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Corporate Environmental and Sustainability Reports |
925 N. Mills Avenue, Claremont, CA 91711-5916 (909) 621-8190, (909) 621-8298, FAX (909) 621-8588 J. Emil Morhardt, Ph. D., Director (emorhardt@claremontmckenna.edu) |
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Pacific Sustainability Index (PSI) |
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The Pacific Sustainability Index (PSI) scores companies on environmental and socioeconomic
comprehensiveness (transparency) and performance as expressed in their voluntary environmental
or sustainability reports. Sustainability reporting implies inclusion of socioeconomic topics.
Environmental and socioeconomic topics are analyzed and scored separately. Additionally,
scoring of report comprehensiveness is separated from scoring of performance. Companies are not
scored in areas that are irrelevant to their practices. Summary scores below are reported as a
percentage of maximum possible score. Topics that are deemed irrelevant to a company do not affect
the percentage scores. To learn more about how we come up with
these scores, click
here. |
| Category | Percent Coverage | Grade | |||||||||||||||
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| Overall PSI Score | 35.57% | B- |
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What do the scores mean? The above scores are based on all relevent material found on the company's website at the date of the report. The scores are percentages of the total points possible in the Pacific Sustainability Index, described further at the end of this document. The grades given are relative to the highest score in the company's sector. To put the scores of this report into perspective with reports of other companies, visit the Roberts Environmental Center Website (http://www.roberts.cmc.edu/), where all scores we have produced are available. Because the Roberts Center staff scores new reports regularly and posts the results to the website, the average scores are continually changing. Please note that reports analyzed prior to August 2005 used a different scoring system. These reports have been converted into the new scoring system, but the conversion is imperfect and question weights do not translate exactly. |
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What is the utility of this analysis? This analysis can be used by companies to benchmark their own reports and performance against companies within and across industries. It can also be used by special interest groups, financial analysts, and the general public to evaluate the quality of environmental and sustainability reporting. Because of the complicated nature of environmental and sustainability reporting, we make available the full analysis as well as summary scores. Our hope is to encourage transparency and numerical comparison with corporate peers. |
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Accountability | |||
|---|---|---|---|
| Question Number | Score | Topic | Description |
| 4 | 0 | Report contact person | -Discussion: identifies the person specifically designated to answer questions about the report or sustainability issues. Investor relations or public relations contact representatives are not valid contacts for this question. -Initiatives/actions: to facilitate such contact, i.e. providing email address, phone number, or a link for feedback and questions. |
| 19 | 1 | Environmental management structure | -Discussion: of the organization's environmental management structure or staffing. -Initiatives/actions: include identification of individuals currently holding the staff positions |
Management | |||
| Question Number | Score | Topic | Description |
| 16 | 1 | Environmental education | -Discussion: of efforts to promote environmental education and awareness of employees, the general public, or children. -Initiatives/actions: taken to provide such education. |
| 20 | 2 | Environmental management system | -Discussion: includes a statement of adoption of ISO 14001 or other formal environmental management system. -Initiatives/actions: include information on the extent to which the system has been implemented. |
| 21 | 0 | Environmental accounting | -Discussion: of environmental expenditures -Initiatives/actions: include detailed accounting of such expenditures. |
| 23 | 1 | Stakeholder consultation | -Discussion: of consultation and dialogue with stakeholders about the organization's environmental aspects or impacts. -Initiatives/actions: include identification of specific consultation activities. |
Policy | |||
| Question Number | Score | Topic | Description |
| 9 | 1 | Environmental policy statement | -Discussion: includes a formal statement of the organization's environmental policy or plan. -Initiatives/actions: include a description of how the policy is being implemented. |
| 10 | 2 | Climate change/global warming | -Discussion: of the organization's position on climate change and/or global warming. -Initiatives/actions: include measures taken by the organization to decrease its contribution to climate change. |
| 11 | 2 | Habitat/ecosystem conservation | -Discussion: of the organization's position on conserving natural ecosystems and habitat. -Initiatives/actions: taken to increase conservation of natural ecosystems either associated with or separate from the organization's business activities. |
| 12 | 1 | Biodiversity | -Discussion: of the organization's position on biodiversity. -Initiatives/actions: taken by to the organization to foster biodiversity. |
