Sustainability Report

Heejoo Min
Spring 2019

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Contents

1.   Introduction
2.   Sustainability strategy
3.   Product Systems Map
4.   Stakeholder Map
5.   Okala Impact Analysis

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Introduction
Since the first invention of fan in 1882, over 130 years, the fan has more or less stayed the
same blowing air in only one direction. Torus is innovating market that has stayed the same
for over 130 years. Although there have been some innovations in the shapes of the fan
blades and energy efficiency, one-directional air flow is a highly inefficient way to circulate
air throughout a space.

Torus circulates air in 360 degrees without oscillating. Our team was seeking ways to
change current fan market to better circulate air around the room. Torus blows air in 360
degrees and offers a more efficient and sustainable way to better circulate and cool the air
in a space.

Our team decided to take this innovation further into our business practices. This report
consists of sustainability strategy, sustainability benchmarking, stakeholder map, product
system’s map and OKALA LCA assessment.

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Sustainability Strategy
Our team recognizes our responsibilities both as global citizens and as a business entity.
We will incorporate sustainability in every part of our business based on UN Sustainable
Development Goal. The majority of our strategy will be executed through our CSR programs
to our workers, communities around the facilities and customers.

Goal 4 Ensure inclusive and equitable quality education and promote lifelong learning
opportunities for all:
•  Global citizenship education for consumers to encourage responsible and sustainable
purchasing, usage and disposal of the product
•  Create foundations to provide scholarships programs
•  Donate computers and money for infrastructure and facility updates
•  Provide educational finance aid to workers

Goal 5 Achieve gender equality and empower all women and girls:
•  Give female workers economic independence through reasonable income that can meet
their basic living needs
•  Ensure female workers’ leadership participation and opportunities within our company
•  Create mentorship programs to raise female leaders

Goal 6 Ensure availability and sustainable management of water and sanitation for all:
•  After manufacturing process, safely treat wastewater
•  Reduce and reuse wastewater
•  Support and strengthen the participation of local communities in improving water and
sanitation management
•  Provide sanitation education to workers and communities that facilities are in

Goal 7 Ensure access to affordable, reliable, sustainable and modern energy for all:
•  Infrastructure update at factories, company facilities to renewable energy such as solar
energy

Goal 8 Promote sustained, inclusive and sustainable economic growth, full and
productive employment and decent work for all:
•  Achieve higher levels of economic productivity through technological upgrading and
innovation
•  Provide safe work environment for workers

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•  Provide various programs for all workers such as vaccine services, micro-financing,
education loan and so on.
•  Include workers’ mental and physical well-being into company’s progress report

Goal 12 Ensure sustainable consumption and production patterns:

•  Strive for producing more sustainable products
•  When designing the product, consider its integrated system around it
•  Encourage and educate consumer for sustainable consumption
•  Participate sustainability reporting to measure progress on sustainability
•  Implement tools to monitor sustainable development impacts
•  Strict supplier code of conduct

Goal 13 Take urgent action to combat climate change and its impacts:
•  Raise awareness for climate change
•  Impact reduction through reducing GHG in product producing, usage and disposal

Goal 14 Conserve and sustainably use the ocean, seas and marine resources: for
sustainable development
•  Contribute to reducing marine pollution by recycling plastic waste in the ocean on our
exterior of the products

Goal 16 Promote peaceful and inclusive societies for sustainable development, provide
access to justice for all and build effective, accountable and inclusive institution at all
levels
•  Transparency as our core mission
•  Ensure responsive, inclusive, participatory and representative decision making
•  Enforce non-discriminatory laws and policies within the company

Goal 17 Strengthen the means of implication and revitalize the Global Partnership for
Sustainable development
•  Support fair trade and conflict free materials
•  Enhance multi-stakeholder partnerships by partnering with local government and leaders
to provide suitable social programs for the workers
•  Enhance multi-stakeholder partnerships by partnering with NGOs that are committed to
Sustainable Development and connect them with our consumers by encouraging
donations

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Sustainability Benchmarking
In this section, our team analyzed companies that produce fans. Dyson, Honeywell and
Hoover are selected for benchmarking. Looking at their effort to achieve sustainability, our
team was able to develop our strategy. We realized that majority of the companies are trying
to transition from traditional business practice without sustainability to sustainable business.
Here we are using an indicator for each pillar of sustainability, society, economy and
environment.

Social
We focused on gender equality for social side of sustainability. Because the industry is
heavily influenced by engineering, a sector known to be male dominated, we decided to
look at pay gap between male and female as our indicator. According to the data, in
engineering sector men get paid 25.5% more than women. Our table indicate that Dyson is
leading company that has the least gap but at Hoover men are getting paid 38.3% more
than women which is more than UK average pay gap.

Company Name Gender Pay Gap at Dyson

Dyson 14.7% less than man

Honeywell 29.9% less than man

Hoover 38.3% less than man

Economy
It is easy for a company to only focus on investing few areas that are related to the industry.
However, we believe that it is important for a company to understand that sustainable
development does not come from focusing on only few areas. We believe that having
comprehensive understanding is crucial for sustainability and one way to analyze their view
is to see if they are caring about things that does not seem to relate to the industry. For
economy we used number of investment and which area they are investing in as indicator.
We focused on which area the company is investing their resources including human
resources.

