorpSolect ronElect rolux

Royal Philips Elect ronicsSamsung

Advanced Micro Devices IncToshiba

SharpInt el

Applied Mat er ials Inc.Mat sushit a Elect r ic Indust r ial

Hit achi

0 25 50 75 100

Hon Hai Precision Indust r iesOnex

Emerson Elect r icLG Elect ronics

Jabil Circuit CoTyco Int ernat ional

SPX Corporat ionWhir lpool

Sanmina Sci CorpMayt ag Corporat ion

Sumitomo Elect r ic Indust r iesSamsung

SharpTexas Inst rument s Inc.

SiemensSanyo Elect r ic

Applied Mat er ials Inc.Mit subishi

ToshibaHit achi

Flext ronics Int ernat ionalSony

Elect roluxRockwell Aut omat ion

Advanced Micro Devices IncSolect ron

Mat sushit a Elect r ic Indust r ialRoyal Philips Elect ronics

Schneider Elect r icInt el

0 25 50 75 100

Hon Hai Precision Indust r iesMayt ag Corporat ion

SPX Corporat ionJabil Circuit CoLG Elect ronics

Emerson Elect r icOnex

Tyco Int ernat ionalSanmina Sci Corp

SamsungMit subishi

Sumit omo Elect r ic Indust r iesWhir lpool

Flext ronics Int ernat ionalSharp

Elect roluxToshiba

SonySanyo Elect r ic

Applied Mat er ials Inc.Mat sushit a Elect r ic Indust r ial

Texas Inst rument s Inc.Schneider Elect r ic

Advanced Micro Devices IncSiemens

Hit achiRockwell Aut omat ion

Int elSolect ron

Royal Philips Elect ronics



Use of Environmental Reporting Indicators

This graph shows both the percentage of companies mentioning a particular environmental indicator in their reports (darker bars), and the overall depth of discussion of a particular indicator by all companies within the sector (lighter bars).

= Percentage of companies reporting an indicator in the sector

= Average percent of total possible score for each indicator for all companies in the sector

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Particulate matter

Sulfur hexafluoride (SF6)

Energy used, from renewable sources

Sulfur oxides (SOx)

Environmental notices of violation

Packaging materials waste

Environmental fines

Hazardous waste recycled

Office recycling rate

Eco-efficiency monitoring

Emissions contaminating soil

Green Material Used

Hazardous waste produced

Nitrogen oxides (NOx)

Packaging materials used

Volatile organic carbon (VOC)

Waste water released

Product stewardship or take-back

Recycled materials used

Electricity consumption

Hazardous material used

Hazardous waste released

Greenhouse gases, total

Hazardous waste disposed of

Carbon dioxide (CO2)

Environmental expenses and/or investments

Emissions to water, total, including fuel spillage or leakage

Life Cycle Analysis (LCA)

Waste recycled

Product environmental performance

Protection & enhancement of natural environment

Waste produced

Water used

R&D on green technologies

Waste disposed of

Energy used



Use of Social Reporting Indicators

This graph shows both the percentage of companies mentioning a particular social indicator in their reports (darker bars), and the overall depth of discussion of a particular indicator by all companies within the sector (lighter bars).

= Percentage of companies reporting an indicator in the sector

= Average percent of total possible score for each indicator for all companies in the sector

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Health and safety fines

Employees, women and minorities in management

Health and safety citations

Employment for individuals with disabilities

Employees, females in management

Corporal punishment of employees

Working hours

Lost Workday Case Rate - LWCR

Forced labor of employees

Compensation of employees

Social community investment

Use of illegal child labor

Free association and collective bargaining of employees

Customer health and safety

Customer satisfaction

Incident Case Rate - TICR

Employee satisfaction

Community Education

Employee voluntarism

Equal opportunity/Elimination of Discrimation

Business ethics / Anti-Corruption practices

Community Development

Employees, trained

Compliance with code of business conduct

Employee health and safety



Relationship Between Overall PSI Score and Companies' Economic Indicators

59.76

54.2953.33 53.10 52.6250.24

46.9045.00

42.86 42.3841.9040.48 39.47

38.3337.6237.38

30.7128.1027.38 26.90

25.0023.81

17.14

13.93 13.8112.86

6.435.715.48

1.43

R2 = 0.1602

0

10

20

30

40

50

60

70

0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000

Revenue ($M)

