2
PMI Corporate Values• Honesty and ethical behavior
• Teamwork and supporting each others’ professional efforts and achievements
• Performance and a “Get it done” attitude
• Each person engaging, contributing, and succeeding
• Trustworthiness
• Partnership and team
• Diversity and respect for the rights and thinking of others
• Creativity and innovation
• Sound fi nancial thinking
• Work life balance
• Our community and the environment
3 Scope of Report
5 The PMI Story
10 Letter from CEO/Founder Rob Harris
11 The PMI Leadership Team
12 PMI’s CSR Journey
16 Our Strategic Pillars
17 Commitment to Excellence
18 Innovation
19 Culture/People
20 Social Consciousness
24 Environmental Responsibility
26 PMI Environmental Performance Indicators
29 Stakeholder Engagement
30 Memberships & Awards
31 Materiality Chart & Acknowledgements
Table of Contents
3
Pacifi c MarketInternational’s (PMI’s)
fi rst Corporate Responsibility
Report was created using the
Global Reporting Initiative (GRI)
as our learning tool and guide. We
are reporting on our direct impact
and ownership: PMI and PMI
Joinease. The scope of this report
is the owned or leased property of
Pacifi c Market International, LLC,
which includes the Seattle (HQ)
offi ce, the Shanghai offi ce, the
Manila offi ce, the London offi ce,
and the PMI Joinease factory.
In our next Report, we will
expand our reporting scope to
contractors, which will include
contract factories, packaging
suppliers, and warehouses.
The primary purpose of this
report is to bring together all
aspects of PMI’s Corporate Social
Responsibility (CSR) program as
a resource for our stakeholders.
The intention is to provide
incentive for our employees to
drive innovation that will improve
our performance. In 2010 and
beyond, the accomplishment of
goals that support our Strategic
Business Pillars will be tracked
and reported.
When evaluating this report’s
content against the standards in
the GRI Application Levels
(www.globalreporting.org/Reporting
Framework/ApplicationLevels),
PMI self-declares that it has reached
the A level. The GRI Content Index
Grid, along with our Code of
Conduct, has been published on
our website (www.pmi-worldwide.
com) as a companion document
to this report.
Scope of Report
4
201 Patents
4 Offi ces: Seattle, Shanghai, Manila, and London
164 Employees
Products sold in 50 Countries
14 Awards
4
0s: Se
64 Employ
Products sold in 50 Countrie
5
In 1983, Rob Harris founded PMI with a modestinvestment of $1,200 and a curiosity about international trade. With degrees in psychology, business, and education under his belt, the entrepreneurial path seemed an obvious fi t.
For the fi rst few years, PMI imported a number of differ-ent products and designed and styled products for the sports and recreation markets. As business progressed, Rob expanded the product lines to include food and beverage containers.
In 1994, PMI joined forces with Eddie Bauer to create one of the fi rst lines of stainless steel insulated mugs. Prior to this, travel mugs were mere utilitarian objects. PMI recognized that modern lifestyles would soon demand products that
were not only functional, but stylish as well. At the same time, Starbucks Coffee Company was responding to the increased pace of their customer’s lives and they partnered with PMI to create beverage containers for patrons on the go.
In 2001, we opened Pacifi c Market International Shanghai Trading Company Ltd. to provide additional sales, engineering, and manufacturing support. PMI also has offi ces in London and the Philippines.
In 2002, PMI purchased the Stanley® and Aladdin® brands, both venerable brands that are close to 100 years old. Over the past few years, PMI has expanded both lines and breathed new life into these American icons.
The PMI Story A Balanced Cycle Twenty-Six Years in the Making
continued. . . . . . . . . . . . . >
6
Vision
We will revolutionize the
way people enjoy food
and beverage everywhere
Mission
We are a global
company that designs,
manufactures, and
markets products that
enable consumers
everywhere to enjoy
food and beverage.
We collaborate to
apply market knowledge,
technological expertise,
and social responsibility
in developing innovative
products and successfully
growing our business.
In the past three years our goal of being the best food and beverage con-tainer supplier in the world has come closer to reality. Our strategy is to leverage our multi-brands (Stanley,® Aladdin,® MiGo,®
and Private Labels), multi-channels (specialty, commercial, mass, and outdoor), and multi-geographic regions in a manner that creates product synergy and supply chain effi ciency. Our concept of taking a niche product category and leveraging it through different brands and distribution channels in key global geographic regions helps PMI remain competitive. The company is positioned to be a platform for further growth through acquisitions that take advantage of our distribution network and our supply chain competencies.
After twenty-six years in business, PMI is still deeply rooted in human values and committed to ethical behavior, education, sustainability, and good business practices. While PMI continues to refi ne key brand strategies, the underlying foundation of a balanced and responsible approach remains the compass for innovation and company growth.
Brands, Products, Patents
Today, PMI holds more than 200 patents
and launches over eighty new products
each year. We currently have over 800
products. Our brands include:
Aladdin® – Lifestyle, Specialty, and Sustain
Stanley® – Classic, nineteen 13,
Outdoor and Commercial
MiGo® – International
Locations
Headquartered in Seattle, WA, PMI has offi ces in Shanghai, Manila, and London. Our Seattle and Shanghai offi ces house our Product Development, Operations, and Sales teams while our Customer Service team works from Manila with support staff in each offi ce. We work with many factories in China to manufacture our product lines, including PMI Joinease of which we are partial owners. The North American Logistics Center is in Auburn, WA where we contract the services of freight and warehouse companies. Additionally, PMI has three distribution centers in The Netherlands and China. From these locations we manage product lines that ship to fi fty countries aroundthe globe.
Countries in which PMI Products are sold
continued from previous page
7
Management Structureand Employees
As a small company, our management structure is relatively fl at with each staff member being, at most, three degrees from a member of the Leadership Team. Because of PMI’s collaborative nature, execution comes from the bottom and works its way up based on the goals set by the Leadership Team and approved by Board Members. PMI values the ideas and opinions of all its employees. Tools are in place for employees to voice their ideas and opinions to top leadership through open forums within all of our offi ces and through suggestion boxes in our factories.
In 2009, PMI Worldwide had 164 employees across four offi ces: eighty-eight in Seattle, fourteen in Manila, twelve in London, and fi fty in Shanghai. Of the total, 153 were full-time employees, eleven were full-time temporary contract employees, and seven held top level management positions. In addition to the eighty-eight employees in our Seattle offi ce, PMI engages the services of numerous local consultants, legal fi rms, and not-for-profi t organizations.
PMI has a six-member Board of Directors, which evaluates the strategy set by the Leadership Team and offers guidance and strategic alternatives. Committee work is usually headed by the seven-member Leadership Team led by the CEO. The Leadership Team creates strategies for the whole company, including the factories where the products are manufactured, based on the Mission Statement and set the Strategic Business Pillars that will take us into 2012. The Corporate Responsibil-ity team is charged with monitoring the factories and ensuring all company policies and objectives are followed.
We continually work to implement programs to support the personal and professional growth of our employees. The company pays for job related training and has tuition reimbursement programs for those wishing to further their education.
