Enabled by © Intertek 2010, All Rights Reserved. HOW TO THINK, ACT AND GO GREEN TO GLOBALLY COMPETITIVE LEVELS BY: David Horlock Global VP Inspection &

Enabled by © Intertek 2010, All Rights Reserved.

HOW TO THINK, ACT AND GO GREEN TO GLOBALLY COMPETITIVE LEVELS

BY: David HorlockGlobal VP Inspection & Audits – Intertek Consumer Goods

Email: [email protected]


The Problem ?

PollutionPollution

WasteWaste

Hazardous Material & Waste ManagementHazardous Material & Waste Management

Using the wrong Energy & GlobalwarmingUsing the wrong Energy & Globalwarming


Don’t associate your products with this?

3

Knowing your supply chain? ✘✘✘✘


Associated your products with green practices

4

✔✔✔✔

Knowing your supply chain?


The Old Paradigm The New Paradigm Climate Change

Environmental Pollution

Resources Exploitation

Why Change

Getting the right balance between $$$ and the Environment


A History lesson

Consider the following• The great Industrial revolution was between 1760 – 1830• It started in mechanization of Agriculture then manufacturing• Started in UK and then spread to Europe & America• 85% population was rural & migrated to the cities• Materialism was born and the society moved from 1 car or

horse per 200 people to 1 car per 2 people• The population of Europe was 85 million• Today – Asia is aspiring to do the same thing but the

population is 3.5 billion and affluence is growing globally.


Global Carrying Capacity – the planet can support1 Billion1 Billion

4 Billion4 Billion

14 Billion14 Billion


Waste Generation – changes needed

Retailers & Brands moving to reduce Product packaging as part of CSR drive to reduce Carbon Footprint.

Packaging ratio

Biodegradable

Recycling

Renewable


Chemical Regulations = More Complexity

Number of Regulations

Co

mp

lexi

ty

EuP

REACH

RRRKorea RoHS

California RoHSWEEE

Japan RoHSChina RoHSELV EU RoHS

Increasing Complexity !

45 day obligation


World Population History


Source: http://www.teonline.com/industry-overview.html

Textile Consumption will increase exponentially with increasePopulation growth and affluence combined.

Think about the challenge of moving from 4.5 kg to 17 kg textile per headtimes 3.5 billion then 5.0 billion people in next 14 years


• Global textile market will double every 7 to 10 years• Current practices are not sustainable• We have no choice but to change the business model• Find new way to use water, energy, manage waste• Find sustainable methods with reduce, reuse, recycle

Source: http://www.teonline.com/industry-overview.html

Overview of Textile & Apparel Trade globally


Global situation of water availabilityGlobal situation of water availability

Source: ‘Water- A shared responsibility’ , United Nations World Water Development 2, 2007

•3% of our water resource is fresh•1% is available for use•We require 1 litre for every food calories•We use 1,500 litres per garment produced


Indian Textile Industry 1. Textile dyeing & treatment accounts

for 20 % of Industrial water pollution .2. 72 toxic chemicals identified in water 3. 30 of which cannot be removed.4. 1 Kg Fabric Production = 200 L water5. 1 garment = 1,500 litres

Indian Textile Industry – Some Facts


Global Consumer Concerns• Changed consumer mindset

– Better educated and informed– Concerns moving from physical product attributes to

social, environmental and sustainability issues– Media & NGO’s more vocal and active– Reputational risk a huge concern for brand integrity– Traceability becoming critical – Where are you in the supply chain and would your

customers be happy with your performance

Enabled by © Intertek 2010, All Rights Reserved.16

Key Retailer Responding - Sustainability Policies

• Local Communities (site developments in areas of economic need)• Responsible buying and selling (Supply-chain commitment to responsible

sourcing - ethical trading, local sourcing, ...)• Healthy choices (nutritional guidelines / commitment)• Good jobs (diversity and inclusion, human rights, training & development,

rewards & benefits, communication & consultation, health & safety)• Caring for the Environment (Climate Change, Waste Recycling (including

Packaging), Sustainability Sourcing)

For the future of our business, and the world • Climate & Energy (Sustainable Buildings, Trucking Fleet, Greenhouse Gas

Emissions)• Zero Waste (Reusable Bags)• Products (Locally Grown Products, Packaging Reduction, Compact Fluorescent

Light Bulbs)• Ethical Sourcing

The Five Pillars - by 2012, M&S aim to:• Climate Change (Become carbon neutral)• Waste (Send no waste to landfill)• Sustainable Raw Materials (Extend sustainable sourcing)• Health (Help improve the lives of people in our supply chain) • Fair Partner (Help customers and employees live a healthier life-style)


What does this mean ?