Over

all P

SI S

core

s

Company Name Overall

Score

Revenue

($million)

Net Income

($million)

Net Profit

Margin*

Number

of

Employees

End

Fiscal

Year

Hitachi 59.76 $81,438.20 $149.80 0.00 306876 Mar 04Matsushita Electric Industrial 54.29 $71,920.60 $405.20 0.01 290493 Mar 04Applied Materials Inc. 53.33 $8,013.10 $1,351.30 0.17 12960 Oct 04Intel 53.10 $34,209.00 $7,516.00 0.22 85000 Dec 04Royal Philips Electronics 52.62 $41,070.00 $3,842.00 0.09 161586 Dec 04Advanced Micro Devices Inc 50.24 $5,001.40 $91.20 0.02 15900 Dec 04Sharp 46.90 $21,367.30 $574.70 0.03 46164 Mar 04Sony 45.00 $72,081.00 $851.00 0.01 162000 Mar 04Toshiba 42.86 $52,815.60 $272.90 0.01 166651 Mar 04Samsung 42.38 $78,250.10 $10,300.80 0.13 123000 Dec 04Sanyo Electric 41.90 $24,527.70 $126.40 0.01 82337 Mar 04Solectron 40.48 $11,638.30 ($168.90) -0.01 57000 Aug 04Electrolux 39.47 $18,242.40 $476.10 0.03 72382 Dec 04Schneider Electric 38.33 $14,138.30 $770.10 0.05 85000 Dec 04Texas Instruments Inc. 37.62 $12,580.00 $1,861.00 0.15 35472 Dec 04Rockwell Automation 37.38 $4,411.10 $414.90 0.09 21000 Sep 04Mitsubishi 30.71 $15,093.80 $1,092.10 0.07 49219 Mar 04Sumitomo Electric Industries 28.10 $14,600.40 $242.70 0.02 87415 Mar 04Flextronics International 27.38 $14,530.40 ($352.40) -0.02 82000 Mar 04Siemens 26.90 $93,455.00 $4,233.00 0.05 430000 Sep 04Sanmina Sci Corp 25.00 $12,204.60 ($11.40) 0.00 48721 Sep 04LG Electronics 23.81 $23,542.30 $1,475.90 0.06 66614 Dec 04Maytag Corporation 17.14 $4,721.50 ($9.00) 0.00 18140 Dec 04Whirlpool 13.93 $13,220.00 $406.00 0.03 68000 Dec 04Tyco International 13.81 $40,153.00 $2,879.00 0.07 258400 Sep 04SPX Corporation 12.86 $4,372.00 ($17.10) 0.00 23800 Dec 04Emerson Electric 6.43 $15,615.00 $1,257.00 0.08 107800 Sep 04Onex 5.71 $13,482.50 $29.00 0.00 83000 Dec 04Jabil Circuit Co 5.48 $6,252.90 $166.90 0.03 34000 Aug 04Hon Hai Precision Industries 1.43 $16,935.70 $930.50 0.05 166509 Dec 04

Source: Latest available data for all companies of the same year from Hoovers.com (*calculated)