| 13 | 2 | Green purchasing | -Discussion: about preferential purchasing of eco-friendly (non-polluting, recycled, recyclable, etc.) products. -Initiatives/actions: taken to implement such purchasing. |
| 194 | 0 | Green Chemistry | Green Chemistry is the design of chemical products and processes that reduce or eliminate the use and generation of hazardous substances. Whereas environmental chemistry is the chemistry of the natural environment, and of pollutant chemicals in nature, green chemistry seeks to reduce and prevent pollution at source. In 1990 the Pollution Prevention Act was passed. This act helped create a modus operandi for dealing with pollution in an original and innovative way. |
Vision | |||
| Question Number | Score | Topic | Description |
| 5 | 2 | Environmental visionary statement | -Discussion: includes a clear visionary statement expressing an organizational commitment to good environmental performance. -Initiatives/actions: include measures to fulfill that commitment. |
| 6 | 0 | Environmental impediments and challenges | -Discussion: of impediments and challenges faced by the organization in attempting to realize its environmental vision and commitments. -Initiatives/actions: include measures to overcome them. |
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Emissions to air | |||
|---|---|---|---|
| Question Number | Score | Topic | Description |
| 112 | 2 | Carbon dioxide (CO2) or equivalents (i.e. GHG) | CO2 emissions (or CO2 equivalents from CO2 + other greenhouse gases) resulting from all company operations including generating electricity. |
| 114 | 0 | Volatile organic compounds (VOCs) | Total emissions of volatile organic compounds, airborn chemicals most often released during the painting process. |
| 118 | 0 | Carbon monoxide (CO) | Carbon Monoxide (CO) released. |
| 119 | 0 | Ozone depleting substances from refrigerant | Total ozone-depleting substances include CFCs (Class I); and halons, carbon tetrachloride, methyl chloroform, and HCFCs (Class II), not a CO2 emission. |
| 121 | 0 | Nitrogen oxides (NOx) | Emissions of all nitrogen oxides to air. |
| 123 | 0 | Particulate matter (dust) | "Particulate matter" usually refers to all material emitted to air smaller than 10 microns in diameter (PM10). Smaller, more toxic material such as PM 2.5, smaller than 2.5 microns, may also be called out. |
| 127 | 0 | Sulfur oxides (SOx) | Emissions of all sulfur oxides, including sulfur dioxide (SO2). |
Emissions to water | |||
| Question Number | Score | Topic | Description |
| 129 | 0 | Suspended solids, total (TSS) | A measure of the amount of solids in wastewater. TSS can include a wide variety of material, such as silt, decaying plant and animal matter, industrial wastes, and sewage. |
| 130 | 1 | Chemical Oxygen Demand (COD) | Measure the amount of organic compounds in water. Most applications of COD determine the amount of organic pollutants found in surface water (e.g. lakes and rivers). Compare with BOD, COD is less specific since it measures total organic levels rather than simply levels of biologically active organic matter. |
| 131 | 0 | Biochemical Oxygen Demand (BOD) | BOD is a measure of the concentration of biodegradable organic matter present in water and refers either wastwater effluent or receiving waters. |
Energy | |||
| Question Number | Score | Topic | Description |
| 26 | 2 | Energy used (total) | Sum of the energy used by the organization in all different forms, including electricity, fuel, natural gas and others. |
| 27 | 2 | Energy used (renewable) | Energy used from renewable sources such as wind, solar, hydroelectric, or other renewable sources. |
| 102 | 2 | Energy produced from renewable resources | Energy produced from renewable sources such as biomass, geothermal, hydroelectric, solar thermal, solar photovoltaic, and wind. |
Management | |||
| Question Number | Score | Topic | Description |
| 38 | 2 | Notices of violation (environmental) | Notices of violation (NOVs) for environmental infractions. |
| 39 | 0 | Environmental expenses and investments | An accounting of money spent or invested specifically to decrease environmental damage or to benefit the environment |
| 40 | 1 | Fines (environmental) | Government imposed fines for environmental infractions. |
Materials usage | |||
| Question Number | Score | Topic | Description |
| 145 | 0 | Hazardous materials usage | Description and quantification of hazardous materials use. |
| 148 | 3 | Materials used: non-returnable packaging | Materials such as cardboard, plastics, or wood, used to package any goods sold or delivered to a disributor or an end user. Likely to be specifically referred to as "packaging materials". |
Recycling | |||
| Question Number | Score | Topic | Description |
| 30 | 0 | Waste recycled: solid waste | Sum of all solid waste recycled, including hazardous waste. |
| 32 | 0 | Waste (office) recycled | Office recycling of paper, cardboard, metal, or plastic |
Waste | |||
| Question Number | Score | Topic | Description |
| 34 | 1 | Waste (solid) disposed of | Includes solid hazardous and non-hazardous waste landfilled, incinerated, or transferred. |
| 35 | 2 | Waste (hazardous) produced | Sum of all hazardous materials remaining after production, irrespective of final disposition. Hazardous wastes include items identified as TRI, PRTR, HAP (Hazardous Air Pollutants), and similar indices, and may include mercury or lead. Depending on the nationality of the organization, this could be labeled "TRI" (Toxic Release Inventory), "substance releases" , or something else. |