• Need to demonstrate your green credentials• Move from thinking green to acting green• Full supply chain traceability is required

– Fiber to Fabric to Garment


How to become Green ?

• You have to start acting green.• That means capturing, monitoring and acting

on the information so you have the evidence to showcase and demonstrate your Green credential. Be able to tell your story.

– Management system– Meet Regulatory requirements– Reduce Water usuage– Reduce Air Emissions– Reduce Energy consumption– Reduce Noise Emissions– Reduce Hazardous Materials, Equipment and Waste– Adopt Sustainable Production methods and practices


How do you benchmark your performance?


Contact: [email protected]


Think Green Initiative (TGI)

Be Green

Designed to put you onto auto pilot Enabling Manufacturers of Today to Think Green, Act Green, and Be Green!

Act GreenThink Green

Enablers:• Knowledge & Resources

• Monitoring Measurement• Tools

• Technologies• New Methods

• Collaborations • Benchmarking • Training • Improvement

Achievers:• Environmental footprint

• Cost Reduction

• Sustainable methods• Renewable• Biodegradable• Material efficiency

• Improve bottom line

Drivers:

•Environmental Legislation

•Climate change concerns

•Limited Resources

•Consumer demands

•Market Competitiveness

•Risks & Opportunities


Think Green Initiative -Vision

Providing Greater Visibility on Environmental Commitment and Performance

Meet environmental regulatory requirements Reduce environmental footprint Achieve cost savings and improved material efficiency through

better use of resources, reduce, recycle and reuse of materials, and waste reduction

Achieve sustainable business practices Provide necessary insights for green products

and sustainable purchasing Achieve good corporate governance


TGI – What is covers

Two (2) Core Compliance Modules Environmental Legal Compliance ReviewEnvironmental Management System

Six (6) Environmental ModulesWaterAir EmissionsEnergyNoise EmissionsHazardous Materials, Equipment and WasteSustainable Production


TGI Assessment ModulesSix (6) Environmental ModulesPerformance Indicator

Performance Indicator










Assess each specific environmental area from the perspective of:

(a) maturity of management systems (b) compliance performance(c) capability of pollution prevention (d) sustainability performance


TGI Report – Benchmark Performance

Performance Benchmark •By global•By country •By industry

Water & wastewaterEnergy Cost savings

Air pollutantsSolid wasteHazardous chemicals

Sustainability Data collection•High Performance•Medium Performance

•Low Performance•Very Low Performance

Performance Rating

Provide knowledge and insights into environmental performance through visual charts, statistical tables and narratives


A mechanism to enable an organization to demonstrate their commitment and “Green” credentials to their stakeholders: Investors Employees Community Customers

Think Green Initiative = Preferred Supplier Status

TGI Value Proposition

Ensuring you meet the requirements of tomorrow’s Employees, Communities, Investors & Customers today

Enabled by © Intertek 2010, All Rights Reserved. © Intertek 2010, All Rights Reserved.

Present by : TGI teamDate:2010-07-21

TGI Case study



TGI Pilot Factory Performances (Sep 2010)

Country # of Assessments Performance

Bangladesh 4

China 58

Indonesia 8

Philippines 1

Thailand 2

U.S. 2

Total 75

Sector # of Assessments Performance

Apparel 36

Bottling & Packaging 5

Electrical & Electronics 6

Footwear 4

Hardlines 22

Leather Goods 2

Total 75

3030

5353

6868

4040

4949

7373

5353

5252

7171

6565

4747

5858

4545

5353


TGI Pilot Factory Performances (Sep 2010)

60% of Factories are in the Red & Orange Zone60% of Factories are in the Red & Orange Zone


TGI Pilot Factory - Energy Cost Saving

Sectors Factory number

Cost Saving Data provided

Cost Saving (USD)

