Original Source Date: February 13, 2025
Impact Highlights
| Annual ROI | Time Horizon | Confidence |
|---|---|---|
| 64.3% | 5.0 years | 4 - Weak |
| Activities | Outcomes | Indicators |
|---|---|---|
| Energy / Utilities, Food / Agriculture / Nutrition, Health | Access, Health / Wellness | Access to Basic Services, Access to Electricity, Health Incidents, Health Spend |
| Geography | Demographics |
|---|---|
| United States | All |
Article Details
Bath & Body Works’ sustainable sourcing initiative in Madagascar exemplifies how environmental stewardship and social responsibility can converge to create tangible benefits for both communities and businesses. By partnering with the Givaudan Foundation, the company is distributing 3,000 energy-efficient cookstoves over three years to vanilla-farming households in the Sava region—a critical area for their vanilla supply chain.
Estimating the Social Return on Investment (SROI)
To assess the program’s impact, we can estimate its Social Return on Investment (SROI) using conservative assumptions.
Program Investment:
Assuming a cost of $50 per cookstove, the total investment over three years is:
3,000 cookstoves × $50 = $150,000
Estimated Annual Benefits:
Reduced Fuel Costs:
Energy-efficient stoves can reduce firewood consumption by approximately 50%.
If each household saves $50 annually on fuel:
3,000 households × $50 = $150,000
Time Savings:
Less time spent collecting firewood can free up hours for other productive activities.
Valuing this time at $0.50 per hour, with an estimated 100 hours saved annually:
3,000 households × 100 hours × $0.50 = $150,000
Health Improvements:
Reduced smoke exposure can decrease respiratory illnesses.
Estimating healthcare savings at $20 per household annually:
3,000 households × $20 = $60,000
Total Annual Benefits: $150,000 + $150,000 + $60,000 = $360,000CSRwire
Annual SROI Calculation:
SROI = (Total Annual Benefits – Annual Investment) / Annual Investment
Assuming the $150,000 investment is spread evenly over three years:
Annual Investment = $150,000 / 3 = $50,000
SROI = ($360,000 – $50,000) / $50,000 = 6.2
This means that for every dollar invested annually, the program yields $6.20 in social benefits.
Broader Implications for Bath & Body Works
Beyond the quantifiable benefits, this initiative strengthens Bath & Body Works’ supply chain resilience by supporting the communities that cultivate a key ingredient in their products. It also enhances the company’s brand image and aligns with consumer expectations for corporate responsibility.CSRwire
The program’s recognition, including awards for ESG reporting, underscores its role in advancing the company’s sustainability goals.
Conclusion
Bath & Body Works’ cookstove initiative in Madagascar demonstrates a high-impact, cost-effective approach to corporate social responsibility. With an estimated SROI of 6.2, the program delivers substantial social benefits while reinforcing the company’s commitment to sustainable and ethical sourcing practices.
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