LIDL DETOX COMMITMENT

LIDL DETOXCOMMITMENT

2020 Report

Contents

1. Strategy&Milestones1.1 Introduction .................................................................................................................................. 31.2 Strategy .......................................................................................................................................... 31.3 Milestones ...................................................................................................................................... 4

2. 2019Progress2.1. Ourapproach ................................................................................................................................ 52.2 Environmentalstewardship ........................................................................................................ 62.3 Supplychainmanagement ........................................................................................................102.4 Training&capacitybuilding ......................................................................................................112.5 Partnerships ..................................................................................................................................122.6 Systemicchange ..........................................................................................................................122.7 Sustainableconsumption ..........................................................................................................15

3. Summary&Outlook3.1 Whatwesetouttoachieve .......................................................................................................163.2 What’snext?..................................................................................................................................16

Images&charts

Figure1:DetoxComplianceRoadmap2015–2020 ....................................................................... 4Figure2:CorporateDueDiligenceProcess ................................................................................... 5Figure3:TheFourPillarsofEnvironmentalManagement .......................................................... 6Figure4:The11PriorityGroupsofHazardousChemicals ............................................................7Figure5:WastewaterFindingsforFactoriesTestedin2018and2019 ...................................... 8Figure6:ImpactinNumbers.............................................................................................................11Figure7:BiodegradableTextilesatLidl ......................................................................................... 13

Abbreviationsexplained

AP–AlkylphenolsAPEO–AlkylphenolEthoxylatesC2C–CradletoCradleCSR–CorporateSocialResponsibilityDMF/DMFA–DimethylformamideGIZ–(GermanCorporationforInternationalCooperation)GOTS–GlobalOrganicTextileStandardGRS–GlobalRecyclingStandardIPE–InstituteofPublicandEnvironmentalAffairsKPI–KeyPerformanceIndicatorMRSL/RSL–ManufacturingRestrictedSubstancesList/RestrictedSubstancesListPFC–PerfluorinatedChemicalsPU–PolyurethanePURE–ProjectforEnvironmentalandResourceEfficiencyPVC–PolyvinylChlorideSCCP–Short-ChainedChlorinatedParaffinsVOC–VolatileOrganicCompoundsZDHC–ZeroDischargeofHazardousChemicals

Releasedate:June2020

Contents

2 LidlDetoxCommitment2020 Report

1. Strategy and Milestones

In2014,LidlbecamethefirstfoodretailertojoinGreenpeace’sDetoxCampaign. Throughthiscampaignwecommittedtoworkingtowardstheremovalofpotentiallyharmfulsubstancesfromourtextileandshoemanufacturingprocesses.Sixyearson,wearepleasedtoreportthatwearenowsuccessfullyavoidinghazardouschemicalsinourproductionprocesses,significantlyreducingpollutionandprotectingbothpeopleand theenvironment.

ThisreportprovidesanupdateonourDetoxCommitments,spanningresponsibleproduction,systemicchangeandsustainableconsumption.Wearereflectingonthekeymilestonesachievedbetween2019and2020,aswellasprovidinganoutlookonhow wewillcontinuetoupholdourcommitmentsandfurtherdeveloptheDetoxstrategyinthe yearsahead.

1.1Introduction

Fromprotectingtheenvironmenttoupholdinghumanrights,securingasustainablefutureremainsacomplexchallenge.Asoneofthelargestretailcompaniesintheworld,werecognisethatweplayakeyroleintacklingtheseglobalissuesandsupportingsustainableimprovements,whilstalsounderstandingtheimportanceofclosecollaborationwithothers,includingexpertpartners,toensureourproductscomefromresponsibleandsustainablesourcesforthelongterm.

InordertodefinewhatsustainabilitymeanstoLidl,weconductedastrategicanalysisofourvisionandmissiontopinpointthepriorityissuesthatwecanmeasure,monitorandmanageovertheshort,mediumandlongterm.

ThepriorityissueswithinLidl’ssustainablesourcingstrategyare:

• Climatechange• Waterconsumptionandcontamination• Circulareconomy• Humanrights• Rawmaterials• Biodiversity• Responsibly-manufacturedproducts

TheLidlDetoxCommitmentencompassesalloftheaboveissues.

Ouraimistocompletelyeliminateall11chemicalgroupsdefinedbyGreenpeaceasparticularlyharmfulinthemanufactureoftextilesandshoesfromtheproductionofourownbrandproductsby2020,replacingthemwithnon-harmfulsubstanceswherenecessary.Indoingso,weseektopromotebettersocialandenvironmentalproductionconditionsinthetextileandshoeindustry.

Lidl’sDetoxCommitment:

• Toeliminatepotentiallyharmfulchemicals• Toreducewastewatercontamination• Toreducepollutionaffectingpeopleandimpactingtheenvironment

Bychampioningsafe,environmentallyresponsibleproductionmethodsinoursupplychains,weaimtosupportwidersystemicchange.Byswitchingtomorerecyclablematerials,wearehelpingtocreateacirculareconomyandbyinvestinginecological,resource-efficientfibreinnovation,wearesupportingmoresustainableconsumption.

Ourapproachisguidedbytheprinciplesofcredibility,feasibility,risk-basedapproaches,andeffectiveness.