| 37 | 2 | Waste (hazardous) released to the environment | Amounts of hazardous materials released into the environment, total (TRI, PRTR, HAP (Hazardous Air Pollutants), and similar indices), may include mercury or lead. Depending on the nationality of the organization, this could be labeled "TRI" (Toxic Release Inventory), "substance releases" , or something else. |
| 109 | 1 | Waste: packaging materials | The amount of waste materials specified as packaging materials by the organization, and not reused or recycled. |
| 110 | 1 | Waste water released to natural water bodies | Amount of waste water released into natural waters. |
Water | |||
| Question Number | Score | Topic | Description |
| 29 | 3 | Water used | Sum of all water used during operations. |
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Accountability | |||
|---|---|---|---|
| Question Number | Score | Topic | Description |
| 51 | 1 | Health and Safety, or Social organizational structure | -Discussion: of organizational structure or staffing for ensuring health and safety or social responsibility. -Initiatives/actions: include identification of the individuals currently holding the staff positions. |
| 54 | 1 | Third-party validation | -Discussion: of the value (or lack thereof) of third-party auditing or validation. -Initiatives/actions: include formal auditing or validation by a qualified external third-party source. |
Management | |||
| Question Number | Score | Topic | Description |
| 17 | 0 | Workforce profile: Ethnicities/Race | -Discussion: of racial or ethnic distribution of workforce. -Initiatives/actions: taken to avoid racial or ethnic discrimination. |
| 18 | 0 | Workforce profile: Gender | -Discussion: of gender distribution of workforce. -Initiatives/actions: taken to avoid gender discrimination and achieve appropriate balance |
| 52 | 0 | Workforce profile: Age | -Discussion: of age distribution of workforce. -Initiatives/actions: include measures taken to avoid age discrimination or to encourage a balanced age structure. |
| 53 | 1 | Emergency preparedness program | -Discussion: of emergency preparedness programs to prepare employees or the public to cope with potential emergencies at the organization's facilities. -Initiatives/actions: include measures taken to implement such programs. |
| 82 | 2 | Employee training for career development | -Discussion: of training, skills and learning programs appropriate to support employees' upward mobility. -Initiatives/actions: taken to implement such training. |
Policy | |||
| Question Number | Score | Topic | Description |
| 45 | 0 | Social policy statement | -Discussion: includes a formal statement of the company's social policy or plan. -Initiatives/actions: include a description of how the policy is being implemented. |
| 47 | 2 | Code of conduct or business ethics | -Discussion: includes a formal organizational code of conduct or of ethical behavior. -Initiatives/actions: include measures to assure that the code of conduct is followed. |
| 49 | 2 | Supplier screening based on social or environmental performance/ Supplier management | -Discussion: or description of procedures to evaluate and select suppliers on their ability to meet the requirements of the company's social or environmental policy and principles. -Initiatives/actions: include measures to implement or assure such screening or selection. |
Social Demographic | |||
| Question Number | Score | Topic | Description |
| 80 | 1 | Employment for individuals with disabilities | -Discussion: of appropriate actions to accommodate employees with disabilities. -Initiatives/actions: taken to implement such accommodations. |
Vision | |||
| Question Number | Score | Topic | Description |
| 42 | 2 | Social visionary statement | -Discussion: includes a clear visionary statement expressing an organizational commitment good social performance. -Initiatives/actions: include measures taken to fulfill that commitment. |
| 43 | 0 | Social impediments and challenges | Discussion: of impediments and challenges faced by the organization in attempting to realize its social vision and commitments. Initiatives/actions: include measures taken to overcome them. |
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Accountability | |||
|---|---|---|---|
| Question Number | Score | Topic | Description |
| 192 | 0 | Disclosure of clinical trials | Efforts to make results from late-stage clinical trials available to the public, even if they reveal unfavorable information about a drug. |
Human Rights | |||
| Question Number | Score | Topic | Description |
| 1 | 7 | Sexual harassment | Rejection of any form of sexual harassment. |
| 7 | 7 | Political contributions | Policy about political contributions |
| 8 | 7 | Bribery | Rejection of bribery |
| 58 | 7 | Anti-corruption practices | Efforts to uphold the highest standards of business ethics and integrity. May be found under a Code of Conduct. |
| 59 | 7 | Degrading treatment or punishment of employees | Commitment to oppose any corporal/hard labor punishment, mental/physical coercion, or verbal abuse. |
| 60 | 7 | Elimination of discrimination in respect to employment and occupation | Commitment not to engage in any kind of discrimination based on ethnicity, caste, religion, disability, sex, age, sexual orientation, union membership, or political affiliation in hiring practices or employee treatment. |
| 61 | 7 | Free association and collective bargaining of employees | Efforts to respect the right of employees to form and join trade unions of their choice and to bargain collectively. |
