A Balanced Cycle Twenty-Six Years in the Making

Table of Contents
3
Scope of Report
19
Culture/People
5
The PMI Story
20
Social Consciousness
10
Letter from CEO/Founder Rob Harris
24
Environmental Responsibility
11
The PMI Leadership Team
26
PMI Environmental Performance Indicators
12
PMI’s CSR Journey
29
Stakeholder Engagement
16
Our Strategic Pillars
30
Memberships & Awards
17
Commitment to Excellence
31
Materiality Chart & Acknowledgements
18
Innovation
PMI Corporate Values
• Honesty and ethical behavior
• Teamwork and supporting each others’ professional efforts and achievements
• Performance and a “Get it done” attitude
• Each person engaging, contributing, and succeeding
• Trustworthiness
• Partnership and team
• Diversity and respect for the rights and thinking of others
• Creativity and innovation
• Sound financial thinking
• Work life balance
• Our community and the environment
2
Scope of Report
Pacific Market
International’s (PMI’s)
first Corporate Responsibility
Report was created using the
Global Reporting Initiative (GRI)
as our learning tool and guide. We
are reporting on our direct impact
and ownership: PMI and PMI
Joinease. The scope of this report
is the owned or leased property of
Pacific Market International, LLC,
which includes the Seattle (HQ)
office, the Shanghai office, the
Manila office, the London office,
and the PMI Joinease factory.
In our next Report, we will
expand our reporting scope to
contractors, which will include
contract factories, packaging
suppliers, and warehouses.
The primary purpose of this
report is to bring together all
aspects of PMI’s Corporate Social
Responsibility (CSR) program as
a resource for our stakeholders.
The intention is to provide
incentive for our employees to
drive innovation that will improve
our performance. In 2010 and
beyond, the accomplishment of
goals that support our Strategic
Business Pillars will be tracked
and reported.
When evaluating this report’s
content against the standards in
the GRI Application Levels
(www.globalreporting.org/Reporting
Framework/ApplicationLevels),
PMI self-declares that it has reached
the A level. The GRI Content Index
Grid, along with our Code of
Conduct, has been published on
our website (www.pmi-worldwide.
com) as a companion document
to this report.
3
201
0 Patents
4 Offices:s:
164
64 Employ
Employees
Seattle, Shanghai, Manila, and London
Se
Products sold in
14 Awards
4
50 Countrie
Countries
The PMI Story
A Balanced Cycle Twenty-Six Years in the Making
In 1983, Rob Harris
founded PMI with a modest
investment of $1,200 and a
curiosity about international trade.
With degrees in psychology,
business, and education under
his belt, the entrepreneurial path
seemed an obvious fit.
For the first few years, PMI
imported a number of different products and designed and
styled products for the sports and
recreation markets. As business
progressed, Rob expanded the
product lines to include food and
beverage containers.
1994
In
, PMI joined forces with
Eddie Bauer to create one of the
first lines of stainless steel insulated
mugs. Prior to this, travel mugs
were mere utilitarian objects. PMI
recognized that modern lifestyles
would soon demand products that
were not only functional, but
stylish as well. At the same time,
Starbucks Coffee Company was
responding to the increased
pace of their customer’s lives and
they partnered with PMI to create
beverage containers for patrons
on the go.
2001
, we opened Pacific
In
Market International Shanghai
Trading Company Ltd. to provide
additional sales, engineering, and
manufacturing support. PMI also
has offices in London and
the Philippines.
2002
, PMI purchased the
In
®
Stanley and Aladdin® brands, both
venerable brands that are close to
100 years old. Over the past few
years, PMI has expanded both lines
and breathed new life into these
American icons.
continued. . . . . . . . . . . . . >
5
Vision
We will revolutionize the
way people enjoy food
Countries in which PMI
Products are sold
and beverage everywhere
Mission
continued from previous page
We are a global
company that designs,
manufactures, and
markets products that
enable consumers
everywhere to enjoy
food and beverage.
We collaborate to
apply market knowledge,
technological expertise,
and social responsibility
in developing innovative
products and successfully
growing our business.
In the past three years our goal
of being the best food and beverage container supplier in the world has come closer
to reality. Our strategy is to leverage our
multi-brands (Stanley,® Aladdin,® MiGo,®
and Private Labels), multi-channels (specialty,
commercial, mass, and outdoor), and multigeographic regions in a manner that creates
product synergy and supply chain efficiency.
Our concept of taking a niche product
category and leveraging it through different
brands and distribution channels in key
global geographic regions helps PMI remain
competitive. The company is positioned to
be a platform for further growth through
acquisitions that take advantage of our
distribution network and our supply
chain competencies.
After twenty-six years
in business, PMI is still deeply
rooted in human values and
committed to ethical behavior,
education, sustainability, and
good business practices. While
PMI continues to refine key
brand strategies, the underlying
foundation of a balanced and
responsible approach remains
the compass for innovation and
company growth.
6
Brands, Products, Patents
Today, PMI holds more than 200 patents
and launches over eighty new products
each year. We currently have over 800
products. Our brands include:
Aladdin® – Lifestyle, Specialty, and Sustain
Stanley® – Classic, nineteen 13,
Outdoor and Commercial
MiGo® –
International
Locations
Headquartered in Seattle, WA, PMI has
offices in Shanghai, Manila, and London.
Our Seattle and Shanghai offices house our
Product Development, Operations, and Sales
teams while our Customer Service team
works from Manila with support staff in each
office. We work with many factories in China
to manufacture our product lines, including
PMI Joinease of which we are partial owners.
The North American Logistics Center is in
Auburn, WA where we contract the services
of freight and warehouse companies.
Additionally, PMI has three distribution
centers in The Netherlands and China.
From these locations we manage product
lines that ship to fifty countries around
the globe.
Management Structure
and Employees
As a small company, our management
structure is relatively flat with each staff
member being, at most, three degrees
from a member of the Leadership Team.
Because of PMI’s collaborative nature,
execution comes from the bottom and
works its way up based on the goals set
by the Leadership Team and approved by
Board Members. PMI values the ideas and
opinions of all its employees. Tools are in
place for employees to voice their ideas
and opinions to top leadership through
open forums within all of our offices and
through suggestion boxes in our factories.
In 2009, PMI Worldwide had 164
employees across four offices: eighty-eight
in Seattle, fourteen in Manila, twelve in
London, and fifty in Shanghai. Of the total,
153 were full-time employees, eleven were
full-time temporary contract employees,
and seven held top level management
positions. In addition to the eighty-eight
employees in our Seattle office, PMI
engages the services of numerous local
consultants, legal firms, and not-forprofit organizations.
PMI has a six-member Board of Directors,
s,
which evaluates the strategy set by the
Leadership Team and offers guidance and
strategic alternatives. Committee work
is usually headed by the seven-member
Leadership Team led by the CEO. The
Leadership Team creates strategies for thee
whole company, including the factories
where the products are manufactured,
based on the Mission Statement and set
the Strategic Business Pillars that will take
us into 2012. The Corporate Responsibility team is charged with monitoring the
factories and ensuring all company policies
and objectives are followed.
We continually work to implement
programs to support the personal and
professional growth of our employees. The
company pays for job related training and
has tuition reimbursement programs for
those wishing to further their education.