59.76

54.2953.33 53.10 52.6250.24

46.9045.00

42.8642.3841.9040.4839.4738.3337.6237.38

30.7128.1027.38 26.90

25.00 23.81

17.1413.93 13.8112.86

6.435.715.48

1.43

R2 = 0.0166

0

10

20

30

40

50

60

70

0 50000 100000 150000 200000 250000 300000 350000 400000 450000 500000

Number of Employees

Ove

rall

PSI S

core

s

59.76

54.29 53.33 53.1052.6250.24

46.9045.00

42.86 42.3841.9040.48 39.47 38.33 37.6237.38

30.7128.1027.38 26.90

25.00 23.81

17.1413.93 13.8112.86

6.435.71 5.48

1.43

R2 = 0.0553

0

10

20

30

40

50

60

70

- 5.00E- 02 0.00E+00 5.00E- 02 1.00E- 01 1.50E- 01 2.00E- 01 2.50E- 01

Net Profit Margin

Over

all P

SI S

core

s

59.76

54.29 53.33 53.1052.6250.24

46.9045.00

42.86 42.3841.9040.48 39.4738.33 37.6237.38

28.1027.38 26.9025.00 23.81

17.1413.93 13.8112.86

6.435.715.48

1.43

30.71

R2 = 0.0481

0

10

20

30

40

50

60

70

- 2000 0 2000 4000 6000 8000 10000 12000

Net Income ($M)

Over

all P

SI S

core

s


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Use of Voluntary Guidelines and Partnerships


AA1000, AccountAbility1Business for Social Responsibility (BSR)2Centre for Environmental Assessment of Product & Material (CPM)3Global Environmental Management Initiative (GEMI)4Global Reporting Initiative (GRI)5Global Village Energy Partnership (GVEP)6ILO Core Labor Standards7ISO14001 Environmental Management System8OECD Guidelines for Multi-National Enterprises9Oikos International10Pew Center on Global Climate Change11SA8000, Social Accountability International12Transparency International13United Nations Global Compact, Universal Declaration of Human Rights14World Business Council for Sustainable Development15World Energy Council16World Wide Fund for Nature (WWF)17

Advanced Micro Devices Inc Applied Materials Inc. Electrolux Emerson Electric Flextronics International Hitachi Hon Hai Precision Industries Intel Jabil Circuit Co LG Electronics Matsushita Electric Industrial Maytag Corporation Mitsubishi Onex Rockwell Automation Royal Philips Electronics Samsung Sanmina Sci Corp Sanyo Electric Schneider Electric Sharp Siemens Solectron Sony SPX Corporation Sumitomo Electric Industries Texas Instruments Inc. Toshiba Tyco International Whirlpool


E = Total Environmental Score, ESA = Environmental Sector Average Score, S = Total Social Score, SSA = Social Sector Average Score


Advanced Micro Devices Inc

Vander Kolk

0 2 5 5 0 7 5

S S A

S

E S A

E

~

Overall, AMD scored very well in environmental and social reporting and performance. The inclusion of separate reports on toxic chemicals and global climate control is commendable and shows the company's efforts to achieve transparency. AMD could improve by including explicit data regarding carbon dioxide, nitrogen, and sulfur emissions and a statement regarding the corporation's position on biodiversity and habitat conservation. Despite these recommendations, AMD performed strongly this year and has laid the groundwork for healthy expansion provided that it follows its current goals.

E49% S

51%

AMD 2005 Environmental Report

Applied Materials Inc.

Allen-Young

0 2 5 5 0 7 5

S S A

S

E S A

E

~

Applied Materials includes a thorough account of the environmental impacts of manufacturing and production activities in its 2004 annual report. Its commitment to conducting its business operations in an environmentally responsible manner is demonstrated by the extraordinary effort it puts towards recycling and using these recycled materials in production processes. In addition, Applied Materials is obviously socially responsible and clearly operates at a high standard of conduct as evidenced by its alignment of its practices with the Global Reporting Initiative, OECD Guidelines for Multi-National Enterprises, and the World Business Council for Sustainable Development.

E56%

S44%

Applied Materials 2004 Annual Report

Electrolux

Labermeier

0 2 5 5 0 7 5

S S A

S

E S A

E

~

The Electrolux Company manufactures household appliances. Their report discusses many environmental issues including how Electrolux works to reduce the energy and water consumption of its appliances. Electrolux has won the Energy+ award, which acknowledges the most energy-efficient refrigerators and freezers in Europe. However, this report didn’t seem to cover as much with respect to the company’s social vision. Though the Code of Ethics and other such codes were mentioned, to fully see what these documents contained, we had to look on their internet site. Also, there wasn’t much information on the demographics of the company’s management team. Overall, Electrolux seems to be very intent on keeping up with new legislation on environmental issues, and even leading the way in some areas.