PMI hosts health and wellness programs, including a fl u clinic, throughout the year to provide training and promote employee wellbeing. At PMI Joinease, we offertraining courses that help employees manage their careers and arrange for advanced workers to attend third-party training programs on workability.
s,
e
continued. . . . . . . . . . . . . >
8
All employees have access to these opportunities to develop their skills and improve their chance for advancement.In 2009, Verité completed a worker-training program at PMI Joinease that provided workers with information on health and safety relating to both the workplace and the community.
Diversity
As an international company with employees and partners around the globe, an appreciation of cultural diversity is at the center of PMI’s operations structure. From the beginning, it has been clear that cultural and ethnic diversity improves creativity, provides a competitive advantage, and supports global business growth. Integrated into our business philosophy is a world view that does not take
differing cultural backgrounds for granted. We celebrate the differences in our offi ces around the globe. PMI emphasizes training programs that help managers and employees learn how to be successful, effi cient, and safe. A “master course” training program was developed internally to help employees gain experience and knowledge in all business areas.
Since our launch in 1983, PMI has built a culturally diverse workforce. In 2009, our workforce was approximately 44% male, 56% female, and of these, 15% were minority. Our seven member Leadership Team, made up of two females and fi ve males, included one minority member. Four members were between the ages of thirty and fi fty, three were over the age of fi fty.
Economics
PMI is a privately held enterprise. Founded with $1,200, it has grown to an $88M corporation holding $39M in assets in the 2009 fi scal year, January 1st to December 31.st PMI sold nearly 15 million units in 2009 and experienced a 26% growth.
Our Strategic Business Pillars as shown on page sixteen include: Innovation, Culture/People, Social Consciousness, Environmental Responsibility, and Commitment to Excellence. Profi tability is essential to any business and is part of the “three-legged-stool” equity model. We believe that accomplishment of these goals will drive profi tability.
“From the beginning, it was clear that cultural and ethnic diversity improved our creativity and
provided a competitive advantage.”
We bring over eighty new products to market every year. Over the last ten years, we have experienced a steady growth in our international business. In 2009, our international business increased to 20% of total revenue. Additionally, we sustained an ongoing and healthy North American business. In the future, we anticipate continued growth in all markets.
We recognize the pressure that climate change will impose on our business and are taking steps to anticipate and manage these risks. We have taken action in our PMI Joinease factory to conserve energy and recycle water as much as possible. These actions will mitigate our future risk and, in the short term, provide market opportunities for our business.
In order to reduce freight costs and support the communities in which we do business, PMI has implemented cross-functional team strategy, priorities, and actions that enable us to buy from local suppliers as much as pos-sible. These range from sourcing raw materials to purchasing from local businesses. At this point, we have not collected data to report the percentage of materials and products sourced locally, but we intend to track and report these fi gures in our next CSR Report.
Signifi cant, indirect economic impacts we are anticipating include:
• The price of oil as it affects the costs of our raw materials and freight transportation.
• The cost of electricity at our factory and offi ces.
• The value of China RMB currency vs. USD that affects all of our transactions with our manufacturing base in China.
• The steady increase in labor costs in China.
The increase in labor costs can dramati-cally affect product cost. We have been able to mitigate this somewhat via reduction in employee turnover costs. At PMI Joinease, we continue to make CSR improvements in the factory. Worker retention rates have increased steadily to 95% in 2009. Many factories in China experience only 50% worker retention after Chinese New Year. Increasing our reten-tion rate by an additional 45% allows us to achieve signifi cant cost savings in recruitment and training while retaining higher yields and uninterrupted production.
By focusing on worker retention, and adding robotics in our manufacturing process productivity at PMI Joinease has increased.
“We recognize the pressure that climate change will impose on our business and we are taking steps to
anticipate and manage these risks.”
9
10
Our Commitment To Balanced Growth
We are committed to being the world’s leading
supplier of innovative and compelling food and bever-
age containers. We have a corporate culture that
attracts employees who have the energy and talent
to turn this dream into reality. In 2010, we created
our strategy for our next phase of growth. This is
founded on our corporate pillars of innovation, social
consciousness, environmental responsibility, company
culture, and operational excellence. These fi ve
strategic pillars provide the foundation for all of
our goals, objectives, and daily decisions.
At PMI, each team member is committed to these
ideals. Over the past decade, we have reached
signifi cant milestones in embedding this balanced
approach throughout our operations. As a result,
we have built a foundation of trust and respect for
our products that positions our company for new
directions and opportunities. I am proud of what PMI
has achieved and pleased we can share this with you
in our fi rst Corporate Responsibility Report.
Yours sincerely,
Rob Harris
President and CEO
PMI’s mission is to
serve our customers in a manner that is
socially responsible, environmentally
conscious, and principle-based. We bring
this understanding to our supply chain,
fostering long-term relationships that
enable continuous improvement and
positive growth for our suppliers and
company while delivering outstanding
products to our customers.
We operate in a highly competitive
environment where cutting corners and
taking short cuts has the potential to expedite
short-term fi nancial goals. However, those
goals will not make PMI great. Greatness is
achieved through living out our commitment
to the principles and values that have
sustained us since 1983. We believe a
strategy that balances prosperity, people,
and the planet will enable the long term
health, integrity, and success of our company.
11
Mike BrossExecutive Vice President, Sales
“Our retail customers’ views and visions for Corporate Social Responsibility and Sustainability are as important to us as our own. We strive towards collaboration with our customers to ensure we
are providing responsible and ethically minded products which have a positive impact for our company and customers alike.”
Mary StenroosVice President, Supply Chain & Operations
“Growing a strong supply chain that is based on partnership, trust, and best practices is essential to the health and growth of our business. Our commitment to social and
environmental improvement that goes beyond compliance is what sets PMI apart as a supplier and as a company our customers can trust.”
Brian SheaChief Financial Offi cer
“The fi nancial profi tability and stability of the company is essential to our ongoing viability. However, we believe these results are not directly created but rather are an inevitable outcome of how we conduct our
day-to-day operations both internally and externally. By providing conscientious stewardship and leadership within our organization as well as in the external environment and community, and doing so in a fi scally disciplined manner with strict adherence to unwavering ethical practices, we are convinced a fi nancially viable company is the only possible outcome.”
Ken MitchellVice President, Marketing & Product Development
“Our mission at PMI is to revolutionize the way people enjoy food and beverages, everywhere. This speaks to our on-going commitment to product
and feature innovation and our commitment to the health and safety of every product we develop. We pioneered the use of BPA free plastics for Aladdin® and Stanley® products. We also created FDA compliant recycled and recyclable plastics so consumers could safely enjoy our products while reducing their environmental impact. Today we continue to reduce waste and rethink our packaging and processes so consumers can trust they are doing what is right for themselves and for the world they live in.”
Qin ChenVice President, International Sales & Managing Director of PMI Shanghai
“As a global company, PMI’s commitment to CSR is the same regardless of our geographic locations. From the day we opened our Shanghai offi ce ten years ago
our China team has embraced and enriched the PMI values and culture. We understand the challenges and are very proud of the CSR leadership role we take in our industry. We believe our social, environmental, and community initiatives make a difference in China and other international markets.”
