A.P. Moller-Maersk, ABN AMRO Holding, Air France
Transcription
A.P. Moller-Maersk, ABN AMRO Holding, Air France
A.P. Moller-Maersk, ABN AMRO Holding, Air France-KLM, All Nippon Airways, British Airways, Cathay 2012 Sustainability Reporting Pacific Airways, Central Japan Railway, of the World’s Largest Transportation Logistics Companies China Cosco Holdings, Continental Airlines, Delta Airlines, Deutsche Post DHL, East Japan Railway, FedEx, Kawasaki Kisen Kaisha, Kühne & Nagel Intl, Lufthansa Group, Mitsui OSK Lines, Nippon Express, Nippon Yusen Kaisha (NYK), Qantas Airways, Singapore Airlines, STX Corp, TNT, Tokyu, Union Pacific, United Airlines, United Parcel Service, US Airways Group, West Japan Railway, and Y a m a t o H o l d i n g s . Pacific Sustainability Index Scores: A benchmarking tool for online sustainability reporƟng J.Emil Morhardt, ElgeriƩe Adidjaja, Taryn Akiyama, RaƟk Asokan, Simone Berkovitz, Quinn Chasan, Whitney Ellen Dawson, Erin Franks, Sierra Gibson, Karina Gomez, Hilary Haskell, Nicholas Hobbs, Alan Hu, Sam Kahr, Somaiah Kambiranda, Helen Liu, Damini Marwaha, Stephanie Oehler, Katherine Recinos, Chad Redman, Megan Smith, Lucas Van Houten, Stephanie Wolfe, and Grant Yang. Contents Topics Company Rankings PSI Overview PSI Scoring in a Nutshell Environmental Intent Topics Environmental Reporting Topics Social Intent Topics Social Reporting Topics Environmental Intent Element of the PSI Scores Environmental Reporting Element of the PSI Scores Social Intent Element of the PSI Scores Social Reporting Element of the PSI Scores Environmental Intent Scores Ranking Environmental Reporting Scores Ranking Environmental Performance Scores Ranking Social Intent Scores Ranking Social Reporting Scores Ranking Social Performance Scores Ranking Human Rights Reporting Element Performance by Country Visual Cluster Analysis Relationship Between PSI Scores and Financial Variables Number of Explicit numerical goals Reported Number of Topics Showing Performance Improvement over Previous Year Data Number of Topics in which Performance was Better than Sector Average Analyst’s Comments, alphabetically listed by company name Appendix: PSI Questionnaire Page The Roberts Environmental Center has been the foremost analyst of corporate sustainability reporting for over a decade. We analyze corporate online disclosure using our Pacific Sustainability Index (PSI) and publish the results online. 3 4 5 6 7 8 9 10 11 Industrial Sector** 2 0 0 4 2 0 0 5 Banks, Insurance Chemicals 60 Elgeritte Adidjaja, Research Fellow (909) 621-8698 (eadidjaja@cmc.edu) X X X X X X X X X X X X X X Entertainment Federal Agencies Food Services X X X X X General Merchandiser X Homebuilders X X X X X X X X X* X* X X X X X X X X X X Petroleum & Refining X Pharmaceuticals X Scientific, Photo, & Control Equipment Telecommunications, Network, & Peripherals Transportation X X Municipalities Oil and Gas Equipment Dr. J. Emil Morhardt, Director (emorhardt@cmc.edu) Roberts Environmental Center Claremont McKenna College 925 N. Mills Ave. Claremont, CA 91711-5916, USA Direct line: (909) 621-8190 2 0 1 2 X X Motor Vehicle & Parts Questions should be addressed to: 2 0 1 1 X Household, Apparel, & Personal Products Industrial & Farm Equipment Mail, Freight, & Shipping Medical Products & Equipment Metals Mining, Crude Oil 30 2 0 1 0 X Forest & Paper Products 29 2 0 0 9 X X Energy & Utilities 26 27 2 0 0 8 X Colleges/Universities Computer, Office Equipment, & Services Conglomerates Food & Beverages Electronics & Semiconductors 2 0 0 7 X Aerospace & Defense Airlines 12 13 14 15 16 17 18 19 20 21 22 23 2 0 0 6 X X X X X X X X X * Multiple-sector category was separated in later years. Departmental Secretaries: (909) 621-8298 The goal of corporate report analysis conducted by the Roberts Environmental Center is to acquaint students with environmental and social issues facing the world’s industries, and the ways in which industry approaches and resolves these issues. The data presented in this report were collected by student research assistants and a research fellow at the Roberts Environmental Center. Copyright 2012 © by J. Emil Morhardt. All rights reserved. www.roberts.cmc.edu 2 Transportation and Logistics Sectors Sustainability Reporting of Worlds' Largest Transportation and Logistics Companies Corporate Environmental and Sustainability Reporting Company Rankings Overall Grade 65.15 United Parc el Servic e 63.64 Deutsc he Post DHL A+ United Parcel Service (USA) A+ Deutsche Post DHL (Germany) A TNT (Netherlands) A Nippon Yusen Kaisha (NYK) (Japan) TNT 58.46 A- Mitsui OSK Lines (Japan) Nippon Yusen Kaisha (NYK) 58.30 A- Air France-KLM (France) A- United Airlines (USA) A- British Airways (U.K.) A- A.P. Moller-Maersk (Denmark) A- Delta Airlines (USA) B+ East Japan Railway (Japan) Mitsui OSK Lines 56.39 Air Franc e- KLM 56.12 53.03 United Airlines British Airways 52.91 B+ Qantas Airways (Australia) A.P. Moller- Maersk 52.73 B ABN AMRO Holding (Netherlands) B FedEx (USA) B- Lufthansa Group (Germany) B- Cathay Pacific Airways (China) B- Nippon Express (Japan) C+ Union Pacific (USA) C Kawasaki Kisen Kaisha (Japan) C- Kühne & Nagel Intl (Switzerland) C- All Nippon Airways (Japan) C- Singapore Airlines (Singapore) C- West Japan Railway (Japan) D US Airways Group (USA) D Tokyu (Japan) D Yamato Holdings (Japan) D Central Japan Railway (Japan) F China Cosco Holdings (China) F STX Corp (South Korea) 52.48 Delta Airlines 47.70 East Japan Railway 46.67 Qantas Airways ABN AMRO Holding 44.55 FedEx 44.42 39.58 Lufthansa Group 38.91 Cathay Pac ific Airways 36.73 Nippon Express 30.18 Union Pac ific 29.15 Kawasaki Kisen Kaisha 24.24 Kühne & Nagel Intl All Nippon Airways 23.70 Singapore Airlines 23.39 19.88 West Japan Railway US Airways Group 13.52 Tokyu 13.09 Yamato Holdings 9.82 Central Japan Railway 9.21 China Cosc o Holdings 0.73 STX Corp 0.00 0 25 50 75 100 This report is an analysis of the voluntary environmental and social reporting of companies on the 2010 Forbes Transportation and Logistics sector lists. Data were collected from corporate websites during the initial analysis period (dates shown below). A draft sector report was then made available online and letters were sent to all companies inviting them to review the analysis, to identify anything missed by our analysts, and to post additional material on their websites if they wished to improve their scores. Analysis Period: 1/24/2012 through 7/31/2012 Draft sector report available for review: 8/13/2012 through 9/14/2012 www.roberts.cmc.edu 3 Transportation and Logistics Sectors The Pacific Sustainability Index (PSI) Overview the PSI Scoring System The Pacific Sustainability Index (PSI) uses two systematic questionnaires to analyze the quality of the sustainability reporting—a base questionnaire for reports across sectors and a sector-specific questionnaire for companies within the same sector. The selection of questions is based on, and periodically adjusted to, the most frequently-mentioned topics in over 1,900 corporate sustainability reports analyzed from 2002 through 2009 at the Roberts Environmental Center. The Roberts Environmental Center The Roberts Environmental Center is an environmental research institute at Claremont McKenna College (CMC). Its mission is to provide students of all the Claremont Colleges with a comprehensive and realistic understanding of today’s environmental issues and the ways in which they are being and can be resolved-beyond the confines of traditional academic disciplines and curriculum--and to identify, publicize, and encourage policies and practices that achieve economic and social goals in the most environmentally benign and protective manner. The Center is partially funded by an endowment from George R. Roberts (Founding Partner of Kohlberg Kravis Roberts & Co. and CMC alumnus), other grants and gifts, and is staffed by faculty and students from the Claremont Colleges. Methodology Student analysts download relevant English language web pages from the main corporate website for analysis. Our scoring excludes data independently stored outside the main corporate website or available only in hard copy. When a corporate subsidiary has its own sustainability reporting, partial credit is given to the parent company when a direct link is provided in the main corporate website. We archive these web pages as PDF files for future reference. Our analysts use a keyword search function to search reporting of specific topics, they fill out a PSI scoring sheet (http://www.roberts.cmc.edu/PSI/scoringsheet.asp), and track the coverage and depths of different sustainability issues mentioned in all online materials. Scores and Ranks When they are finished scoring, the analysts enter their scoring results into the PSI database. The PSI database calculates scores and publishes them on the Center’s website. This sector report provides an indepth analysis on sustainability reporting of the largest companies of the sector, as listed in the latest 2010 Forbes lists. Prior to publishing our sector report, we notify companies analyzed and encourage them to provide feedback and additional new online materials, which often improve their scores. What do the scores mean? We normalize all the scores to the potential maximum score. Scores of subsets of the overall score are also normalized to their potential maxima. The letter grades (A+, A, A-, B+, etc.), however, are normalized to the highest scoring company analyzed in the report. Grades of individual companies in the report might be different from grades posted online on the Roberts Environmental Center's website, since the normalization of scores of an individual company online is not limited to the companies analyzed in the sector report, but also includes other companies of the same sector irrespective of the year of analysis. Companies with scores in the highest 4% get an A+ and any in the bottom 4% get an F. We assign these by dividing the maximum PSI score obtained in the sector into 12 equal parts then rounding fractional score up or down. This means that A+ and F are under-represented compared to the other grades. The same technique applies to the separate categories of environmental and social scores. Thus, we grade on the curve. We assume that the highest score obtained in the sector and any scores near it represent the state-of-the-art for that sector and deserve an A+. www.roberts.cmc.edu 4 Transportation and Logistics Sectors PSI Scoring in a Nutshell Our analysis of sustainability reporting has a set of basic topics applied to all organizations as well as a series of sector-specific topics. The topics are divided into environmental and social categories—the latter including human rights—and into three types of information: 1) intent, 2) reporting, and 3) performance. 1. Intent The “Intent” topics are each worth two points; one point for a discussion of intentions, vision, or plans, and one point for evidence of specific actions taken to implement them. 2. Reporting The “Reporting” topics are each worth five points and are either quantitative (for which we expect numerical data) or qualitative (for which we don’t). For quantitative topics, one point is available for a discussion, one point for putting the information into perspective (i.e. awards, industry standards, competitor performance, etc., or if the raw data are normalized by dividing by revenue, number of employees, number of widgets produced, etc.), one point for the presence of an explicit numerical goal, one point for numerical data from a single year, and one point for similar data from a previous year. For qualitative topics, there are three criteria summed up to five points: 1.67 points for discussion, 1.67 points for initiatives or actions, and 1.67 points for perspective. 3. Performance For each “Reporting” topic, two performance points are available. For quantitative topics, one point is given for improvement from the previous reporting period, and one point for better performance than the sector average (based on the data used for this sector report normalized by revenue). For qualitative topics, we give one point for any indication of improvement from previous reporting periods, and one point for perspective. The 11 “human rights” topics are scored differently, with five “reporting” points; 2.5 points for formally adopting a policy or standard and 2.5 points for a description of monitoring measures. In addition, there are two “performance” points; one point for evidence of actions to reinforce policy and one point for a quantitative indication of compliance. Distribution of Scores by topics www.roberts.cmc.edu 5 Transportation and Logistics Sectors Transportation and Logistics Environmental Intent Topics Percent of possible points for all companies combined. Two possible points for each topic: Accountability 79.31 80 4 19 Management 65.52 70 * Report contact person * Environmental management structure 60 16 20 21 23 50 Policy 61.21 58.62 9 10 11 12 13 40 30 * Environmental education * Environmental management system * Environmental accounting * Stakeholder consultation * Environmental policy statement * Climate change/global warming * Habitat/ecosystem conservation * Biodiversity * Green purchasing Vision 5 6 20 * Environmental visionary statement * Environmental impediments and challenges Vision Policy Management 0 Accountability 10 Notes: * These numbers correspond to the numbers in the PSI questionnaire. Items with numbers higher than 99 are sectorspecific questions. Appendix 1 has the complete questionnaire. www.roberts.cmc.edu 6 Transportation and Logistics Sectors Transportation and Logistics Environmental Reporting Topics Seven possible points for each topic: Emissions to Air Percent of possible points for all companies combined. 83 * Greenhouse gases (or CO2 equivalents), total Energy 80 77.93 26 27 * Energy used (total) * Renewable energy used Management 70 38 39 60 40 * Notices of violation (environmental) * Environmental expenses and investments * Fines (environmental) Recycling 30 50 32 * Waste recycled: solid waste * Waste (office) recycled 41.48 41.03 Waste 40 34 31.03 35 37 30 24.37 * Waste (hazardous) released to the environment Water 29 20 * Waste (solid) disposed of * Waste (hazardous) produced * Water used 14.71 10 Water Waste Recycling Management Energy Emissions to Air 0 Notes: * These numbers correspond to the numbers in the PSI questionnaire. Items with numbers higher than 99 are sectorspecific questions. Appendix 1 has the complete questionnaire. www.roberts.cmc.edu 7 Transportation and Logistics Sectors Transportation and Logistics Social Intent Topics Two possible points for each topic: Percent of possible points for all companies combined. 68.39 70 Accountability 51 68.10 54 60 * Health and safety, or social organizational * structure Third-party validation Management 55.52 53.45 17 18 50 52 44.83 53 82 40 * Workforce profile: ethnicities/race * Workforce profile: gender * Workforce profile: age * Emergency preparedness program * Employee training for career development Policy 45 30 47 49 * Social policy statement * Code of conduct or business ethics * Supplier screening based on social or environmental performance/ supplier management 20 Social Demographic 10 80 * Employment for individuals with disabilities 42 Vision Social Demographic Policy Management Accountability Vision 0 43 * Social visionary statement * Social impediments and challenges Notes: * These numbers correspond to the numbers in the PSI questionnaire. Items with numbers higher than 99 are sectorspecific questions. Appendix 1 has the complete questionnaire. www.roberts.cmc.edu 8 Transportation and Logistics Sectors Transportation and Logistics Social Reporting Topics Seven possible points for each topic: Human Rights Percent of possible points for all companies combined. 