PMI hosts health and wellness programs,
including a flu clinic, throughout the year
to provide training and promote employee
wellbeing. At PMI Joinease, we offer
training courses that help employees
manage their careers and arrange for
advanced workers to attend third-party
training programs on workability.
continued. . . . . . . . . . . . . >
7
“From the beginning, it was clear that cultural
and
ethnic diversity improved our creativity and
provided a competitive advantage.”
All employees have access to these
opportunities to develop their skills
and improve their chance for advancement.
In 2009, Verité completed a worker-training
program at PMI Joinease that provided
workers with information on health and
safety relating to both the workplace and
the community.
Diversity
As an international company with
employees and partners around the globe,
an appreciation of cultural diversity is at
the center of PMI’s operations structure.
From the beginning, it has been clear that
cultural and ethnic diversity improves
creativity, provides a competitive advantage,
and supports global business growth.
Integrated into our business philosophy
is a world view that does not take
differing cultural backgrounds for granted. We
celebrate the differences in our offices around
the globe. PMI emphasizes training programs
that help managers and employees learn how
to be successful, efficient, and safe. A “master
course” training program was developed
internally to help employees gain experience
and knowledge in all business areas.
Since our launch in 1983, PMI has built a
culturally diverse workforce. In 2009, our
workforce was approximately 44% male, 56%
female, and of these, 15% were minority.
Our seven member Leadership Team, made
up of two females and five males, included
one minority member. Four members were
between the ages of thirty and fifty, three
were over the age of fifty.
Economics
PMI is a privately held enterprise. Founded
with $1,200, it has grown to an $88M
corporation holding $39M in assets in the
2009 fiscal year, January 1st to December 31.st
PMI sold nearly 15 million units in 2009 and
experienced a 26% growth.
Our Strategic Business Pillars as shown on
page sixteen include: Innovation, Culture/
People, Social Consciousness, Environmental
Responsibility, and Commitment to Excellence.
Profitability is essential to any business and is
part of the “three-legged-stool” equity model.
We believe that accomplishment of these
goals will drive profitability.
8
“We recognize the pressure that
climate change
will impose on our business and we are taking steps to
anticipate and manage these risks.”
We bring over eighty new products to
market every year. Over the last ten years,
we have experienced a steady growth in
our international business. In 2009, our
international business increased to 20% of
total revenue. Additionally, we sustained an
ongoing and healthy North American business.
In the future, we anticipate continued growth
in all markets.
Significant, indirect economic impacts we are
anticipating include:
We recognize the pressure that climate
change will impose on our business and are
taking steps to anticipate and manage these
risks. We have taken action in our PMI Joinease
factory to conserve energy and recycle water
as much as possible. These actions will mitigate
our future risk and, in the short term, provide
market opportunities for our business.
The increase in labor costs can dramatically affect product cost. We have been able
to mitigate this somewhat via reduction in
employee turnover costs. At PMI Joinease, we
continue to make CSR improvements in the
factory. Worker retention rates have increased
steadily to 95% in 2009. Many factories in
China experience only 50% worker retention
after Chinese New Year. Increasing our retention rate by an additional 45% allows us to
achieve significant cost savings in recruitment
and training while retaining higher yields and
uninterrupted production.
In order to reduce freight costs and support
the communities in which we do business,
PMI has implemented cross-functional team
strategy, priorities, and actions that enable us
to buy from local suppliers as much as possible. These range from sourcing raw materials
to purchasing from local businesses. At this
point, we have not collected data to report
the percentage of materials and products
sourced locally, but we intend to track and
report these figures in our next CSR Report.
• The price of oil as it affects the costs of our raw
materials and freight transportation.
• The cost of electricity at our factory and offices.
• The value of China RMB currency vs. USD
that affects all of our transactions with our
manufacturing base in China.
• The steady increase in labor costs in China.
By focusing on worker retention, and
adding robotics in our manufacturing
process productivity at PMI
Joinease has increased.
9
Our Commitment
To Balanced Growth
PMI’s mission
is to
serve our customers in a manner that is
socially responsible, environmentally
conscious, and principle-based. We bring
this understanding to our supply chain,
fostering long-term relationships that
enable continuous improvement and
positive growth for our suppliers and
company while delivering outstanding
products to our customers.
We operate in a highly competitive
environment where cutting corners and
taking short cuts has the potential to expedite
short-term financial goals. However, those
goals will not make PMI great. Greatness is
achieved through living out our commitment
to the principles and values that have
sustained us since 1983. We believe a
strategy that balances prosperity, people,
and the planet will enable the long term
health, integrity, and success of our company.
We are committed to being the world’s leading
supplier of innovative and compelling food and beverage containers. We have a corporate culture that
attracts employees who have the energy and talent
to turn this dream into reality. In 2010, we created
our strategy for our next phase of growth. This is
founded on our corporate pillars of innovation, social
consciousness, environmental responsibility, company
culture, and operational excellence. These five
strategic pillars provide the foundation for all of
our goals, objectives, and daily decisions.
At PMI, each team member is committed to these
ideals. Over the past decade, we have reached
significant milestones in embedding this balanced
approach throughout our operations. As a result,
we have built a foundation of trust and respect for
our products that positions our company for new
directions and opportunities. I am proud of what PMI
has achieved and pleased we can share this with you
in our first Corporate Responsibility Report.
Yours sincerely,
Rob Harris
President and CEO
10
PMI Leadership Team
Mike Bross
Mary Stenroos
Executive Vice President, Sales
Vice President, Supply Chain
& Operations
“Our retail customers’ views
and visions for Corporate Social
Responsibility and Sustainability
are as important to us as our own.
We strive towards collaboration
with our customers to ensure we
are providing responsible and ethically minded products
which have a positive impact for our company and
customers alike.”
“Growing a strong supply chain
that is based on partnership, trust,
and best practices is essential to the
health and growth of our business.
Our commitment to social and
environmental improvement that goes beyond compliance
is what sets PMI apart as a supplier and as a company our
customers can trust.”
Brian Shea
Ken Mitchell
Chief Financial Officer
Vice President, Marketing &
Product Development
“The financial profitability and
stability of the company is essential
to our ongoing viability. However, we
believe these results are not directly
created but rather are an inevitable
outcome of how we conduct our
day-to-day operations both internally and externally. By
providing conscientious stewardship and leadership within
our organization as well as in the external environment and
community, and doing so in a fiscally disciplined manner with
strict adherence to unwavering ethical practices, we are
convinced a financially viable company is the only
possible outcome.”
“Our mission at PMI is to
revolutionize the way people
enjoy food and beverages,
everywhere. This speaks to our
on-going commitment to product
and feature innovation and our commitment to the health
and safety of every product we develop. We pioneered the
use of BPA free plastics for Aladdin® and Stanley® products.
We also created FDA compliant recycled and recyclable
plastics so consumers could safely enjoy our products while
reducing their environmental impact. Today we continue to
reduce waste and rethink our packaging and processes
so consumers can trust they are doing what is right for
themselves and for the world they live in.”
