sustainability 35 STYLE & YEARS ESQUEL CELEBRATES
Esquel Celebrating 35 Years of Innovation, Integration and Motivation
This year marks the 35th anniversary of Esquel Group, one of the
world’s leading cotton shirt producers. Among the most
dynamic and progressive global-scale textile and apparel
manufacturers, Esquel has proven that an enterprise in a
traditional industry can �nd success by innovating and
adhering to the highest standards of management.
The Hong Kong-based
group, which houses
production facilities
in China, Malaysia,
Vietnam, Mauritius, Sri
Lanka and a network of
branches servicing key
markets worldwide, has
many milestones to
celebrate. Esquel now
produces more than 100 million pieces of garments
annually. O�ering total services and solutions to a list of
household brands and retailers, the group has found itself at
the top of the list of Cotton Woven Shirt Exporters in China
for seven consecutive years.
Beyond material success, the Esquel story is one of positive
change — in the industry, for its business, in its community
and in the world at large. By rethinking business and
applying principles that are ethically and environmentally
sound, Esquel has innovated the industry.
VERTICALLY-INTEGRATEDSUPPLY CHAINTo make a shirt, there is a myriad of processes to go
through: spinning, weaving or knitting, dyeing and garment
making, as well as the use of raw materials. Any problems
incurred through the process impact the total e�cacy of the
�nished product.
To ensure the highest quality, the company gins its own
extra long staple cotton to produce high-count yarn, which
is then used to make fabric of premium quality. This
vertical integration ensures product superiority and
minimizes energy and resource consumption to
decrease Esquel’s environmental footprint.
Esquel’s design and development capability is best
showcased by its retail brand, PYE. With a focus to
create the perfect shirt, PYE leverages advanced
technology and elaborate tailoring to o�er the best
product in the market for exceptional �t, functionality
and durability.
DRIVINGSUSTAINABILITYSince it was founded, Esquel Group has
focused on di�erent elements of
sustainability: innovation, addressing
environmental concerns, empowering
its people, o�ering a breadth of
services and caring for
the community.
“Sustainability requires a
holistic approach,” says
Vice Chairman and CEO
John Cheh. “It is not
a destination but a
continuous journey. The
story of Esquel illustrates
how a non-traditional
enterprise in a traditional industry
enhances its competitiveness through
good management and appropriate
application of technology. We practise
lean, green, and ethical manufacturing
along the entire supply chain. We
continuously re-engineer and re�ne,
from �ber to shirt, so that our customers
are always o�ered quality and innovative
products. Sustainable production is not
only good for the environment, but also
for business.”
THINKING DIFFERENTLYScarcity of natural resources and degradation of the
environment are among the most acute challenges facing
the industry, especially in the environmentally-sensitive
textile business. Making environmental protection a
priority, Esquel has aggressively reduced energy and
water consumption in the production process. Between
2005 and 2012, annual water consumption per unit of
output fell by 59% and energy consumption by 45%.
While conservation has often been considered costly, Esquel
approaches it di�erently. First, the group starts with better
training and communications to reduce re-work — which
can be abundant. By reducing it, the company saves water
and energy immediately — in addition to saving money.
Next, Esquel employs equipment and better technology —
investment that will improve e�ciency. Esquel approaches
environmental conservation as a long-term investment.
Pollution hinders productivity gains and creates extra
healthcare costs, and it impedes the ability to attract and
retain talent. As a result, Esquel seeks to raise the standards
and change the mentality within the company and across
the industry.
As part of its continuous quest for
environmental sustainability, Esquel has
recently reached a breakthrough in water
conservation by launching an advanced
wastewater treatment/recycling system,
treating 5,000 tons of wastewater daily.
Half of the treated e�uent can be reused
in the dyeing and �nishing process which
e�ectively reduces the use of fresh water,
while the rest is discharged in compliance
with the industry standard.
INVESTING IN PEOPLEAs Esquel expanded its footprint in di�erent
parts of the world with a total workforce of
55,000, the company recognized that the
centerpiece of its business was its people.
“I always say that Esquel is a company of fun
people serving happy customers,” says
Chairman Marjorie Yang. “I am sure that we
got to where we are today because of this
emphasis on people.”
In 2000, the Esquel “5E-Culture” was
launched to spread core values
throughout the organization: ethics,
environment, exploration, excellence and education. For
ethics, the company encourages being a good citizen and a
good employer — to build trust across the company and
with partners. Esquel cherishes the environment, and seeks
to develop innovative solutions and utilize resources more
e�ciently. Exploration is encouraged to discover and
embrace innovative solutions. Excellence inspires a
reduction of waste and encourages employees to deliver
value through leadership, speed and quality. With
education, Esquel emphasizes people development, critical
thinking and continuous learning.