1 7 80 8 72.41 58 70 59 60 * Sexual harassment * Political contributions * Bribery * Anti-corruption practices * Degrading treatment or punishment of employees * Elimination of discrimination in respect to employment and occupation 60 51.72 61 * Free association and collective bargaining of employees 50 62 40 63 37.24 * Fair compensation of employees * Elimination of all forms of forced and compulsory labor 64 30 65 24.48 * Reasonable working hours * Effective abolition of child labor Management 20 2 * Women in management Qualitative Social 10 66 68 Quantitative Social Qualitative Social Management Human Rights 67 0 70 72 * Community development * Employee satisfaction surveys * Community education * Occupational health and safety protection * Employee volunteerism Quantitative Social 3 74 75 76 77 81 * Employee turnover rate * Recordable incident/accident rate * Lost workday case rate * Health and safety citations * Health and safety fines * Social community investment Notes: * These numbers correspond to the numbers in the PSI questionnaire. Items with numbers higher than 99 are sectorspecific questions. Appendix 1 has the complete questionnaire. www.roberts.cmc.edu 9 Transportation and Logistics Sectors Transportation and Logistics Environmental Intent Elements of the PSI Scores Environmental visionary statement 96.6% 96.6% Environmental policy statement 89.7% 81.0% Climate change/global warming 86.2% 82.8% Environmental management structure 79.3% 60.3% 75.9% 72.4% Stakeholder consultation Environmental education 72.4% 69.0% Environmental management system 72.4% 69.0% Environmental impediments and challenges 65.5% 62.1% Green purchasing 65.5% 58.6% Report contact person 65.5% 56.9% 58.6% 56.9% Habitat/ecosystem conservation 51.7% 48.3% Biodiversity 48.3% 34.5% Environmental accounting 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% = Percentage of companies addressing the topics = Percentage of the total possible number of points awarded to all companies combined for each topic, indicating the depth of reporting coverage measured by PSI criteria for each topic. If both percentages are the same it means that each of those reporting companies reporting on a topic got all the possible points. www.roberts.cmc.edu 10 Transportation and Logistics Sectors Transportation and Logistics Environmental Reporting Elements of the PSI Scores Greenhouse gases (or CO2 equivalents), total 86.2% 55.7% 75.9% Energy used (total) 36.5% 72.4% Waste recycled: solid waste 29.6% 66.7% Water used 29.6% 58.6% Waste (solid) disposed of 27.6% 55.2% Renewable energy used 22.2% 55.2% Waste (hazardous) produced 20.2% 48.3% Waste (office) recycled 14 . 8 % Environmental expenses and investments 27.6% 11. 3 % 2 4 . 1% Fines (environmental) 10 . 3 % Notices of violation (environmental) Waste (hazardous) released to the environment 20.7% 9.9% 13 . 8 % 4.4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% = Percentage of companies addressing the topics = Percentage of the total possible number of points awarded to all companies combined for each topic, indicating the depth of reporting coverage measured by PSI criteria for each topic. If both percentages are the same it means that each of those reporting companies reporting on a topic got all the possible points. www.roberts.cmc.edu 11 Transportation and Logistics Sectors Transportation and Logistics Social Intent Elements of the PSI Scores 89.7% 87.9% Social visionary statement Employee training for career development 79.3% 79.3% Supplier screening based on social or environmental performance/ supplier management 79.3% 70.7% 75.9% 69.0% Code of conduct or business ethics 75.9% Health and safety, or social organizational structure 53.4% Emergency preparedness program 72.4% 62.1% Social policy statement 72.4% 65.5% 69.0% 60.3% Workforce profile: gender 65.5% 53.4% Third-party validation Social impediments and challenges 51.7% 48.3% Workforce profile: ethnicities/race 51.7% 43.1% Employment for individuals with disabilities 48.3% 44.8% Workforce profile: age 48.3% 32.8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% = Percentage of companies addressing the topics = Percentage of the total possible number of points awarded to all companies combined for each topic, indicating the depth of reporting coverage measured by PSI criteria for each topic. If both percentages are the same it means that each of those reporting companies reporting on a topic got all the possible points. www.roberts.cmc.edu 12 Transportation and Logistics Sectors Transportation and Logistics Social Reporting Elements of the PSI Scores 86.2% Community development 60.1% Employee volunteerism 53.7% 75.9% 64.5% Occupational health and safety protection 72.4% Community education 45.8% Elimination of discrimination in respect to employment and occupation 43.8% 41.9% 62.1% Recordable incident/accident rate 34.0% Bribery 37.9% 28.6% Sexual harassment 29.6% 51.7% Lost workday case rate 51.7% 24.1% 48.3% 36.9% Women in management Free association and collective bargaining of employees 27.6% 48.3% 44.8% 34.5% Employee satisfaction surveys 37.9% 23.6% Elimination of all forms of forced and compulsory labor Employee turnover rate 15.3% 34.5% Political contributions 34.5% 21.2% Fair compensation of employees 34.5% 20.2% Reasonable working hours 31.0% 14.8% Effective abolition of child labor 31.0% 21.7% Health and safety fines 58.6% 58.6% Social community investment Health and safety citations 72.4% 69.0% Anti-corruption practices Degrading treatment or punishment of employees 75.9% 27.6% 10.3% 20.7% 3.0% 0.0% 0.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% = Percentage of companies addressing the topics = Percentage of the total possible number of points awarded to all companies combined for each topic, indicating the depth of reporting coverage measured by PSI criteria for each topic. If both percentages are the same it means that each of those reporting companies reporting on a topic got all the possible points. www.roberts.cmc.edu 13 Transportation and Logistics Sectors EI Score Rankings Environmental Intent Scores British Airways Mitsui OSK Lines East Japan Railway A+ British Airways 96.2 A+ Mitsui OSK Lines 96.2 A+ East Japan Railway 96.2 A+ A Nippon Express Nippon Yusen Kaisha (NYK) A Deutsche Post DHL Air France-KLM United Parcel Service 92.3 Nippon Express Nippon Yusen Kaisha (NYK) 88.5 A A Deutsche Post DHL 88.5 A- Qantas Airways A- Kawasaki Kisen Kaisha AA- United Airlines Cathay Pacific Airways 80.8 A- ABN AMRO Holding Kawasaki Kisen Kaisha 80.8 AB+ A.P. Moller-Maersk TNT United Airlines 80.8 B+ Lufthansa Group B+ Union Pacific B+ B Delta Airlines Singapore Airlines B All Nippon Airways FedEx West Japan Railway 84.6 Air France-KLM 84.6 United Parcel Service Qantas Airways Cathay Pacific Airways 76.9 ABN AMRO Holding 76.9 A.P. Moller-Maersk 76.9 T NT 73.1 B C+ Lufthansa Group 73.1 C+ Kühne & Nagel Intl C Central Japan Railway CD+ US Airways Group Yamato Holdings D Tokyu DF China Cosco Holdings STX Corp Union Pacific 69.2 Delta Airlines 69.2 Singapore Airlines 61.5 All Nippon Airways 61.5 FedEx 61.5 W est Japan Railway 50.0 46.2 Kühne & Nagel Intl 42.3 Central Japan Railway US Airways Group 30.8 26.9 Yamato Holdings T okyu 19.2 China Cosco Holdings 7.7 ST X Corp 0.0 0 25 50 75 100 Environmental intent scores include topics about the firm’s products, environmental organization, vision and commitment, stakeholders, environmental policy and certifications, environmental aspects and impacts, choice of environmental performance indicators and those used by the industry, environmental initiatives and mitigations, and environmental goals and targets. www.roberts.cmc.edu 14 Transportation and Logistics Sectors ER Score Rankings Environmental Reporting Scores 65.00 East Japan Railway 50.00 United Parcel Service A+ East Japan Railway B+ United Parcel Service United Airlines Delta Airlines United Airlines 48.33 B+ B+ Delta Airlines 48.33 B Nippon Yusen Kaisha (NYK) B B- Air France-KLM FedEx B- ABN AMRO Holding B- Mitsui OSK Lines Cathay Pacific Airways A.P. Moller-Maersk 45.00 Nippon Yusen Kaisha (NYK) 45.00 Air France-KLM 40.00 FedEx ABN AMRO Holding 36.67 Mitsui OSK Lines 36.36 C+ C+ Cathay Pacific Airways 35.00 C+ Deutsche Post DHL A.P. Moller-Maersk 33.33 C+ C+ Singapore Airlines TNT Deutsche Post DHL 33.33 C+ West Japan Railway Singapore Airlines 31.67 C+ Nippon Express T NT 30.91 W est Japan Railway 30.00 C C British Airways Qantas Airways C- Union Pacific Nippon Express 30.00 British Airways 28.33 CD+ US Airways Group Kawasaki Kisen Kaisha D+ All Nippon Airways D+ Kühne & Nagel Intl Central Japan Railway Lufthansa Group 25.00 Qantas Airways 23.33 Union Pacific US Airways Group 20.00 D D Kawasaki Kisen Kaisha 18.33 D- Yamato Holdings All Nippon Airways 18.33 Kühne & Nagel Intl 16.67 F F Tokyu STX Corp F China Cosco Holdings Central Japan Railway 8.33 Lufthansa Group 8.33 Yamato Holdings 3.33 T okyu 1.67 ST X Corp 0.00 China Cosco Holdings 0.00 0 25 50 75 100 Environmental reporting scores are based on the degree to which the company discusses its emissions, energy sources and consumption, environmental incidents and violations, materials use, mitigations and remediation, waste produced, and water used. They also include use of life cycle analysis, environmental performance and stewardship of products, and environmental performance of suppliers and contractors. www.roberts.cmc.edu 15 Transportation and Logistics Sectors Environmental Performance Scores EP Score Rankings 29.17 Delta Airlines 25.00 Air France-KLM A+ Delta Airlines A- Air France-KLM B+ East Japan Railway TNT Mitsui OSK Lines T NT 18.18 BB- Mitsui OSK Lines 18.18 B- Qantas Airways Qantas Airways 16.67 United Airlines 16.67 BB- United Airlines United Parcel Service United Parcel Service 16.67 C British Airways C Kühne & Nagel Intl All Nippon Airways ABN AMRO Holding 20.83 East Japan Railway British Airways 12.50 Kühne & Nagel Intl 12.50 C C All Nippon Airways 12.50 C FedEx ABN AMRO Holding 12.50 FedEx 12.50 D+ D+ Singapore Airlines Cathay Pacific Airways Singapore Airlines 8.33 D+ Nippon Yusen Kaisha (NYK) Cathay Pacific Airways 8.33 D+ Deutsche Post DHL D D Yamato Holdings Union Pacific D Nippon Express D F A.P. Moller-Maersk US Airways Group F Kawasaki Kisen Kaisha F STX Corp Kawasaki Kisen Kaisha 0.00 F F West Japan Railway Tokyu ST X Corp 0.00 F Central Japan Railway W est Japan Railway 0.00 F F China Cosco Holdings Lufthansa Group Nippon Yusen Kaisha (NYK) 8.33 Deutsche Post DHL 8.33 Yamato Holdings 4.17 Union Pacific 4.17 Nippon Express 4.17 A.P. Moller-Maersk 4.17 US Airways Group 0.00 T okyu 0.00 Central Japan Railway 0.00 China Cosco Holdings 0.00 Lufthansa Group 0.00 0 25 50 75 100 Environmental performance scores are based on whether or not the firm has improved its performance on each of the topics discussed under the heading of environmental reporting, and on whether the quality of the performance is better than that of the firm’s peers. Scoring for each topic is one point if performance is better than in previous reports, two points if better than industry peers, three points if both. www.roberts.cmc.edu 16 Transportation and Logistics Sectors SI Score Rankings Social Intent Scores Air France-KLM Deutsche Post DHL 88.46 A+ A+ Air France-KLM Deutsche Post DHL 88.46 A United Parcel Service Union Pacific Nippon Express Union Pacific 80.77 A A Nippon Express 80.77 A Mitsui OSK Lines 80.77 A- Qantas Airways AA- TNT United Airlines A- Nippon Yusen Kaisha (NYK) East Japan Railway Delta Airlines 84.62 United Parcel Service Mitsui OSK Lines Qantas Airways 76.92 T NT 76.92 United Airlines 76.92 Nippon Yusen Kaisha (NYK) 76.92 AA- East Japan Railway 76.92 A- A.P. Moller-Maersk Delta Airlines 76.92 A- Lufthansa Group A.P. Moller-Maersk 76.92 B+ B+ Cathay Pacific Airways British Airways B+ ABN AMRO Holding B B- Kawasaki Kisen Kaisha FedEx B- All Nippon Airways C+ West Japan Railway C+ C Kühne & Nagel Intl Singapore Airlines C- US Airways Group CC- Yamato Holdings Tokyu 73.08 Lufthansa Group 69.23 Cathay Pacific Airways 65.38 British Airways ABN AMRO Holding 65.38 57.69 Kawasaki Kisen Kaisha 53.85 FedEx 50.00 All Nippon Airways W est Japan Railway 46.15 Kühne & Nagel Intl 46.15 34.62 Singapore Airlines US Airways Group 30.77 D+ Central Japan Railway Yamato Holdings 30.77 F STX Corp T okyu 30.77 F China Cosco Holdings 23.08 Central Japan Railway ST X Corp 0.00 China Cosco Holdings 0.00 0 25 50 75 100 Social intent scores include topics about the firm’s financials, employees, safety reporting, social management organization, social vision and commitment, stakeholders, social policy and certifications, social aspects and impacts, choice of social performance indicators and those used by the industry, social initiatives and mitigations, and social goals and targets. www.roberts.cmc.edu 17 Transportation and Logistics Sectors SR Score Rankings Social Reporting Scores 74.78 Deutsche Post DHL 72.32 United Parcel Service 69.13 T NT 66.38 Nippon Yusen Kaisha (NYK) 63.48 A.P. Moller-Maersk British Airways 59.56 56.52 Mitsui OSK Lines 55.94 Air France-KLM 53.77 Lufthansa Group Delta Airlines 51.59 Qantas Airways 49.85 United Airlines 48.55 44.49 FedEx 39.56 ABN AMRO Holding A+ Deutsche Post DHL A+ A United Parcel Service TNT A Nippon Yusen Kaisha (NYK) AA- A.P. Moller-Maersk British Airways B+ Mitsui OSK Lines B+ Air France-KLM B+ B Lufthansa Group Delta Airlines B Qantas Airways B B- United Airlines FedEx C+ ABN AMRO Holding C+ Cathay Pacific Airways Nippon Express East Japan Railway Nippon Express 30.43 C C East Japan Railway 29.71 C- Kawasaki Kisen Kaisha CD+ Kühne & Nagel Intl Union Pacific D+ All Nippon Airways D+ Tokyu D D- Singapore Airlines West Japan Railway D- US Airways Group DF Yamato Holdings Central Japan Railway Yamato Holdings 6.96 F STX Corp Central Japan Railway 2.90 F China Cosco Holdings 34.78 Cathay Pacific Airways 25.36 Kawasaki Kisen Kaisha 24.93 Kühne & Nagel Intl 21.74 Union Pacific 19.27 All Nippon Airways 17.39 T okyu 14.20 Singapore Airlines W est Japan Railway 9.28 US Airways Group 7.97 ST X Corp 0.00 China Cosco Holdings 0.00 0 25 50 75 100 Social reporting scores are based on the degree to which the company discusses various aspects of its dealings with its employees and contractors. They also include social costs and investments. www.roberts.cmc.edu 18 Transportation and Logistics Sectors SP Score Rankings Social Performance Scores A+ Deutsche Post DHL A- United Parcel Service 34.78 B+ B+ TNT United Airlines 34.78 B+ British Airways Mitsui OSK Lines ABN AMRO Holding 45.65 Deutsche Post DHL 39.13 United Parcel Service T NT United Airlines British Airways 32.61 Mitsui OSK Lines 32.61 B+ B+ ABN AMRO Holding 32.61 B FedEx B- Nippon Yusen Kaisha (NYK) BC+ Air France-KLM Qantas Airways C+ Delta Airlines C+ C A.P. Moller-Maersk East Japan Railway D+ Cathay Pacific Airways D Kawasaki Kisen Kaisha D D Union Pacific Lufthansa Group Union Pacific 8.70 D- Singapore Airlines Lufthansa Group 8.70 Singapore Airlines 4.35 DD- Tokyu Nippon Express T okyu 4.35 D- Yamato Holdings D- West Japan Railway DF Kühne & Nagel Intl US Airways Group F STX Corp US Airways Group 0.00 F F All Nippon Airways Central Japan Railway ST X Corp 0.00 F China Cosco Holdings 30.43 FedEx Nippon Yusen Kaisha (NYK) 26.09 Air France-KLM 26.09 23.91 Qantas Airways 23.91 Delta Airlines 23.91 A.P. Moller-Maersk 17.39 East Japan Railway 13.04 Cathay Pacific Airways Kawasaki Kisen Kaisha 8.70 Nippon Express 4.35 Yamato Holdings 2.17 W est Japan Railway 2.17 Kühne & Nagel Intl 2.17 All Nippon Airways 0.00 Central Japan Railway 0.00 China Cosco Holdings 0.00 0 25 50 75 100 Social performance scores are based on improvement, performance better than the sector average, or statements of compliance with established social standards. www.roberts.cmc.edu 19 Transportation and Logistics Sectors Transportation and Logistics Human Rights Reporting Elements of the PSI Scores Percent of companies reporting* Human Rights Topics adoption reinforcement monitoring 69.0% 37.9% 34.5% 0.0% 58.6% 34.5% 34.5% 0.0% Anti-corruption practices Bribery Degrading treatment or punishment of employees Effective abolition of child labor Elimination of all forms of forced and compulsory labor Elimination of discrimination in respect to employment and occupation Fair compensation of employees Free association and collective bargaining of employees Political contributions Reasonable working hours Sexual harassment compliance 27.6% 3.4% 3.4% 0.0% 31.0% 20.7% 20.7% 0.0% 37.9% 20.7% 20.7% 0.0% 72.4% 34.5% 41.4% 0.0% 34.5% 17.2% 17.2% 0.0% 48.3% 20.7% 24.1% 0.0% 34.5% 24.1% 13.8% 0.0% 27.6% 10.3% 13.8% 0.0% 51.7% 34.5% 17.2% 0.0% Basis of Scores Adoption We assign one point for adoption of a policy standard or for an explicit discussion of an organization’s stance on each of 11 human rights principles. Reinforcement We assign one point for a description of reinforcement actions to make a policy stronger, such as providing educational programs, training, or other activities to promote awareness. Monitoring We assign one point for a description of monitoring measures including mechanisms to detect violations at an early stage, providing systematic reporting, or establishment of committee structure to oversee risky activities. Compliance We assign one point for a quantitative indication of compliance, such as a description of incidences of failure of compliance, or a statement that there were no such incidences. www.roberts.cmc.edu 20 Transportation and Logistics Sectors Transportation and Logistics Average Overall, Environmental, and Social PSI Scores Performance by Country This graph illustrates the average PSI in three categories--overall, environmental, and social-breakdown by countries. Since our sample size follows the world's largest companies from the Fortune list, several countries have only one company score to represent the whole country's