Colleen Hunter GaleVice President, Talent Development
“At PMI, ethical behavior, social consciousness, and environmental responsibility are at the heart of who we are. Our employees are the life blood of our business and our most important asset. Our
people-related policies and practices actively support this commitment through principled decision-making, paid time off to make community contributions, recycling and reusing wherever possible, and a culture which expects collaboration, risk taking, and learning from one another.”
PMI Leadership Team
12
Since 1983, PMI’s values have been the North Star guiding the way we do business. PMI approaches Corporate Social Responsibility with the same entrepre-neurial spirit that we incorporate in all of our work. For us, CSR is challenging, exciting, and
rewarding. We’re as innovative with our CSR projects as we are with our
products. We collaborate with our customers and factory partners to implement CSR improvements that balance the pressures of daily business with the needs of long-
term initiatives.
CSR is one part risk manage-ment and one part competitive
opportunity.
At the factory level – developing work force capacity and worker retention; managing impacts, costs and avoiding accidents
At the product level – ensuring product safety and fostering innovation
At the customer level – retaining trust and brand protection while building long-term customer loyalty
Our focused CSR journey began in 1998 as our production expanded and our presence in Asia increased. We have always had a commitment to ensure our factories were safe and humane places to work. Seeing an
opportunity to take an even stronger stand for social responsibility, we published our fi rst Code of Conduct and communicated this to our offi ces and factories. We believe good business ethics, coupled with well-managed factories, are the foundation for a healthy and sustainable business. From our experience, productivity improves in direct relationship to the level of social consciousness at our offi ces and factories.
As we progressed in our socially responsible work, we experienced better effi ciency that contributed to the health and growth of our business. We appreciate the partnership our factories have shown in making social responsibility a priority.
In 2005, the PMI Leadership Team formed a task force to launch a broad environmental responsibility and opportunity strategy. That task force, working with the Network for Business Innovation and Sustainability (NBIS), laid the groundwork for our environmental initiatives that are still evolving today. We have partnered with our employees, customers, and factories to make environmental advance-ments in our products and throughout our offi ces and supply chain. Key achievements and case examples are documented later in this report. Highlights include:
• Developed and redesigned sustainable products with consideration for full life-cycle planning and ensuring both environmental and social responsibility.
PMI’s CSR JourneyA Small to Medium Enterprise Company’s Balanced Approach
By Valerie Bone, Director, Corporate Responsibility
In 2006 and 2008
PMI was granted the
American Chamber
of Commerce in
Shanghai’s “Corporate
Social Responsibility
Award,” based on
corporate governance,
environmental effort,
social impact and
workplace practices.
13
• Partnered with both our suppliers and our customersto improve the overall environmental footprint of our systems.
• Aligned our CSR initiatives and corporate philanthropy to support social and environmental efforts in our communities and provide opportunities for employees to engage in volunteer work in their respective communities.
PMI has embraced Corporate Social Responsibility as foundational to our business strategy for enhancing the value of our company and our brands. As a small com-pany that developed this program and found its initiatives work in China, we believe it is possible for a company of any size to engage in this work. However, to succeed, it must be authentic to the values of the company/brand and be part of the core business strategy.
There are many companies today that em-brace CSR/Sustainability and great strides are being made in this area. We are proud to say REI, Starbucks, and Wal-Mart, three of our customers, are as committed to social and environmental innovation as we are, and we all benefi t from the opportunity to address these important issues collaboratively. Other companies we admire for their innova-tion in this program are GE, HP, Levi Strauss, Microsoft, Patagonia, and Timberland.
The business case for our CSR initiatives is sustainable, long-term
growth for our brands, our business partners,
and our company. The payback period is a one-to-fi ve-
year cycle, depending on the initiative.
As we would for any business strategy, we measure success via brand equity, sales growth, customer loyalty, employee loyalty, and ultimately, the long-term vitality and growth of our company.
As we set goals for next steps in our CSR journey, we saw that engaging in the rigor of a CSR Report as per the GRI Guidelines would show us where our strengths are and where the gaps are that need improvement. This report brings together for the fi rst time, all of our CSR activity enabling us to better engage with our stakeholders.
On the following pages you will fi nd detailed information about our company’s CSR progress. It has not been an easy journey and we know we will face many chal-lenges in the years ahead as we continue to grow our business. We humbly hope you will fi nd inspiration in our work.
PMI CULTURE
STATEMENT
We are a team of
individuals committed to
collaborating with each
other to grow a successful
business and a dynamic
working environment that
promotes our values.
We believe in “win-win”
scenarios that foster suc-
cess for our clients,
our vendors, and the
PMI worldwide team.
We expect all individuals
to interact with respect,
integrity, and a “Get it
done” attitude.
Valerie Bone, Director Corporate Responsibility
“We believe that good business ethics
coupled with good factories are the foundation
for a healthy and sustainable business.”
14
Stanley® Built for Life
We provide products that are used day in and day out, spanning years and creating memories while sustaining our customers through their sleepy mornings, adventure trips, and the unexpected events. As Tim fromLouisiana found out, Stanley® is built to help you sustain whatever life throws at you!
Dear Stanley,
Greetings, I would like to start this message by saying that my family and I are
Hurricane Katrina survivors and that this email is long overdue. I would simply like to thank
you for taking the time to truly make a product that is beyond reproach.
On August 28th, my family and I were eva
cuated by bus to the Baton Rouge area
because the hurricane was less than 24 hours from making landfall. It was a morning that
shall stay with me for many reasons, some personal (even trite), and some too obvious to
even mention. My family and I left Orleans Parish with three d
ays worth of clothes and my
thermos. To this day, I still don’t know why I grabbed that at the last minute as we left our
apartment for what was to be the last time. By just after 5 a.m. on the morning of August
29th, we lost electricity and water. It was an unusually hot summer even
by Southern
Louisiana standards. What most people didn’t think about was that without electricity, you
had no air-conditioning; no way of escaping the heat. You can thus imagine what it was like
having no water on top of such horrendous conditions (ironically, the city was flooding).
By a stroke of lu
ck, my son and I came across a small supply of ice. Your
thermos kept ice cubes frozen for almost 24 hours. I don’t know if you can imagine what
that meant to us. I am well aware of the guarantee that you place on your products, which is
why I bought your product in the first place. While I know that it comes with a lifetime
guarantee, I wanted you to know that you will have the gratitude of m
y family and I forever.
My sincerest thanks again,
� m F.
Louisiana
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15
1998 First PMI Code of
Conduct (COC) published and communicated to our factories.
2005 Employees choose The Ocean
Conservancy as our primary international environmental organization to support.
2006 PMI was awarded the “American Chamber
of Commerce in Shanghai” Award for advancement in CSR.
2007 PMI begins to speak,
externally, about our CSR work, and network with like- minded companies.
2009 PMI Environmental
Improvement Program for Key Performance Indicators (KPI) is launched.
2009 Partner with Starbucks to
launch Verité worker health training program at PMI Joinease factory.
2010 PMI publishes
fi rst GRI Corporate Responsibility Report.
1995
2001
Internal audits of factories regarding quality, worker health and safety, resources.
Launched third-party audit system for our factories.