E46% S

54%

Electrolux 2004 Sustainability Report

Emerson Electric

Mitchem

0 2 5 5 0 7 5

S S A

S

E S A

E

~

Emerson's environmental report has a strong environmental code and ten corresponding rules that form the basis of the company’s environmental policy. Though the code and rules are adequate, the report lacks evidence that they are being enforced and gives no information about current amounts of energy used, waste created, or waste recycled. The only quantitative data in the report is from 1999. This report is fundamentally lacking in transparency.

E78%

S22%

Emerson 2004 Environmental Report




Flextronics International

Gaza

0 2 5 5 0 7 5

S S A

S

E S A

E

~

Flextronics was not very forthcoming in its web pages. It selectively reported areas where Flextronics exceeds in environmental and social responsibility, however, it failed to mention any fines or citations the company may have received for environmental or health and safety violations. It also excluded any information about energy used, waste produced, or emissions released. Flextronics does seem to take an active interest in the community in which it operates. It gives free training to people in the town in South Africa in which it is located and helps sponsor an orphanage in Guadalajara, Mexico, by employing volunteers and company sponsorship for which it received an award. Flextronics needs to be more transparent before one can assess if the company is behaving in an environmentally responsible way.

E35%

S65%

Flextronics 2005 web pages

Hitachi

Esbenshade

0 2 5 5 0 7 5

S S A

S

E S A

E

~

Hitachi provided a very detailed corporate sustainability report. The company clearly stated its policy, intent, and goals on almost all of the issues the Roberts Environmental Center scores for. Not all of the statements, however, were backed by historical quantitative data. Hitachi has made commitments to increasing environmental transparency and responsibility, and is well on its way to meeting many of its targets. Work on GHG emission reductions provides one example. The report, however, would be much stronger if Hitachi provided the same detail and data on a greater number of the issues it identified. Hitachi is taking a global leadership stance on many environmental concerns and greater 3rd party validation of their efforts could also enhance the company’s authority on environmental awareness.

E56%

S44%

Hitachi 2005 Corporate Social Responsibility Report

Hon Hai Precision Industries

Adidjaja0 2 5 5 0 7 5

S S A

S

E S A

E

~

There are no sustainability issues reported in the Hon Hai Precision Industries (Foxconn) global web pages.

E100%

S0%

Hon Hai Precision Industries (Foxconn) 2005 Global web pages

Intel

Mitchem

0 2 5 5 0 7 5

S S A

S

E S A

E

~

The Intel 2004 Global Citizenship Report is an excellent example of how companies can and should report their activities that effect both people and the environment. The document is organized into subcategories making information easy to find, and beyond reporting emissions goals and results Intel has a thorough discussion of challenges involved with being a responsible global citizen. Sections like Product Ecology, Technology in Society, Stakeholder Relationships, Community Involvement, and Resource Sustainability demonstrate Intel’s integrated approach to addressing such an immense and important topic as global citizenship.

E47% S

53%

Intel 2004 EHS Performance Report




Jabil Circuit Co

Vanden Bos0 2 5 5 0 7 5

S S A

S

E S A

E

~

Jabil publishes a Code of Ethics on its web site, but no other environmental or social information.

E49% S

51%

Jabil Company 2005 web pages

LG Electronics

Ellison

0 2 5 5 0 7 5

S S A

S

E S A

E

~

LG Electronics has published a fairly comprehensive environmental report. The company's environmental stance and policies are made clear and, for the most part, the company publishes most of its data regarding performance. While the report is very clear that LG is trying to cut down on hazardous materials that it uses and produces, there is not much performance data published in the area of hazardous materials and hazardous waste. Additionally, LG does not mention any violations or fines relating to its environmental policies. On the whole, the environmental portion of this report is fairly thorough and transparent, however, there is hardly anything in this report that shows social positions or actions of this company. There is no mention of the social policies or a code of conduct to which the company adheres. Thus the overall score is substantially lower than it could have been.