sustainability reporting in the sector. USA U.K. Switzerland South Korea Singapore Overall Netherlands Japan Germany France Denmark China Country N Australia Australia 1 USA U.K. Switzerland 2 Denmark 1 France Germany 1 2 Japan 10 Singapore Netherlands Singapore 2 1 Netherlands South Korea 1 Japan Switzerland 1 Germany U.K. USA 1 6 South Korea Environmental China France Denmark China Australia USA U.K. Switzerland South Korea Singapore Social Netherlands Japan Germany France Denmark China Australia 0 www.roberts.cmc.edu 10 20 30 40 50 21 60 70 Transportation and Logistics Sectors Visual Cluster Analysis Visual cluster analysis multivariate data of the sort produced by the PSI are difficult to summarize. Here we have created radar diagrams of the performance of each company analyzed in the sector by its environmental and social intent, reporting, and performance sorted by company ranking. Maximum scores will match the outer sides of the hexagon, which total up to 100 percent. EI = Environmental Intent, ER = Environmental Reporting, EP = Environmental Performance SI = Social Intent, SR = Social Reporting, SP = Social Performance ER EI ER 100 100 75 75 75 50 EP EI EI EP 50 EI 50 EP EI 50 25 25 25 0 0 0 0 SP SI SP SI SR SP SI SR Deutsche Post DHL SI SR TNT ER SP SR Nippon Yusen Kaisha (NYK) ER Mitsui OSK Lines ER ER 100 100 100 100 75 75 75 75 75 50 EP EI EP EI 25 0 SI 50 SI SR ER SP SI SR EI SI SP SR Delta Airlines ER ER 100 100 100 100 100 75 75 75 75 75 50 EP EI 50 EP EI EP 50 EI 50 EP EI 50 25 25 25 25 25 0 0 0 0 0 SI SP SI SR SP SI SR East Japan Railway SI SR Qantas Airways ER SP ER SP SI SR ABN AMRO Holding SP Lufthansa Group ER ER 100 100 100 100 100 75 75 75 75 75 50 EP EI 50 EP EI EP 50 EI 50 EP EI 50 25 25 25 25 25 0 0 0 0 0 SI SP SI SR SP SI SR Cathay Pacific Airways SI SR Nippon Express ER SP ER SP SI SR Union Pacific SP Kühne & Nagel Intl ER ER 100 100 100 100 100 75 75 75 75 75 50 EP EI 50 EP EI EP 50 EI 50 EP EI 50 25 25 25 25 25 0 0 0 0 0 SI SP SI SR SP SI SR All Nippon Airways SI SR Singapore Airlines ER SP ER SP SR West Japan Railway 100 100 100 75 75 75 75 EP EI 25 EP EI 25 0 SI 50 SR Yamato Holdings www.roberts.cmc.edu SI EI 25 0 SP EP 50 SR Central Japan Railway Tokyu 50 EP 25 0 SP SP ER 100 50 SI EP SR US Airways Group ER EP SR Kawasaki Kisen Kaisha ER EP SR FedEx ER EP 0 SP A.P. Moller-Maersk ER 50 25 SR British Airways ER EP 0 SI United Airlines 50 25 0 SP SR Air France-KLM EI 25 0 SP EP 50 EP SP 100 25 EI EP 25 0 ER EI 50 25 SR EI ER 100 75 United Parcel Service EI ER 100 75 SI EI ER 100 0 SI SP SR China Cosco Holdings 22 SI SP SR STX Corp Transportation and Logistics Sectors Relationships Between Overall PSI Score and Companies' Revenue and Profit Company Name Overall Score Revenue ($million) Revenue Log10 $M Profits Profits ($million) Log $M 10 Assets Assets ($million) Log $M 10 Market Value ($million) Market Value Log10 $M A.P. Moller-Maersk ABN AMRO Holding 52.73 44.55 48700 1.69 -1320 66490 1.82 33770 1.53 19920 1.30 -1470 25440 1.41 3130 0.50 Air France-KLM 56.12 31540 1.50 -1070 37130 1.57 3970 0.60 All Nippon Airways British Airways 23.70 52.91 14300 1.16 -40 17000 1.23 7540 0.88 12640 1.10 -530 15030 1.18 3660 0.56 Cathay Pacific Airwa Central Japan Railw 38.91 9.21 11170 1.05 -1100 14800 1.17 7350 0.87 16130 1.21 1290 0.11 51030 1.71 16070 1.21 China Cosco Holding 0.73 19210 1.28 1710 0.23 16950 1.23 17850 1.25 Delta Airlines Deutsche Post DHL 52.48 63.64 28060 1.45 -1240 43540 1.64 10340 1.01 66290 1.82 920 -0.04 49840 1.70 19690 1.29 East Japan Railway 47.70 27700 1.44 1920 0.28 67930 1.83 27430 1.44 FedEx Kawasaki Kisen Kais 44.42 29.15 32590 1.51 -250 24590 1.39 26850 1.43 12780 1.11 330 -0.48 9730 0.99 2270 0.36 Kühne & Nagel Intl 24.24 13240 1.12 430 -0.37 5730 0.76 10980 1.04 Lufthansa Group Mitsui OSK Lines 39.58 56.39 31100 1.49 -160 31270 1.50 6850 0.84 19160 1.28 1300 0.11 18240 1.26 7730 0.89 Nippon Express Nippon Yusen Kaish 36.73 58.30 18780 1.27 160 -0.80 11870 1.07 4390 0.64 24960 1.40 580 -0.24 20650 1.31 6110 0.79 Qantas Airways 46.67 11740 1.07 90 -1.05 16210 1.21 5330 0.73 Singapore Airlines STX Corp 23.39 0.00 10510 1.02 700 -0.15 16330 1.21 12620 1.10 13040 1.12 10 -2.00 18340 1.26 740 -0.13 TNT 58.46 14330 1.16 390 -0.41 11030 1.04 9630 0.98 Tokyu Union Pacific 13.09 30.18 13390 1.13 110 -0.96 20270 1.31 5390 0.73 14140 1.15 1900 0.28 42410 1.63 34210 1.53 United Airlines 53.03 16340 1.21 -650 18350 1.26 3010 0.48 United Parcel Servic US Airways Group 65.15 13.52 45300 1.66 2150 0.33 31880 1.50 58430 1.77 10460 1.02 -210 7450 0.87 1240 0.09 West Japan Railway 19.88 13100 1.12 560 -0.25 23650 1.37 6990 0.84 9.82 12860 1.11 260 -0.59 8650 0.94 6190 0.79 Yamato Holdings Source: www.roberts.cmc.edu 23 2010 Forbes List Transportation and Logistics Sectors 70 6 5 .15 60 5 8 .4 6 5 8 .3 0 5 6 .3 9 5 2 .9 1 6 3 .6 4 5 6 .12 5 3 .0 3 5 2 .7 3 5 2 .4 8 Overall PSI Scores 50 4 7 .7 0 4 6 .6 7 4 4 .5 5 40 4 4 .4 2 3 9 .5 8 3 8 .9 1 3 6 .7 3 30 3 0 .18 2 9 .15 2 R = 0.3561 2 3 .3 9 2 4 2.234.7 0 20 19 .8 8 13 .5 2 10 13 .0 9 9 .8 2 0 0 .0 0 0 0.2 0.4 0.6 0.8 1 9 .2 1 0 .7 3 1. 2 1. 4 1. 6 1. 8 2 Revenue Log10 $M 70 6 5 . 15 63.64 60 58.46 58.30 56.39 50 47.70 Overall PSI Scores 46.67 40 36.73 3 0 . 18 30 2 9 . 15 24.24 23.39 2 R = 0.1287 19 . 820 8 13 . 0 9 9.82 -2 9.21 0.73 0 0.00 - 2.5 10 - 1.5 -1 - 0.5 0 0.5 Profits Log10 $M www.roberts.cmc.edu 24 Transportation and Logistics Sectors 70 6 5 . 15 60 58.46 58.30 56.39 63.64 5 6 . 12 5 2 . 9 15 3 . 0 3 52.73 52.48 Overall PSI Scores 50 47.70 46.67 4444. 4. 525 40 39.58 38.91 36.73 30 3 0 . 18 2 2 9 . 15 R = 0.1244 24.24 2233. 3. 790 20 19 . 8 8 13 . 5 2 10 13 . 0 9 9.82 9.21 0.7 03 .00 0 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 Asset Log10 $M 70 6 5 . 15 63.64 60 58.30 58.46 56.39 5 6 . 12 5 3 . 0532 . 9 1 52.73 52.48 50 47.70 Overall PSI Scores 46.67 44.55 44.42 40 3 93 .85.89 1 36.73 30 2 9 . 15 23.70 20 2 4 .2234. 3 9 19 . 8 8 13 . 5 2 13 . 0 9 9.82 10 9.21 0.73 0 .00 0 - 0.5 3 0 . 18 2 R = 0.0916 0 0.5 1 1.5 2 Market Value Log10 $M www.roberts.cmc.edu 25 Transportation and Logistics Sectors Number of Explicit numerical goals Reported Mitsui OSK Lines Air France-KLM British Airways East Japan Railway United Parcel Service Qantas Airways 8 5 5 5 4 3 3 Deutsche Post DHL FedEx United Airlines TNT Nippon Yusen Kaisha (NYK) 2 2 2 2 Nippon Express 2 Kühne & Nagel Intl 2 A.P. Moller-Maersk 2 Delta Airlines 2 Lufthansa Group 1 Yamato Holdings 1 Central Japan Railway Cathay Pacific Airways ABN AMRO Holding US Airways Group Kawasaki Kisen Kaisha 1 1 1 1 1 0 5 10 15 20 25 Explicit Goals Most Frequently Reported 1 Greenhouse gases (or CO2 equivalents), total 2 Energy used (total) 6 3 Social community investment 5 4 Recordable incident/accident rate 5 5 Waste recycled: solid waste 5 6 Renewable energy used 4 7 Waste (solid) disposed of 3 www.roberts.cmc.edu 17 26 Transportation and Logistics Sectors Number of Topics Showing Performance Improvement over Previous Year Data Mitsui OSK Lines 11 Air France-KLM 10 United Parcel Service 8 TNT 8 FedEx 8 Deutsche Post DHL 8 Delta Airlines 8 East Japan Railway 7 Nippon Yusen Kaisha (NYK) 7 Qantas Airways 7 British Airways 6 United Airlines 6 ABN AMRO Holding 6 Cathay Pacific Airways 3 All Nippon Airways 3 Union Pacific 3 Kühne & Nagel Intl 3 A.P. Moller-Maersk 2 Singapore Airlines 2 Yamato Holdings 1 Nippon Express 1 0 5 10 15 20 25 30 35 40 Topics Most Frequently Reported as Having Improvements over previous year data 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Greenhouse gases (or CO2 equivalents), total Occupational health and safety protection Water used Recordable incident/accident rate Energy used (total) Women in management Social community investment Lost workday case rate Waste recycled: solid waste Renewable energy used Employee volunteerism Waste (solid) disposed of Employee satisfaction surveys Waste (hazardous) produced Community development Notices of violation (environmental) www.roberts.cmc.edu 14 11 9 8 8 7 6 6 6 6 5 5 4 4 4 4 27 Transportation and Logistics Sectors 17 18 19 20 21 22 Community education Waste (office) recycled Fines (environmental) Employee turnover rate Environmental expenses and investments Waste (hazardous) released to the environment www.roberts.cmc.edu 3 2 2 2 1 1 28 Transportation and Logistics Sectors Number of Topics in which Performance was Better than Sector Average* Delta Airlines 3 ABN AMRO Holding 2 Air France-KLM 2 Singapore Airlines 2 United Parcel Service 2 Cathay Pacific Airways 1 Deutsche Post DHL 1 East Japan Railway 1 FedEx 1 Nippon Yusen Kaisha (NYK) 1 TNT 1 United Airlines 1 0 1 2 3 4 *Sector averages are calculated from the materials scored for this report. www.roberts.cmc.edu 29 Transportation and Logistics Sectors A- AP Moller Maersk 2011 CSR, Code of Conduct, and 2012 Web Pages A.P. Moller-Maersk Maersk has a strong stated commitment to sustainable environmental and social practices as a means to long-term economic development and growth. The company is one of 55 worldwide participants in the UN Global Compact LEAD program, focused on achieving the highest levels of corporate sustainability on both local and global levels. Due to the company’s nature as a conglomerate involved with shipping, production, oil, and retail, it has no overarching group environmental policy; each subsidiary is encouraged to create its own measures for reducing environmental impact in line with the company’s environmental vision. Maersk Line, its shipping division, is developing new Triple-E class ships which will be 90% recyclable and some of the most CO2 efficient large container ships in the world. To prevent transmission of invasive species through ship ballast water, the company has developed a ballast water treatment system that will be implemented across all ships within the Maersk fleet. Although these subsidiary environmental achievements are commendable, the company should strive to set more concrete environmental policy and goals for the entire group. Maersk’s social performance is similarly decentralized. It does not provide group-wide records of employee turnover, lost workday rate or community investment. However, it does have an overarching action plan for human rights policy based upon the UN Guiding Principles on Business and Human Rights. The company has identified gaps within its performance and has outlined action plans for closing these gaps. Further, it provides a concise but robust code of conduct that protects employees and ensures compliance with appropriate laws and regulations related to social performance. To aid with disaster relief, Maersk fields Logistics Emergency Teams as a part of the UN’s World Food Program. These teams employ logistics expertise and assets to assist in the immediate aftermath of a disaster; an LET was deployed to Japan in the wake of the 2011 tsunami. Analyst 1: Lucas Van Houten Analyst 2: Erin Franks E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 77 E 40% ES A S S 60% SSA 0 25 50 77 63 33 24 4 EI ER EP A.P. Moller-Maersk SI SR SP 75 Environmental Intent Score Max Score % General Comment Accountability Question Category 4 4 100 Excellent Management 6 8 75 Excellent Policy 6 10 60 Good Vision 4 4 100 Excellent Score Max Score % General Comment 5 7 71 Good Environmental Reporting Question Category Emissions to Air Energy 3 14 21 Needs substantial improvement Management 0 21 0 Needs substantial improvement Recycling 4 14 29 Needs improvement Waste 6 21 29 Needs improvement Water 3 7 43 Needs improvement Social Intent Question Category Score Max Score % General Comment Accountability 4 4 100 Excellent Management 6 10 60 Good Policy 6 6 100 Social Demographic 0 2 0 Vision 4 4 100 Score Max Score % General Comment 50 77 65 Good Excellent Needs substantial improvement Excellent Social Reporting Question Category Human Rights Management 6 7 86 Excellent Qualitative Social 21 35 60 Good Quantitative Social 4 42 10 Needs substantial improvement www.roberts.cmc.edu 30 Transportation and Logistics Sectors B AMR 2010 Corporate Responsibility Report, 2007 Environmental Responsibility Report, and 2012 Web Pages ABN AMRO Holding While AMR seems to be making an effort to be more environmentally sustainable, it lacks sufficient data, and results are mixed. The company’s 2010 Corporate Responsibility Report and 2012 website include environmental sections, but the last published Environmental Responsibility Report, which was more extensive, was from 2007. AMR’s greenhouse gas emissions have increased during the period from 2005 to 2010. Water usage shows only a small decrease. For many other categories considered in the PSI, such as solid waste recycled and solid waste disposed, there are only data for the current year, which makes it difficult to track performance over time. This being said, AMR was listed in Newsweek in 2011 as the greenest U.S. airline. It is important to note that the aviation industry is intrinsically linked to high CO2 and other greenhouse gas emissions, and AMR acknowledges this. It has implemented a program called Fuel Smart which aims to both reduce fuel usage and improve fuel efficiency. Additionally, the company has managed to achieve reductions in noise pollution through modification of existing aircraft, and new purchases. Where AMR really shines is in its social policies, especially those considering diversity. AMR has received numerous awards from a variety of different organizations, including the Human Rights Campaign, Hispanic Business magazine, and Corporate Counsel Women of Color. The corporation has a strong framework for promoting and maintaining diversity which consists of a Diversity Committee, a Diversity Strategies organization, and different Employee Resource Groups. Minority and female participation in management positions has increased over the past 15 years. AMR also fosters a culture of volunteerism and community improvement; the company itself and its employees are engaged in a commendable number of volunteer initiatives. Analyst 1: Katherine Recinos Analyst 2: Stephanie Oehler E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 77 ES A E 50% S S 50% SSA 25 50 40 33 SR SP 13 EI 0 65 37 ER EP ABN AMRO Holding SI 75 Environmental Intent Score Max Score % General Comment Accountability Question Category 4 4 100 Excellent Management 6 8 75 Excellent Policy 6 10 60 Good Vision 4 4 100 Excellent Score Max Score % General Comment 6 7 86 Excellent Environmental Reporting Question Category Emissions to Air Energy 3 14 21 Needs substantial improvement Management 5 21 24 Needs substantial improvement Recycling 4 14 29 Needs improvement Waste 3 21 14 Needs substantial improvement Water 4 7 57 Good Score Max Score % General Comment 2 4 50 Good Management 7 10 70 Good Policy 6 6 100 Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 30 77 39 Needs improvement Social Intent Question Category Accountability Excellent Social Reporting Question Category Human Rights Management 7 7 100 Excellent Qualitative Social 20 35 57 Good Quantitative Social 5 42 12 Needs substantial improvement www.roberts.cmc.edu 31 Transportation and Logistics Sectors A- Air France KLM CSR report 2010-11, Sustainable Development Charter, Social Rights and Ethics Charter, and 2012 Webpages Air France-KLM Air France KLM’s 2010-11 Corporate Social responsibility report is impressive. For an organization that quite literally spans the globe, it pays remarkable attention to local concerns in its various operational areas. Relevant data for the status of the company’s social and environmental policy initiatives are clearly annexed. The groups’ web pages, reports, and ethical charters are accessible, up-to-date, and for the most part, easy to navigate. The group operates under relevant ISO standards as much as possible. However, the group’s stellar reporting is undermined by its neglecting to outline the specifics of its monitoring structure for the wide array of its CSR projects. One area it definitely needs to improve on, in including a specifically designated contact person for its CSR operations. Analyst 1: Somaiah Kambiranda Analyst 2: Simone Berkovitz E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 88 85 ES A E 48% S S 52% SSA 0 25 50 56 45 26 25 Air France-KLM EI 75 ER EP SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 1 4 25 Needs improvement Management 7 8 88 Excellent Policy 10 10 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 6 7 86 Excellent Environmental Reporting Question Category Emissions to Air Energy 9 14 64 Good Management 0 21 0 Needs substantial improvement Recycling 0 14 0 Needs substantial improvement Waste 13 21 62 Good Water 5 7 71 Good Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 8 10 80 Excellent Policy 6 6 100 Excellent Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 24 77 31 Needs improvement Excellent Social Reporting Question