Qin Chen
Colleen Hunter Gale
Vice President, International Sales &
Managing Director of PMI Shanghai
Vice President,Talent Development
“As a global company, PMI’s
commitment to CSR is the same
regardless of our geographic
locations. From the day we opened
our Shanghai office ten years ago
our China team has embraced and enriched the PMI values
and culture. We understand the challenges and are very
proud of the CSR leadership role we take in our industry.
We believe our social, environmental, and community
initiatives make a difference in China and other
international markets.”
“At PMI, ethical behavior, social
consciousness, and environmental
responsibility are at the heart of
who we are. Our employees are
the life blood of our business and
our most important asset. Our
people-related policies and practices actively support this
commitment through principled decision-making, paid time
off to make community contributions, recycling and reusing
wherever possible, and a culture which expects collaboration,
risk taking, and learning from one another.”
11
PMI’s CSR Journey
A Small to Medium Enterprise
Company’s Balanced Approach
By Valerie Bone, Director, Corporate Responsibility
Since 1983, PMI’s values
have been the North Star guiding the way
we do business. PMI approaches Corporate
Social Responsibility with the same entrepreneurial spirit that we incorporate in all of our
work. For us, CSR is challenging, exciting, and
rewarding. We’re as innovative with our
CSR projects as we are with our
products. We collaborate with
our customers and factory
partners to implement CSR
improvements that balance
the pressures of daily business
with the needs of longterm initiatives.
CSR is one part risk management and one part competitive
opportunity.
In 2006 and 2008
PMI was granted the
American Chamber
of Commerce in
At the factory level – developing work
force capacity and worker retention; managing
impacts, costs and avoiding accidents
At the product level – ensuring product
safety and fostering innovation
Shanghai’s “Corporate
Social Responsibility
Award,” based on
corporate governance,
environmental effort,
social impact and
workplace practices.
12
At the customer level – retaining trust and
brand protection while building long-term
customer loyalty
Our focused CSR journey began in 1998 as
our production expanded and our presence
in Asia increased. We have always had a
commitment to ensure our factories were
safe and humane places to work. Seeing an
opportunity to take an even stronger stand
for social responsibility, we published our first
Code of Conduct and communicated this to
our offices and factories. We believe good
business ethics, coupled with well-managed
factories, are the foundation for a healthy
and sustainable business. From our experience,
productivity improves in direct relationship
to the level of social consciousness at our
offices and factories.
As we progressed in our socially responsible
work, we experienced better efficiency that
contributed to the health and growth of our
business. We appreciate the partnership our
factories have shown in making social
responsibility a priority.
In 2005, the PMI Leadership Team formed
a task force to launch a broad environmental
responsibility and opportunity strategy. That
task force, working with the Network for
Business Innovation and Sustainability (NBIS),
laid the groundwork for our environmental
initiatives that are still evolving today. We have
partnered with our employees, customers,
and factories to make environmental advancements in our products and throughout our
offices and supply chain. Key achievements
and case examples are documented later in
this report. Highlights include:
• Developed and redesigned sustainable products
with consideration for full life-cycle planning
and ensuring both environmental and social
responsibility.
We believe that good business ethics
“
coupled with good factories are the foundation
for a healthy and
sustainable business.”
• Partnered with both our
suppliers and our customers
to improve the overall
environmental footprint
of our systems.
• Aligned our CSR initiatives and
corporate philanthropy to support
social and environmental efforts in our
communities and provide opportunities for
employees to engage in volunteer work in
their respective communities.
PMI has embraced Corporate Social
Responsibility as foundational to our
business strategy for enhancing the value of
our company and our brands. As a small company that developed this program and found
its initiatives work in China, we believe it is
possible for a company of any size to engage
in this work. However, to succeed, it must be
authentic to the values of the company/brand
and be part of the core business strategy.
There are many companies today that embrace CSR/Sustainability and great strides are
being made in this area. We are proud to say
REI, Starbucks, and Wal-Mart, three of our
customers, are as committed to social and
environmental innovation as we are, and we
all benefit from the opportunity to address
these important issues collaboratively.
Other companies we admire for their innovation in this program are GE, HP, Levi Strauss,
Microsoft, Patagonia, and Timberland.
The business case for
our CSR initiatives is
sustainable, long-term
growth for our brands,
our business partners,
and our company. The
payback period is a one-to-fiveyear cycle, depending on the initiative.
As we would for any business strategy, we
measure success via brand equity, sales
growth, customer loyalty, employee loyalty,
and ultimately, the long-term vitality and
growth of our company.
As we set goals for next steps in our CSR
journey, we saw that engaging in the rigor of a
CSR Report as per the GRI Guidelines would
show us where our strengths are and where
the gaps are that need improvement. This
report brings together for the first time, all of
our CSR activity enabling us to better engage
with our stakeholders.
On the following pages you will find
detailed information about our company’s
CSR progress. It has not been an easy
journey and we know we will face many challenges in the years ahead as we
continue to grow our business. We
humbly hope you will find inspiration
in our work.
Valerie Bone,
Director Corporate Responsibility
PMI CULTURE
STATEMENT
We are a team of
individuals committed to
collaborating with each
other to grow a successful
business and a dynamic
working environment that
promotes our values.
We believe in “win-win”
scenarios that foster success for our clients,
our vendors, and the
PMI worldwide team.
We expect all individuals
to interact with respect,
integrity, and a “Get it
done” attitude.
13
Stanley® Built for Life
We provide products that are used day in and day out, spanning years and
creating memories while sustaining our customers through their sleepy
mornings, adventure trips, and the unexpected events. As Tim from
Louisiana found out, Stanley® is built to help you sustain
whatever life throws at you!
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14
Partner with Starbucks to
launch Verité worker health
training program at PMI
Joinease factory.
Social Consciousness
and Environmental
Responsibility become
Strategic Business Pillars
that drive the company
forward into 2012.
1998
PMI is awarded the “American Chamber
of Commerce in Shanghai” Award for
advancement in CSR.
2002
PMI successfully launches
eCycle® products.
2005
First annual all office Earth
Day Volunteer Event and
PVC Free corporate goal
is set.
Added Environmental
Management System
targets to our Code of
Conduct work.
2006
Employees choose The Ocean
Conservancy as our primary
international environmental
organization to support.
Created CAP, Corrective
Action Plan system with
our factories.
Launched PMI Sustainability
(environmental) Plan for
sustainable advancements
in process and product.
PMI begins to speak,
externally, about
our CSR work, and
network with likeminded companies.
2010
Launched third-party audit
system for our factories.
First PMI Code of
Conduct (COC) published
and communicated
to our factories.
2007
2007
1995
PMI Grassroots Philanthropy
Program is launched and
Green Office Checklist is
successfully implemented.
2008
2001
PMI was awarded the “American Chamber
of Commerce in Shanghai” Award for
advancement in CSR.
2009
Internal audits of factories
regarding quality, worker
health and safety, resources.
2005
1986
PMI Environmental
Improvement
Program for Key
Performance
Indicators (KPI)
is launched.
2000
2008
Two key PMI
factories complete
implementation of
EMS and ISO 14001
certification.
2005
2006
PMI engaged IERE to
support first Life Cycle
Assessment (LCA) of largest
volume product manufactured at PMI Joinease.
2006
2006
Launched plan to take
COC compliance through
our supply chain
by 2010.
Aligned philanthropic
activity with CSR
strategy.
