Plexus’ Sustainability Initiatives
While Plexus only published its inaugural sustainability report in fiscal 2022, it was clear when we met the management team in fall of 2021 that sustainability was part of the Plexus DNA. Based on our conversations at the time, we were comfortable investing in Plexus prior to this formal sustainability reporting; the report confirmed what we expected.
In fiscal 2023, Plexus became a member of the UN Global Compact, formalizing its commitment to responsible business practice. Plexus also recently published its fiscal 2023 sustainability report, highlighting its attention to material environmental, social, and governance (ESG) factors:
- Completed a third-party materiality assessment – an important step to inform prioritization of sustainability objectives and strategy.
- Formalized its Design for Environment (DfE) service offering which seeks to design products and their manufacturing process for circularity by using lower virgin material content, reducing greenhouse gas emissions of end products, using recycled packaging, extending product life by making service easier, and optimizing end-of-life material capture.
- Implemented waste stream inventory baselining.
- Achieved 11.9% energy intensity reduction.
- Conducted a water risk assessment and began to design systems to improve water flows at manufacturing sites.
- Implemented workplace standards that assure worker safety and fair treatment, as well as growth and development.
- Established workplace flexibility philosophy.
- Formalized a Supplier Code of Conduct and Human Rights Policy to ensure that labor and natural resources are sourced responsibly throughout the supply chain.
- Improved customer service.
- Invested time, talent, and money into the communities in which it operates.
Environmental Efforts at Plexus
In June we had the opportunity to tour Plexus’ design and manufacturing facilities in Neenah and Appleton, WI and talk with the CEO, COO, and Director of Sustainability. We saw evidence of many of the environmental efforts cited – skylights that let in natural light combined with sensors that regulate LED light use factoring in the natural light, recycling bins at the end of each assembly line, and cobots to perform routine but precise manufacturing tasks to ensure zero defects and eliminate do-overs. We reintroduced Plexus to The Water Council, a Milwaukee-based and globally-recognized expert in water stewardship, to possibly advise Plexus about its water policy and practice, particularly in higher water stress manufacturing locations.
Plexus’ Focus on its People
The value Plexus places on its people was evidenced by employee training that ensures worker safety and product quality, awards for innovative ideas, employee resource groups, and a clean and orderly work environment. One thing we found interesting was the fact that Plexus places large photos of the end products into which their subassemblies go near employee workstations. Because the Plexus name is not found on anything it produces, this enables all Plexus team members to understand how their work fulfills Plexus’ vision to help create the products that build a better world.
Riverwater Research Analyst Lizzy Gauthier at Plexus visit