| 62 | 7 | Fair compensation of employees | Assurance that wages paid meet or exceed legal or industry minimum standard. |
| 63 | 7 | Elimination of all forms of forced and compulsory labor | Assurance that all employees enter employment with the company of their own free will, not by compulsion. |
| 64 | 7 | Reasonable working hours | Compliance with applicable laws and industry standards on working hours, including overtime. |
| 65 | 7 | Effective abolition of child labor | Rejection of illegal child labor by the company or its affiliates. |
Management | |||
| Question Number | Score | Topic | Description |
| 2 | 2 | Women in Management | Relative numbers of women in management. |
Qualitative Social | |||
| Question Number | Score | Topic | Description |
| 66 | 3 | Community development | Efforts to participate in social activities that improve the quality of life of communities including that of indigenous people, where the organization operates. |
| 67 | 3 | Employee satisfaction surveys | Surveys to monitor employee satisfaction. |
| 68 | 3 | Community education | Efforts to support education in the communities where the company is located. |
| 70 | 4 | Occupational health and safety protection | Efforts to provide a safe and healthy working environment at all sites. |
| 72 | 0 | Employee volunteerism | Efforts to promote employee volunteerism in social or environmental projects. |
| 153 | 3 | Animal testing standards | Codes and standards for preventing cruelty and abuse in animal testing. Industry specific, mainly for pharmaceuticals. |
| 154 | 3 | Access to health care in low income communities | Efforts to provide access to affordable health care in low income communities and/or developing countries. Specific to pharmaceuticals. |
| 193 | 0 | Efforts on neglected diseases | Efforts to invest in drug research and development for the world’s most neglected diseases that are potentially yield minimal return for the pharmaceuticals industry. |
Quantitative Social | |||
| Question Number | Score | Topic | Description |
| 3 | 0 | Employee turnover rate | Annual employee turnover rate. |
| 74 | 1 | Recordable incident/accident rate | Number of employee incidents or accidents, such as: “total case incident rate”, “incident rate”, or "accident rate". |
| 75 | 1 | Lost workday case rate | Number of employee injuries or illnesses that resulted in one or more lost workdays |
| 76 | 0 | Health and safety citations | Number of health and safety citations or notices of violation. If it is stated that there were none, check lines 1,2,3, 4, and 6. |
| 77 | 0 | Health and safety fines | Fines levied against a company for health and safety violations. |
| 81 | 1 | Social community investment | Amount of money spent on community outreach, including education grants, donations, and relief effort funds. |
| 157 | 0 | Training, hours per number of employees | The number of training hours/number of staff. |
Social Demographic | |||
| Question Number | Score | Topic | Description |
| 160 | 0 | Employment, minorities | The percentage of total employees who are minorities. |
| Member? | Organization | Description |
| Dow Jones Sustainability Index | Dow Jones Sustainability Indexes are the first global indexes tracking the financial performance of the leading sustainability-driven companies worldwide, based in the USA, founded in 1999, http://www.sustainability-index.com/ | |
 | FTSE4Good | FTSE is an independent company owned by The Financial Times and the London Stock Exchange, based in the UK, founded in 1995, http://www.ftse.com/ |
| Global Reporting Initiative (GRI) | GRI works to build a consensus around a set of sustainability reporting guidelines with the aim of achieving worldwide acceptance, based in Netherlands, founded in 1997 , www.globalreporting.org |
| ILO Core Labor Standards | Since 1919, the International Labour Organization has maintained and developed a system of international labour standards aimed at promoting opportunities for women and men to obtain decent and productive work, in conditions of freedom, equity, security and dignity. In today's globalized economy, international labour standards are an essential component in the international framework for ensuring that the growth of the global economy provides benefits to all, www.ilo.org. |
| ISO14001 Environmental Management System | ISO is responsible for standardization in all fields except electrical and electronic engineering. ISO 14001 is an international standard designed to provide companies a structured approach for improving environmental performance, with emphasis on environmental protection and pollution prevention, based in Switzerland, founded in 1906 , www.iso.ch |
| World Business Council for Sustainable Development | Committed to promote sustainable development via economic growth, ecological balance, and social progress., based in Switzerland, founded in 1995 , www.wbcsd.ch |
| World Wide Fund for Nature (WWF) | WWF is committed to the conservation of nature, based in Switzerland, founded in 1985 , www.wwf.org |
| World Environment Center (WEC) | The World Environment Center contributes to sustainable development worldwide by strengthening environment, health, and safety policy and practices, based in the USA, founded in 1981, http://www.wec.org/ |
