ROI Analysis of Social and Environmental
Initiatives at PMI Joinease
PACIFIC MARKET INTERNATIONAL
BENEFITS OF INVESTMENT IN CSR
Benefits to Society
Reduced
energy
usage,
water
usage, and
waste
Increased
workers
rights and
safety
Benefits to Customers
Access to
trusted
supplier
Ability to
meet own
CSR goals
Benefits to PMI
Increased
Productivity
Increased
Recruiting &
Retention
Enhanced
Reputation
THE ROI AND PMI’S STRATEGIC PILLARS
Strategic Pillar
Commitment to
Excellence
Innovation
Culture & People
Environmenta
l
Responsibility
Social
Consciousness
Connection to ROI Analysis
Working directly with factories to improve environmental and social
performance. Being a thought-leader in quantitatively measuring CSR
initiatives. Using voice over exit.
Innovating conservation practices within manufacturing processes –
energy-saving, water recycling processes.
Putting people first. Providing safe working conditions that allow
employees to thrive.
Assessing strengths and areas for improvement in resource utilization,
demonstrating strong commitment to environmental impact of production.
Collaborating with factories to create safe, healthy, and fair working
conditions.
FOCUS OF ANALYSIS
Environmental ROI
Social Cost vs. Benefit
•
Electricity Usage
•
Worker Retention
•
Water Usage
•
Wages & Benefits*
•
Carbon Emissions
•
Overtime Comp*
•
Hazardous Waste Disposal
•
Overtime Hours*
•
Non-Hazardous Waste
Reuse and Disposal
•
Health & Safety*
•
Child Labor**
•
Forced Labor**
•
Harassment**
•
Freedom of Association**
* It is assumed that investment in these initiatives affects worker retention
** These initiatives were not included in the ROI analysis, as it is presumed that factories will be fully compliant in these areas
ROI OVERVIEW
Benefit to
PMI
Electricity
Carbon Emissions
Environmental
Initiatives
Water
ROI
Hazardous Waste
Non-Hazardous Waste
Benefit to
Customers
Wages & Benefits
Social
Initiatives
Overtime Wages
Overtime Hours
Health & Safety
Cost / Benefit
of Employee
Turnover
Benefit to
Society
PMI JOINEASE GROWTH
PMI JO Growth
25,000,000
1,400
Number of Units Produced
1,133
1,200
20,000,000
1,151
18,322,547
15,000,000
10,000,000
13,190,285
714
1,000
800
600
502
8,958,311
9,530,354
619
400
5,000,000
200
-
0
2007
2008
Number of Units Produced
2009
2010
2011
Number of Line Worker Employees
Number of Line Worker Employees
21,646,708
Electricity ROI
Electricity Costs and Benefits
¥3,500,000
¥3,000,000
¥2,861,098
¥2,500,000
¥2,000,000
¥1,500,000
¥962,799
¥1,000,000
¥500,000
¥631,687
¥¥-500,000
¥-1,000,000
2008
2011
-¥668,253
Total Costs
Electricity Costs and Benefits,
per unit of production
¥0.05
¥0.04
¥0.03
¥0.02
¥0.01
¥¥-0.01
¥-0.02
¥-0.03
¥-0.04
¥-0.05
$0.03
¥0.01
2008
2011
¥-0.04
Costs Per Unit
Total Benefits
$0.04
Benefits Per Unit
Carbon Emissions
Emissions Released,
per unit produced
Total Emissions Released
8,000
7,339
1.5
7,120
6,000
1.0
1.00
4,000
4,511
4,120
0.91
0.83
0.85
2010
2011
0.5
2,000
0
0.0
2008
2009
2010
Total Emissions Released
2011
2008
2009
Emissions Per Unit
WATER ROI
Water Costs and Benefits
Water Costs and Benefits,
per unit of production
¥700,000
¥577,881
¥600,000
¥0.03
¥0.02
¥500,000
¥0.02
¥400,000
¥0.02
¥300,000
¥0.01
¥249,123
¥0.01
¥200,000
¥0.01
¥100,000
¥¥-100,000
¥0.00
¥49,072
-¥34,763
2008
Total Costs
¥2011
Total Benefits
¥(0.00)
2008
2011
¥-0.01
Costs Per Unit
Benefits Per Unit
HAZARDOUS WASTE
300
Number of Units Produced
283
285
250
200
151
150
120
100
50
-
2008
2009
2010
2011
Kilograms of Hazardous Waste per 1m Units
Note: Hazardous waste consists of machine oil, metal slags, fluorescent tubes, & waste rags
NON-HAZARDOUS WASTE ROI
Non-Hazardous Waste
Costs and Benefits,
per unit of production
Non-Hazardous Waste
Costs and Benefits
¥10,000,000
¥8,659,375
¥9,000,000
¥8,000,000
¥0.14
¥0.12
¥7,000,000
¥6,000,000
¥0.10
¥5,000,000
¥0.08
¥4,000,000
¥0.06
¥3,000,000
¥2,000,000
¥1,000,000
¥0
¥0.12
¥2,144,590
¥1,154,452
Total Costs
0.04
0.03
¥0.02
¥200,405
2008
¥0.04
¥0.06
¥0.00
2011
Total Benefits
2008
Costs Per Unit
2010
Benefits Per Unit
HEALTH AND SAFETY - ACCIDENTS
Number of Accidents, Per 1M Units
0.80
0.70
0.60
0.67
0.50
0.53
0.40
0.32
0.38
0.30
0.20
0.10
-
2008
2009
2010
Number of Accidents, Per 1M Units
2011
WORKER RETENTION
2,500
2,000
1,500
1,000
500
0
2007
2008
2009
Number of Positions Advertised
2010
2011
Number of Applicants
Questions and Discussion