1983
1999
PMI Values are established.
PMI became a member of Business for Social Responsibility (BSR).
2005
2006
Added EnvironmentalManagement Systemtargets to our Code of Conduct work.
PMI engaged IERE to support fi rst Life Cycle Assessment (LCA) of largest volume product manufac-tured at PMI Joinease.
2006 Launched PMI Sustainability
(environmental) Plan for sustainable advancementsin process and product.
2008 Two key PMI
factories complete implementation of EMS and ISO 14001 certifi cation.
2002 Created CAP, Corrective
Action Plan system withour factories.
1986
2000
Products sourced from factories that are safe and humane places to work.
GSC helped revise the PMI COC and set-up a Compliance Monitoring Program that supports the revised COC plan.
2006 Launched plan to take
COC compliance through our supply chainby 2010.
2007 First annual all offi ce Earth
Day Volunteer Event and PVC Free corporate goal is set.
2008 PMI is awarded the “American Chamber
of Commerce in Shanghai” Award foradvancement in CSR.
2007 PMI Grassroots Philanthropy
Program is launched and Green Offi ce Checklist is successfully implemented.
2008 PMI successfully launches
eCycle® products.
2009 Social Consciousness
and Environmental Responsibility become Strategic Business Pillars that drive the company forward into 2012.
2004 Factory transition plans
created to consolidate our base for better compliance. 20
05 Aligned philanthropicactivity with CSR strategy.
The CSR Journey Step-by-Step Implementation
16
InnovationWe are a product driven company that builds brands by delivering unique products.
Commitment to ExcellenceWe are committed to operating a world-class supply chain, product development, and sales/ marketing organization.
Culture/PeopleWe believe our core values make a special
place for talented people.
Social ConsciousnessWe are committed to ensuring that workers who produce products for PMI can live and work in a healthy work environment and earn a fair wage for work performed.
EnvironmentalResponsibilityBeing on the forefront of new technologies, new materials, and manufacturing processes that will help protect the environment for future generations.
OurStrategic
Pillars
Our Strategic Business Pillars are the means by which we set goals and measure success. We believe every employee can make a difference.
Accomplishment of their goals will drive profi tability.
17
Commitment to Excellence At PMI, our commitment to excellence extends from everyemployee in each of our offi ces, through every department and into our supply chain. We continually strive to improve our practices to provide high quality products, designed with innovation and style and produced in balance with the needs of our consumers, communities, and the earth.
Case Study: Ready When the Market Wanted BPA Free
For many decades, PMI-Aladdin®/Stanley® has responsibly produced to-go food and beverage containers. We track material certifi cation and product test for compliance to all applicable global regulations. We also listen carefully to our customers.
Before 2008, Aladdin® and Stanley® reusable water bottle products were made from food-grade polycarbonate, which included a bonding ingredientknown as Bisphenol-A (BPA). Food-grade polycarbonate had been approved by the Food and Drug Administration (FDA) for direct food
contact use, however global studies were getting the attention of PMI technical trend watchers and custom-ers. As consumers began asking for non-BPA options, PMI searched for a material that matched polycarbon-ate’s clarity and toughness.
In 2008, PMI partnered with Eastman Chemical Company to develop and manufacture the REVIVE & REFRESH WATER BOTTLE™ product line using Eastman Tritan™ copolyester. Tritan,™ manufactured without bisphenol-A (BPA), combines the chemical resis-tance and low residual stress of tradi-tional copolyesters with higher heat resistance, making it ideal for reusable containers that require dishwasher durability. It is also shatter, stain, scratch, and odor-resistant.The new products were launched at the 2008 International Home and Housewares Show in Chicago.
“In today’s marketplace, brand owners and product designers are seeking new methods to differentiate products and meet changing consumer needs,” says Randy Beavers, Polymer Solutions
Executive, Specialty Plastics Business Organization, Eastman Chemical Company. “We’re pleased that Aladdin® has chosen our new-generation copolyester as a way to differentiate their product’s performance.”
Since then, PMI steadily worked to transition polycarbonate material containing BPA out of all products and packaging. By 2009, PMI’s entire product offering for its Aladdin,® Stanley,® and MiGo,® along with packaging were BPA free.
It is interesting to note here that the recycle code for Tritan™ is still #7. This is confusing to consumers. Number 7 PlasticsThe numbers on the bottom of plastic materials, are called the Resin Identifi cation Code and classifi es plastics for recycling purposes. The #7 code is categorized as “other.” See: www.plasticsindustry.org/outreach/recycling/2124.htm
Polycarbonate is simply one type of plastic that is coded #7. There are many other plastics coded as #7 that are NOT polycarbonate and do NOT contain BPA. These include new bioplastics fashioned from plants as well as the copolyester material, Tritan™. They are coded #7 because they do not fi t into other categories and are therefore classifi ed together as “other.” PMI’s Customer Service team has worked diligently to answer questions regarding our BPA free products that still show a #7 recycle code.
“Our commitment for
social and environmental
improvement goes
beyond compliance.”
18
We realize consumer needs are constantly changing and we bring this knowledge into creating new materials, processes, and products to meet these needs. We also realize our innovation strategy must encom-pass the safety needs of consumers, our stakeholders, and the environ-ment. We continue to develop new products and processes with this at
the forefront.
Case Study:
In 2007, in order to promote a “reduce, reuse, and recycle” philosophy of environmental sustainability, PMI considered how we could use recycled materials in our new product development. With extraordinary research and investment, eCycle® Polypropylene (eCycle® PP)was created by Pacifi c Market International, LLC.
eCycle® PP is a proprietary blend of food grade polypropylene, made entirely from food safe source mate-rials that are collected, recycled, and reformulated in North America. Our unique formulation contains 100% recycled polypropylene with a mini-mum of 25% post-consumer content.
We manufacture eCycle® PP using strict sourcing and processing controls to ensure it is acceptable for Direct Food Contact Use according to published, global regulatory compliance guidelines for post-consumer recycled content plastics. Every production lot of eCycle® polypropylene material is quality tested for purity.
Case Study: Mug Back Program
In 2008, PMI and a North American retailer joined forces to bring new life to 100,000 polycarbonate water bottles. In the wake of consumer confusion around polycarbonate products containing Bisphenol-A (BPA), this retailer removed over 100,000 bottles that contained BPA from their stores. Having heard of our recycling capabilities, the retailer came to PMI seeking a sustainable solution for the unused bottles so they could avoid sending them to a landfi ll.
The result: The Aladdin® eCycle® Recycled and Repurposed Travel Mug. It features recycled polycarbonate water bottles as the outside surface while the lid and inside liner (all food-contact surfaces) are made from PMI’s proprietary, recycled BPA-free polypropylene. The mug contains 85% recycled plastic, 30% of which is post-consumer content made from
yogurt containers.
Innovation
Did you know that
your eCycle® water
bottle and coffee mug
are made from recycled
yogurt containers?
2008 2009 2010500,000
1,000,000
1,500,000
2,000,000 Total eCycle® Units
PMI would like to see more sales growth of these great products that are healthy, safe, and environmentally friendly.
