Crystal Group Best Practice

Corporate Quality and Sustainability Department

May, 2012

Crystal's Journey to Sustainability

1

Crystal Martin UK (2005)

Crystal Martin FE (2005)

Crystal Sweater Ltd.

(1982)

Elegance Industrial Co. Ltd. (1974)

Crystal Apparel Co. Ltd. (1982)

About Crystal

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Year of Establishment: 1970

Employee: 40,000

Production base: PRC, Vietnam, Bangladesh, Sri Lanka

Market base: US, EU, Japan

Annual production: 230M pieces3

Start from oneself

• It all started from one film……“An Inconvenient Truth - Al Gore”

• More “ passionate ” about the commitment we need to make

Top-down

Passion

and go beyond……

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Sustainability:

While sustaining our business growth,

we make better use of resources without compromising our future.

Profit

PlanetPeople

Triple Bottom Line

Sustainable

Being Responsible– Makes Perfect Business Sense

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The Environment

Innovation

Product Integrity

Employee Care

Community Engagement

Sustainability in Crystal

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Eco Approach

7

8

↓ 10.0%

Base Year: 2008 Progress in 2011

Global 5-Year Environmental Targets

1,045,408

For a Sustainable Business

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Sustainable Products

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Yida Denim Factory

• The 2nd biggest bottom exporter in PRC – 2011

• Established in 2005

• Employees : 3,500

• Main Product: Jeans

• Specialty: Eco wet processing

• Annual production: 12.5 millions pairs

• Machines: 1,374

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Environmental Efficiency

0.09 0.07 0.06

1.260.92

0.83

5.23

3.59

2.73

0

1

2

3

4

5

6

2007 2010 2011

Water Electricity Steam

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↓ Energy Cost

↓ Carbon Footprint

Energy Saving & Carbon Reduction

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Lighting System

– Environmental-friendly lighting: T5

– Individual switches in workshops

– Occupancy sensors for corridor

Started from: Jun 2008

Payback: 14 months

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Lighting System

Started from: May 2010

Payback: 46 months

LED application

• Selected sewing floors

• Recycle cotton workshop

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Servo-motor in sewing m/c

Air Compressor

Variable Frequency Devices

Started from: Aug 2008

Payback: 8.8 months

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Water Curtain Cooling

• Low energy consumption compared to air-con system

Started from: Nov 2009

Payback: 9.3 months

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High Efficiency Dryers

Started from: Oct 2010

Payback: 90.5 months

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• Exhaust heat recovered to

reduce steam consumption

• Shortened drying time

Save 17% steam

Steam Condensation Recovery

• For Laundry useStarted from: Jun 2010

Payback: 4.3 months

Steam saving: 3,685 ton/yr

Hot water supply: 130 m3/day

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Started from: 2011

Payback: 8 months

Boiler – Biomass Fuel

Solar Hot Water Supply

Dormitory Production

Save 70%

Started from: May 2009

Payback: 17 months

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Renewable Energy – Road Lamps

Wind Power

Solar Power

Started from: Sep 2010

Payback: 42 months

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Green Logistics

• Cost Saving

• HK$ 4 million in 1 year

• Quicker response in factory

• ↓ 52 km of travel

67% CO2 saved

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Less fresh water use

Zero discharge

Water Conservation

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Parameter BSRWater Quality Guidelines

PRCDB44/26-2001 Grade 1

Denim Factory(Actual)

Temperature (˚C) ≤ 37 - 31.6

pH 6.0-9.0 6.0-9.0 7.5

TSS (mg/l)(Total Suspended Solids)

≤ 30.0 20 None

BOD (mg/l)(Biological Oxygen Demand)

≤ 30.0 20 8

COD (mg/l)(Chemical Oxygen Demand)

≤ 200.0 90 25

Color(ADMI units or Pt-Co units)

≤ 150 40 1.5

Meet National Class 1

Wastewater Treatment

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Wastewater Treatment System

• To ensure stability for reuse of treated wastewaterAdvanced Technology

• Less chemical needed, less sludge, high quality & low treatment cost

Benefits

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Water Recycling

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＞80% Reuse

Sustainable Washing

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Laser

G2 Technology

Front Loading

Eco-softener

↓ Cost

↓ Water

↓ Manpower

↓ Chemical

Target:

Waste Elimination

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Recycled Cotton

Made with recycled cotton – x% pre-consumer 30

2011 Solid Waste: ↓774 ton

↓968 ton

Turn Food Waste into Treasure

Handling Food Waste

Composting to Organic Fertilizer

Fertilizing Organic Garden

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Canteen waste +

Production e-Ticket: ETS + RFID

ERP System – SAP

e-Documentation Management

e-Form

e-Banking

Saved 90% paper

Paper-less

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Waste Recycling

Ease & encourage recycling:

• Proper segregation

• Collection

• Education

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Environmental Contributions

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Cleaner Production Enterprise of Guangdong

ISO 14001 EMS Certification

Eco Achievements

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↓ 17%

Carbon

ISO 50001: Energy Management System (EnMS) in Progress

2010 Global Sustainability Forum

Culture Building

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Tree Planting

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2007-2012: 1,045,408 trees

Sustainable through Sharing

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Factory Visits for Customers

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For:

• Customer teams

• Their Suppliers (Far East)

Working with Local Government

To drive environmental culture in the public

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Sharing with Media

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Global Next 5-Year Targets

↓Water by 10%

Zero Landfill

↓Carbon Footprint by 6%

↓Energy by 5%

The Use of Renewable Energy 5-10%

Plant 1,000,000 Trees more

Supply Chain Traceability

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“Being Responsible – A perfect business sense”