E79%

S21%

LG Electronics 2005 Analysis Environmental Report 2004 web pages

Matsushita Electric Industrial

Gaza

0 2 5 5 0 7 5

S S A

S

E S A

E

~

Matsushita, which sells under the brand name Panasonic, has a very precise environmental plan that includes cutting greenhouse gas emissions, consuming less natural resources, and no longer emitting toxic chemicals. Matsushita has put extensive effort into engineering energy and water conserving products and has also made impressive efforts to use recycled products in its manufacturing. It has sponsored many arts and educational programs in Japan. Despite all of its excellent environmental initiatives in recycling and energy saving products, Matsushita did not provide much information about some of its environmental aspects including waste, environmental fines, and its own energy consumption.

E51%

S49%

Matsushita (Panasonic) Sustainability Report, 2005 Environmental Report, and 2005 Environmental Data Book

Maytag Corporation

Adidjaja

0 2 5 5 0 7 5

S S A

S

E S A

E

~

Maytag's first corporate sustainability report, titled "What We Stand For" captures the core of the company's heritage in caring for the environment, and its employees, communities, and customers. There is little historical data or use of environmental or social indicators to monitor performance. Numorous best practices examples can be found in discussions on the company's commitment to improve water and energy efficiency, product performance, employees' health and safety, and contributions to the community. As the company continues to enhance the depth and scope of its sustainability efforts, better reporting is expected the next time around.

E45% S

55%

Maytag Corporation 2003 CSR: What We Stand For, 10-K, and 2005 web pages




Mitsubishi

Frantz

0 2 5 5 0 7 5

S S A

S

E S A

E

~

The Mitsubishi 2004 Sustainablility Report is thorough and at least mentioned almost all the PSI topics. The largest problem with the report was a lack of complete data regarding certain environmental metrics, such as use of renewable energy, water usage, and total waste. There also was no mention of hazardous materials used, disposed of, or released. The social portion also lacked numerical data in categories such as incident case rate, lost workday case rate, and health and safety violations.

E46% S

54%

Mitsubishi 2004 Sustainability Report

Onex

Frantz0 2 5 5 0 7 5

S S A

S

E S A

E

~

Onex Corporation did not have an environmental or sustainability report on its website. The points that were received were from the Environmental Policy Statement and scattered commentary in the web pages. There was no substantial discussion of environmental or social matters.

E60%

S40%

Onex 2005 web pages

Rockwell Automation

Vanden Bos

0 2 5 5 0 7 5

S S A

S

E S A

E

~

Rockwell Automation’s Environmental, Health and Safety report was rather thin at thirty pages. You never quite get a concept of what Rockwell Automation does or what its products are. Nearly all of its points in the Social Performance and Reporting section of the Pacific Sustainability Index came from a separate document called Business Code of Ethics. Most of the social reporting in the Environmental, Health and Safety report was from extremely brief blurbs on a couple of community projects Rockwell sites had participated in. Rockwell Automation needs to flesh out its report by telling more about itself such as what its products are made of, what its workforce demographics are, and more complete specific descriptions of its action plans concerning the environment and the societies in which it operates.

E46% S

54%

Rockwell Automation 2004 Safety and Environmental Annual Report and 2005 web pages




Royal Philips Electronics

Adidjaja

0 2 5 5 0 7 5

S S A

S

E S A

E

~

The Royal Phillips Electronics 2005 Sustainability Report illustrates the company's remarkably well evolved systems for reporting and monitoring each of its social and environmental indicators. As part of a continuous program, the company is now in the process of implementing the EcoVision III plan—a four-year plan to improve the company’s environmental performance. Although the report lacks quantitative data on specific substances common to the industry, i.e. VOCs, SF6, and NOx, it covers a wide array of indicators that have effects on the environment, especially those related to global warming, chemical content of products, and product take-back and recycling. There is no doubt that the company cares about its employees and customers. The commitment is expressed in a company-wide slogan "Touch Lives Everyday", which is reflected in programs to promote better management practices and product design. The company uses a protected anonymous reporting mechanism called the One Philips Ethics Line to collect information on alleged violations of their General Business Principles, and publishes these in the sustainability report—strong evidence of a commitment to a better and more sustainable society.