Max Min Average

Electrical & Electronics 147,381.8 1,058.8 56,829.2

Hardlines 1,584,999.9 735.3 637,787.7

Bottling & Packing 7,911.8 1,014.7 4,463.3

Apparel 365,426 1,100 118,183.3

Footwear 82,787.9 82,787.9 82,787.9

Total 1,584,999.9 735.3 182,163.1

44

88

22

55

11

55

2323

33

2424

33

5858 1919

90%90%

35%35%

67%67%

21%21%

33%33%

33%33%

Average Cost savings in Apparel industry was US118,183 per factoryAverage Cost savings in Apparel industry was US118,183 per factory


TGI Pilot Factories – Best Practices Use of energy saving bulbs Set minimum temperature control for AC as 26°C Use of solar heating system Switch off lights/computers when leaving workplace or during break. Adopt to energy efficiency technologies and equipment Recycle and return to vendors used scrap, fabric, plastics and cartons Reduce Packaging weight ratio’s Recycle waste and remove hazardous chemicals Only use chemical registered for their intended use Harvest water through smart catchment areas and roof Use renewable raw materials Product certification to chemical free themes Eco friendly factory designs and material

Potential Cost Saving

Opportunities

Potential Cost Saving

Opportunities

8


TGI Pilot Factories – Best Practices

Factory A: Examples of actions being taken since TGI assessments conducted in Dec 2009

Solid Waste Selection, Classification and Recycling

Installation of Energy saving lights• Achieved 16% electricity reduction

PVC

Tape

11




Planted new lawn Installation of dust control equipment

12


TGI Pilot – Best Practice


Installation of air emission control facilities Installation of noise buffersImprovements for generators

13



9

Good Practice Factory 1 Factory 2 Factory 3 Factory 4

Energy Efficiency /Renewable

Energy =Cost Savings

RMB2,521,440

$365,426 RMB120,000

$17,931RMB196,152

$28,427Rp.1,872,000,000

187,200Recycle heat from

air pressed generator and reuse in dyeing

process

Solar heating system for

dormitory showers

Energy saving bulbs

Energy saving bulbs

Good Practice Factory 1 Factory 2

Resources & Material Efficiency

Recycling of wastewater Raw material usage efficiency improvement

Achieved 0.7% recycling rate

Achieved 8% solid waste reduction rate


TGI Pilot Factories – Best PracticesFactory B: Examples of actions being taken since TGI assessments conducted in Dec ‘09

月份年份

Jan FebY2009 547276 621872 Y2010 548660 563311

Cost Cut(RMB) 1,135 48,020

Cost Cut (USD) 166 7,041

*Table made on March 12,2010, by 周娟 ( Zhou Juan)

月份年份 Jan Feb

Y2009 24435 19345 Y2010 18656 16190

Cost Cut(RMB) 32,362 17,668

Cost Cut (USD) 4,745 2,593

14


Benefits of Investing in Green Business?

• Reduce Input Cost• Show case your performance• First mover advantage• Capture future wallets of tomorrow• Feel good about doing the right thing• Be sustainable• Establish your green credentials


TGI Achievement AwardSupplier TGI achievement Award Ceremony in Hong Kong (June 8)

18


THE FITTEST AND THE FASTEST TO ADAPT

THE WINNERS

In A New World……


New World Of Competitiveness

“It is not the strongest species that survive, not

the most intelligent but the ones most responsive to

change”

Charles Darwin


TO BE GREEN YOU MUST MOVE FROM A SUSPENDED STATE OF THINKING GREEN TO

ACTING GREEN. THEN YOU WILL BECOME GREEN

TO BE GREEN YOU MUST MOVE FROM A SUSPENDED STATE OF THINKING GREEN TO

ACTING GREEN. THEN YOU WILL BECOME GREEN


Associate your products with being Green

43

✔✔✔✔

GREEN UP YOUR SUPPLY CHAIN

THANKYOUTHANKYOU


THANK YOU!For Further Information

Contact:Miss Varapa Srisomboon — Auditing Manager

Email: [email protected] Cell : +66 (0) 819061630

Mr. Sansern Phengupat – Business Development Manager Email: [email protected] Cell: +66(0) 85 111 5225

Office Contact:+66(0) 29390661

Total Customer Focus

Enabled by © Intertek 2010, All Rights Reserved. HOW TO THINK, ACT AND GO GREEN TO GLOBALLY COMPETITIVE LEVELS BY: David Horlock Global VP Inspection &

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