Posts Tagged ‘CSR report’

Timberland’s Quarterly CSR Performance

In December, Timberland announced its CSR performance results for Q3 of 2011.  Highlights from this quarter’s performance are as follows, organized by Timberland’s four CSR pillars of climate, product, factories, and service:

Climate:
Greenhouse Gas emissions
increased by 13% compared to Q3 2010. This change is primarily due to increases in air travel as our business rebounds, and related to efforts to integrate our business with VF Corp (VF acquired Timberland in September 2011). With forecasted business growth this year, we are targeting static emissions for our owned and operated facilities (and employee air travel) as compared with our year end 2010 result.

Product:
Helping to drive reduced environmental impact of our products is a continued focus on chemicals management in manufacturing.  In Q3 2011, our global average grams/ pair of volatile organic compounds (VOCs) used in footwear production was 59.0. We continue efforts to reduce VOC consumption by substituting high-VOC containing chemicals or reducing their use altogether if a substitute is not readily available.  We are also continuing to prioritize the use of environmentally-preferred materials in our products. In Q3 2011, 16.4% of materials in our apparel production were recycled, organic, or renewable (ROR).

Factories:
In Q3 2011, no factories that Timberland sourced from received a “High Risk” rating.  33% of our suppliers had High Priority scores in Q3 2011, which is relatively the same as our Q2 2011 results.  Controlling working hours and effective wage calculation/payment processes were issues for 100% of the High Priority scores in Q3, and our sourcing managers are working closely with these suppliers to ensure that orders are not beyond realistic production capacity of the factories.

Service:
As of the end of Q3 2011, Timberland employees served a total of 78,241 hours (year to date) in their communities. The Hours Utilization Rate (HUR – the percentage of employee service hours used compared to total available according to the Path of ServiceTM program) year to date at the end of Q3 2011 was 36%, which is an improvement when compared to our Q3 2010 result of 28% HUR.

Additional Q3 2011 performance data and analysis can be found on the Goals & Progress section of Timberland’s CSR website.

Timberland’s Quarterly CSR Update

Last month, Timberland announced its 2nd quarter CSR performance. Highlights from this quarter’s performance are as follows, organized by Timberland’s four CSR Pillars: climate, product, factories, and service:

Climate:
Our Greenhouse Gas emissions increased by 11% in Q2 2011 compared to performance in Q2 2010. This change is primarily due to increases in air travel as our business rebounds, as well as the fact that we are no longer purchasing offsets for our Smartwool operations. With forecasted business growth this year, we are targeting static emissions for our owned and operated facilities (and employee air travel) as compared with our year-end 2010 result. We have prioritized several energy efficiency projects and renewable energy purchases to meet this goal.

Product:
Timberland continues to prioritize the use of environmentally-preferred materials in our products. In Q2 2011, 28.75% of materials in our apparel production were recycled, organic, or renewable (ROR). This result is consistent with Q2 2010 ROR use at 29.1%. Timberland’s International Design Center continues to drive improved ROR use across our apparel production. We are also working with our Licensee partners to further incorporate these materials.

Factories:
34% of our suppliers had High Priority scores in Q2 2011, which is relatively the same as our Q1 2011 results. Controlling working hours and effective wage calculation/payment processes were issues for 85% of the High Priority factories. Our sourcing managers are increasing regular assessments of factories’ production capacities and making adjustments in orders (or securing additional suppliers).

Service:
Timberland employees served a total of 45,702 hours year to date, as of the end of Q2 2011. The Hours Utilization Rate (HUR – the percentage of employee service hours used compared to total available according to the Path of Service program) year to date at the end of Q2 2011 was 21%, which is slightly higher than our Q2 2010 result.

Additional Q2 2011 performance data and analysis can be found in the Goals & Progress section of Timberland’s new CSR website.

Timberland’s 2010 CSR Results and the Importance of Target Setting

It’s that time of year where people in my position are busy compiling year-end social and environmental performance which will eventually end up in our Corporate Social Responsibility report. Timberland has been reporting on our impacts since 2000, and we’re proud to share our accomplishments and how we got there. What’s equally as important is communicating our failure to meet certain targets, why that may have happened and what we’re doing about it. We call this balanced transparency – and it’s critical for building credibility as a responsible business.