Category Human Rights Management 6 7 86 Qualitative Social 22 35 63 Good Quantitative Social 21 42 50 Good www.roberts.cmc.edu 32 Transportation and Logistics Sectors C- All Nippon Air Annual Report 2011, and 2012 Web pages All Nippon Airways All Nippon Air (ANA) has a stated commitment to being a leading eco-friendly airline and utilizing airlines’ efficiency advantages over other modes of transport to reduce society’s environmental impact. It has worked in conjunction with Boeing to develop the Boeing 787, a medium-body aircraft that reduces fuel consumption by 20% over the industry-standard 767; ANA will introduce the 787 to its fleet in spring 2012. To offset its CO2 emissions, it sponsors forestation projects around 50 airports in Japan. However, ANA provides very little quantitative data, and the sparse data it provides is limited to the year of the report. The company should strive to provide more comprehensive quantitative indicators for its environmental performance. Socially, ANA is committed to safety for its employees and customers and satisfaction from its stakeholders. It has an extensive system for stakeholder communication in place, and solicits feedback regularly. The company also has a sound system in place for emergency response; it was tested by the Japan earthquake in March 2011 and functioned as expected. Quantitative indicators are similarly lacking for social performance. Although it is clear that ANA supports social initiatives, there is no indication of the scope of its contributions. Furthermore, despite its emphasis on safety and employee satisfaction, ANA does not provide the results of its employee satisfaction survey, its employee turnover rate, or the lost workday rate. The company also provides no code of conduct or similar statement of policies in areas such as corruption, compensation, and discrimination. ANA should be more transparent about the scope of its commitment to its social practices and its internal policies. Analyst 1: Lucas Van Houten Analyst 2: Simone Berkovitz E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E S 41% ES A E 59% S 62 50 18 19 13 0 All Nippon Airways SSA EI 0 25 50 ER EP SI SR SP 75 Environmental Intent Score Max Score % General Comment Accountability Question Category 3 4 75 Excellent Management 4 8 50 Good Policy 7 10 70 Good Vision 2 4 50 Good Score Max Score % General Comment 3 7 43 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 3 14 21 Needs substantial improvement Management 0 21 0 Needs substantial improvement Recycling 2 14 14 Needs substantial improvement Waste 4 21 19 Needs substantial improvement Water 2 7 29 Needs improvement Social Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Management 5 10 50 Good Policy 1 6 17 Needs substantial improvement Social Demographic 2 2 100 Excellent Vision 3 4 75 Excellent Score Max Score % General Comment 2 77 3 Needs substantial improvement Needs substantial improvement Social Reporting Question Category Human Rights Management 0 7 0 Qualitative Social 15 35 43 Needs improvement Quantitative Social 3 42 7 Needs substantial improvement www.roberts.cmc.edu 33 Transportation and Logistics Sectors A- British Airways CSR, Env. Policy, Staff Concerns, Business Standards, Business Integrity, and 2012 Webpages British Airways British Airways does a good job of touching on most subjects concerning social and environmental sustainability. However, their quantitative data is severely lacking. Aside from some figures on waste, greenhouse gas emissions, and accident rate, they hardly have any consistently measured figures at all (or, if they do, they do not report them). From a plethora of single statistics throughout their website, it seems that British Airways either does keep track of these figures and simply did not release them, or at the very least has the capacity to do so. The figures may have been kept up to date for several years, but the annual report on sustainability that was started in 1990 was disbanded in 2005. On the qualitative side, however, British Airways is quite thorough. They delve deeply into several topics, covering a wide variety of topics related to community investment, for example. If they were to take just a few more measurements or add a few paragraphs to their CSR, they could easily increase the breadth of their sustainability reporting greatly, and could then phase-in the sort of depth they have become accustomed to over time. Analyst 1: Quinn Chasan Analyst 2: Karina Gomez E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 96 E 43% ES A S 65 S 57% SSA 0 25 50 28 EI 75 ER 60 33 13 EP British Airways SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 3 4 75 Excellent Management 8 8 100 Excellent Policy 10 10 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 6 7 86 Excellent Environmental Reporting Question Category Emissions to Air Energy 2 14 14 Needs substantial improvement Management 0 21 0 Needs substantial improvement Recycling 6 14 43 Needs improvement Waste 6 21 29 Needs improvement Water 0 7 0 Needs substantial improvement Score Max Score % General Comment 1 4 25 Needs improvement Management 5 10 50 Good Policy 5 6 83 Excellent Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 34 77 44 Needs improvement Social Intent Question Category Accountability Social Reporting Question Category Human Rights Management 7 7 100 Excellent Qualitative Social 32 35 91 Excellent Quantitative Social 11 42 26 Needs improvement www.roberts.cmc.edu 34 Transportation and Logistics Sectors B- Cathay Pacific Airways 2011 CSR, Supplier Code of Conduct, FAQs, and 2012 Webpages Cathay Pacific Airways Cathay publishes Sustainable Development Report 2011 that received an A+ GRI grade because of the major revamp of the previous report. Cathay is thorough in covering environmental as well as social topics. There are significant attention given to reporting quantitative data and also reporting on progress made in prior years. Analyst 1: Quinn Chasan Analyst 2: Stephanie Wolfe E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 77 ES A S 47% E 53% S SSA 0 25 50 69 35 35 13 8 EI 75 ER EP SI SR Cathay Pacific Airways SP Environmental Intent Question Category Accountability Score Max Score % General Comment 2 4 50 Good Management 6 8 75 Excellent Policy 8 10 80 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 5 7 71 Good Environmental Reporting Question Category Emissions to Air Energy 0 14 0 Needs substantial improvement Management 2 21 10 Needs substantial improvement Recycling 7 14 50 Good Waste 4 21 19 Needs substantial improvement Water 5 7 71 Good Social Intent Question Category Score Max Score % General Comment Accountability 4 4 100 Excellent Management 10 10 100 Excellent Policy 2 6 33 Needs improvement Social Demographic 2 2 100 Excellent Vision 0 4 0 Score Max Score % General Comment 8 77 10 Needs substantial improvement Needs substantial improvement Social Reporting Question Category Human Rights Management 0 7 0 Needs substantial improvement Qualitative Social 24 35 69 Good Quantitative Social 12 42 29 Needs improvement www.roberts.cmc.edu 35 Transportation and Logistics Sectors D Central Japan Railway Environmental Issues, Series N700, 2011 Annual Report Environmental Section, 2010 Environmental Report, and 2012 Web Pages Central Japan Railway Central Japan Railway publishes a variety of information through its environmental issues paper, series N700 paper, and 2010 Environmental Report. Though Central Japan Railway makes a strong effort to report its sustainability efforts, it does not provide the most important data for measuring environmental and social sustainability. The transportation company’s environmental report focuses on describing its advances in designing new and more carbon-efficient trains. Also included is an analysis of the carbon emissions of the railway industry as compared to the airline industry. While all the information that Central Japan Railway included is useful, it fails to provide current data on the most important environmental sustainability data, such as greenhouse gas emissions, energy use, or waste disposal. Central Japan Railway does, however, provide detailed environmental accounting figures. The company should be praised for its efforts in improving the energy and carbon efficiency of its trains; however, it should report up-to-date figures on greenhouse gas emissions, energy use, and waste disposal in order to improve. Central Japan Railway’s social sustainability report similarly covers a wide variety of topics but fails to include measures such as a breakdown of its workforce by age, gender, and ethnicity. Also missing from the report is any measure of lost workday or accident rates. The company does, however, report opportunities for employee training and its initiatives for community development. These projects include the training centers at Aichi and Shizuoka Prefecture and the Nagoya Central Hospital. All these endeavors are encouraged and praised, though to improve, we recommend that Central Japan Railway report data on the metrics mentioned above. Central Japan Railway’s sustainability reports are detailed and describe many of the company’s efforts to be responsible. However, the company does not report some of the most central measures of sustainability. We recommend that these figures be reported for a better score. Analyst 1: Alan Hu Analyst 2: Hilary Haskell E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E S 26% ES A S 42 23 8 E 74% SSA 0 25 50 EI 75 ER 0 EP SI 3 0 SR SP Central Japan Railway Environmental Intent Score Max Score % General Comment Accountability Question Category 1 4 25 Needs improvement Management 3 8 38 Needs improvement Policy 4 10 40 Needs improvement Vision 3 4 75 Excellent Score Max Score % General Comment 1 7 14 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 1 14 7 Needs substantial improvement Management 0 21 0 Needs substantial improvement Recycling 2 14 14 Needs substantial improvement Waste 0 21 0 Needs substantial improvement Water 1 7 14 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 2 10 20 Needs substantial improvement Policy 2 6 33 Needs improvement Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Social Reporting Question Category Score Max Score % General Comment Human Rights 0 77 0 Needs substantial improvement Management 0 7 0 Needs substantial improvement Qualitative Social 3 35 9 Needs substantial improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 36 Transportation and Logistics Sectors F China Costco Holdings 2012 Web Pages China Cosco Holdings China Costco Holding’s web pages dedicate a single page to its environmental sustainability reporting efforts. The shipping company reports a partnership with the China Global Compact Office in order to promote the ten principles of Global Compact; however, no more detail is given other than this 2005 effort. China Costco Holding makes no effort to report any corporate responsibility initiatives, and as such receives a low score. Analyst 1: Simone Berkovitz Analyst 2: Alan Hu E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points S 0% E ES A 8 S SSA 0 25 50 E 10 0 % 75 EI 0 0 0 0 0 ER EP SI SR SP China Cosco Holdings Environmental Intent Score Max Score % General Comment Accountability Question Category 0 4 0 Needs substantial improvement Management 0 8 0 Needs substantial improvement Policy 0 10 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 0 7 0 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 0 14 0 Needs substantial improvement Management 0 21 0 Needs substantial improvement Recycling 0 14 0 Needs substantial improvement Waste 0 21 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 0 10 0 Needs substantial improvement Policy 0 6 0 Needs substantial improvement Social Demographic 0 2 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Social Reporting Question Category Score Max Score % General Comment Human Rights 0 77 0 Needs substantial improvement Management 0 7 0 Needs substantial improvement Qualitative Social 0 35 0 Needs substantial improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 37 Transportation and Logistics Sectors A- Delta Airlines 2010 Corporate Responsibility Report, 2009 Corporate Responsibility Report, and 2012 Web Pages Delta Airlines Delta Airlines provides a detailed and comprehensive Corporate Responsibility Report that clearly demonstrates its commitment to both social and environmental policy. Thorough quantitative data is reported regarding recycled waste, hazardous waste produced, and greenhouse gases released, all of which have seen improvement over the past several years. The data provided regarding greenhouse gas emissions is especially notable, as the company presents detailed information illustrating the breakdown of emissions throughout its various operations (aircraft, facilities, etc). The consistent decrease in Delta’s greenhouse gas emissions over recent years is laudable, and is clearly presented in graphical form. An element that is notably missing from Delta’s CSR, however, is any quantitative reporting of energy use. Although there is a brief mention of energy saved due to the installation of eco-friendly roofing material, the report lacks detailed data regarding the company’s overall energy use. Delta Airlines excels in its social policy as well, particularly in regards to occupational health & safety protection and employee benefits. There has been a consistent decrease in both the reportable employee accident/incident rate and lost workday case rate over recent years, and Delta’s commitment to “providing employees with a safe and healthy work environment” is detailed in the “Employee Safety” section of the company’s CSR. In addition, Delta’s Force for Global Good upholds the values of community development, specifically “advancing global diversity, improving global wellness, improving the environment, and promoting arts and culture.” The company’s support of such causes has been demonstrated by a dramatic increase in social community investment from 2009 to 2010. This achievement, however, is slightly marred by the fact that from 2007 to 2009, the amount of money Delta spent on community outreach decreased by about $2.5 million each year (although this may be attributed to Delta’s bankruptcy during the economic recession). Despite this and various other areas that could be improved, overall Delta Airlines presents a very impressive Corporate Responsibility Report. Analyst 1: Helen Liu Analyst 2: Karina Gomez E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 77 69 ES A E 50% S SSA 0 25 50 52 48 S 50% 29 24 Delta Airlines EI 75 ER EP SI SR SP Environmental Intent Score Max Score % General Comment Accountability Question Category 3 4 75 Excellent Management 7 8 88 Excellent Policy 6 10 60 Good Vision 2 4 50 Good Score Max Score % General Comment 6 7 86 Excellent Energy 2 14 14 Needs substantial improvement Management 10 21 48 Needs improvement Recycling 8 14 57 Good Waste 8 21 38 Needs improvement Water 2 7 29 Needs improvement Score Max Score % General Comment 2 4 50 Good Management 8 10 80 Excellent Policy 6 6 100 Excellent Social Demographic 2 2 100 Excellent Vision 2 4 50 Good Score Max Score % General Comment 36 77 47 Needs improvement Environmental Reporting Question Category Emissions to Air Social Intent Question Category Accountability Social Reporting Question Category Human Rights Management 0 7 0 Needs substantial improvement Qualitative Social 18 35 51 Good Quantitative Social 15 42 36 Needs improvement www.roberts.cmc.edu 38 Transportation and Logistics Sectors A+ DHL Corporate Responsibility Report 2010 and Web Pages Deutsche Post DHL Deutsche Post DHL 2010 Corporate Responsibility Report and web pages thoroughly cover many environmental and social responsibility topics. The transportation company includes its position on many environmental matters, as well as what it is doing in response in its GoGreen Strategy. DHL has incorporated electric vehicles into its fleet, holds a World Environment Day for awareness, and was second in the transportation industry in Newsweek’s 2010 Green Ratings. DHL has a strong social mission which focuses on relief efforts worldwide. Many tons of goods have been donated, as well as the time of many employee volunteers. The company also has many health initiatives for employees, from road safety programs to organized fitness groups. DHL does lack in its quantitative data reporting, which it is aware of and mentions in the report, discussing its difficulty across the company’s 220 countries. However, DHL does do a commendable job in reporting greenhouse gas emissions, breaking them up by scope one, two and three to differentiate their sources. Aside from missing quantitative data, DHL has a very complete corporate responsibility report. Analyst 1: Whitney Ellen Dawson Analyst 2: Karina