19
The idea that principles guide our pathway to profi ts permeates every area of our business, starting with our commitment to our people. PMI is dedicated to helping our worldwide team succeed. Having fun is a value that lives every day in the cubicles and corridors of each PMI offi ce. Employees are actively engaged in cross-functional teams that each year set goals and conduct special projects to advance the company.
This foundation has helped PMI navigate times of great turbulence and challenge. The company culture is strong and PMI employees are deeply committed to the values that support placing team and company fi rst. These values have helped launch initiatives in the areas of sustainability, corporate, and social responsibility and have taught employees the importance of partnership with our customers and our consumers. These principles and values are what make PMI different and what will continue to drive the success of the company.
Culture / People
“The PMI company
culture is strong and
employees are deeply
committed to the
values that support
placing team and
company fi rst.”
A PMI Joinease Journey: Production Line Technician to Production Industrial Engineering Team Leader.
Liao Ming was originally hired by Joinease as a Production Line Technician. A bright, hard working young man, one day he went to his manager and told him he was concerned his job was going nowhere. PMI Joinease management made a commitment to help him with his education. They provided study time during work hours and agreed to pay 50% of his university fees with the condition that he successfully complete the entire course. Liao Ming fi nished his fi rst university course in two years and received his degree. After that, he was promoted to Production Industrial Engineer (PIE). He still works at PMI Joinease and is now a team leader to the PIE team. Having worked his way up from line worker to engineering leader, Liao Ming is eager to help others do the same.
20
“PMI has a longstanding
tradition of supporting
local, national, and
international non-profi t
organizations focusing
on children, education,
and the environment.”
Guided by the values upon which PMI was founded in 1983, we have grown our company based on what we believe is the right way to conduct business. Since 1998, PMI has had a Director for CSR policy development, strategy and reporting.
In 2003, PMI Shanghai initiated an Asia CSR Manager position for CSR program development, execution, and CSR performance evaluation. The CSR team, with the advantage of PMI employees working “on the ground” with our factories on a regular basis and third-party objective collaboration, has made a difference in the effectiveness of our program.
In 1998, PMI published our fi rst workplace Code of Conduct. PMI believes that specifi c standards for human rights, wages, and work conditions are essential for all partner factories to follow; only factories committed to this code can be qualifi ed to supply product to PMI. We are active members of Business for Social Responsibility (www.BSR.org), an international non-govern-mental organization (NGO) that provides its members with an extensive network for CSR trend information and learning to support and enhance corporate knowledge. We are also active members of the Center for Corporate Citizenship. Through these associations, PMI has stayed current on global CSR trends
and initiatives. PMI works closely with customers, NGOs, and partner facto-ries to provide guidelines that are meaningful and realistic.
PMI continues to widen Code of Conduct compliance throughout the supply chain. Starting in 2001, PMI engaged third-party fi rms to audit all our partner factories including major sub-vendors. In 2003 all partner factories were required to engage in the Corrective Action Plan (CAP) process for continuous improvement and, with PMI support, take respon-sibility for driving corrective action plans with their own sub-vendors to achieve compliance. With this initia-tive, CSR awareness and compliance has been greatly increased.
Social Consciousness
A PMI Joinease Journey: Production Line Lead to Sales Department Supervisor at PMI Joinease
Peng Yan was a Production Line Leader when she began working at the Joinease factory in 2000. The business was growing rapidly and Peng Yan wanted to grow with the company. Joinease encouraged her to take a management course, gave her time to study during work hours, and paid a portion of the course fee. In 2003, she was promoted to Supervisor of all the assembly lines. She ultimately managed fi fteen lines and close to 600 workers. In 2010, she was promoted to Sales Department Supervisor. In order to con-tinue her career growth, she is taking an English language program along with colleagues from the factory.
21
Shortly after the CAP was introduced, PMI gained traction for improvement by requiring each of our factories to assign one of their managers as a dedicated CSR Manager. We have found this provides routine supervision and accountability for Code of Conduct compliance. It enables the factory manager to own the improvement and maintenance process and provides a direct one-to-one link between the factory CSR Manager and PMI’s CSR Manager.
Compliance and Verifi cation
PMI manages Environmental Health and Safety (EHS) in products and in our facilities. We comply with all food contact global regulations such as the FDA. All PMI products are tested by third-party labs (BV, SGS, Intertek) for compliance with all applicable global regulations.
Since 1995, PMI has complied with all applicable global regulations for our products. The compliance has always been validated by third-party testing. The cost of this compliance is signifi -cant due to higher material costs and testing costs. In the past, this caused PMI to miss some sales opportunities
where the only basis for comparison was price point. Today, PMI’s rigor surrounding compliance provides a competitive advantage. As a fi fteen-year veteran of program compliance, PMI ensures global compliance with effi ciency and cost advantage.
Please reference the PMI website (www.pmi-worldwide.com) for our Code of Conduct. Our vendor compliance guide includes a Code of Conduct Protocol that we created as a support to our factories.
In addition to requiring that our partner factories achieve and maintain Code of Conduct compli-ance, PMI also requires our offi ces in Seattle, Shanghai, Manila, and London to comply as a continuous part of corporate responsibility. To assure operational compliance with localregulations and corporate laws, PMI Shanghai engaged a third-party international accounting fi rm, Moores Rowland, from 2000-2004. Since 2004, PMI Shanghai has engaged Deloitte Touche Tohmatsu to complete the company’s annual audit. Independent audits are also performed each year in PMI’s other offi ces.
PMI does not have a program for measuring, in fi nite terms, the impact of our offi ces and factory on the surrounding communities. What we do know is providing an ethical and stable source of employment for our workers has improved the lives of our workers’ families and surrounding communities. Our very high rate of employee retention is also an indica-tion of the benefi t we are bringing to
workers and their communities.
A PMI Joinease Journey: Cashier to Accounting Department Manager
Lou Xiu Hau, only had a primary school education when she began working at PMI Joinease as a cashier in 1995. Management found her to be an extremely honest person who always considered cost saving and a commitment to excellence. When PMI Joinease brought in computers,Lou Xiu became an expert. Over the past fi fteen years, she has completed numerous outside accounting and tax training courses. PMI Joinease has paid for this training and allows her to study during work hours. Today, she is the Tax Specialist in the factory and has an in-depth knowledge of tax laws. She has managed the PMI Joinease factory accounting department since 2003.
22
A Case Study: The Transformation ofJoinease to PMI Joinease
Joinease was founded in May of 1990 in Hong Kong, Kowloon. The factory and business headquarters were situated side-by-side and there were only thirty employees at the time. In 1991, when PMI was looking for a company to manufacture a specifi c part, a PMI senior manager contacted one of his acquaintances at Joinease. The two companies have been partners ever since.
In July 1995, Joinease enlarged its business and opened a small factory for precision tool and injection mold manufacturing in Dong Guan City, China. In 1997, collaborating together we developed our fi rst plastic seal lid, which jump-started our plastic mug business. Initially, orders were small but over time, we launched the fi rst major thermo-plastic mug produc-tion. However, to ensure we were truly meeting our quality standards, Joinease and PMI made a joint decision to halt production and rethink our design and production approach. By the end of 1998, we re-launched the full plastic program with improved quality, design, and productivity. This immediately led to a plastics program for Starbucks.