Marjorie YangChairman, Esquel Group
John ChehVice Chairman & CEO, Esquel Group
Esquel Celebrating 35 Years of Innovation, Integration and MotivationGEARING UP FOR GROWTH
SERVICE OFFERINGS & VALUE PROPOSITIONINGBy providing value-added services and collaborative
relationships with customers, Esquel has moved beyond the
position of simply an order-taking vendor to becoming a
long-term partner to customers.
Esquel sought to di�erentiate itself by becoming a
one-stop shop for customers. The company’s motto
became “the best cotton shirt partner,” and they o�ered a
total shirt solution — from high quality products to services
including product merchandising and design, product
development and innovations.
CARING OF THE COMMUNITYCorporate Social Responsibility is ingrained in Esquel’s
culture. Their code of conduct helps ensure that business is
done in an ethical and responsible way, consistent with the
values of their company.
Esquel’s dedicated CSR department works closely
with its Internal Audit department to oversee issues
and ensure Esquel’s compliance with responsible
business practice. In addition,
the company is actively involved
in programs that elevate the
welfare of the local communities
where they operate. Since 2007,
Esquel and Standard Chartered
Bank have been collaborating
to carry out the “MicroFinance
Program” in Xinjiang, providing
loans to farmers to enhance
their productivity, increase
income, and improve their living
standards. The company is also
the �rst manufacturer to be
accredited by the Fair Labor
Association.
In addition, the Esquel - Y.L. Yang Education Foundation
has been dedicating its e�orts to care for children in
need and especially in the areas of education, health
and environmental protection in poverty-stricken areas.
Esquel has built and renovated schools, sponsored
needy students, and established over 1,000
mini-libraries in Xinjiang to
promote learning.
THE SUCCESS OF GIVING BACKThe philosophy of giving starts
at the top, and goes to the
company’s core. “At Esquel, we
strive to make a di�erence in all
that we do. We aspire to be an
integral part in transforming the way our industry is
run — by improving the livelihood of our people and
preserving the environment — and in so doing create
a positive impact for all stakeholders. Everything we
do is guided by our E-Culture. These are the core
values that enhance our competitiveness by motivating
our people, steering our business strategies and carrying
out our operations,” says Chairman Marjorie Yang.
Dedicated to bettering the world around them, and armed
with a corporate culture that promotes the “5Es,” Esquel
has proven that a non-traditional approach in a traditional
industry is a key factor to success.
Esquel’s fully integrated supply chain ensureshigh product quality
This year marks the 35th anniversary of Esquel Group, one of the
world’s leading cotton shirt producers. Among the most
dynamic and progressive global-scale textile and apparel
manufacturers, Esquel has proven that an enterprise in a
traditional industry can �nd success by innovating and
adhering to the highest standards of management.
The Hong Kong-based
group, which houses
production facilities
in China, Malaysia,
Vietnam, Mauritius, Sri
Lanka and a network of
branches servicing key
markets worldwide, has
many milestones to
celebrate. Esquel now
produces more than 100 million pieces of garments
annually. O�ering total services and solutions to a list of
household brands and retailers, the group has found itself at
the top of the list of Cotton Woven Shirt Exporters in China
for seven consecutive years.
Beyond material success, the Esquel story is one of positive
change — in the industry, for its business, in its community
and in the world at large. By rethinking business and
applying principles that are ethically and environmentally
sound, Esquel has innovated the industry.
VERTICALLY-INTEGRATEDSUPPLY CHAINTo make a shirt, there is a myriad of processes to go
through: spinning, weaving or knitting, dyeing and garment
making, as well as the use of raw materials. Any problems
incurred through the process impact the total e�cacy of the
�nished product.
To ensure the highest quality, the company gins its own
extra long staple cotton to produce high-count yarn, which
is then used to make fabric of premium quality. This
vertical integration ensures product superiority and
minimizes energy and resource consumption to
decrease Esquel’s environmental footprint.
Esquel’s design and development capability is best
showcased by its retail brand, PYE. With a focus to
create the perfect shirt, PYE leverages advanced
technology and elaborate tailoring to o�er the best
product in the market for exceptional �t, functionality
and durability.
DRIVINGSUSTAINABILITYSince it was founded, Esquel Group has
focused on di�erent elements of
sustainability: innovation, addressing
environmental concerns, empowering
its people, o�ering a breadth of
services and caring for
the community.
“Sustainability requires a
holistic approach,” says
Vice Chairman and CEO
John Cheh. “It is not
a destination but a
continuous journey. The
story of Esquel illustrates
how a non-traditional
enterprise in a traditional industry
enhances its competitiveness through
good management and appropriate
application of technology. We practise
lean, green, and ethical manufacturing
along the entire supply chain. We
continuously re-engineer and re�ne,
from �ber to shirt, so that our customers
are always o�ered quality and innovative
products. Sustainable production is not
only good for the environment, but also
for business.”