Gomez E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 88 E 37% ES A S S 63% SSA 0 25 50 88 75 46 33 8 EI ER EP Deutsche Post DHL SI SR SP 75 Environmental Intent Question Category Accountability Score Max Score % General Comment 3 4 75 Excellent Management 6 8 75 Excellent Policy 10 10 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 4 7 57 Good Environmental Reporting Question Category Emissions to Air Energy 9 14 64 Good Management 0 21 0 Needs substantial improvement Recycling 4 14 29 Needs improvement Waste 4 21 19 Needs substantial improvement Water 1 7 14 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 8 10 80 Excellent Policy 6 6 100 Excellent Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 48 77 62 Good Social Reporting Question Category Human Rights Management 6 7 86 Excellent Qualitative Social 35 35 100 Excellent Quantitative Social 18 42 43 Needs improvement www.roberts.cmc.edu 39 Transportation and Logistics Sectors B+ East Japan Railway: 2011 and 2012 JR East Group Sustainability Report and 2012 Web Pages East Japan Railway East Japan Railway’s sustainability report provides a detailed account of the corporation’s environmental reporting. The corporate sustainability report discusses the numerous efforts East Japan Railway has made to combat global climate change and preserve biodiversity. In the past year, EJR has reduced their CO2 emissions from 2.54 million tons to 2.15 million tons, and plans to reduce their annual emissions by an additional 0.37 million tons by 2018. The company has also undertaken numerous projects to improve the quality of the overall health of the environment. For example, EJR promoted the planting of greenery on their station and office building rooftops. EJR also began the Hometown Forestation Programs to plant trees native to each region and to revitalize forests. Despite the company’s descriptive environmental reporting, the sustainability report lacks a substantial amount of information regarding its social policy. EJR does not report any official policy discussing sexual harassment, child labor, reasonable working hours, and bribery and anticorruption practices. EJR would improve its overall score if it provided this information. However, the company does emphasize its safety protocols for its employees and its customers. Recently, EJR has imposed new regulations that address earthquake safety protocol. Analyst 1: Megan Smith Analyst 2: Erin Franks E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E S E 65% SSA 96 S 35% ES A 25 50 30 21 EI 0 77 65 ER EP SI SR 17 East Japan Railway SP 75 Environmental Intent Question Category Accountability Score Max Score % General Comment 3 4 75 Excellent Management 8 8 100 Excellent Policy 10 10 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 6 7 86 Excellent Environmental Reporting Question Category Emissions to Air Energy 8 14 57 Good Management 11 21 52 Good Recycling 7 14 50 Good Waste 9 21 43 Needs improvement Water 3 7 43 Needs improvement Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 7 10 70 Good Policy 6 6 100 Excellent Social Demographic 2 2 100 Excellent Vision 2 4 50 Good Score Max Score % General Comment 14 77 18 Needs substantial improvement Social Reporting Question Category Human Rights Management 3 7 43 Needs improvement Qualitative Social 19 35 54 Good Quantitative Social 6 42 14 Needs substantial improvement www.roberts.cmc.edu 40 Transportation and Logistics Sectors B Fedex 2010 Global Citizenship Report, Code of Business Conduct and Ethics, and 2012 Web Pages FedEx In its 2010 Global Citizenship Report, Code of Business Conduct and Ethics, and 2012 web pages, Fedex demonstrates a commitment to environmental sustainability, the community, and the welfare of its workers. Although the company does not report much quantitative data to support its claims, Fedex still demonstrates its corporate responsibility through its initiatives and actions, as well as improvement in its business practices. More information concerning water usage and environmental expenses and investments should be included. For social responsibility, Fedex should elucidate its commitment to ethical issues related to employee welfare and rights. Fedex’s most notable environmental initiative is its promotion and production of renewable energy. Many facilities have installed solar power generation, an accomplishment that has saved 4,000 metric tons of carbon emissions per year. Furthermore, the company purchases renewable energy credits to offset its power consumption. Fedex’s commitment to social responsibility is quantitatively evident through its high retention rate of employees; however, there is little quantitative data for accident rates or lost workday cases Overall, Fedex demonstrates its firm commitment to corporate sustainability. However, the company should more thoroughly report its policies and initiatives for some areas, as well as provide more quantitative data to better demonstrate its efforts. Analyst 1: Hilary Haskell Analyst 2: Stephanie Oehler E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E ES A 62 E 48% S SSA 0 25 50 54 40 S 52% 44 30 13 EI 75 ER EP FedEx SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 0 4 0 Needs substantial improvement Management 4 8 50 Good Policy 8 10 80 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 5 7 71 Good Environmental Reporting Question Category Emissions to Air Energy 9 14 64 Good Management 2 21 10 Needs substantial improvement Recycling 6 14 43 Needs improvement Waste 5 21 24 Needs substantial improvement Water 0 7 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Good Management 6 10 60 Policy 4 6 67 Good Social Demographic 0 2 0 Needs substantial improvement Vision 4 4 100 Score Max Score % General Comment 20 77 26 Needs improvement Excellent Social Reporting Question Category Human Rights Management 4 7 57 Good Qualitative Social 31 35 89 Excellent Quantitative Social 9 42 21 Needs substantial improvement www.roberts.cmc.edu 41 Transportation and Logistics Sectors C Kawasaki Kisen Kaisha 2011 Annual Report, 2010 FactBook, Charter of Conduct, and 2012 Web Pages Kawasaki Kisen Kaisha The Kawasaki Kisen Kaisha Annual Report, web site and Fact Book contain limited information concerning “K” Line’s CSR activities.“K” Line appears to be devoted to becoming an environmentally and socially responsible company. The greatest evidence for this is an officially established management crew in charge of CSR activities and even management personal to contact with CSR concerns. They have also secured ISO 14001 environmental management certification.•Nevertheless, “K” Line has a huge amount to improve on. Most detrimental to the company’s score is the lack of quantitative data concerning anything from greenhouse gas emissions to energy consumption to waste production. As a shipping company, “K” Line should keep very close tabs on its greenhouse gas production in particular. In fact the only data provided by the company was water use in its office buildings. Socially, “K” Line needs substantial development. To highlight one concerning example, there is no mention of women in management included in “K” Line’s report. In fact, “K” Line is headed by an overwhelmingly male management crew. Other concerning topics are missing from the company’s CSR activities as well. Bribery, political contributions, fair employee compensation, many more socially important issues are not discussed by “K” Line whatsoever. In a more positive light, there are initiatives that “K” Line has taken to play a role in advancing society. For example, in the aftermath of the earthquake that devastated central Chile in 2010, “K” Line used its considerable logistical capacity to ensure victims had access to preserved food and clothing. Deliveries free of charge have been the company’s contribution to relief efforts in the wake of many such natural disasters. Analyst 1: Chad Redman Analyst 2: Grant Yang E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 81 ES A S SSA 0 25 50 58 S 47% E 53% 25 18 0 EI 75 ER EP SI SR 9 Kawasaki Kisen Kaisha SP Environmental Intent Question Category Accountability Score Max Score % General Comment 4 4 100 Excellent Management 6 8 75 Excellent Policy 8 10 80 Excellent Vision 3 4 75 Excellent Score Max Score % General Comment 2 7 29 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 0 14 0 Needs substantial improvement Management 0 21 0 Needs substantial improvement Recycling 2 14 14 Needs substantial improvement Waste 3 21 14 Needs substantial improvement Water 4 7 57 Good Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 5 10 50 Good Policy 5 6 83 Excellent Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 18 77 23 Needs substantial improvement Needs substantial improvement Social Reporting Question Category Human Rights Management 0 7 0 Qualitative Social 14 35 40 Needs improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 42 Transportation and Logistics Sectors C- Kuehne and Nagel 2012 Sustainability Report, Code of Conduct, and 2012 Web Pages Kühne & Nagel Intl While Kuehne and Nagel dedicate a majority of its report towards the discussion of environmental sustainability, the report falls short of depicting an accurate portrait of the company’s environmental impact. Although the company attempts to communicate its impact with its suppliers and customers, Kuehne and Nagel’s Code of Conduct, 2012 Sustainability Report, and 2012 web pages need to add more information. The company omits discussion of any environmental or social impediments. In terms of the environment, the report overlooks issues such as climate change, the maintenance of biodiversity, and ecosystem and habitat conservation. Not one social challenges is mentioned; the company only states its respect for cultural diversity. The Code of Conduct emphasizes the company’s views on anti-corruption and bribery through the elaboration of policies, but little more is discussed. The company never mentions a policy on sexual harassment, free association, or the elimination of forced labo and child labor. The company provides explanations for carbon calculators, claiming the calculators provide accurate readings, yet does not validate this statement with quantitative evidence; Kuehne & Nagel only reports current quantitative data for renewable energy used and notes the greenhouse gases emissions improvement. Similarly, the company discusses the desire for the reduction of carbon emissions and energy usages. To improve the report, the company must disclose more information: quantitative data to accurately demonstrate its environmental impact, policies for workers’ rights, greater discussion of environmental and social challenges, and Kuehne and Nagel’s plans to combat these challenges. Analyst 1: Sierra Gibson Analyst 2: Erin Franks E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 46 ES A E 50% S S 50% SSA 0 25 50 46 17 25 13 2 EI 75 ER EP SI SR Kühne & Nagel Intl SP Environmental Intent Score Max Score % General Comment Accountability Question Category 2 4 50 Good Management 5 8 63 Good Policy 3 10 30 Needs improvement Vision 2 4 50 Good Score Max Score % General Comment 4 7 57 Good Environmental Reporting Question Category Emissions to Air Energy 4 14 29 Needs improvement Management 0 21 0 Needs substantial improvement Recycling 3 14 21 Needs substantial improvement Waste 0 21 0 Needs substantial improvement Water 2 7 29 Needs improvement Social Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Management 4 10 40 Needs improvement Policy 4 6 67 Good Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Social Reporting Question Category Score Max Score % General Comment Human Rights 20 77 26 Needs improvement Management 0 7 0 Needs substantial improvement Qualitative Social 8 35 23 Needs substantial improvement Quantitative Social 2 42 5 Needs substantial improvement www.roberts.cmc.edu 43 Transportation and Logistics Sectors B- Deutsche Lufthansa 2011 Corporate Sustainability Report and 2012 Web Pages Lufthansa Group Deutsche Lufthansa’s corporate sustainability report demonstrates a clear commitment to sustainability, but needs improvement in certain areas. One of the most lacking areas of the report is quantitative data reporting. While the report does include a great deal of information on the fuel consumption of the company’s aircraft, it contains little to no information on energy use, waste produced, or water use. Also, the company does not include much quantitative information on its responsibility to its employees or the communities it operates in. For example, the company gives no information on recordable accident rate or fines that have been imposed on the company. The company does not do a very good job of expanding its scope of reporting. One of the most noticeable examples of this problem is the dis-proportional amount of space the company devotes to fuel consumption and the development of bio-fuels. While this section contains elements that make a sustainability report successful- company goals, their implementation, quantitative data- no other section in the report comes close to being as informative as this aspect of the company’s operation. While fuel consumption may be a very pertinent issue for a major airline, a company this large must have many other elements of its operation that affect the environment. The company, however, does a very good job of organizing the data that is does provide. Many of the graphs and tables throughout the report make data understandable. An example is the table that highlights the company’s demographic structure in the diversity section of the report. Furthermore, the tables at the end of each section sum up most of the data that appeared in the section are very convenient and helpful reference points. The glossary at the end of the report is also very helpful in understanding the technical terms that appear throughout the report. Analyst 1: Sam Kahr Analyst 2: Grant Yang E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E E 32% ES A 73 54 S S 68% SSA 0 25 50 73 EI 75 8 0 ER EP 9 SI SR Lufthansa Group SP Environmental Intent Question Category Accountability Score Max Score % General Comment 3 4 75 Excellent Management 6 8 75 Excellent Policy 8 10 80 Excellent Vision 2 4 50 Good Score Max Score % General Comment 5 7 71 Good Environmental Reporting Question Category Emissions to Air Energy 0 14 0 Needs substantial improvement Management 0 21 0 Needs substantial improvement Recycling 0 14 0 Needs substantial improvement Waste 0 21 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Score Max Score % General Comment 2 4 50 Good Management 7 10 70 Good Policy 4 6 67 Good Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 37 77 48 Needs improvement Social Intent Question Category Accountability Social Reporting Question Category Human Rights Management 3 7 43 Needs improvement Qualitative Social 24 35 69 Good Quantitative Social 1 42 2 Needs substantial improvement www.roberts.cmc.edu 44 Transportation and Logistics Sectors A- Mitsui OSK Lines Environmental and Social Report 2012, 2011 Annual Report, and 2012 Web Pages Mitsui OSK Lines The Mitsui O.S.K Lines’ (MOL’s) 2012 Environmental and Social Report comprehensive insight into the company’s environmental and social activities. The voices from the front lines, really make the report come to life. The pictures illustrating the environmental protection strategies, such as one to prevent oil spills by having the double-hull tankers, speaks volumes on the company’s seriousness in protecting the environment. This report is packed with a lot of highly commendable sustainability initiatives, superior in the sector. Mr. CEO Koichi Muto’s vision on sustainability in the foreword is amplified by the many stories and topics covered in the report. This report is well-designed and well-written and because of the many attractive graphics and illustrations, could be used even by young children to study sustainability management in transportation business, but still sustains the significant depth of knowledge that would be an interest of a typical scientist in academia. Well done! Analyst 1: Chad Redman Analyst 2: Grant Yang E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 96 ES A E 47% S 57 S 53% SSA 0 25 50 81 36 33 18 EI 75 ER EP Mitsui OSK Lines SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 4 4 100 Excellent Management 8 8 100 Excellent Policy 9 10 90 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 6 7 86 Excellent Environmental Reporting Question Category Emissions to Air Energy 9 14 64 Good Management 3 21 14 Needs substantial improvement Recycling 6 14 43 Needs improvement Waste 0 21 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 4 4 100 Excellent Management 8 10 80 Excellent Policy 3 6 50 Good Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 26 77 34 