Company Name Number of Investment Area Investment Area

Dyson (James Dyson 2 •   Engineering Education

Foundation) •   Medical Research

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 Honeywell 5 •   STEM education
•   Local Community Development
•   Children’s Safety/human right
•   Conservation
•   Humanitarian Relief
Hoover Unable to find information Unable to find information

Environment
Companies have different strategies to reduce their impact on environment. Our team
decided to look at how the companies are using natural resources. Because all three
companies have to manufacture and ship their product they use similar natural resources
but focus on different resources for recycling, conserving and reducing the resources.
Company Name Type of Natura Resource Strategy

Dyson Fuel •   Increased container space

utilization 80% to 97%
•   Reviewed shipping routes and
reduced traveled kilometers by
80%
Honeywell Water •   Implemented more than 130
Water conservation projects
•   Saved over 120 million gallons
of water
Hoover Unable to find information Unable to find information

Our team realized that it was hard to find quantified information on a lot of indicators. Mostly
companies will list what they would like to do with goals but does not provide metrics and
ways to measure their improvement. In addition, we did not find company in fan market that
makes sustainability report. We believe that this is a great opportunity for us to be a leading
company who builds our business practice based on sustainability.

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References

UK Gender Pay Gap

https://gender-pay-gap.service.gov.uk

Dyson Environmental Policy

https://oldmedia.dyson.com/medialibrary/Group/Documents/PDF/CorporateSocialRespon
sibility/CSRENVIROFINALUSemail.pdf

Honeywell Sustainable Opportunity

https://www.honeywell.com/citizenship/sustainability

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System Map
Our system’s map shows that our product will be E-waste at the end of the product’s life
cycle. It can negatively impact environment due to hazardous material in our product
therefore, we are focusing a lot on recycling the product to extend product’s life cycle.
However, we do not just want to extant the life of the product but to reuse as much materials
as possible from disposal process. This way we can conserve the raw material and save
money by using what is already taken out and given to us. Using recycled plastic for exterior
or other options such as fiberglass that can be broken down to pallets again will significantly
reduce our impact on environment.

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Stakeholder Map
Stakeholder mapping is a part of stakeholder engagement strategy. It is drawn from multiple
perspectives of team members to Identify a key list of stakeholders across the entire
stakeholder spectrum. We used this stakeholder mapping tool as a foundation of system
map to understand holistic impact of our product and service.

1. Identifying: listing relevant groups, organizations, and people

Investors, shareholders, factory/company workers, customers, material suppliers,
competitors, residents near company facilities, chambers of commerce, government,
policymakers

2. Analyzing: understanding stakeholder perspectives and relevance

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3. Visualizing

Circle Size: Value

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Okala Impact Analysis
Using Okala Impact Factors as a tool, we analyzed carbon footprint of each materials and
process of the product. Based on the calculation we are minimizing the negative impact of
our product to the environment.

Current
Amount Unit Okala unit Okala Impact
Bill of Materials Factor Points
Points

Exterior Option A: Recycled 2 lb 2.1 /lb 4.2

Material HIP Plastic

Option B: 2.1 lb 4.7 /lb 4.7

Recycled PC plastic

Excluded: Interior Materials including electrical boards, motors and fan blades

Manufacturing Injection 2 lb 0.72 /lb 1.44

Auto Paint 4.5 sq.ft 0.01 /sq.ft 0.045

Al. Powder Coating 4.5 sq.ft 0.98 /sq.ft 0.441

Usage US low -electricity 0.06 kW 1.1 /kW- 0.066

h

Sourcing Option A 8,448 Miles 1.6 /p.-mi 13,516.8

International:
Airplane
(sourcing from India)

Pro: Stronger and more durable plastic thus, longer product life-cycle
Con: Emission from internationally transporting the sourcing

Option B Domestic: 568 /ton- 1.1 /ton- 624.8

Truck, 3.5-7.5 t mi mi
(sourcing from
California)

Pro: Less emission from transporting the sources

Con: Less durable plastic thus shorter product life-cycle, more CO2 emission
Compared to recycled HIP plastic

Recycled 0.59 lb 0.96 lb 0.57

Corrugated Board

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 Total Option A 13523.562

Option B 631.996

Future Possibility
Amount Unit Okala unit Okala
Bill of Materials Factor Impact
Points Points

Exterior Silica 1.8 lb 2.6 /lb 4.68

(glass fiber)

Excluded: Interior Materials including electrical boards, motors and fan blades

Manufacturing 3D Printing 1.8 lb 110 /lb 3.186

Usage US low -electricity 0.06 kW 1.1 /kW- 0.066

h

Sourcing Option A 2,653 Miles 1.1 /p.- 2918.3

Domestic: mi
Truck, 3.5-7.5 t
(sourcing from existing
company in
Massachusetts)

Option B 7.9 Miles 1.1 /p.- 8.69

Local: mi
Truck, 3.5-7.5 t
(sourcing from possible
future company in Phoenix)

Recycled 0.59 lb 0.96 lb 0.57

Corrugated Board

Corn Starch 0.5 lb 0.92 lb 0.462

Total Option A 2927.264

Option B 17.654

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Key findings:
•   Majority of the carbon footprints come from transportation of our material
•   Local sourcing is the key to reducing carbon footprint
•   New manufacturing technology, 3D printing that we might implement in the future
does not reduce the footprint since we are using a lot of electricity
•   However, combined with renewable energy like solar energy, it is plausible that this
might reduce our manufacturing carbon footprint in the future

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