THINKING DIFFERENTLYScarcity of natural resources and degradation of the
environment are among the most acute challenges facing
the industry, especially in the environmentally-sensitive
textile business. Making environmental protection a
priority, Esquel has aggressively reduced energy and
water consumption in the production process. Between
2005 and 2012, annual water consumption per unit of
output fell by 59% and energy consumption by 45%.
While conservation has often been considered costly, Esquel
approaches it di�erently. First, the group starts with better
training and communications to reduce re-work — which
can be abundant. By reducing it, the company saves water
and energy immediately — in addition to saving money.
Next, Esquel employs equipment and better technology —
investment that will improve e�ciency. Esquel approaches
environmental conservation as a long-term investment.
Pollution hinders productivity gains and creates extra
healthcare costs, and it impedes the ability to attract and
retain talent. As a result, Esquel seeks to raise the standards
and change the mentality within the company and across
the industry.
As part of its continuous quest for
environmental sustainability, Esquel has
recently reached a breakthrough in water
conservation by launching an advanced
wastewater treatment/recycling system,
treating 5,000 tons of wastewater daily.
Half of the treated e�uent can be reused
in the dyeing and �nishing process which
e�ectively reduces the use of fresh water,
while the rest is discharged in compliance
with the industry standard.
INVESTING IN PEOPLEAs Esquel expanded its footprint in di�erent
parts of the world with a total workforce of
55,000, the company recognized that the
centerpiece of its business was its people.
“I always say that Esquel is a company of fun
people serving happy customers,” says
Chairman Marjorie Yang. “I am sure that we
got to where we are today because of this
emphasis on people.”
In 2000, the Esquel “5E-Culture” was
launched to spread core values
throughout the organization: ethics,
environment, exploration, excellence and education. For
ethics, the company encourages being a good citizen and a
good employer — to build trust across the company and
with partners. Esquel cherishes the environment, and seeks
to develop innovative solutions and utilize resources more
e�ciently. Exploration is encouraged to discover and
embrace innovative solutions. Excellence inspires a
reduction of waste and encourages employees to deliver
value through leadership, speed and quality. With
education, Esquel emphasizes people development, critical
thinking and continuous learning.
SERVICE OFFERINGS & VALUE PROPOSITIONINGBy providing value-added services and collaborative
relationships with customers, Esquel has moved beyond the
position of simply an order-taking vendor to becoming a
long-term partner to customers.
Esquel sought to di�erentiate itself by becoming a
one-stop shop for customers. The company’s motto
became “the best cotton shirt partner,” and they o�ered a
total shirt solution — from high quality products to services
including product merchandising and design, product
development and innovations.
CARING OF THE COMMUNITYCorporate Social Responsibility is ingrained in Esquel’s
culture. Their code of conduct helps ensure that business is
done in an ethical and responsible way, consistent with the
values of their company.
Esquel’s dedicated CSR department works closely
with its Internal Audit department to oversee issues
and ensure Esquel’s compliance with responsible
business practice. In addition,
the company is actively involved
in programs that elevate the
welfare of the local communities
where they operate. Since 2007,
Esquel and Standard Chartered
Bank have been collaborating
to carry out the “MicroFinance
Program” in Xinjiang, providing
loans to farmers to enhance
their productivity, increase
income, and improve their living
standards. The company is also
the �rst manufacturer to be
accredited by the Fair Labor
Association.
In addition, the Esquel - Y.L. Yang Education Foundation
has been dedicating its e�orts to care for children in
need and especially in the areas of education, health
and environmental protection in poverty-stricken areas.
Esquel has built and renovated schools, sponsored
needy students, and established over 1,000
mini-libraries in Xinjiang to
promote learning.
THE SUCCESS OF GIVING BACKThe philosophy of giving starts
at the top, and goes to the
company’s core. “At Esquel, we
strive to make a di�erence in all
that we do. We aspire to be an
integral part in transforming the way our industry is
run — by improving the livelihood of our people and
preserving the environment — and in so doing create
a positive impact for all stakeholders. Everything we
do is guided by our E-Culture. These are the core
values that enhance our competitiveness by motivating
Esquel Group
13/F, Harbour Centre
25 Harbour Road
Wanchai, Hong Kong
Phone (852) 2811 8077
Fax (852) 2960 6988
www.esquel.com
Esquel Apparel Inc.
14 East 33rd Street
New York, NY 10016
Phone (212) 481 0886
Fax (212) 481 0447
our people, steering our business strategies and carrying
out our operations,” says Chairman Marjorie Yang.
Dedicated to bettering the world around them, and armed
with a corporate culture that promotes the “5Es,” Esquel
has proven that a non-traditional approach in a traditional
industry is a key factor to success.
PYE creates the perfect shirt for the man on the go
Esquel’s R&D activities are conducted across the company,securing its leading position in the industry
Esquel’s own brand, PYE, showcases the company’s design and development capabilities
Wastewater treatment is part of Esquel’s holistic approach towards sustainability
Continuous investment in technology helps improve e�ciency and raise productivity