Environmental Sustainability
Operations and the Environment
Energy
Reducing energy use across our business is an environmental priority. Our energy policy requires owned and operated facilities (offices, distribution centers and factories) to document site-specific energy and natural resource conservation practices and communicate them to employees. Sites conduct a formal annual review of their energy use, which includes identifying energy-saving opportunities.
Climate change mitigation is a pressing global issue, and we aim to reduce our corporate carbon footprint by improving energy efficiency and reducing greenhouse gas (GHG) emissions at our sites. We encourage employees to help us meet our targets by being mindful of operating machinery and managing buildings more efficiently.
In 2010, we met and exceeded our goal to reduce Scope 1 and 2 emissions by 10% from 2008 - two years ahead of schedule. While we are proud of this accomplishment, we are conscious of expected business growth. We will strive to maintain and build upon this success over the next two years.
Efficiency
Energy conservation committees at each Hasbro-owned factory oversee annual energy reduction projects. These include: lighting upgrades including installation of LED lights, installing occupancy sensors, converting boilers to natural gas, installing roof insulation, replacing door and window seals, ensuring equipment is shut off when unused, and using optimal temperature settings for heating and cooling. We have also invested in energy-saving manufacturing equipment, such as all-electric injection molding machines that are 70 percent more energy efficient than hydraulic machines.
Investments in infrastructure improvements have also paid environmental dividends across our owned and operated facilities. These include new air compressors, HVAC and chiller equipment (which reduced associated energy demand by 60 percent), and machinery in factories and lighting occupancy sensors in offices and warehouses.
Every two years, our factories undergo an energy assessment by a certified consultant or a qualified site employee. Assessments are conducted every three years at our R&D or warehouse facilities, and every four years at our offices.
We are also committed to sourcing renewable energy, such as wind and solar power, when and where it is cost effective. Currently, green energy markets in the areas where we own and operate factories and offices are not sufficiently developed to supply competitively priced electricity.
Hasbro’s Renton, Washington subsidiary, Wizards of the Coast, is leading the way to make our IT systems more energy efficient. Their IT team recently tested an automatic power management system called EZ GPO on 379 desktop computers, laptops and monitors. This free software download from the US Environmental Protection Agency enables idle computer systems to be put into power saving mode.
We measured the energy usage of the 379 systems before and after installation of EZ GPO. The pilot results demonstrated annualized savings of 23 percent on electricity costs for the devices tested. EZ GPO has been in use in Hasbro’s UK offices since 2005 with similar results.
We’re excited about the potential savings from the software, and we plan to use EZ GPO or a similar power management system globally.
GHG measuring and scope
We measure our GHG emissions using the Greenhouse Gas Protocol, a corporate accounting and reporting standard. This external set of guidelines provides benchmark standards and direction for companies worldwide in preparing a comprehensive and robust GHG emissions inventory.
From 2002 through 2007, we reported GHG emissions for our U.S.-based owned and leased facilities through the U.S. EPA Climate Leaders program. In 2008, we expanded our reporting to include all owned and leased facilities worldwide. When the Climate Leaders program ended in 2010, we began reporting to the Carbon Disclosure Project (CDP). See Hasbro’s 2010 CDP response here.
In 2010, we reduced our GHG emissions by 11.3 percent from our 2008 levels. See our detailed performance here.
We are in the process of developing systems to collect Scope 3 (supply chain) emissions data and therefore cannot report on this area for 2010. In assessing our global supply chain emissions (see Hasbro Value Chain diagram below), we have identified the Scope 3 sources that we expect to report on in the future. These are data from manufacturing vendors, transportation (logistics) and business travel. So far, we have collected 2010 data from 64 vendor factories.
We rely on our employees’ support and enthusiasm to implement our environmental agenda. To foster such spirit, Hasbro’s Green Teams - groups of employee volunteers interested in environmental sustainability - host fun and engaging staff events across various locations that bring employees together around sustainability issues.
One innovative event at our corporate headquarters in Rhode Island is Project Upcycle, a prime example of Hasbro’s creative culture. Employees compete for prizes by converting used items or waste materials into designs, housewares and wearable art. Winners are chosen by a panel of local designers and leaders and recognized in our employee communications.
In 2011, the Green Team at our corporate headquarters also co-led Bring Your Child to Work Day, which fell on Earth Day. Chief Executive Officer (CEO) Brian Goldner spoke about the importance of sustainability to the well-being of future generations and gave examples of the way Hasbro is reimagining its business, products and packaging with an environmental focus.
The Green Team also hosts semi-annual Green Days, featuring a vendor fair where local companies showcase green products and services for employees. A yearly “Showcase in the Workplace” to encourage green design displays employees’ arts, crafts, collections and hobbies for sale to colleagues in preparation for the holiday season. Table fees and raffle proceeds are donated to Hasbro Children’s Hospital.