Needs improvement Social Reporting Question Category Human Rights Management 7 7 100 Excellent Qualitative Social 27 35 77 Excellent Quantitative Social 18 42 43 Needs improvement www.roberts.cmc.edu 45 Transportation and Logistics Sectors B- Nippon Express Corporate Social Responsibility 2012, and 20012 Web Pages Nippon Express Nippon Express demonstrates its dedication to its social and environmental responsibilities through its 2012 Nippon Express Group Corporate Strategy. The company’s new strategy focuses not only on its growth as a logistics company, but also on the steps it must take to improve its environmental and social sustainability practices. After revision of its Environmental Charter in 2010, Nippon Express has introduced many new initiatives such as: the introduction of environmentally-friendly vehicles such as CNG trucks, LPG trucks, bi-fuel trucks and hybrids to reduce its emissions. It also promotes green purchasing and has a green purchasing rate of over 60%, however, the website lacks quantitative data in relation to its consumption and emissions of various forms of energy. Nippon Express is dedicated to its employees and focuses heavily on their development. In order to foster human resource development, it established NITTSU Group University to further enhance the skills and capabilities of its workers. Additionally, Nippon Express developed a three-year Education and Training Policy that highlights the various steps Nippon Express needs to take in order to achieve its goals of human resource development. However, the company fails to provide information on the rest of its social policies like its anti-corruption practices and the fair compensation of its employees. Analyst 1: Damini Marwaha Analyst 2: Karina Gomez E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 92 ES A S 81 S 44% E 56% 30 30 4 4 Nippon Express SSA 0 25 50 EI 75 ER EP SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 3 4 75 Excellent Management 7 8 88 Excellent Policy 10 10 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 4 7 57 Good Environmental Reporting Question Category Emissions to Air Energy 3 14 21 Needs substantial improvement Management 3 21 14 Needs substantial improvement Recycling 0 14 0 Needs substantial improvement Waste 7 21 33 Needs improvement Water 2 7 29 Needs improvement Score Max Score % General Comment 2 4 50 Good Management 7 10 70 Good Policy 6 6 100 Excellent Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 14 77 18 Needs substantial improvement Needs substantial improvement Social Intent Question Category Accountability Social Reporting Question Category Human Rights Management 0 7 0 Qualitative Social 15 35 43 Needs improvement Quantitative Social 5 42 12 Needs substantial improvement www.roberts.cmc.edu 46 Transportation and Logistics Sectors A NYK 2012 Web Pages Nippon Yusen Kaisha (NYK) NYK receives a high score for environmental and social responsibility, a testament to the company’s value of “monohakobi that enriches lives and protects the environment.” NYK demonstrates environmental innovation by including solar power generators and air-lubrication systems on their ships and module vessels. NYK’s Super Eco Ship 2030 – an advanced ship that will reduce carbon dioxide emissions by approximately 69 percent using solar, wind, and other renewable energies – looks like a particularly promising and forward-thinking technology. Moreover, the extensive training programs for both office workers and seafarers are good indicators of the company’s work ethic. Lastly, NYK is commended on the range of worldwide CSR activities, such as addressing energy consumption, global warming, pollution, earthquakes, floods, orphanages, and cancer. While NYK’s Corporate Social Responsibility report holds lots of helpful graphs, charts, and diagrams, they are highly concentrated or are small in the margins and make the report appear confusing and overwhelming. It would be helpful to reduce the amount of information on one page so as not to miss important information. NYK provides a wealth of environmental performance data, but the breakdown between NYK, three NYK-owned container terminals in Japan, and NYK fleet is unclear at times. Data on overall energy consumption, water consumption, waste production, and carbon dioxide emissions would be useful. Lastly, NYK does not provide a formal code of conduct online. NYK should clearly lay out the company’s adoption, monitoring, and reinforcement of policies, in addition to the provided United Nations Global Compact, which lacks a few important policies. However, in general, NYK appears as a safe and environmentally-friendly company through its monohakobi. Analyst 1: Taryn Akiyama Analyst 2: Hilary Haskell E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 88 E 45% ES A S S 55% SSA 0 25 50 77 66 45 26 8 EI 75 ER EP SI SR Nippon Yusen Kaisha (NYK) SP Environmental Intent Question Category Accountability Score Max Score % General Comment 1 4 25 Needs improvement Management 8 8 100 Excellent Policy 10 10 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 5 7 71 Good Environmental Reporting Question Category Emissions to Air Energy 9 14 64 Good Management 5 21 24 Needs substantial improvement Recycling 2 14 14 Needs substantial improvement Waste 4 21 19 Needs substantial improvement Water 4 7 57 Good Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 7 10 70 Good Policy 6 6 100 Excellent Social Demographic 1 2 50 Good Vision 3 4 75 Excellent Score Max Score % General Comment 35 77 45 Needs improvement Social Reporting Question Category Human Rights Management 5 7 71 Good Qualitative Social 33 35 94 Excellent Quantitative Social 15 42 36 Needs improvement www.roberts.cmc.edu 47 Transportation and Logistics Sectors B+ Qantas 2011 Annual Report and 2012 Web Pages Qantas Airways Qantas has an annual report covering sustainability topics such as environmental and social activities. The company participates in Carbon Disclosure project the website outlines the dominant area of interests in regards to its sustainability development, such as sustainable fuel, sustainable tourism, climate change, noise management, electricity, and water conservation. The company is active in the community and seems to be aware of the pressing needs of the companies of improving some of the areas where it can still improve. Information are not all inclusive, however, it does cover the essential of a typical global airline companies. There still some internal management issues that has yet not been reported, but overall, Qantas has done remarkable sustainability efforts within its reach. Analyst 1: Whitney Ellen Dawson Analyst 2: Hilary Haskell E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 81 E 43% ES A S 50 S 57% SSA 0 25 50 77 25 EI 75 ER 24 17 EP Qantas Airways SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 3 4 75 Excellent Management 4 8 50 Good Policy 10 10 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 4 7 57 Good Environmental Reporting Question Category Emissions to Air Energy 4 14 29 Needs improvement Management 0 21 0 Needs substantial improvement Recycling 4 14 29 Needs improvement Waste 5 21 24 Needs substantial improvement Water 2 7 29 Needs improvement Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 9 10 90 Excellent Policy 6 6 100 Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 22 77 29 Needs improvement Excellent Social Reporting Question Category Human Rights Management 7 7 100 Excellent Qualitative Social 28 35 80 Excellent Quantitative Social 10 42 24 Needs substantial improvement www.roberts.cmc.edu 48 Transportation and Logistics Sectors C- Singapore Airlines 2010/2011 Annual Report, 2010/11 Environmental Report, and 2012 Web Pages Singapore Airlines Singapore Airlines’ Annual Report and 2010/2011 Environmental Report provide a clear demonstration of the company’s commitment to good environmental performance. A formal environmental policy statement is presented, along with a statement of potential risks and challenges facing the company and its plans to overcome these obstacles. Particularly notable is SIA’s commitment to reducing the effects of climate change by implementing initiatives to improve the fuel efficiency of its aircraft. Although there was a slight increase in carbon dioxide emissions from 2009-2010 to 2010-2011, there has been a “general decline [emission per unit of load-tonne-km flown] over the last 10 years in line with fuel efficiency improvement” (pg. 228). The company’s Harapan Rainforest Preservation Project is commendable as well. ••Although SIA provides a detailed account of its environmental initiatives, it is lacking in its reporting of social performance. The most concerning demonstration of this issue is the company’s failure to provide any sort of Code of Conduct. As a result, fundamental issues such as employee rights and anti-corruption practices are not sufficiently addressed, although employee and customer safety is briefly mentioned. Furthermore, there is no formal social policy statement or description of a social organizational structure. Singapore Airlines does stress the importance of community development and employee volunteerism, however reporting of the internal social performance of the company is in need of vast improvement. Analyst 1: Helen Liu Analyst 2: Simone Berkovitz E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E S 30% ES A S 62 SSA 0 25 50 35 32 14 8 E 70% EI 75 ER EP SI SR 4 Singapore Airlines SP Environmental Intent Question Category Accountability Score Max Score % General Comment 2 4 50 Good Management 2 8 25 Needs improvement Policy 8 10 80 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 3 7 43 Needs improvement Environmental Reporting Question Category Emissions to Air Energy 5 14 36 Needs improvement Management 2 21 10 Needs substantial improvement Recycling 0 14 0 Needs substantial improvement Waste 7 21 33 Needs improvement Water 4 7 57 Good Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 4 10 40 Needs improvement Policy 3 6 50 Good Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 0 77 0 Needs substantial improvement Needs substantial improvement Social Reporting Question Category Human Rights Management 0 7 0 Qualitative Social 12 35 34 Needs improvement Quantitative Social 5 42 12 Needs substantial improvement www.roberts.cmc.edu 49 Transportation and Logistics Sectors F STX Corp. 2012 Web Pages STX Corp STX Corp does not have an English website. As the Roberts Environmental Center only scores reports available in English, no score can be given to STX Corp. Analyst 1: Alan Hu Analyst 2: Stephanie Oehler E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E S 1% E 1% ES A S 0 0 0 0 0 0 EI ER EP SI SR SP STX Corp SSA 0 25 50 75 Environmental Intent Score Max Score % General Comment Accountability Question Category 0 4 0 Needs substantial improvement Management 0 8 0 Needs substantial improvement Policy 0 10 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Score Max Score % General Comment 0 7 0 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 0 14 0 Needs substantial improvement Management 0 21 0 Needs substantial improvement Recycling 0 14 0 Needs substantial improvement Waste 0 21 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 0 10 0 Needs substantial improvement Policy 0 6 0 Needs substantial improvement Social Demographic 0 2 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Social Reporting Question Category Score Max Score % General Comment Human Rights 0 77 0 Needs substantial improvement Management 0 7 0 Needs substantial improvement Qualitative Social 0 35 0 Needs substantial improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 50 Transportation and Logistics Sectors A TNT 2011 CSR, Code of Conduct, and 2012 Webpages TNT TNT Express does not provide a dedicated CSR. Instead, its sustainability reporting is incorporated into the annual report. Its stated commitment to environmental sustainability is framed in terms of economic sustainability and demand from stakeholders, and is not supported by an official environmental policy. The company’s Plant Me initiative seeks to leverage its position in the transportation sector to create more fuel-efficient vehicles and optimize delivery for reduced emissions where it is financially viable. An extension of this is the City Logistics project, which seeks to provide zero-emissions lastmile deliveries in city centers. This is accomplished through package bundling and electric vehicles. Unfortunately, TNT provides little quantitative information on its environmental practices, and the sparse information it does provide is often only for the current year. It should strive to provide more comprehensive environmental data with historical points for reference. Quantitative data is similarly lacking for social indicators. Where it is present, there is sometimes conflicting data in different sections of the report (notably employee turnover and lost workday rate). However, TNT does have a strong commitment to integrity and a robust code of conduct that provides extensive protections to employees and enforces proper conduct. Safety is an area of focus for the company; it has implemented its own road safety management system to ensure an appropriate level of safe practices from all drivers that exceed legal requirements. Further, TNT established the North Star Alliance in conjunction with the World Food Program to provide for the health and safety needs of highly mobile populations such as truck drivers. The transmission of HIV/AIDS has become prevalent in the transportation sector, and the Alliance hopes to curtail it and other infection diseases’ spread and provide adequate treatment to at-risk mobile populations. Analyst 1: Lucas Van Houten Analyst 2: Stephanie Oehler E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E E 39% ES A S 31 S 61% SSA 0 25 50 77 73 EI 75 ER 69 35 18 EP TNT SI SR SP Environmental Intent Score Max Score % General Comment Accountability Question Category 4 4 100 Excellent Management 6 8 75 Excellent Policy 5 10 50 Good Vision 4 4 100 Excellent Score Max Score % General Comment 5 7 71 Good Environmental Reporting Question Category Emissions to Air Energy 6 14 43 Needs improvement Management 4 21 19 Needs substantial improvement Recycling 4 14 29 Needs improvement Waste 2 21 10 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 4 4 100 Excellent Management 8 10 80 Excellent Policy 3 6 50 Good Social Demographic 1 2 50 Good Vision 4 4 100 Excellent Score Max Score % General Comment 56 77 73 Good Social Reporting Question Category Human Rights Management 4 7 57 Good Qualitative Social 19 35 54 Good Quantitative Social 15 42 36 Needs improvement www.roberts.cmc.edu 51 Transportation and Logistics Sectors D Tokyu 2012 Webpages, 2011 Annual Report, and 2012 Web Pages Tokyu The Tokyu Corporation does not publish its CSR or many of its webpages in English. Although it appears that it has an extensive Japanese CSR and webpages on sustainability, there is little information available for English speakers. Most of the available information is financial. The company has a stated commitment to protecting the environment and vows to follow all relevant laws and regulations. The only evidence they provide for this commitment is mentioning a shift to newer, more energy-efficient vehicles and implementing natural ventilation and radiant cooling systems at one of their stations. There is a similar lack of English information for social practices. Tokyu states its commitment to sustainable social practice and compliance with all relevant laws and regulations, but provides little evidence that it does so. It does provide an English code of conduct, but its specifications are often vague. The company is developing a comprehensive emergency response program in light of the Japan Earthquake. Tokyu should seek to provide more complete environmental and social information in English so that it can be properly assessed. Analyst 1: Lucas Van Houten Analyst 2: Karina Gomez E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E E 25% ES A S 31 19 S 75% SSA 0 25 50 EI 75 17 2 0 ER EP 4 SI SR Tokyu SP Environmental Intent Score Max Score % General Comment Accountability Question Category 0 4 0 Needs substantial improvement Management 2 8 25 Needs improvement Policy 1 10 10 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 0 7 0 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 0 14 0 Needs substantial improvement Management 0 21 0 Needs substantial improvement Recycling 1 14 7 Needs substantial improvement Waste 0 21 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 1 4 25 Needs improvement Management 2 10 20 Needs substantial improvement Policy 3 6 50 Good Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Social Reporting Question Category Score Max Score % General