E46% S

54%

Royal Philips Electronics 2005 Environmental Report and 2006 web pages

Samsung

Esbenshade

0 2 5 5 0 7 5

S S A

S

E S A

E

~

Though the Samsung website provides colorful interactive charts mapping its environmental progress, information is only given on a very limited number of topics. Samsung also fails to draw conclusions about the overall performance of the multiple factories for which it provides data. This makes it difficult to determine whether or not the company is following a positive trend toward waste elimination, recycling, hazardous waste management etc., or only doing so in a few instances. Overall, Samsung provides sufficient statements of environmental policy and compliance targets, as well as a comprehensive social and ethical code of conduct, but does not publish adequate quantitative support.

E56%

S44%

Samsung Electronics 2005 Green Management Report and web pages

Sanmina Sci Corp

Allen-Young

0 2 5 5 0 7 5

S S A

S

E S A

E

~

The Sanmina-SCI 2004 report lacks comprehensive numerical data assessing the environmental performance of the company. Greater transparency of company activities would be achieved if this type of data were included in the annual report. However, there is other evidence to suggest that Sanmina is a socially and environmentally responsible company. Examples of this include the extensive discussion included in the report of research and development of green technologies currently being undertaken, as well as the pursuit of ISO 14001 certification for the majority of its facilities. In addition, Sanmina was recognized for providing extensive aid to the tsunami relief efforts which further demonstrates its commitment to being socially responsible.

E47% S

53%

Sanmina-SCI 2004 Annual Report




Sanyo Electric

Vander Kolk

0 2 5 5 0 7 5

S S A

S

E S A

E

~

Sanyo’s report, while very thorough environmentally, was lacking in historical data and a few key social factors. The depth of Sanyo’s environmental reporting is commendable; however it was unable to gain many points due to the absence of a positive progression of the company's performance over time. It would be useful if Sanyo were to include historical trends in the next report. Various human rights issues are ignored in the report as well, despite incorporating a comprehensive set of goals and statements of intent. Following through in these areas would yield a much better score for Sanyo.

E55%

S45%

Sanyo Electric 2005 web pages

Schneider Electric

Ellison

0 2 5 5 0 7 5

S S A

S

E S A

E

~

Schneider Electric has published a fairly thorough and transparent sustainability report. The company’s goals for environmental and social improvement within the company and its surroundings are commendable. However, there are some areas where the company does not fully publish its policies and numbers. The most notable absence from its sustainable development report is the lack of any talk of recycling. Additionally, the company does not mention any violations or fines based on environmental or social violations nor claim that there were none.

E43% S

57%

Schneider Electric 2005 web pages

Sharp

Labermeier

0 2 5 5 0 7 5

S S A

S

E S A

E

~

Sharp's environmental and social report is very informative. The two different sections are separated and there is a contents page in the beginning, which makes reading the report easier. There are also links throughout the file which direct you to their internet site for further information. However, even with these amenities, the report is still somewhat difficult to go through. Although the sharp-world.com web site has links to this report, there are no links from the sharp.com website. This is somewhat confusing and initially information could only be gathered from a single environmental report which was shown on the sharp.com website. However, Sharp has made it clear that the environment is a high priority and has taken many steps to further the idea of sustainability. This can be seen through the goal of becoming a “zero global warming impact company” by 2010 and an overall push to be better than regulation requires. The social side of this report also covered many issues, but not in great detail. For example, to find specific information on issues such as wages and working hours we had to follow the link to the code of conduct.

E56%

S44%

Sharp 2005 Environmental and Social Report

Siemens

Ellison0 2 5 5 0 7 5

S S A

S

E S A

E

~

Siemens sustainability report was quite promising in terms of environmental and social sustainability policies, but these policies were not backed up with data. Nor was there much information on the waste that the company produces, including hazardous waste production and disposal. It seems as though Siemens is on the right path, but has chosen not to release the figures to support its sustainability claims.