2007
2004
Factory transition plans
created to consolidate our
base for better compliance.
GSC helped revise the PMI
COC and set-up a Compliance
Monitoring Program that
supports the revised COC plan.
2008
1999
PMI became a member
of Business for Social
Responsibility (BSR).
Products sourced from factories
that are safe and humane
places to work.
2009
1983
PMI Values are established.
2009
The CSR Journey Step-by-Step Implementation
PMI publishes
first GRI
Corporate
Responsibility
Report.
15
Innovation
We are a product driven company that builds
brands by delivering unique products.
Commitment
to Excellence
Culture/People
We believe our core
values make a special
place for talented
people.
We are committed to
operating a world-class
supply chain, product
development, and sales/
marketing organization.
Our
Strategic
Pillars
Environmental
Responsibility
Social Consciousness
Being on the forefront of new technologies,
new materials, and manufacturing processes
that will help protect the environment for
future generations.
We are committed to ensuring that
workers who produce products
for PMI can live and work in a healthy
work environment and earn a fair
wage for work performed.
Our Strategic Business Pillars are the means by which we set goals and
measure success. We believe every employee can make a difference.
Accomplishment of their goals will drive profitability.
16
“Our commitment for
social and environmental
improvement goes
beyond compliance.”
Commitment to Excellence
At PMI, our commitment to
excellence extends from every
employee in each of our offices,
through every department and into
our supply chain. We continually
strive to improve our practices
to provide high quality products,
designed with innovation and style
and produced in balance with
the needs of our consumers,
communities, and the earth.
Case Study: Ready When the
Market Wanted BPA Free
For many decades, PMI-Aladdin®/
Stanley® has responsibly produced
to-go food and beverage containers.
We track material certification and
product test for compliance to all
applicable global regulations. We also
listen carefully to our customers.
Before 2008, Aladdin® and Stanley®
reusable water bottle products were
made from food-grade polycarbonate,
which included a bonding ingredient
known as Bisphenol-A (BPA).
Food-grade polycarbonate had been
approved by the Food and Drug
Administration (FDA) for direct food
contact use, however global studies
were getting the attention of PMI
technical trend watchers and customers. As consumers began asking for
non-BPA options, PMI searched for
a material that matched polycarbonate’s clarity and toughness.
Executive, Specialty Plastics Business
Organization, Eastman Chemical
Company. “We’re pleased that
Aladdin® has chosen our newgeneration copolyester as a way
to differentiate their product’s
performance.”
In 2008, PMI partnered with Eastman
Chemical Company to develop and
manufacture the REVIVE & REFRESH
WATER BOTTLE™ product line using
Eastman Tritan™ copolyester. Tritan,™
manufactured without bisphenol-A
(BPA), combines the chemical resistance and low residual stress of traditional copolyesters with higher heat
resistance, making it ideal for reusable
containers that require dishwasher
durability. It is also shatter,
stain, scratch, and odor-resistant.
The new products were launched
at the 2008 International Home and
Housewares Show in Chicago.
Since then, PMI steadily worked to
transition polycarbonate material
containing BPA out of all products
and packaging. By 2009, PMI’s entire
product offering for its Aladdin,®
Stanley,® and MiGo,® along with
packaging were BPA free.
“In today’s marketplace, brand
owners and product designers
are seeking new methods to
differentiate products and meet
changing consumer needs,” says
Randy Beavers, Polymer Solutions
It is interesting to note here that the recycle code for
Tritan™ is still #7. This is confusing to consumers.
Number 7 Plastics
The numbers on the bottom of plastic materials,
are called the Resin Identification Code and classifies
plastics for recycling purposes. The #7 code is
categorized as “other.” See:
www.plasticsindustry.org/outreach/recycling/2124.htm
Polycarbonate is simply one type of plastic that is
coded #7. There are many other plastics coded as #7
that are NOT polycarbonate and do NOT contain
BPA. These include new bioplastics fashioned from
plants as well as the copolyester material, Tritan™.
They are coded #7 because they do not fit into
other categories and are therefore classified together
as “other.” PMI’s Customer Service team has worked
diligently to answer questions regarding our BPA free
products that still show a #7 recycle code.
17
Did you know that
your eCycle® water
bottle and coffee mug
are made from recycled
yogurt containers?
Innovation
We realize consumer needs
are constantly changing and we bring
this knowledge into creating new
materials, processes, and products to
meet these needs. We also realize
our innovation strategy must encompass the safety needs of consumers,
our stakeholders, and the environment. We continue to develop new
products and processes with this at
the forefront.
Case Study:
In 2007, in order to promote
a “reduce, reuse, and recycle”
philosophy of environmental
sustainability, PMI considered
how we could use recycled
materials in our new product
development. With extraordinary
research and investment, eCycle®
Polypropylene (eCycle® PP)
was created by Pacific Market
International, LLC.
eCycle® PP is a proprietary blend
of food grade polypropylene, made
entirely from food safe source materials that are collected, recycled, and
reformulated in North America. Our
unique formulation contains 100%
recycled polypropylene with a minimum of 25% post-consumer content.
We manufacture eCycle® PP using
strict sourcing and processing
controls to ensure it is acceptable
for Direct Food Contact Use
according to published, global
regulatory compliance guidelines
for post-consumer recycled content
plastics. Every production lot of
eCycle® polypropylene material is
quality tested for purity.
2,000,000
Total eCycle® Units
1,500,000
1,000,000
500,000
2008
2009
2010
PMI would like to see more sales growth of
these great products that are healthy, safe,
and environmentally friendly.
18
Case Study:
Mug Back Program
In 2008, PMI and a North American
retailer joined forces to bring new
life to 100,000 polycarbonate water
bottles. In the wake of consumer
confusion around polycarbonate
products containing Bisphenol-A
(BPA), this retailer removed over
100,000 bottles that contained BPA
from their stores. Having heard of
our recycling capabilities, the retailer
came to PMI seeking a sustainable
solution for the unused bottles so
they could avoid sending them to
a landfill.
The result: The Aladdin® eCycle®
Recycled and Repurposed Travel Mug.
It features recycled polycarbonate
water bottles as the outside surface
while the lid and inside liner (all foodcontact surfaces) are made from
PMI’s proprietary, recycled BPA-free
polypropylene. The mug contains
85% recycled plastic, 30% of which is
post-consumer content made from
yogurt containers.
“The PMI company
culture is strong and
employees are deeply
committed to the
values that support
placing team and
company first.”
Culture / People
The idea that principles guide
our pathway to profits permeates
every area of our business, starting
with our commitment to our people.
PMI is dedicated to helping our
worldwide team succeed. Having
fun is a value that lives every day in
the cubicles and corridors of each
PMI office. Employees are actively
engaged in cross-functional teams
that each year set goals and conduct
special projects to advance
the company.
This foundation has helped PMI
navigate times of great turbulence
and challenge. The company culture
is strong and PMI employees are
deeply committed to the values that
support placing team and company
first. These values have helped launch
initiatives in the areas of sustainability,
corporate, and social responsibility
and have taught employees the
importance of partnership with our
customers and our consumers. These
principles and values are what make
PMI different and what will continue
to drive the success of the company.