Comment Human Rights 12 77 16 Needs substantial improvement Needs substantial improvement Management 0 7 0 Qualitative Social 9 35 26 Needs improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 52 Transportation and Logistics Sectors C+ Union Pacific 2011 Sustainability and Citizenship Report, and 2012 Web Pages Union Pacific Union Pacific publishes its 2011 Sustainability and Citizenship Report and the report conveys clear goals and descriptions on activities to achieve its goals. Union Pacific strives to achieve is to reduce its locomotive fuel consumption by 1 percent. This gradual, one-step-at-a-time approach is highly commendable, considering its significant cumulative impact to better the environment. There is a strong commitment on safety, "No injury is acceptable: Zero employee injuries, zero trespasser incidents, zero vehicle grade crossing accidents, and zero train derailments." Just reading this, give a tremendous level of comfort to an external stakeholder such as ourselves. The company has been active in the community, involved in its employees’ health and safety programs, and strategic in its environmental plans. Union Pacific is absolutely on the right track of sustainability. Analyst 1: Nicholas Hobbs Analyst 2: Grant Yang E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 81 69 ES A E 53% S S 47% SSA 0 25 50 23 22 9 4 EI 75 ER EP SI SR Union Pacific SP Environmental Intent Score Max Score % General Comment Accountability Question Category 4 4 100 Excellent Management 5 8 63 Good Policy 5 10 50 Good Vision 4 4 100 Excellent Score Max Score % General Comment 4 7 57 Good Energy 3 14 21 Needs substantial improvement Management 6 21 29 Needs improvement Recycling 2 14 14 Needs substantial improvement Waste 0 21 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 10 10 100 Excellent Policy 4 6 67 Good Social Demographic 0 2 0 Needs substantial improvement Vision 4 4 100 Score Max Score % General Comment 4 77 5 Needs substantial improvement Excellent Social Reporting Question Category Human Rights Management 0 7 0 Needs substantial improvement Qualitative Social 18 35 51 Good Quantitative Social 6 42 14 Needs substantial improvement www.roberts.cmc.edu 53 Transportation and Logistics Sectors A- United Airlines 2009-2010 and 2010-2011 Corporate Responsibility Report, CDP responses, Corporate Governance Guidelines, Ethics and Compliance Principles, 2010 Global Citizenship Report, and 2012 Web Pages United Airlines United Airlines is committed to environmentally sustainable and socially responsible business practices, and the company provides extensive information regarding its operations and initiatives through its 2009-2010 and 2010-2011 Corporate Responsibility Report, CDP response, Global Citizenship Report and Ethics and Compliance Principles Report. United prides itself as an industry leader in environmental innovation and has invested in several pioneering programs including synthetic air-fuel development and extensive on-board and ground recycling. United provides extensive quantitative information regarding its resource consumption, waste production, community investment and business performance. The company does hold back some information regarding waste disposal and environmental and health citations. Its environmental approach involves investment in alternative fuels and fuel efficiency, minimization and safe recycling of waste, improvement of operational efficiency (especially with regard to flight-paths), and dialogue with partners and suppliers to improve environmental sustainability. Employee volunteerism is promoted and United supports several organizations that conduct environmental and social work. United has adopted an environmental management system based on ISO 14001 and is part of the Carbon Disclosure Project. United’s ‘Eco-skies’ program invests in alternative fuel development and the company works with the airline industry to maximize operational efficiency (its green corridor flight CO2 emissions by 20,000 pounds). United’s social policies involve community partnership, youth and education development and health and humanitarian aid. The company prides itself as a being great place to work and has an inclusive policy of both supplier and workforce diversity. United conducts internal and third party audits through its CSR reports it clearly shares information regarding its performance. Although there are areas where United can improve its social and environmental reporting, overall the company displays remarkable corporate responsibility reporting. Analyst 1: Ratik Asokan Analyst 2: Erin Franks E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 81 ES A E 50% S S 50% SSA 0 25 50 77 48 49 35 17 EI 75 ER EP United Airlines SI SR SP Environmental Intent Score Max Score % General Comment Accountability Question Category 3 4 75 Excellent Management 7 8 88 Excellent Policy 7 10 70 Good Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 5 7 71 Good Energy 10 14 71 Good Management 3 21 14 Needs substantial improvement Recycling 6 14 43 Needs improvement Waste 5 21 24 Needs substantial improvement Water 4 7 57 Good Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 7 10 70 Good Policy 6 6 100 Social Demographic 0 2 0 Vision 4 4 100 Score Max Score % General Comment 32 77 42 Needs improvement Excellent Needs substantial improvement Excellent Social Reporting Question Category Human Rights Management 4 7 57 Good Qualitative Social 31 35 89 Excellent Quantitative Social 7 42 17 Needs substantial improvement www.roberts.cmc.edu 54 Transportation and Logistics Sectors A+ UPS 2010 CSR, Code of Conduct, and 2012 Web Pages United Parcel Service UPS prides itself on being a leader in sustainability, particularly in the emissions-heavy transportation and logistics sector. Fortune magazine recognized UPS as the #1 most admired company in social responsibility in 2010. The company sets forth clear environmental and social visions, and has a host of initiatives to see these visions through. The company incorporates technological solutions in every facet of its business to optimize efficiency and reduce environmental impact. It has outfitted 40% of its US ground fleet with telematics systems that report driving information; that data is then used to advise driver behavior to reduce driving time and consequently reduce emissions. UPS has also implemented carbon neutral shipping options for all customers: they can opt to have emissions created by their shipments offset by UPS for a small fee. The weakest point of UPS’ CSR is its lack of historical quantitative data – although it provides quantitative indicators in many areas, it often only lists the most current data and no previous years for comparison. It should strive to include more comprehensive historic data in addition to its current period. UPS also performs well socially. Important for any transportation or Logistics Company is the safety of its drivers; of UPS’ training expenditures in 2010, nearly 50% was spent on safety programs. The injury rate for employees and accident frequency for drivers both dropped. UPS publishes and enforces a robust code of conduct to protect the human rights of its workers and those with whom it does business. Analyst 1: Lucas Van Houten Analyst 2: Hilary Haskell E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 85 E 44% ES A S 25 50 72 39 S 56% SSA 0 85 50 United Parcel Service 17 EI 75 ER EP SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 4 4 100 Excellent Management 6 8 75 Excellent Policy 8 10 80 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 5 7 71 Good Environmental Reporting Question Category Emissions to Air Energy 6 14 43 Needs improvement Management 5 21 24 Needs substantial improvement Needs improvement Recycling 6 14 43 Waste 7 21 33 Needs improvement Water 5 7 71 Good Social Intent Question Category Score Max Score % General Comment Accountability 4 4 100 Excellent Management 6 10 60 Good Policy 6 6 100 Excellent Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 50 77 65 Good Social Reporting Question Category Human Rights Management 6 7 86 Excellent Qualitative Social 26 35 74 Good Quantitative Social 18 42 43 Needs improvement www.roberts.cmc.edu 55 Transportation and Logistics Sectors D US Airways Group 2010 Corporate Responsibility Report and 2012 Web Pages US Airways Group US Airways’ 2012 web pages and 2011 corporate responsibility report presents a limited view of its sustainability practices with some notable gaps in its reporting. The airline company has a clear environmental and social visionary statement and reports initiatives such as Flights for 50, which is an employee volunteering program. US Airways’ reporting has significant room for improvement. Also lacking is any form of data that measures employee satisfaction, turnover rate, or accident rate. For a better score, we recommend that US Airways publish updated figures for its quantitative figures and report more social sustainability metrics. Analyst 1: Alan Hu Analyst 2: Grant Yang E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E S 34% ES A S E 66% SSA 0 25 50 31 31 20 8 0 EI 75 ER EP 0 SI SR US Airways Group SP Environmental Intent Score Max Score % General Comment Accountability Question Category 1 4 25 Needs improvement Management 1 8 13 Needs substantial improvement Policy 4 10 40 Needs improvement Vision 2 4 50 Good Score Max Score % General Comment 4 7 57 Good Environmental Reporting Question Category Emissions to Air Energy 3 14 21 Needs substantial improvement Management 0 21 0 Needs substantial improvement Recycling 2 14 14 Needs substantial improvement Waste 0 21 0 Needs substantial improvement Water 3 7 43 Needs improvement Social Intent Question Category Score Max Score % General Comment Accountability 1 4 25 Needs improvement Management 2 10 20 Needs substantial improvement Policy 3 6 50 Good Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Social Reporting Question Category Score Max Score % General Comment Human Rights 2 77 3 Needs substantial improvement Management 0 7 0 Needs substantial improvement Qualitative Social 7 35 20 Needs substantial improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 56 Transportation and Logistics Sectors C- West Japan Railways 2011 Annual Report, and 2012 Web Pages West Japan Railway West Japan Railways receives a low score because it fails to demonstrate responsible social and environmental practices. The web site pages and the Annual Report are well-organized and easy to navigate, but they rely heavily on financial statements, and scarcely include sustainability information. West Japan Railways should be commended on its installment of garbage reciprocals and recycling rates of 95%. However, while West Japan Railways provided some data on carbon dioxide emissions and energy consumption, the graphs and values were difficult to interpret. The company states that it aims to “invigorate local communities through tourism in order to enrich the lives of the people,” but it does not contribute to social community investment activities such as community development, community education, and employee volunteerism. West Japan Railways claims to “contribute to the preservation of the natural environment and the realization of a sustainable society,” yet it lacks an environmental management system and environmental education, and disregards habitat conservation and biodiversity. Finally, it is concerning that West Japan Railways mentions no human rights reporting so the treatment of their employees is unclear. Analyst 1: Hilary Haskell Analyst 2: Taryn Akiyama E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E S 31% ES A S E 69% SSA 50 0 EI 0 25 50 46 30 ER EP SI 9 2 SR SP W est Japan Railway 75 Environmental Intent Score Max Score % General Comment Accountability Question Category 3 4 75 Excellent Management 2 8 25 Needs improvement Policy 6 10 60 Good Vision 2 4 50 Good Score Max Score % General Comment 4 7 57 Good Environmental Reporting Question Category Emissions to Air Energy 5 14 36 Needs improvement Management 3 21 14 Needs substantial improvement Recycling 2 14 14 Needs substantial improvement Waste 4 21 19 Needs substantial improvement Water 0 7 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 1 4 25 Needs improvement Management 3 10 30 Needs improvement Policy 5 6 83 Excellent Social Demographic 0 2 0 Needs substantial improvement Vision 3 4 75 Excellent Social Reporting Question Category Score Max Score % General Comment Human Rights 0 77 0 Needs substantial improvement Management 0 7 0 Needs substantial improvement Qualitative Social 8 35 23 Needs substantial improvement Quantitative Social 4 42 10 Needs substantial improvement www.roberts.cmc.edu 57 Transportation and Logistics Sectors D Yamato Holdings 2011 Annual Report and 2012 Web Pages Yamato Holdings Yamato Holdings’ corporate social responsibility activities involve issues of safety, environment, society and economy. The company believes in running sustainable operations that reflect sound ideals and social responsibility. However, the company’s CSR report however, is only 2 pages long and provides almost no quantitative data. Yamato Holdings stresses the importance of safety and runs traffic safety workshops for students. To improve environmental efficiency, Yamato has introduced several low-emission and hybrid vehicles in their transportation business. Its social programs include employment for disabled people and earthquake relief. Yet, the company’s CSR initiatives are very narrow. No information is provided regarding any large environmental investment or community activities. No operational data is provided and the company is not involved in any environmental programs or initiatives. The company would greatly benefit from promoting employee volunteerism, conducting a large-scale project to improve environmental efficiency or being involved in social programs. Analyst 1: Ratik Asokan Analyst 2: Simone Berkovitz E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E ES A S 50% SSA 0 25 50 31 27 E 50% S EI 75 3 4 ER EP 7 SI SR 2 Yamato Holdings SP Environmental Intent Score Max Score % General Comment Accountability Question Category 0 4 0 Needs substantial improvement Management 2 8 25 Needs improvement Policy 3 10 30 Needs improvement Vision 2 4 50 Good Score Max Score % General Comment 0 7 0 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Energy 3 14 21 Needs substantial improvement Management 0 21 0 Needs substantial improvement Recycling 0 14 0 Needs substantial improvement Waste 0 21 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Needs substantial improvement Management 0 10 0 Policy 2 6 33 Needs improvement Social Demographic 2 2 100 Excellent Vision 2 4 50 Good Social Reporting Question Category Score Max Score % General Comment Human Rights 0 77 0 Needs substantial improvement Management 0 7 0 Needs substantial improvement Qualitative Social 6 35 17 Needs substantial improvement Quantitative Social 3 42 7 Needs substantial improvement www.roberts.cmc.edu 58 Transportation and Logistics Sectors Transportation and Logistics Environmental visionary statement Environmental management structure 5 -Discussion: includes a clear visionary statement expressing an organizational commitment to good environmental performance. -Initiatives/actions: include measures to fulfill that commitment. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# Environmental impediments and challenges Initiatives/actions 6 Initiatives/actions 42 43 Initiatives/actions Discussion: of impediments and challenges faced by the organization in attempting to realize its social vision and commitments. Initiatives/actions: include measures taken to overcome them. Discussion Pg# Discussion Initiatives/actions 9 Initiatives/actions Initiatives/actions 45 21 -Discussion: of environmental expenditures. -Initiatives/actions: include detailed accounting of such expenditures. Discussion Pg# Discussion Initiatives/actions 4 Initiatives Pg# Third-party validation -Discussion: identifies the person specifically designated to answer questions about the report or sustainability issues. Investor relations or public relations contact representatives are not valid contacts for this question. -Initiatives/actions: to facilitate such contact, i.e. providing email address, phone number, or a link for feedback and questions. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# Environmental accounting Initiatives Pg# Report contact person 16 -Discussion: of efforts to promote environmental education and awareness of employees, the general public, or children. -Initiatives/actions: taken to provide such education. Discussion Pg# Discussion -Discussion: includes a formal statement of the company's social policy or plan. -Initiatives/actions: include a description of how the policy is being implemented. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# Environmental education Initiatives Pg# Social policy statement 23 -Discussion: of consultation and dialogue with stakeholders about the organization's environmental aspects or impacts. -Initiatives/actions: include identification of specific consultation activities. Discussion Pg# Discussion -Discussion: includes a formal statement of the organization's environmental policy or plan. -Initiatives/actions: include a description of how the policy is being implemented. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# Stakeholder consultation Initiatives Pg# Environmental policy statement 51 -Discussion: of organizational structure or staffing for ensuring health and safety or social responsibility. -Initiatives/actions: include identification of the individuals currently holding the staff positions. Discussion Pg# Discussion Initiatives Pg# Social impediments and challenges Initiatives Pg# Health and safety, or social organizational structure -Discussion: includes a clear visionary statement expressing an organizational commitment to good social performance. -Initiatives/actions: include measures taken to fulfill that commitment. Discussion Pg# Discussion Initiatives/actions 20 -Discussion: includes a statement of adoption of ISO 14001 or other formal environmental management system. -Initiatives/actions: include information on the extent to which the system has been implemented. Discussion Pg# Discussion Initiatives Pg# Social visionary statement Initiatives Pg# Environmental management system -Discussion: of impediments and challenges faced by the organization in attempting to realize its environmental vision and commitments. -Initiatives/actions: include measures to overcome them. Discussion Pg# Discussion Initiatives/actions 19 -Discussion: of the organization's environmental management structure or staffing. -Initiatives/actions: include identification of individuals currently holding the staff positions. Discussion Pg# Discussion 54 -Discussion: of the value (or lack thereof) of third-party auditing or validation. -Initiatives/actions: include formal auditing or validation by a qualified external third-party source. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# Initiatives Pg# Climate change/global warming 10 -Discussion: of the organization's position on climate change and/or global warming. -Initiatives/actions: include measures taken by the organization to decrease its contribution to climate change. Discussion Pg# Discussion Initiatives/actions www.roberts.cmc.edu 59 Initiatives Pg# Transportation and Logistics Sectors Transportation and Logistics Habitat/ecosystem conservation Emergency preparedness program 11 -Discussion: of the organization's position on conserving natural ecosystems and habitat. -Initiatives/actions: taken to increase conservation of natural ecosystems either associated with or separate from the organization's business activities. Discussion Pg# Discussion Initiatives/actions Initiatives/actions Initiatives Pg# Biodiversity Initiatives Pg# Initiatives/actions Initiatives/actions 49 Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous 17 Year -Discussion: of racial or ethnic distribution of workforce. -Initiatives/actions: taken to avoid racial or ethnic discrimination. Discussion Pg# Discussion Initiatives/actions Quant Pg#: Prev Quan Pg#: Improve Pg# Units 18 -Discussion: of gender distribution of workforce. -Initiatives/actions: taken to avoid gender discrimination and achieve appropriate balance Discussion Pg# Discussion Renewable energy used 52 Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous -Discussion: of age distribution of workforce. -Initiatives/actions: include measures taken to avoid age discrimination or to encourage a balanced age structure. Discussion Pg# Discussion Year Initiatives Pg# Employment for individuals with disabilities 27 Energy used from renewable sources such as wind, solar, hydroelectric, or other renewable sources. Discussion Pg#: Discussion Context Pg#: Context Initiatives Pg# Workforce profile: age Initiatives/actions Data Values Context Pg#: Goal Pg#: Initiatives Pg# Workforce profile: gender Initiatives/actions 26 Sum of the energy used by the organization in all different forms, including electricity, fuel, natural gas and others. Discussion Pg#: Discussion Initiatives Pg# Workforce profile: ethnicities/race Initiatives Pg# Energy used (total) -Discussion: or description of procedures to evaluate and select suppliers on their ability to meet the requirements of the company's social or environmental policy and principles. -Initiatives/actions: include measures to implement or assure such screening or selection. Discussion Pg# Discussion Initiatives/actions 47 -Discussion: includes a formal organizational code of conduct or of ethical behavior. -Initiatives/actions: include measures to assure that the code of conduct is followed. Discussion Pg# Discussion Initiatives Pg# Supplier screening based on social or environmental performance/ supplier management Initiatives Pg# Code of conduct or business ethics 13 -Discussion: about preferential purchasing of eco-friendly (non-polluting, recycled, recyclable, etc.) products. -Initiatives/actions: taken to implement such purchasing. Discussion Pg# Discussion Initiatives/actions 82 -Discussion: of training, skills and learning programs appropriate to support employees' upward mobility. -Initiatives/actions: taken to implement such training. Discussion Pg# Discussion -Discussion: of the organization's position on biodiversity. -Initiatives/actions: taken by to the organization to foster biodiversity. Discussion Pg# Discussion Green purchasing Initiatives Pg# Employee training for career development 12 Initiatives/actions 53 -Discussion: of emergency preparedness programs to prepare employees or the public to cope with potential emergencies at the organization's facilities. -Initiatives/actions: include measures taken to implement such programs. Discussion Pg# Discussion Data Values Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units 80 -Discussion: of appropriate actions to accommodate employees with disabilities. -Initiatives/actions: taken to implement such accommodations. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# www.roberts.cmc.edu 60 Transportation and Logistics Sectors Transportation and Logistics Waste recycled: solid waste Waste (hazardous) produced 30 Sum of all solid waste recycled, including hazardous waste. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values 35 Sum of all hazardous materials remaining after production, irrespective of final disposition. Hazardous wastes include items identified as TRI, PRTR, HAP (Hazardous Air Pollutants), and similar indices, and may include mercury or lead. Depending on the nationality of the organization, this could be labeled "TRI" (Toxic Release Inventory,) "substance releases" , or something else. Discussion Pg#: Discussion Context Pg#: Context Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Units Year Waste (office) recycled Data Values Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units 32 Office recycling of paper, cardboard, metal, or plastic. Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Discussion Pg#: Context Pg#: Waste (hazardous) released to the environment Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Waste (solid) disposed of Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous 34 Year Includes solid hazardous and non-hazardous waste landfilled, incinerated, or transferred. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Context Pg#: Goal Pg#: Quant Pg#: Water used Prev Quan Pg#: Improve Pg# 29 Sum of all water used during operations. Units Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year www.roberts.cmc.edu 37 Amounts of hazardous materials released into the environment, total (TRI, PRTR, HAP (Hazardous Air Pollutants), and similar indices), may include mercury or lead. Depending on the nationality of the organization, this could be labeled "TRI" (Toxic Release Inventory), "substance releases," or something else. Discussion Pg#: Discussion 61 Data Values Discussion Pg#: Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Transportation and Logistics Sectors Transportation and Logistics Greenhouse gases (or CO2 equivalents), total Lost workday case rate 83 The sum of all greenhouse gases released, which could include CO2, CH4 (methane), N2O (nitrous oxide), SF6 (Sulphur hexafluoride), PFCs (Perfluorocarbons) and HFCs (hydrofluorocarbons). Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Year Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Quant Pg#: Prev Quan Pg#: Improve Pg# Year Units Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous 81 Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Goal Pg#: Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Notices of violation (environmental) 74 Number of employee incidents or accidents, such as: “total case incident rate,” “incident rate,” or "accident rate." Discussion Pg#: Discussion Data Values Units Amount of money spent on community outreach, including education grants, donations, and relief effort funds. Discussion Pg#: Discussion Discussion Pg#: Context Pg#: Recordable incident/accident rate Year Quant Pg#: Prev Quan Pg#: Improve Pg# Social community investment 3 Annual employee turnover rate. Data Values Data Values Context Pg#: Goal Pg#: Units Employee turnover rate Year 75 Number of employee injuries or illnesses that resulted in one or more lost workdays. Discussion Pg#: Discussion 38 Notices of violation (NOVs) for environmental infractions. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Year Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Units www.roberts.cmc.edu 62 Transportation and Logistics Sectors Transportation and Logistics Environmental expenses and investments Health and safety fines 39 An accounting of money spent or invested specifically to decrease environmental damage or to benefit the environment. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Year Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Women in management 40 Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous 2 Relative numbers of women in management. Government imposed fines for environmental infractions. Discussion Pg#: Discussion Data Values Data Values Context Pg#: Units Fines (environmental) Year 77 Fines levied against a company for health and safety violations. Discussion Pg#: Discussion Discussion Initiatives/Action Context Improvement Over Previous Context Pg#: Goal Pg#: Quant Pg#: Discussion Pg#: Initiative Pg#: Context Pg#: Improve Pg#: Employee satisfaction surveys Prev Quan Pg#: 67 Surveys to monitor employee satisfaction. Improve Pg# Discussion Initiatives/Action Context Improvement Over Previous Units Discussion Pg#: Initiative Pg#: Context Pg#: Improve Pg#: Occupational health and safety protection Health and safety citations Efforts to provide a safe and healthy working environment at all sites. Discussion Pg#: Discussion 76 Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: Number of health and safety citations or notices of violation. If it is stated that there were none, check lines 1,2,3, 4, and 6. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values 70 Context Pg#: Employee volunteerism Goal Pg#: Quant Pg#: 72 Efforts to promote employee volunteerism in social or environmental projects. Discussion Pg#: Discussion Prev Quan Pg#: Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: Improve Pg# Units Community development 66 Efforts to participate in social activities that improve the quality of life of communities including that of indigenous people, where the organization operates. Discussion Pg#: Discussion Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: www.roberts.cmc.edu 63 Transportation and Logistics Sectors Transportation and Logistics Community education Degrading treatment or punishment of employees 68 Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: Sexual harassment 1 Policy Adopt Pg#: Qty Perf Pg#: Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance 7 Policy about political contributions. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Policy Adopt Pg#: Qty Perf Pg#: Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Rejection of bribery Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: 58 Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Policy Adopt Pg#: Initiative Pg#: Qty Perf Pg#: 61 Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: 63 Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Monitoring Pg#: Effective abolition of child labor Qty Perf Pg#: Rejection of illegal child labor by the company or its affiliates. Fair compensation of employees 65 Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance 62 Assurance that wages paid meet or exceed legal or industry minimum standard. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Initiative Pg#: Monitoring Pg#: Assurance that all employees enter employment with the company of their own free will, not by compulsion. Efforts to uphold the highest standards of business ethics and integrity. May be found under a Code of Conduct. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Policy Adopt Pg#: Elimination of all forms of forced and compulsory labor Qty Perf Pg#: Anti-corruption practices 60 Efforts to respect the right of employees to form and join trade unions of their choice and to bargain collectively. 8 Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Monitoring Pg#: Qty Perf Pg#: Free association and collective bargaining of employees Initiative Pg#: Monitoring Pg#: Bribery Initiative Pg#: Commitment not to engage in any kind of discrimination based on ethnicity, caste, religion, disability, sex, age, sexual orientation, union membership, or political affiliation in hiring practices or employee treatment. Initiative Pg#: Monitoring Pg#: Political contributions Policy Adopt Pg#: Elimination of discrimination in respect to employment and occupation Rejection of any form of sexual harassment. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance 59 Commitment to oppose any corporal/hard labor punishment, mental/physical coercion, or verbal abuse. Efforts to support education in the communities where the company is located. Discussion Pg#: Discussion Policy Adopt Pg#: Initiative Pg#: Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Monitoring Pg#: Qty Perf Pg#: Reasonable working hours 64 Compliance with applicable laws and industry standards on working hours, including overtime. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance www.roberts.cmc.edu Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: 64 Transportation and Logistics Sectors A.P. Moller-Maersk, ABN AMRO Holding, Air France-KLM, All Nippon Airways, British Airways, Cathay Pacific Airways, Central Japan Railway, China Cosco Holdings, Continental Airlines, Delta Airlines, Deutsche Post DHL, East Japan Railway, FedEx, Kawasaki Kisen Kaisha, Kühne & Nagel Intl, Lufthansa Group, Mitsui OSK Lines, Nippon Express, Nippon Yusen Kaisha (NYK), Qantas Airways, Singapore Airlines, STX Corp, TNT, Tokyu, Union Pacific, United Airlines, United Parcel Service, US Airways Group, West Japan Railway, and Y a m a t o H o l d i n g s . Roberts Environmental Center The Roberts Environmental Center is a research institute at Claremont McKenna College, endowed by George R. Roberts, Founding Partner, Kohlberg Kravis Roberts & Co. The Center is managed by faculty and staff, and its research, including the material in this report, is done by students at the Claremont Colleges. Claremont McKenna College Claremont McKenna College, a member of the Claremont Colleges, is a highly selective, independent, coeducational, residential, undergraduate liberal arts college with a curricular emphasis on economics, government, and public affairs. The Claremont Colleges The Claremont Colleges form a consortium of five undergraduate liberal arts colleges and two graduate institutions based on the Oxford/Cambridge model. The consortium offers students diverse opportunities and resources typically found only at much larger universities. The consortium members include Claremont McKenna College, Harvey Mudd College, Pitzer College, Pomona College, Scripps College, Keck Graduate Institute of Applied Life Sciences, and the Clremont Graduate University which—includes the Peter F. Drucker and Masatoshi Ito Graduate School of Management. Contact Information Dr. J. Emil Morhardt, Director, Phone: 909-621-8190, email: emorhardt@cmc.edu Elgeritte Adidjaja, Research Fellow, Phone: 909-621-8698, email: eadidjaja@cmc.edu Roberts Environmental Center, Claremont McKenna College, 925 N. Mills Avenue, Claremont, CA 91711-5916, USA.
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