| UNEP (United Nations Environment Programme) | UNEP provide leadership and encourage partnership in caring for the environment by inspiring, informing, and enabling nations and peoples to improve their quality of life without compromising that of future generations. UNEP activities include research, capacity building, and policy design to ensure that the objectives of environmental protection and equitable development are integrated into trade and other economic policies at national, regional and international levels, based Kenya, founded in N/A, http://www.unep.org/ |
| Global Business Coalition on HIV/AIDS | Global Business Coalition on HIV/AIDS is the pre-eminent organization leading the business fight against HIV/AIDS. The rapidly expanding alliance of over 200 international companies is dedicated to combating the AIDS epidemic through the business sector's unique skills and expertise. The organization seeks to harness the individual and collective power of the world’s top corporations to fight the spread of AIDS at the local, national and international levels, based the US, founded in 2003, http://www.businessfightsaids.org/ |
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About the Pacific Sustainability Index The Pacific Sustainability Index was developed at the Roberts Environmental Center at Claremont McKenna College in California, for the purpose of scoring corporate environmental and sustainability reports. It was introduced in 2002 in the book "Clean Green and Read All Over: Ten Rules for Effective Environmental and Sustainability Reporting," published by the American Society for Quality Press, in which it is described in some detail. Undergraduates from several of the Claremont Colleges, working in the Roberts Center, apply this Index to current corporate environmental and sustainability reports accessed in hard copy or through the world wide web, and publish the results on the Roberts Environmental Center website. We assign letter grades by dividing the maximum PSI score obtained in the sector into 12 equal parts and then rounding fractional scores up or down. This means that A+ and F are under-represented compared to the other grades. Companies with scores in the highest 4% get an A+ and any in the bottom 4% get an F. The same technique applies to the separate categories of environmental and social scores. Thus, we grade on a 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+. Caveat and disclaimer: There is a fair amount of subjectivity associated with scoring corporate environmental and sustainability reports using this Index, and even the most experienced analyst is often uncertain whether a particular topic deserves a score of 1 or 2. In addition to that uncertainty, many of the reports presented on the Roberts web site have been scored by undergraduates who, although trained by the Center, have varying amounts of experience in scoring. Also, in large and complicated reports, many of which exceed 100 pages, it is not difficult to overlook data which should have received points in the Index. Consequently, the scores should be thought of as approximate and subject to revision. We welcome external input on any perceived incorrect scoring and will update the online reports as warranted. All reports are dated at the bottom. The most recent one reflects our current analysis. Please address comments to J. Emil Morhardt at (909) 621-8190 or emorhardt@mckenna.edu |
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About the Roberts Environmental Center The Roberts Environmental Center is one of nine endowed research institutes at Claremont McKenna College (CMC). Its primary function is to engage undergraduates, including those from the other Claremont Colleges, in active research pertaining to current environmental issues. In keeping with its oversight of the Environment, Economics, and Politics major at Claremont McKenna and Scripps colleges, the Roberts Environmental Center chooses research subjects that include economic and political components in addition to scientific considerations. The current project on corporate environmental transparency and performance reflects that goal. |
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About Claremont McKenna College and the Claremont Colleges Claremont McKenna College (CMC) is a highly selective, independent, coeducational, residential, undergraduate liberal arts college -- one with a curricular emphasis on economics, government, and public affairs. By combining the intellectual breadth of the liberal arts with the more pragmatic concerns of public affairs, CMC helps students acquire the vision, skills, and values they will need to lead society. With an on-campus enrollment of approximately 1,000 students, CMC is currently the youngest and smallest college ranked in the U. S. News & World Report top 15. Although an institution unto itself, CMC is also part of a larger community -- The Claremont Colleges. These include Pomona College, Scripps College, Pitzer College, Harvey Mudd College, The Claremont Graduate University (which houses the Peter F. Drucker Graduate School of Management), and the Keck Graduate Institute of Applied Life Sciences (KGI). All except KGI are on contiguous campuses and students at any of the institutions may take courses at any of the others. There are about 5,000 undergraduates and 1000 graduate students in the consortium at any given time. |
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This Pacific Sustainability Index form is adapted with permission from Morhardt, J. Emil, 2002, Clean Green, and Read All Over: Ten Rules for Effective Environmental and Sustainability Reporting, ASQ Quality Press. 316 pages. |