A PMI Joinease Journey: Production Line Technician to
Production Industrial Engineering Team Leader.
Liao Ming was originally hired by Joinease as a Production Line
Technician. A bright, hard working young man, one day he went to
his manager and told him he was concerned his job was going
nowhere. PMI Joinease management made a commitment to help
him with his education. They provided study time during work hours
and agreed to pay 50% of his university fees with the condition that
he successfully complete the entire course. Liao Ming finished his
first university course in two years and received his degree. After
that, he was promoted to Production Industrial Engineer (PIE). He
still works at PMI Joinease and is now a team leader to the PIE team.
Having worked his way up from line worker to engineering leader,
Liao Ming is eager to help others do the same.
19
“PMI has a longstanding
tradition of supporting
local, national, and
international non-profit
organizations focusing
on children, education,
and the environment.”
Social Consciousness
Guided by the values
upon which PMI was founded in
1983, we have grown our company
based on what we believe is the right
way to conduct business. Since 1998,
PMI has had a Director for CSR
policy development, strategy and
reporting.
In 2003, PMI Shanghai initiated an
Asia CSR Manager position for CSR
program development, execution,
and CSR performance evaluation.
The CSR team, with the advantage
of PMI employees working “on the
ground” with our factories on a
regular basis and third-party objective
collaboration, has made a difference
in the effectiveness of our program.
In 1998, PMI published our first
workplace Code of Conduct. PMI
believes that specific standards for
human rights, wages, and work
conditions are essential for all partner
factories to follow; only factories
committed to this code can be
qualified to supply product to PMI.
We are active members of Business
for Social Responsibility (www.BSR.
org), an international non-governmental organization (NGO) that
provides its members with an
extensive network for CSR trend
information and learning to support
and enhance corporate knowledge.
We are also active members of the
Center for Corporate Citizenship.
Through these associations, PMI has
stayed current on global CSR trends
and initiatives. PMI works closely with
customers, NGOs, and partner factories to provide guidelines that are
meaningful and realistic.
PMI continues to widen Code of
Conduct compliance throughout the
supply chain. Starting in 2001, PMI
engaged third-party firms to audit all
our partner factories including major
sub-vendors. In 2003 all partner
factories were required to engage
in the Corrective Action Plan (CAP)
process for continuous improvement
and, with PMI support, take responsibility for driving corrective action
plans with their own sub-vendors to
achieve compliance. With this initiative, CSR awareness and compliance
has been greatly increased.
A PMI Joinease Journey:
Production Line Lead to Sales Department Supervisor at PMI Joinease
Peng Yan was a Production Line Leader when she began working at the Joinease factory in 2000. The
business was growing rapidly and Peng Yan wanted to grow with the company. Joinease encouraged her to
take a management course, gave her time to study during work hours, and paid a portion of the course
fee. In 2003, she was promoted to Supervisor of all the assembly lines. She ultimately managed fifteen lines
and close to 600 workers. In 2010, she was promoted to Sales Department Supervisor. In order to continue her career growth, she is taking an English language program along with colleagues from the factory.
20
Shortly after the CAP was
introduced, PMI gained traction
for improvement by requiring each
of our factories to assign one of
their managers as a dedicated CSR
Manager. We have found this provides
routine supervision and accountability
for Code of Conduct compliance. It
enables the factory manager to own
the improvement and maintenance
process and provides a direct oneto-one link between the factory CSR
Manager and PMI’s CSR Manager.
where the only basis for comparison
was price point. Today, PMI’s rigor
surrounding compliance provides a
competitive advantage. As a fifteenyear veteran of program compliance,
PMI ensures global compliance with
efficiency and cost advantage.
Please reference the PMI website
(www.pmi-worldwide.com) for
our Code of Conduct. Our vendor
compliance guide includes a Code of
Conduct Protocol that we created as
a support to our factories.
PMI does not have a program for
measuring, in finite terms, the impact
of our offices and factory on the
surrounding communities. What we
do know is providing an ethical and
stable source of employment for our
workers has improved the lives of
our workers’ families and surrounding
communities. Our very high rate of
employee retention is also an indication of the benefit we are bringing to
workers and their communities.
A PMI Joinease Journey:
Cashier to Accounting
Department Manager
Compliance and Verification
PMI manages Environmental Health
and Safety (EHS) in products and in
our facilities. We comply with all food
contact global regulations such as the
FDA. All PMI products are tested by
third-party labs (BV, SGS, Intertek)
for compliance with all applicable
global regulations.
Since 1995, PMI has complied with all
applicable global regulations for our
products. The compliance has always
been validated by third-party testing.
The cost of this compliance is significant due to higher material costs and
testing costs. In the past, this caused
PMI to miss some sales opportunities
In addition to requiring that our
partner factories achieve and
maintain Code of Conduct compliance, PMI also requires our offices in
Seattle, Shanghai, Manila, and London
to comply as a continuous part of
corporate responsibility. To assure
operational compliance with local
regulations and corporate laws,
PMI Shanghai engaged a third-party
international accounting firm, Moores
Rowland, from 2000-2004. Since
2004, PMI Shanghai has engaged
Deloitte Touche Tohmatsu to
complete the company’s annual
audit. Independent audits are
also performed each year in
PMI’s other offices.
Lou Xiu Hau, only had a primary
school education when she began
working at PMI Joinease as a
cashier in 1995. Management
found her to be an extremely
honest person who always
considered cost saving and a
commitment to excellence. When
PMI Joinease brought in computers,
Lou Xiu became an expert. Over
the past fifteen years, she has
completed numerous outside
accounting and tax training
courses. PMI Joinease has paid
for this training and allows her
to study during work hours.
Today, she is the Tax Specialist in
the factory and has an in-depth
knowledge of tax laws. She has
managed the PMI Joinease factory
accounting department since 2003.
21
Social Consciousness
A Case Study:
The Transformation of
Joinease to PMI Joinease
Joinease was founded in May of 1990
in Hong Kong, Kowloon. The factory
and business headquarters were
situated side-by-side and there were
only thirty employees at the time.
In 1991, when PMI was looking for a
company to manufacture a specific
part, a PMI senior manager contacted
one of his acquaintances at Joinease.
The two companies have been
partners ever since.
In July 1995, Joinease enlarged its
business and opened a small factory
for precision tool and injection mold
manufacturing in Dong Guan City,
China. In 1997, collaborating together
we developed our first plastic seal lid,
which jump-started our plastic mug
business. Initially, orders were small
but over time, we launched the first
major thermo-plastic mug production. However, to ensure we were
truly meeting our quality standards,
Joinease and PMI made a joint
decision to halt production and
rethink our design and production
approach. By the end of 1998, we
re-launched the full plastic program
with improved quality, design, and
productivity. This immediately led to
a plastics program for Starbucks.
Over time, Joinease grew with PMI
and the factory needed to expand.
In 2002, Joinease purchased 400,000
sq. ft. of open space and began
construction on a new factory and
dormitory. Located in rural, southern
China the property allowed for
expansion in alignment with the PMI
22
Code of Conduct targets. In 2009,
the PMI Joinease facility was home
to 1,500 workers and a 40,000 sq. ft.
factory and had a 95% worker
retention rate.