Over time, Joinease grew with PMI and the factory needed to expand.In 2002, Joinease purchased 400,000 sq. ft. of open space and began construction on a new factory and dormitory. Located in rural, southern China the property allowed for expansion in alignment with the PMI
Code of Conduct targets. In 2009, the PMI Joinease facility was home to 1,500 workers and a 40,000 sq. ft. factory and had a 95% worker retention rate.
In the beginning, there was resistance to the Code of Conduct program and many thought it would result in lower pay. Between 2003 and 2004, Joinease encouraged workers to explore the benefi ts of the program. As employees began to better understand the Code of Conduct, it became widely accepted.
On January 1, 2005, Joinease launched its offi cial joint venture with PMI and renamed the company, PMI Joinease. The joint venture allowed for greater growth and expansion. Since that time, the factory has absorbed much of the PMI culture and has experienced signifi cant growth and development. The joint venture also supported many third-party improvement programsincluding Verité and BSR training
initiated by Starbucks. PMI Joinease continues to learn and grow.
The addition of robotics to the injection mold production processhas increased productivity per worker, while improving quality and consistency.
PMI Joinease ISO certifi cation history:
• 2003 - ISO 9001:2000
• 2007 - ISO 14000
• 2008 - QS for the China food container market
The partnership between PMI and Joinease along with shared business principles, has provided sustained growth for both companies.
Social Consciousness
23
Community
PMI conducts careful research before entering into new business partner-ships. Our community assessment is primarily based on business needs and the health of the current location to support long-term growth. We establish business partnerships with factories and warehouses based on our values and our commitment to ethical sourcing.
PMI has a longstanding tradition of supporting local, national, and international non-profi t organizations that focus on children, education and environment. We carefully assess opportunities by collecting information and considering the merit, impact of the organization, and the best fi t.
Not only do we donate resources, we also volunteer time. All of our employees, from the newest team member to the CEO, are personally involved with our philanthropic activities and are encouraged to take one paid leave day a year to participate in volunteer work.
In 2007, we created “Grass Roots Giving,” a fund that each offi ce, based on employee submissions for consideration and votes, donates to a local organization. The voting is part of our quarterly All Staff meeting in each offi ce. The winning organiza-tion is presented with a PMI donation via the employee who facilitated the nomination. PMI combines business investments and philanthropic involvement in the communities where we do business.
Through donations and volunteer hours, our philanthropy team works with all of our global offi ces to support the communities in which
we do business.
Some of the organizations PMI has supported:
Asian Counseling Referral Service
Boys and Girls Club of South King County
Clothes for Kids
Conservation International
CURE (Childhood Cancer in China)
Food Lifeline
Habitat for Humanity
Hands on China
Hopelink
Hospice of St. Francis
Hugh Grace Orphanage
Million Tree Project - China
Northwest Harvest
Ocean Conservancy
Philippine NationalRed Cross
Provail
Seven Colors Autistic Children Training Centre
Shanghai Children’s Medical Center
Susan B. Komen
Terry Fox Run - Shanghai
The Conservation Alliance
Treehouse - Four Squares
Youth Care
24
2005 The Journey Begins
During the last fi ve years, PMI has transitioned from a social responsibility focused CSR program to becoming a sustainable enterprise that promotes healthy lifestyles through our product lines and company, as well as in the factories that produce our products. We have done this by taking a life cycle approach to our products, becoming a leader in using sustainableraw materials, reducing hazardous materials, waste and natural resource consumption at the factories in the production process, and by creating positive work environments for factory and offi ce workers.
PMI has developed a program to go beyond existing factory compliance programs that increases collaboration with factory engineers,quality assurance personnel, and front line factory workers. This has led to greater accountability and an increased sense of responsibility by our factories and for the PMI products they produce.
Over the past eight years we have successfully recycled waste materials at all of our core factories in China. In addition, PMI Joinease is recycling 10% of the water used in production.
When we fi rst asked our factories to sort and recycle waste materials, the perception was that this would be a cost burden. This perception changed as early steps revealed the cost to sort and inventory manufac-turing waste was outweighed by the revenue gained in selling the “scrap” stainless steel and plastic materials to other industries and recyclers. Today, PMI Joinease self-manages the waste recycling operation and recycling has become a source of revenue.
Three of our key factories in China made signifi cant environmental process improvements and achieved ISO 14001 certifi cation in 2008. We are currently in the process of estab-lishing Environmental Management Systems at each of our core factories. In 2009, we continued our journey of environmental improvement in our supply chain when we developed a new PMI Environmental Plan that will take PMI to the next level.
With the preparation of this report, we have increased data gathering on our resource use and environmental
impacts, including water, energy, virgin and recycled materials, hazardous materials, waste and air quality monitoring, in addition to other data routinely collected. This will form the baseline for establishing and tracking key performance indicators to drive improvement toward longer-term goals.
Although we have made numerous environmental process improvements in recent years, it is our sustainable products that are the most exciting
part of our environmental journey.
Environmental Responsibility
“We focus on reduction
of waste and recycling of
waste materials at our
core factories.”
25
Commitment to Ecologically Sustainable Development
In 2006, PMI decided to re-position the core value of its brand Aladdin® to refl ect “taking care of people and our planet,” which is one of the key values of PMI’s CSR principles. Aladdin-branded Sustain® products showcase PMI’s innovative approach to design, function, and materials that encompasses sensitivity to consumers and to the environment. Consumers can access the website for more information: www.shopaladdin-pmi.com/products/sustain
PMI makes every effort to assure our products are healthy, safe, and meet customer expectations. PMI uses third-party testing labs, such as Bureau Veritas, SGS and Intertek, to ensure our products are tested for compliance with global regulations for every item, every color, and
every kind of material before production. We are committed to going beyond government laws and regulations, maintaining continuous improvement through setting targets, engaging stakeholders, reducing impacts of products, and decreasing pollution from air emissions, water emissions, energy use, and waste. We research and choose the safest possible materials and products that are easy to recycle. Our development process starts with consumer needs and we develop products in response to those needs. We don’t base new products on what our competitors are doing. This results in a positive impact on the environment because we are making reusable products the consumer will use. For example, in response to consumer requests for BPA-free we were the fi rst to use Tritan.™
Green Offi ce Checklist
In 2007, PMI global offi ces, including PMI Shanghai, published the Green Offi ce Checklist as a guideline for each offi ce to follow in order to minimize environmental impact through offi ce operations. Each offi ce now focuses on reducing their use of paper and conserving energy and water. We recycle all possible items, including computers, cell phones, and batteries and encourage the use of reusable containers and bags. We also encourage carpools and the use of public transportation for commuting. As PMI gathered information for our GHG Scope 3 assessment, we were delighted to learn that 79% of PMI employees worldwide commute to work via public transportation, carpool, or bicycle.
Our newly completed carbon foot-print and commuting assessments will support our efforts going forward to engage employees in reducing our impact on the environment. PMI’s Employee Environmental Team will continue to drive environmental
initiatives within our offi ces.
