ROI Analysis of Social and Environmental Initiatives at PMI Joinease

PACIFIC MARKET INTERNATIONAL

BENEFITS OF INVESTMENT IN CSR

Benefits to Society

Reduced energy usage, water

usage, and waste

Increased workers

rights and safety

Benefits to Customers

Access to trusted supplier

Ability to meet own CSR goals

Benefits to PMI

Increased Productivity

Increased Recruiting &

Retention

Enhanced Reputation

THE ROI AND PMI’S STRATEGIC PILLARS

Commitment to Excellence

Innovation

Culture & People

Working directly with factories to improve environmental and social performance. Being a thought-leader in quantitatively measuring CSR initiatives. Using voice over exit.

Putting people first. Providing safe working conditions that allow employees to thrive.

Innovating conservation practices within manufacturing processes – energy-saving, water recycling processes.

Environmental

Responsibility

Assessing strengths and areas for improvement in resource utilization, demonstrating strong commitment to environmental impact of production.

Strategic Pillar Connection to ROI Analysis

Social Consciousnes

s

Collaborating with factories to create safe, healthy, and fair working conditions.

FOCUS OF ANALYSIS

Environmental ROI

• Electricity Usage

• Water Usage

• Carbon Emissions

• Hazardous Waste Disposal

• Non-Hazardous Waste Reuse and Disposal

Social Cost vs. Benefit

• Worker Retention

• Wages & Benefits*

• Overtime Comp*

• Overtime Hours*

• Health & Safety*

• Child Labor**

• Forced Labor**

• Harassment**

• Freedom of Association**

* It is assumed that investment in these initiatives affects worker retention** These initiatives were not included in the ROI analysis, as it is presumed that factories will be fully compliant in these areas

ROI OVERVIEW

Environmental Initiatives

SocialInitiatives

Wages & Benefits

Overtime Wages

Electricity

Carbon Emissions

Non-Hazardous Waste

ROI

Benefit to Customers

Benefit to Society

Benefit to PMI

Water

Hazardous Waste

Overtime Hours

Health & Safety

Cost / Benefit of Employee

Turnover

PMI JOINEASE GROWTH

2007 2008 2009 2010 2011 -

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

0

200

400

600

800

1,000

1,200

1,400

9,530,354 8,958,311

13,190,285

21,646,708

18,322,547

502

714

619

1,151

1,133

PMI JO Growth

Number of Units ProducedNumber of Line Worker Employees

Nu

mb

er

of

Un

its

Pro

du

ced

Nu

mb

er

of

Lin

e W

ork

er

Em

plo

ye

es

Electricity ROI

2008 2011

¥-1,000,000

¥-500,000

¥-

¥500,000

¥1,000,000

¥1,500,000

¥2,000,000

¥2,500,000

¥3,000,000

¥3,500,000

¥631,687

¥2,861,098

¥962,799

Electricity Costs and Bene-fits

Total Costs Total Benefits

2008 2011

¥-0.05 ¥-0.04 ¥-0.03 ¥-0.02 ¥-0.01

¥- ¥0.01 ¥0.02 ¥0.03 ¥0.04 ¥0.05

$0.03 $0.04

¥-0.04

¥0.01

Electricity Costs and Bene-fits,

per unit of production

Costs Per Unit Benefits Per Unit

-¥668,253

Carbon Emissions

2008 2009 2010 20110

2,000

4,000

6,000

8,000

4,5114,120

7,120

Total Emissions Released

Total Emissions Released

7,339

2008 2009 2010 20110.0

0.5

1.0

1.5

1.000.91

0.83

Emissions Released, per unit produced

Emissions Per Unit

0.85

WATER ROI

2008 2011 ¥-100,000

¥-

¥100,000

¥200,000

¥300,000

¥400,000

¥500,000

¥600,000

¥700,000

¥249,123

¥577,881

-¥34,763¥49,072

Water Costs and Benefits

Total Costs Total Benefits

2008 2011

¥-0.05

¥-

¥0.05

¥0.02

¥0.01 ¥(0.00) ¥0.00

Water Costs and Benefits,per unit of production

Costs Per Unit Benefits Per Unit

HAZARDOUS WASTE

2008 2009 2010 2011 -

50

100

150

200

250

300

283 285

120

151

Kilograms of Hazardous Waste per 1m Units

Nu

mb

er

of

Un

its P

rod

uce

d

Note: Hazardous waste consists of machine oil, metal slags, fluorescent tubes, & waste rags

NON-HAZARDOUS WASTE ROI

2008 2011¥0

¥1,000,000

¥2,000,000

¥3,000,000

¥4,000,000

¥5,000,000

¥6,000,000

¥7,000,000

¥8,000,000

¥9,000,000

¥10,000,000

¥200,405

¥2,144,590

¥1,154,452

¥8,659,375

Non-Hazardous Waste Costs and Benefits

Total Costs Total Benefits

2008 2010¥0.00

¥0.02

¥0.04

¥0.06

¥0.08

¥0.10

¥0.12

¥0.14

0.040.03

¥0.06

¥0.12

Non-Hazardous WasteCosts and Benefits,

per unit of production

Costs Per Unit Benefits Per Unit

HEALTH AND SAFETY - ACCIDENTS

2008 2009 2010 2011 -

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.67

0.53

0.32 0.38

Number of Accidents, Per 1M Units

Num

ber o

f Acc

iden

ts, P

er 1

M U

nits

WORKER RETENTION

2007 2008 2009 2010 20110

500

1,000

1,500

2,000

2,500

Number of Positions Advertised

Questions and Discussion