In the beginning, there was resistance
to the Code of Conduct program
and many thought it would result
in lower pay. Between 2003 and
2004, Joinease encouraged workers
to explore the benefits of the
program. As employees began to
better understand the Code of
Conduct, it became widely accepted.
On January 1, 2005, Joinease
launched its official joint venture with
PMI and renamed the company, PMI
Joinease. The joint venture allowed
for greater growth and expansion.
Since that time, the factory has
absorbed much of the PMI culture
and has experienced significant
growth and development. The joint
venture also supported many thirdparty improvement programs
including Verité and BSR training
initiated by Starbucks. PMI Joinease
continues to learn and grow.
The addition of robotics to the
injection mold production process
has increased productivity per
worker, while improving quality
and consistency.
PMI Joinease ISO certification history:
• 2003 - ISO 9001:2000
• 2007 - ISO 14000
• 2008 - QS for the China food
container market
The partnership between PMI and
Joinease along with shared business
principles, has provided sustained
growth for both companies.
Community
PMI conducts careful research before
entering into new business partnerships. Our community assessment is
primarily based on business needs
and the health of the current location
to support long-term growth. We
establish business partnerships with
factories and warehouses based on
our values and our commitment to
ethical sourcing.
PMI has a longstanding tradition
of supporting local, national, and
international non-profit organizations
that focus on children, education
and environment. We carefully
assess opportunities by collecting
information and considering the
merit, impact of the organization,
and the best fit.
Not only do we donate resources,
we also volunteer time. All of our
employees, from the newest team
member to the CEO, are personally
involved with our philanthropic
activities and are encouraged to
take one paid leave day a year to
participate in volunteer work.
Some of the
organizations PMI
has supported:
Asian Counseling Referral
Service
Boys and Girls Club of
South King County
In 2007, we created “Grass Roots
Giving,” a fund that each office,
based on employee submissions for
consideration and votes, donates to a
local organization. The voting is part
of our quarterly All Staff meeting
in each office. The winning organization is presented with a PMI donation
via the employee who facilitated the
nomination. PMI combines business
investments and philanthropic
involvement in the communities
where we do business.
Clothes for Kids
Conservation International
CURE (Childhood Cancer
in China)
Food Lifeline
Habitat for Humanity
Hands on China
Hopelink
Hospice of St. Francis
Hugh Grace Orphanage
Million Tree Project - China
Through donations and volunteer
hours, our philanthropy team works
with all of our global offices to
support the communities in which
we do business.
Northwest Harvest
Ocean Conservancy
Philippine National
Red Cross
Provail
Seven Colors Autistic
Children Training Centre
Shanghai Children’s
Medical Center
Susan B. Komen
Terry Fox Run - Shanghai
The Conservation Alliance
Treehouse - Four Squares
Youth Care
23
“We focus on reduction
of waste and recycling of
waste materials at our
core factories.”
Environmental Responsibility
2005 The Journey Begins
During the last five
years, PMI has transitioned from a
social responsibility focused CSR
program to becoming a sustainable
enterprise that promotes healthy
lifestyles through our product lines
and company, as well as in the
factories that produce our products.
We have done this by taking a life
cycle approach to our products,
becoming a leader in using sustainable
raw materials, reducing hazardous
materials, waste and natural resource
consumption at the factories in the
production process, and by creating
positive work environments for
factory and office workers.
PMI has developed a program
to go beyond existing factory
compliance programs that increases
collaboration with factory engineers,
quality assurance personnel, and front
line factory workers. This has led
to greater accountability and an
increased sense of responsibility
by our factories and for the PMI
products they produce.
24
Over the past eight years we have
successfully recycled waste materials
at all of our core factories in China.
In addition, PMI Joinease is recycling
10% of the water used in production.
When we first asked our factories
to sort and recycle waste materials,
the perception was that this would
be a cost burden. This perception
changed as early steps revealed the
cost to sort and inventory manufacturing waste was outweighed by the
revenue gained in selling the “scrap”
stainless steel and plastic materials to
other industries and recyclers. Today,
PMI Joinease self-manages the waste
recycling operation and recycling has
become a source of revenue.
Three of our key factories in China
made significant environmental
process improvements and achieved
ISO 14001 certification in 2008. We
are currently in the process of establishing Environmental Management
Systems at each of our core factories.
In 2009, we continued our journey of
environmental improvement in our
supply chain when we developed a
new PMI Environmental Plan that will
take PMI to the next level.
With the preparation of this report,
we have increased data gathering on
our resource use and environmental
impacts, including water, energy, virgin
and recycled materials, hazardous
materials, waste and air quality
monitoring, in addition to other
data routinely collected. This will
form the baseline for establishing
and tracking key performance
indicators to drive improvement
toward longer-term goals.
Although we have made numerous
environmental process improvements
in recent years, it is our sustainable
products that are the most exciting
part of our environmental journey.
Commitment to
Ecologically Sustainable
Development
In 2006, PMI decided to
re-position the core value of its
brand Aladdin® to reflect “taking care
of people and our planet,” which is
one of the key values of PMI’s CSR
principles. Aladdin-branded Sustain®
products showcase PMI’s innovative
approach to design, function, and
materials that encompasses sensitivity
to consumers and to the environment.
Consumers can access the website
for more information: www.shop
aladdin-pmi.com/products/sustain
PMI makes every effort to assure
our products are healthy, safe, and
meet customer expectations. PMI
uses third-party testing labs, such as
Bureau Veritas, SGS and Intertek, to
ensure our products are tested for
compliance with global regulations
for every item, every color, and
every kind of material before
production. We are committed to
going beyond government laws and
regulations, maintaining continuous
improvement through setting targets,
engaging stakeholders, reducing
impacts of products, and decreasing
pollution from air emissions, water
emissions, energy use, and waste.
We research and choose the safest
possible materials and products that
are easy to recycle. Our development
process starts with consumer needs
and we develop products in response
to those needs. We don’t base new
products on what our competitors
are doing. This results in a positive
impact on the environment because
we are making reusable products the
consumer will use. For example, in
response to consumer requests for
BPA-free we were the first to
use Tritan.™
Green Office Checklist
In 2007, PMI global offices,
including PMI Shanghai, published the
Green Office Checklist as a guideline
for each office to follow in order
to minimize environmental impact
through office operations. Each office
now focuses on reducing their use
of paper and conserving energy and
water. We recycle all possible items,
including computers, cell phones, and
batteries and encourage the use of
reusable containers and bags. We also
encourage carpools and the use of
public transportation for commuting.
As PMI gathered information for our
GHG Scope 3 assessment, we were
delighted to learn that 79% of PMI
employees worldwide commute
to work via public transportation,
carpool, or bicycle.
Our newly completed carbon footprint and commuting assessments will
support our efforts going forward to
engage employees in reducing our
impact on the environment. PMI’s
Employee Environmental Team will
continue to drive environmental
initiatives within our offices.
25
PMI Environmental
Performance
Indicators
These KPIs, in ratio form, provide a normalized measurement for performance management and for monitoring targeted
decreases in resource intensity that can be utilized for cost savings, risk reductions, and comparative data for updating CSR
reports. These measurements include carbon footprint and resource usage per production units for: energy, electricity, water,
materials, and waste. As PMI expands reporting to additional contract factories, these ratios will allow us to track comparative
resource efficiencies across locations.