26
These KPIs, in ratio form, provide a normalized measurement for performance management and for monitoring targeted decreases in resource intensity that can be utilized for cost savings, risk reductions, and comparative data for updating CSR reports. These measurements include carbon footprint and resource usage per production units for : energy, electricity, water, materials, and waste. As PMI expands reporting to additional contract factories, these ratios will allow us to track comparative resource effi ciencies across locations.
Energy intensity for PMI, PMI Joinease, and total of PMI + PMI Joinease
Energy Intensity PMI Offi ces
JoineaseFactory
PMI & 78% PMI Joinease
Total energy use (Scope 1 + Scope 2) in MMBTU
2191 27012 23260
Energy use per employee 13 18 17.44
Total Energy use per 1
million product units
148 2847 1570.77
78% PMI Joinease represents the percentage of factoryproduction that is dedicated to PMI products.
GHG intensity for PMI, PMI Joinease, and total of PMI + PMI Joinease
GHG Intensity PMI Offi ces
JoineaseFactory
PMI & 78% PMI Joinease
Scope 1&2 GHG Emissions (Metric Tons of CO2e)
285.00 6152.00 5084.00
Carbon (Tons of CO2e)
per Employee
1.74 4.10 3.81
Carbon (Tons) per
1 Million Units Produced
19.27 648.38 343.30
78% PMI Joinease represents the percentage of factoryproduction that is dedicated to PMI products.
PMI Environmental PerformanceIndicators
PMI Carbon Footprint
Energy Intensity
• Electrical energy consumed from various grid sources (nuclear, coal, hydro, etc.) plus energy generated from various types of fuels has been converted into a com-mon energy unit. In this report “BTU potential” is used as the common factor and expressed in MMBTU units (1,000,000 BTU).
• Future energy prices will be volatile and rising. Reducing the amount of energy utilized per product or per value- added in the manufacturing and distribution process will be a direct savings plus a risk reduction. In this report, the amount of energy utilized to create one million product units and the energy consumed per number of employees serve as basic energy intensity indicators. These intensity ratios will provide comparable information regardless of fl uctuations in the amount of products produced and/or energy prices. This fi rst year report provides a baseline from which future performanceimprovements will be targeted and measured.
GHG Intensity
• GHG intensity ratios provide tools for executing a proactive carbon management strategy that can leverage a consistent, auditable process, assess a carbon baseline across all operations, set reduction goals, and establish a systematic way to develop and execute an abatement plan.
The data in these charts sets a benchmark / baseline for PMI’s environmental data as a ratio of impact per 1 million units produced. This ratio can be tracked and reported on yearly as a consistent comparison metric.
27
Shipment GHG Emissions PMI
GHG Emissions from Shipments (Tons of CO2e)
264.87
Shipment Tons of CO2e per I Million Units Produced
17.89
Commuting GHG Emissions PMI
Commuting Tons of CO2e 359.84
Commuting Tons of CO2e per offi ce employee
2.19
• Whereas the above reported carbon emissions from Scope 1 & Scope 2 include the emission of greenhouse gases over which PMI has direct and indirect control, Scope 3 includes activities over which PMI has infl uence but are beyond direct ownership or control.
• To provide a more precise measurement and compari-son, subcategories of Scope 3 GHG emissions are being formulated by the Greenhouse Gas Protocol and are due
for publication in 2011. PMI is following best practices by initiating data collection and projects that address important aspects of its Scope 3 footprint. These include shipping, pack-aging, waste generated in operations, employee commuting in administrative offi ces, and products designed for end-of-life recycling. In the following tables, emissions for shipping and offi ce employees commuting have been calculated, baselining a signifi cant portion of PMI’s Scope 3 footprint.
222.4
39.2
15.28.6
2009 Share of Total Offi ce Emissions (CO2e Pounds) per Employee by Location
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
Man
Lon
Shan
Seat
6,127.7
1,799.71719.6
2397.5
Reporting on Scope 3 carbon emissions
Public Transportation
79%
21%
0
5,000
10,000
15,000
20,000
25,000
30,000
19.2
5.4
9.8
27.1
17.3
Manila
Combined Offices
London
Shanghai
Seattle
Manila
London
Shanghai
Seattle
0
5,000
10,000
15,000
20,000
25,000
30,000
19.2
5.4
9.8
27.1
17.3
2009 Share of Total Offi ce Emissions (Tons CO2-e) By Location
GHG Commuter Emissions
Electricity Consumption per Employee by Offi ce (kWh) Electricity Consumption/Square Footage (kWh)
Based on PMI globalemployee survey with43% response rate.
28
Water intensity for PMI, Joinease, and total of PMI + PMI Joinease
Water Consumption Intensity
PMI (Seattle & Shanghai)
PMI Joinease
PMI (Seattle & Shanghai) & 78% PMI Joinease
Water Consumed (Water used minus water recycled in meters cubed per year)
9,198 86,098 76,355
Water Consumed per 1 million Units Produced 621 9,074 5,156
Water Recycled/reused in Meters Cubed per Year 0 9,342 7286
Percent of Water Recycled/reused 0 9.79 9.54
*78% PMI Joinease represents the percentage of factory production that is dedicated to PMI products.
Waste Intensity for PMI, PMI Joinease and total of PMI + PMI Joinease
Waste Intensity
PMI (Seattle & Shanghai)
PMI Joinease
PMI (Seattle & Shanghai) & 78% PMI Joinease
Hazardous Waste (Metric Tons) 0.01 2.80 2.19
Nonhazardous Waste (Metric Tons) 1.58 5.94 6.21
Total Waste (Metric Tons) 1.59 8.74 8.41
% of Hazardous to Nonhazardous Waste 0.63 47.12 35.31
Hazardous Waste (Metric Tons) per 1 Million
Units Produced
0.001 0.30 0.15
Nonhazardous Waste (Metric Tons) per 1 Million
Units Produced
0.11 0.63 0.42
Waste (Metric Tons) per Material Used
(Metric Tons)
NA 0.0022 NA
Percent of Nonhazardous Waste Recycled or
Composted
52.00 0.00 13.00
*78% PMI Joinease represents the percentage of factory production that is dedicated to PMI products.
Materials Intensity Joinease
PMI (Seattle & Shanghai) & 78% PMI Joinease
Materials used (Metric Tons) 3919 3057
Material (Metric Tons) per 1 Million Units Produced
413 322
Recycled Materials Used (Metric Tons) 233 181
Percentage of Materials Used that are Recycled 5.94 4.63
Recycled Material (Metric Tons) per 1 Million Units Produced
19 15
*78% PMI Joinease represents the percentage of factory production that is dedicated to PMI products.
Water Intensity
The use of water resources will increas-ingly affect costs, as well as impact the environment, making the monitoring of water intensity across business operations a material issue for cost savings and risk management.
KPIs for Water, Waste, and Materials
Tracking a baseline for the reduction of materials intensity is in compliance with the goals of the OECD Council and various national sustainability strategies. Internally, this KPI ratio facilitates the monitoring of material effi ciency and cost of material fl ows.