E45% S

55%

Siemens 2005 web pages




Solectron

Allen-Young

0 2 5 5 0 7 5

S S A

S

E S A

E

~

Solectron mentions awareness of environmental impacts resulting from company actions but does not include data on monitoring levels of emissions or how it determines if it is in compliance with voluntary or imposed regulations. More detail about business procedures and community involvement is desirable. Solectron is very explicit in discussing business ethics and appears to be adhering to rigorous codes of conduct. Though Solcetron does not state compliance or membership in accountability organizations it does follow The Electronic Industry Code of Conduct. This code was prepared based on standards outlined by organizations like ISO, ILO, OECD, and SAI. Solectron, Sanmina-SCI, HP, Dell, IBM, Jabil, Celestica, and Flextronics all contributed to the creation of this code.

E39% S

61%

Solectron 2005 web pages

Sony

Vanden Bos

0 2 5 5 0 7 5

S S A

S

E S A

E

~

Sony scored fairly well on the PSI because its Corporate Social Responsibility report conveyed a lot of information. Even though it scored well, the information and programs presented by Sony seemed forced. The report as a whole lacked enthusiasm and energy. An example is Sony’s product recycling program in which it is recycling used personal computers, but only because the law requires it to. Sony seems to be doing only what it has to in an attempt to keep up with other companies in a world that expects environmental responsibility of its major corporations. If Sony is trying to go above and beyond the call of duty, this report does not communicate that message.

E53%

S47%

Sony 2005 Corporate Social Responsibility Report

SPX Corporation

Esbenshade

0 2 5 5 0 7 5

S S A

S

E S A

E

~

On page 47 its 2004 Annual Report SPX states: “We are subject to various environmental laws, ordinances, regulations and other requirements of government authorities in the United States and other nations. These requirements may include, for example, those governing discharges from and materials handled as part of our operations, the remediation of soil and groundwater contaminated by petroleum products or hazardous substances or wastes, and the health and safety of our employees.” This is the extent of the environmental and social information the company provides. The 10-K also provides some information on the financials of environmental remediation and mentions 3rd party auditing, but there is no historical or quantitative data for any of the PSI Base or Sector Specific Questions. SPX does not elaborate on specific environmental or social policies on their website

E48% S

52%

SPX Corporation 2004 Annual Report and 2005 web pages




Sumitomo Electric Industries

Mitchem

0 2 5 5 0 7 5

S S A

S

E S A

E

~

The Environmental Report produced by Sumitomo Electric is methodical and extensive. The comprehensive table of the goals and results of Sumitomo’s “Action ECO-21” campaign plus the section on Environmental Management are prime examples of how Sumitomo endeavors to improve environmental performance and assess the effectiveness of attempts at increased environmental performance. The Environmental accounting section provides an excellent description of how company financials are affected by environmental practices and investments. The fact that Sumitomo had this report audited by a third party implies a commitment to clear reporting of environmental practices. Sumitomo could increase its PSI score by including historical data about emissions as well as by reporting its social policies and performance.

E62%

S38%

Sumitomo Electric Industries 2004 Environmental Report

Texas Instruments Inc.

Vander Kolk

0 2 5 5 0 7 5

S S A

S

E S A

E

~

Texas Instruments scored relatively well in environmental and social intent, though there is room for improvement in a number of performance areas. For example, data regarding waste, including hazardous waste, would make the report much stronger. Also, Texas Instruments has a lengthy code of ethics, but lacks any performance indicators that show how well its social policies are being followed. In addition, the corporation would have scored higher if it released air and soil emissions data. Clearly Texas Instruments is on the right track, it only needs to broaden the scale of its performance reporting.