PMI Carbon Footprint
Energy Intensity
Energy intensity for PMI, PMI Joinease, and total of PMI + PMI Joinease
PMI
Offices
Joinease
Factory
PMI Joinease
Total energy use (Scope 1
+ Scope 2) in MMBTU
2191
27012
23260
Energy use per employee
13
18
17.44
Total Energy use per 1
148
2847
1570.77
Energy Intensity
PMI & 78%
million product units
78% PMI Joinease represents the percentage of factory
production that is dedicated to PMI products.
GHG intensity for PMI, PMI Joinease, and total of PMI + PMI Joinease
PMI
Offices
Joinease
Factory
PMI Joinease
Scope 1&2 GHG
Emissions (Metric Tons
of CO2e)
285.00
6152.00
5084.00
Carbon (Tons of CO2e)
1.74
4.10
3.81
19.27
648.38
343.30
GHG Intensity
PMI & 78%
• Electrical energy consumed from various grid sources
(nuclear, coal, hydro, etc.) plus energy generated from
various types of fuels has been converted into a common energy unit. In this report “BTU potential” is used
as the common factor and expressed in MMBTU units
(1,000,000 BTU).
• Future energy prices will be volatile and rising. Reducing
the amount of energy utilized per product or per valueadded in the manufacturing and distribution process will
be a direct savings plus a risk reduction. In this report,
the amount of energy utilized to create one million
product units and the energy consumed per number of
employees serve as basic energy intensity indicators.
These intensity ratios will provide comparable information
regardless of fluctuations in the amount of products
produced and/or energy prices. This first year report
provides a baseline from which future performance
improvements will be targeted and measured.
GHG Intensity
• GHG intensity ratios provide tools for executing a
proactive carbon management strategy that can leverage
a consistent, auditable process, assess a carbon baseline
across all operations, set reduction goals, and establish
a systematic way to develop and execute an
abatement plan.
per Employee
Carbon (Tons) per
1 Million Units Produced
78% PMI Joinease represents the percentage of factory
production that is dedicated to PMI products.
26
The data in these charts sets a benchmark / baseline
for PMI’s environmental data as a ratio of impact per
1 million units produced. This ratio can be tracked and
reported on yearly as a consistent comparison metric.
2009 Share of Total Office Emissions
(CO2e Pounds) per Employee by Location
2009 Share of Total Office Emissions
(Tons CO2-e) By Location
8.6
7,000,000
Seattle
15.2
6,127.7
6,000,000
Seat
5,000,000
Shan
4,000,000
Lon
Shanghai
London
39.2
1,799.7
2,000,000
222.4
Man
2397.5
3,000,000
Manila
1719.6
1,000,000
0
Reporting on Scope 3 carbon emissions
• Whereas the above reported carbon emissions from Scope
1 & Scope 2 include the emission of greenhouse gases over
which PMI has direct and indirect control, Scope 3 includes
activities over which PMI has influence but are beyond direct
ownership or control.
• To provide a more precise measurement and comparison, subcategories of Scope 3 GHG emissions are being
formulated by the Greenhouse Gas Protocol and are due
Shipment GHG Emissions
for publication in 2011. PMI is following best practices by
initiating data collection and projects that address important
aspects of its Scope 3 footprint. These include shipping, packaging, waste generated in operations, employee commuting
in administrative offices, and products designed for end-of-life
recycling. In the following tables, emissions for shipping and
office employees commuting have been calculated, baselining
a significant portion of PMI’s Scope 3 footprint.
GHG Commuter Emissions
PMI
GHG Emissions from Shipments
(Tons of CO2e)
264.87
Shipment Tons of CO2e per
I Million Units Produced
17.89
Commuting GHG Emissions
PMI
Commuting Tons of CO2e
359.84
Commuting Tons of CO2e
per office employee
2.19
21%
79%
Public Transportation
Based on PMI global
employee survey with
43% response rate.
Electricity Consumption per Employee by Office (kWh)
30,000
30,000
27.1
25,000
20,000
Electricity Consumption/Square Footage (kWh)
27.1
25,000
19.2
Seattle
17.3
20,000
19.2
17.3
Shanghai
15,000
London
9.8
15,000
9.8
Manila
10,000
10,000
5.4
5,000
0
Combined Offices
5.4
5,000
0
27
KPIs for Water, Waste, and Materials
Water Intensity
Water intensity for PMI, Joinease, and total of PMI + PMI Joinease
PMI
PMI
(Seattle &
Shanghai)
PMI
Joinease
(Seattle & Shanghai)
& 78% PMI Joinease
9,198
86,098
76,355
Water Consumed per 1 million Units Produced
621
9,074
5,156
Water Recycled/reused in Meters Cubed per Year
0
9,342
7286
Percent of Water Recycled/reused
0
9.79
9.54
Water Consumption Intensity
Water Consumed (Water used minus water
recycled in meters cubed per year)
*78% PMI Joinease represents the percentage of factory production that is dedicated to PMI products.
The use of water
resources will increasingly affect costs, as
well as impact the
environment, making
the monitoring of
water intensity across
business operations
a material issue for
cost savings and risk
management.
Waste Intensity for PMI, PMI Joinease and total of PMI + PMI Joinease
PMI
Waste Intensity
Hazardous Waste (Metric Tons)
PMI
(Seattle &
Shanghai)
PMI
Joinease
(Seattle & Shanghai)
& 78% PMI Joinease
0.01
2.80
2.19
Nonhazardous Waste (Metric Tons)
1.58
5.94
6.21
Total Waste (Metric Tons)
1.59
8.74
8.41
% of Hazardous to Nonhazardous Waste
0.63
47.12
35.31
Hazardous Waste (Metric Tons) per 1 Million
0.001
0.30
0.15
0.11
0.63
0.42
NA
0.0022
NA
52.00
0.00
13.00
Units Produced
Nonhazardous Waste (Metric Tons) per 1 Million
Units Produced
Waste (Metric Tons) per Material Used
(Metric Tons)
Percent of Nonhazardous Waste Recycled or
Composted
*78% PMI Joinease represents the percentage of factory production that is dedicated to PMI products.
PMI
Joinease
(Seattle & Shanghai)
& 78% PMI Joinease
Materials used (Metric Tons)
3919
3057
Material (Metric Tons) per 1 Million Units
Produced
413
322
Recycled Materials Used (Metric Tons)
233
181
Percentage of Materials Used that are Recycled
5.94
4.63
19
15
Materials Intensity
Recycled Material (Metric Tons) per 1 Million
Units Produced
*78% PMI Joinease represents the percentage of factory production that is dedicated to PMI products.
28
Tracking a baseline for the
reduction of materials intensity is
in compliance with the goals of the
OECD Council and various national
sustainability strategies. Internally, this
KPI ratio facilitates the monitoring
of material efficiency and cost of
material flows.
Stakeholder Engagement
Stakeholder guidance is
important to PMI and has been taken
into account at every step of the
CSR journey. As an Small to Medium
Enterprise (SME), our interaction
with our stakeholders is direct and
continuously interactive. We work in
partnership with our stakeholders to
bring innovation to our programs and
to accurately track our progress. As a
small, privately held global corporation, working with our stakeholders
to publish our first CSR report allows
us to take our value of transparency
to a new level this year.