Why would we publish targets that might be aspirational? As a public company, we strive to make responsible choices every day for our business, communities and the outdoors. We vet our targets internally with business units who are responsible for implementing programs to meet these goals, and also externally with issue experts, NGOs, and other stakeholders who push us to reduce our impact and improve the places we live and work. This process holds us to a higher standard. For example, we recently achieved a 38% GHG emissions reduction at the end of 2010 – a huge accomplishment by corporate standards. Sure, we didn’t meet our target last year – but we would never have reduced our footprint by as much as we did had we not set an extremely aggressive goal to in the first place.

And now we’re at it again… at the end of 2010, we collected data to see how we fared against other bold goals. Below, you can find a sampling of our year-end 2010 results, organized by Timberland’s four CSR “pillars,” which are also available for download at http://community.timberland.com/Corporate-Responsibility. By analyzing our current progress and challenges, we can now look to a longer-term horizon to consider new and different ways we will reduce our impact. For the last six months, we have been working on new targets that push us even further. We’ll publish these goals externally so that stakeholders can track our progress – look for our new CSR report late this summer!

2010 CSR Results

ENERGY:

  • As already noted, we achieved a 38% emissions reduction in 2010. This achievement is for our owned and operated footprint and employee air travel, over a 2006 baseline. Our recently released white paper gives all of the details.

PRODUCT:

  • Green Index® scores stayed relatively flat, which is an achievement because we scored a greater variety of products in 2010 (vs. mainly Earthkeeper product or “green” outdoor product in 2009), which included heavier leather styles that tend to score worse.  An increase in recycled content, our phase-out of PVC, and continued reduction in VOC consumption helped improve scores.
  • Of the cotton we purchased in 2010, 34% was organic. This is significantly higher than 2009 (18%), which is impressive given the sharp rise in the price of organic cotton and cotton as a whole.

WORKPLACES:

  • At the end of 2010, 32% of our suppliers had High Priority scores (compared to 32% at the end of 2009) primarily due to Wages and Working Hours issues. With the economic situation improving while labor shortages continued, working hours was a particularly challenging issue for many factories this year.  Our sourcing managers are increasing regular assessments of factories’ production capacities and making adjustments in orders (or securing additional suppliers).

SERVICE:

  • Timberland employees served a total of 75,859 hours in 2010, which represents an 8% decrease in hours served compared to 2009.  Continuing high demands on employees’ time at our manufacturing facility in the Dominican Republic along with our distribution centers in the U.S. contributed to a significant decrease in hours served as compared to last year.

Ceres Sustainability Reporting Awards

At the annual Ceres conference held earlier this week, Timberland was very proud to accept the award for the Best Sustainability Report.  We’re honored to receive this important recognition, particularly considering the first-class caliber of contenders we were up against, including:

Ford Motor Company
(First Runner Up, Best Sustainability Report)

Ford’s 2008-09 Blueprint for Sustainability Report addresses the fundamental challenge of sustainability and includes candid discussion about Ford’s past performance, mistakes made and how they’re working to further integrate sustainability into their business model.

Seventh Generation

(Best  Small and Medium-Sized Enterprise Report)

Seventh Gen’s 2008 Corporate Consciousness Report includes focus on two key considerations for sustainable business: supply chain and competition.  The report features an in-depth discussion about how the company engages with its manufacturing partners to improve sustainability performance, as well as how it uses industry collaboration to create positive change.

The fact that the Ceres-ACCA Reporting Awards program is ten years old and counting is testament itself that there is a real need for and interest in business communicating openly and honestly about its efforts to create positive environmental and social impact.  We’ve drawn insight and inspiration from past award recipients, and we hope we can live up to their leadership and do the same for other organizations.

For more information about the Ceres-ACCA Reporting Awards, click here.

Reporting on Responsibility

Today we released our 2007-2008 Corporate Social Responsibility (CSR) Report — chock full of information about Timberland’s performance, successes, challenges, and forward-looking goals for each of our four CSR focus areas (energy, product, workplaces and service).

This bi-annual report is a more comprehensive compliment to our quarterly reporting efforts , and is designed to create a two-way dialogue for collecting feedback about our CSR initiatives.   Readers are invited to share their feedback and ideas for improvement through the "Voices of Challenge " — a dynamic online forum created to engage thought leaders, practitioners, NGOs, investors, students and consumers on specific CSR challenges facing the business community.  To jumpstart the online dialogue, we’ve invited thought leaders like Bill McKibben , Joel Makower , Li Qiang and New York City Mayor Bloomberg to weigh in.

We’re excited to share our new CSR report with all of our Earthkeeper readers, and invite you to give it a read and also join the Voices of Challenge conversation .  Feedback, questions and challenges are also welcome here on the Earthkeeper blog.