29
Stakeholder guidance is important to PMI and has been taken into account at every step of the CSR journey. As an Small to Medium Enterprise (SME), our interaction with our stakeholders is direct and continuously interactive. We work in partnership with our stakeholders to bring innovation to our programs and to accurately track our progress. As a small, privately held global corpora-tion, working with our stakeholders to publish our fi rst CSR report allows us to take our value of transparency to a new level this year.
Each of our stakeholder groups has a unique and valuable affect on our thinking as we continually evolve our CSR strategy and initiatives. We are proud to be part of the growing network of companies that incor-porate social and environmental responsibility at the core of relation-ships with suppliers and customers. In recent years, our CSR efforts have been inspired and supported by the following stakeholder processes:
• Starbucks, our largest customer, has worked with us as a partner at every step of our CSR journey. Our colleagues at Starbucks have provided direction, insight, and incentive as we have navigated best practices for social and environmental continuous improvements. In 2009, Starbucks engaged STR to evaluate our CSR System. From this audit of PMI’s CSR System, we have provided progress reports and full transparency.
• Wal-Mart 15 Questions: PMI was part of the fi rst wave of suppliers that completed the Wal-Mart 15 Questions in July 2009. Completing this provided added incentive for our company to move as quickly as
possible in documenting and setting goals for environmental management in our facilities.
• Our participation in the Outdoor Industry Association Eco Working Group (OIA EWG) has been a great experience and provided learning and direction for making improvements in our environmental programs and our products.
• Our employees are passionate about environmental improvement and knowing our factories are safe and humane places to work. In the past three years, our experience is that employment candidates under the age of thirty-fi ve are deciding which company to work for based on CSR performance. Our CSR program has helped us attract and retain top talent.
About Our Stakeholders• Employees are the life blood of our
organization and are our primary stakeholder. Their loyalty makes our company strong. We provide CSR education to PMI employees and listen to their feedback. Our new and younger employees tell us that PMI’s commitment to CSR/Sustainability was one of the primary reasons they joined our company. PMI was rated as “best place to work” by “Seattle Business Magazine,” in June 2007.
• Shareholders are always an important voice in corporate strategy. Being privately held, we have the ability to take a long view and work diligently on initiatives that provide solid rewards.
• Customers are our primary focus and we consider our customers to be our business partners. Their views and vision for CSR/Sustainability is always factored into our corporate strategy. We like to work in collabora-tion with our customers and PMI sits in on their committees, panels, and seminars.
• Consumers are the ultimate customersfor our products. We consistently monitor what is important to consum-ers via market studies and customer feedback. We believe consumers have the power to change the world via their buying choices.
• Factory Partners are as essential to our business as our customers. As a designer and manufacturer of food and beverage containers we under-stand the realities of effecting change. We have worked slowly and steadily to insure that our factories are safe and humane places to work. Our factory partners understand that our sincerity for CSR is coupled with real-ism. We listen to their concerns and work with them to steadily improve processes and conditions.
• Supply Chain infl uence is diffi cult for a small company. PMI has researched all aspects of our supply chain so we can better understand where opportunities exist. For example, we have researched raw material suppli-ers to fi nd out which companies are actively engaged in CSR/Sustainability initiatives. We choose to work with CSR focused raw material suppliers whenever possible.
• NGOs such as Business for Social Responsibility, The Center for Corporate Citizenship and NBIS are essential sources of information that affect our strategic thinking. As a member of each of these organiza-tions we are able to network with many like minded companies. This interaction provides learning, direction and feedback that are essential to our growth in CSR.
• Consultants provide insightful expert feedback and learning to our program. As a small global company, we do not have the internal resources to achieve all of the goals we set for our CSR initiatives.
Stakeholder Engagement
30
Memberships & Awards
Memberships• American Society of Mechanical Engineers (ASME)
• Society of Plastics Engineers (SPE)
• APICS The Association for Operations Management
• Outdoor Industry Association
• International Housewares Association
• Center for Corporate Citizenship
• Business for Social Responsibility
• Sustainable Brands
• American Society for Quality
• Network for Business Innovation and Sustainability (NBIS)
Awards
31
PMI would like to thank the following people
Andrew Smith-Jones
Anett Young
Darcy Gay
Dave Gonda
Doreen Huether
Josef Hizon
Karl Shibayama
Leah Bross
Sarah George
Stephanie Ausen
Thomas Wang
Valerie Bone
Special thanks to Jean Rogers,
Principal, Arup for her early
encouragement and coaching.
Karl Ostrom, Mary Rose & Suzanne Sullivan
Network for Business
Innovation and Sustainability
Jen Pennington, Designer
Materiality Chart
Culture / PeopleWorker Retention Offi ces 3 1 3 1 8
Worker Retention Factories 3 1 3 1 8
Environmental ResponsibilityEnergy Conservation KWH 3 2 3 3 11
Carbon Footprint / GHG Emissions Offi ces 2 1 3 3 9
Carbon Footprint / GHG Emissions Factories 3 2 3 3 11
Water Usage 3 1 3 2 9
Water Recycling 3 1 3 3 10
Waste 2 2 2 2 8
Waste Recycling 2 1 3 2 8
ISO 9001 Factories 3 1 3 1 8
ISO 14001 3 1 3 3 10
Environmental Management System 3 1 3 3 10
Social ConsciousnessInjuries / Deaths 3 2 3 1 9
COC Compliance 3 3 3 2 11
Corporate Philanthropy 3 1 3 1 8
Volunteer Hours 3 1 3 2 9
Based on our values we have identifi ed key performance indicators that will be essential to track for future improvement. The materiality chart above lists the Key Performance Indicators that PMI started tracking in 2010 and will report on in future reports..
Fina
ncia
l Im
pact
s / R
isks
Lega
l Reg
ulat
ory
Polic
y D
river
Stak
ehol
der
Con
cern
s/So
cial
Tre
nds
Opp
ortu
nity
for
Inno
vatio
nTo
tal S
core
This Report is printed on Domtar Earth Choice Cougar 70 lb. text and 65 lb. Cover with soy-based inks, and chemistry-free plating. The paper is Forest Stewardship Council (FSC) certifi ed 10% post-consumer waste (PCW) fi ber. The purchase of three of the images in this report generated a donation of 20 trees to the Global ReLeaf Fund through an American Forests program at: www.RhizomeImages.com.
32
PMI Seattle - Headquarters2401 Elliott Ave., 4th Floor Seattle, WA 98121 Tel: 206.441.1400 Fax: 206.441.2823 Email: [email protected]
PMI ShanghaiShanghai Int’l Shipping Building, Rm. 11B 720 Pu Dong Ave. Pu Dong New District, Shanghai, China 518111 Tel: 86.21.50366.350
PMI Europe6 The Progression Centre, Mark Road Hemel Hempstead Herts, United Kingdom HP2 7DW Tel: +44 1442 419800 Fax: +44 1442 235760
PMI Manila7F Pearlbank Centre Building 146 Valero Street, Salcedo VillageMakati City 1227 PhilippinesTel: 800 251 4535 Fax: 615 370 0546
www.pmi-worldwide.com
www.stanley-pmi.com
www.aladdin-pmi.com
For questions regarding this report, please contact: Valerie Bone at [email protected]
To read our Code of Conduct visit our website at:www.pmi-worldwide.com
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