Each of our stakeholder groups has
a unique and valuable affect on our
thinking as we continually evolve
our CSR strategy and initiatives. We
are proud to be part of the growing
network of companies that incorporate social and environmental
responsibility at the core of relationships with suppliers and customers.
In recent years, our CSR efforts have
been inspired and supported by the
following stakeholder processes:
• Starbucks, our largest customer,
has worked with us as a partner at
every step of our CSR journey. Our
colleagues at Starbucks have provided
direction, insight, and incentive as
we have navigated best practices for
social and environmental continuous
improvements. In 2009, Starbucks
engaged STR to evaluate our CSR
System. From this audit of PMI’s CSR
System, we have provided progress
reports and full transparency.
• Wal-Mart 15 Questions: PMI was
part of the first wave of suppliers
that completed the Wal-Mart 15
Questions in July 2009. Completing
this provided added incentive for
our company to move as quickly as
possible in documenting and setting
goals for environmental management
in our facilities.
• Our participation in the Outdoor
Industry Association Eco Working
Group (OIA EWG) has been a great
experience and provided learning and
direction for making improvements in
our environmental programs and
our products.
• Our employees are passionate about
environmental improvement and
knowing our factories are safe and
humane places to work. In the past
three years, our experience is that
employment candidates under the
age of thirty-five are deciding which
company to work for based on CSR
performance. Our CSR program has
helped us attract and retain top talent.
• Consumers are the ultimate customers
for our products. We consistently
monitor what is important to consumers via market studies and customer
feedback. We believe consumers have
the power to change the world via
their buying choices.
• Factory Partners are as essential to
our business as our customers. As
a designer and manufacturer of food
and beverage containers we understand the realities of effecting change.
We have worked slowly and steadily
to insure that our factories are safe
and humane places to work. Our
factory partners understand that our
sincerity for CSR is coupled with realism. We listen to their concerns and
work with them to steadily improve
processes and conditions.
• Supply Chain influence is difficult for
About Our Stakeholders
• Employees are the life blood of our
organization and are our primary
stakeholder. Their loyalty makes our
company strong. We provide CSR
education to PMI employees and
listen to their feedback. Our new and
younger employees tell us that PMI’s
commitment to CSR/Sustainability
was one of the primary reasons they
joined our company. PMI was rated
as “best place to work” by “Seattle
Business Magazine,” in June 2007.
• Shareholders are always an important
voice in corporate strategy. Being
privately held, we have the ability to
take a long view and work diligently
on initiatives that provide solid
rewards.
• Customers are our primary focus and
we consider our customers to be
our business partners. Their views
and vision for CSR/Sustainability is
always factored into our corporate
strategy. We like to work in collaboration with our customers and PMI sits
in on their committees, panels, and
seminars.
a small company. PMI has researched
all aspects of our supply chain so
we can better understand where
opportunities exist. For example, we
have researched raw material suppliers to find out which companies are
actively engaged in CSR/Sustainability
initiatives. We choose to work with
CSR focused raw material suppliers
whenever possible.
• NGOs such as Business for
Social Responsibility, The Center for
Corporate Citizenship and NBIS are
essential sources of information that
affect our strategic thinking. As a
member of each of these organizations we are able to network with
many like minded companies. This
interaction provides learning, direction
and feedback that are essential to our
growth in CSR.
• Consultants provide insightful
expert feedback and learning to our
program. As a small global company,
we do not have the internal resources
to achieve all of the goals we set for
our CSR initiatives.
29
Memberships & Awards
Memberships
• American Society of Mechanical Engineers (ASME)
• Center for Corporate Citizenship
• Society of Plastics Engineers (SPE)
• Business for Social Responsibility
• APICS The Association for Operations Management
• Sustainable Brands
• Outdoor Industry Association
• American Society for Quality
• International Housewares Association
• Network for Business Innovation and Sustainability (NBIS)
Awards
30
Fina
Leg
ncia
l Im
pact
s/R
al R
egu
isks
l
a
tor y
Stak
eho
Poli
cy D
Opp lder Co
rive
nce
or tu
r
r
ns/S
nity
ocia
for
Inno
l Tre
Tot
nds
vati
al S
on
cor
e
Materiality Chart
Worker Retention Offices
3
1
3
1
8
Worker Retention Factories
3
1
3
1
8
Culture / People
PMI would
like to thank
the following
people
Andrew Smith-Jones
Anett Young
Darcy Gay
Dave Gonda
Doreen Huether
Josef Hizon
Karl Shibayama
Environmental Responsibility
11
Leah Bross
3
9
Sarah George
3
11
3
2
9
1
3
3
10
2
2
2
2
8
Waste Recycling
2
1
3
2
8
ISO 9001 Factories
3
1
3
1
8
ISO 14001
3
1
3
3
10
Environmental Management System
3
1
3
3
10
Energy Conservation KWH
3
2
3
3
Carbon Footprint / GHG Emissions Offices
2
1
3
Carbon Footprint / GHG Emissions Factories
3
2
3
Water Usage
3
1
Water Recycling
3
Waste
Stephanie Ausen
Thomas Wang
Valerie Bone
Special thanks to Jean Rogers,
Principal, Arup for her early
encouragement and coaching.
Social Consciousness
Injuries / Deaths
3
2
3
1
9
COC Compliance
3
3
3
2
11
Corporate Philanthropy
3
1
3
1
8
Volunteer Hours
3
1
3
2
9
Based on our values we have identified key performance indicators that will
be essential to track for future improvement. The materiality chart above
lists the Key Performance Indicators that PMI started tracking in 2010 and
will report on in future reports..
This Report is printed on Domtar Earth Choice Cougar 70 lb. text and 65 lb. Cover with soy-based inks,
and chemistry-free plating. The paper is Forest Stewardship Council (FSC) certified 10% post-consumer
waste (PCW) fiber. The purchase of three of the images in this report generated a donation of 20 trees
to the Global ReLeaf Fund through an American Forests program at: www.RhizomeImages.com.
Karl Ostrom, Mary Rose &
Suzanne Sullivan
Network for Business
Innovation and Sustainability
Jen Pennington, Designer
31
PMI Seattle - Headquarters
2401 Elliott Ave., 4th Floor
Seattle, WA 98121
Tel: 206.441.1400
Fax: 206.441.2823
Email: [email protected]
PMI Shanghai
Shanghai Int’l Shipping Building, Rm. 11B
720 Pu Dong Ave.
Pu Dong New District, Shanghai, China 518111
Tel: 86.21.50366.350
PMI Europe
6 The Progression Centre, Mark Road
Hemel Hempstead
Herts, United Kingdom HP2 7DW
Tel: +44 1442 419800
Fax: +44 1442 235760
PMI Manila
7F Pearlbank Centre Building
146 Valero Street, Salcedo Village
Makati City 1227 Philippines
Tel: 800 251 4535
Fax: 615 370 0546
www.pmi-worldwide.com
www.stanley-pmi.com
www.aladdin-pmi.com
For questions regarding this report,
please contact: Valerie Bone at
[email protected]
To read our Code of Conduct visit our website at:
www.pmi-worldwide.com
32