E51% S

49%

Texas Instruments 2004 Environmental Health and Safety Report

Toshiba

Labermeier

0 2 5 5 0 7 5

S S A

S

E S A

E

~

The Toshiba Company not only has a wealth of information on its superior environmental practices; it claims zero emissions at their Toshiba plant, but it also provides a solid working environment for its employees. Child leave, proper working hours and education programs are all present. This information is also easily found because the report is well organized and not too long. The presence of a clear contents page, good descriptive titles and the clumping of similar information makes it very easy to find what you are looking for. There is a significant amount of internal management of the social and environmental indicators—shown by the high score of the environmental and social intent reporting score. Evidence is found throughout the report that the company has strong commitments and plans to fulfill its goals. The report includes an extraordinary coverage on efforts to understand the employee satisfaction toward the company, research toward the development of alternative energy, and cancer disease treatment, which are invaluable and highly admirable.

E50% S

50%

Toshiba 2005 Environmental Report




Tyco International

Frantz0 2 5 5 0 7 5

S S A

S

E S A

E

~

Tyco International did not have an environmental or sustainability report. All the information gathered was from the 10-K and a few scattered links on the web site.E

47% S53%

Tyco International 2005 10K and web pages

Whirlpool

Gaza0 2 5 5 0 7 5

S S A

S

E S A

E

~

Whirlpool's 2005 report was not very good. It listed many of the rewards Whirlpool had received for it's environmental stewardship, but failed to provide much detail on its actual environmental and social policies and performance.

E46% S

54%

Whirlpool Corp. Social Responsibility Report 2005

Director's CommentsNew for the PSI! Letter grades instead of numerical ranks.

What if the PSI results were presented as letter grades instead of ranks as in the past? How should we assign them? Moody’s, when it rates bonds assigns them to 21 classes:

Aaa, Aa1, Aa2, Aa3, A1, A2, A3, Baa1, Baa2, Baa3, Ba1, Ba2, Ba3, B1, B2, B3, Caa1, Caa2, Caa3, Ca, C.

When S&P does the grading it uses 22 classes:

AAA, AA+, AA, AA-, A+, A, A-, BBB+, BBB, BBB-,BB+, BB, BB-,B+, B, B-, CCC, CCC, CCC-, CC, C, D.

This looks something like the grade inflation at colleges and universities; there are seven ways to get an A, and with Moody’s, a bond can even get a little a or two when it is getting Cs. To us this seems confusing, so we have decided to stick with the system we all have been living with since the first grade and we use everyday here in academia, with just 13 classes:

A+, A, A-, B+, B, B-, C+, C, C-, D+, D, D-, 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 the other grades, just like in real life. Companies with scores in the highest 4% get A+ and any in the bottom 4% get F. The same technique applies to the separate categories of environmental and social scores. Thus, we grade on the curve. We make the assumption 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+. In academia most of us construct our tests so that everyone should be able to get half the questions right, so we might give an F for any grade lower than half the top score. Here we are more generous. Still, the grades probably ought to be viewed the same way they are viewed by our students and the graduate schools to which they apply; anything below a B− isn’t very good and begs for improvement.

Let us know what you think of this grading system.

J. Emil MorhardtDirector, Roberts Environmental CenterClaremont, CaliforniaApril 24, 2006


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 colleges with a comprehensive and realistic understanding of today’s environmental issues and the ways in which they are being and can be resolved, 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 funded by an endowment from George R. Roberts (Founding Partner of Kohlberg Kravis Roberts Co. and CMC alumnus), other endowments, grants, and gifts, and is staffed by faculty and students from the Claremont Colleges. Center staff are happy to consult with companies wishing to improve the quality of their environmental and sustainability reporting. Center students are often looking for corporate summer internships and post-graduation positions, and the center director can aid firms in finding the right student.


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 CollegesThe 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 Claremont Graduate University—which includes the Peter F. Drucker and Masatoshi Ito Graduate School of Management.


Documents

2006 Roberts Environmental Center Pacific Sustainability Index Scores · 2019. 4. 2. · D- Jabil Circuit Co (U.S.) Hon Hai Precision Industries (Taiwan) F Analysis period: 9/12/2005