1.2Strategy


1. Strategy and Milestones

1.3 Milestones

2015 2016 2017 2019 20202018• Frameworkagreementsrefined• MRSL/RSLpublished• OnlyZDHC-compliantchemicalsare

acceptedfororders• Casestudyoneliminatingphthalates

published• Casestudyoneliminating

perfluorinatedchemicals• (PFCs)published• BIONIC-FINISH®ECOcoating

replacePFCs

DetoxComplianceRoadmap2015-2020SincebecomingthefirstfoodretailertosigntheGreenpeaceDetoxCommitmentin2014,wehavecomealongway.OurDetoxComplianceRoadmapshowssomeofthemilestonesthatweachievedbetween2015and2020.

• FrameworkagreementsfurtherrefinedtoeliminateAPEOs

• CasestudyoneliminatingDMFAinpolyurethane(artificialleather)published

• WinnerofFairtrade‘RetaileroftheYear’award

• 600+own-brandtextilesandshoeproductionfacilitiesdisclosed

• FirstfullybiodegradableprintingpastefortextilesdevelopedtoCradletoCradleCertified™Goldstandard

• Cradle-to-Cradletextilecollectionlaunchedwithshirts,sleepwearandbedding

• GreenButtontestingprocesscompleted

• ProductslabelledwiththeGreenButtonandCottonMadeinAfricacertificationarriveinstores

• PUREtrainingcoursesformorethan400employeesfrom80manufacturingsitesinChinaandBangladesh,benefittingapproximately150,000employees

• STeP-by-OEKO-TEXcertificationintroducedfortier1suppliers(wetprocessing)

• GlobalOrganicTextileStandard(GOTS)certifiedtextileassortmentexpanded

• EcoVero™adoptedasamoreenvironmentally-friendlyfibre

Figure 1: Detox Compliance Roadmap 2015–2020


2. 2019 Progress

AsystematicmanagementapproachiscriticaltoimplementingourCSRstrategyconsistentlyacrossourglobalbusiness.Thisbeginswithanalysingpotentialrisksrelatingtohumanrightsinfringementsandenvironmentalharm,bothwithinourbusinessprocessesandinthemanufacturingofown-brandproducts.Inunderstandingtheserisks,wecanimplementmeasuresalongsideoursupplychainpartners.

FurtherdetailonthisapproachissetoutinourHumanRightsandEnvironmentalDueDiligencePolicy.

2.1Ourapproach

Figure 2: Corporate Due Diligence Process Resolve

1.Identifyrisksandopportunities• Riskassesssupplychain• Identifyrisksandopportunities• Assessimpactsandorganisationalopportunities

2.Definerequirementsandprocesses• Reporttransparentlyonprogressandlearningstointernaland

externalstakeholders

3.Implementandreviewactions• Monitorandimproverequirementsandprocesses• Eliminate,reduceandavoidnegativeimpacts• Provideaccesstoeffectivegrievancemechanismsandmake

amendsforinfringements

4.Monitorandimprove• Defineclearrequirements,goalsandobjectives• Establishauditableprocesses• Allocaterolesandresponsibilities

5.Communicate• Implementactivitiesandinterventionsinthesupplychain• Audit,assessanddevelopthesupplychain• Engagewithstakeholders

Corporatedue diligenceprocess

1.Identifyrisks andopportunities

2.Define requirements andprocesses

5.Communicate

3.Implement andreview actions

4.Monitor andimprove

Ongoing dialogue with our stakeholders


https://unternehmen.lidl.de/pressreleases/2020/200316_erweiterung-popa-unternehmerische-sorgfaltspflicht

https://unternehmen.lidl.de/pressreleases/2020/200316_erweiterung-popa-unternehmerische-sorgfaltspflicht

2. 2019 Progress

AtLidl,weselltextilesandfootwearthroughoutourstoresglobally.Itisthereforeimportantthatwecontinuetoworktowardsourgoaltocreatesafer,moreenvironmentally-friendlymanufacturingprocessesalongourtextilesupplychain.

Weregularlymonitorandauditsuppliersforchemicaluseandwaterquality.Inaddition,wehaveproducedahandbookthatoutlinesaclearandpragmaticapplicationofourpolicies,processesandprocedures.Ourtier1‘wetprocessing’suppliersthatareresponsibleforthedyeingandwashingofgarmentsarerequiredtosharethehandbookwithdownstreamsuppliers(tier2).Bycascadingtheserequirements,workersareengagedandempoweredtoadoptsafe,responsiblepractices.

Fourpillarsofenvironmentalmanagement

ChemicalmanagementThegarmentsectorisoneofthelargestconsumersofchemicalsintheworld.Whetherinthedyeingandfinishingorprintingandwashing–chemicalsareubiquitousthroughouttheproductionprocess.ThroughourLidlDetoxCommitment,wewanttocounteractthepotentiallyhazardouseffectstobothpeopleandtheenvironment.Wehavearangeofpolicies,processesandproceduresinplacetosupportsuppliersintheproperuse,storageanddisposalofchemicals.

Ourgoals:

• Toprotectthehealthofemployeesandensuretheirsafety• Topreventwatercontamination• Toavoidwaste• Toadheretostatutoryregulations,aswellasLidlrequirements

ChemicalrequirementsAswellasstringentlyprohibitingtheuseanddisposalof11harmfulchemicalgroups,ourChemicalRequirementsstatethateverychemicalusedinproductmanufacturingonbehalfofLidlmustmeetatleast oneofthefollowingstandards:

1. LidlMRSLorRSL2. bluesign®APPROVEDchemicalproducts3. ZDHC MRSL4. GOTSpositivelist5. ECO PASSPORT6. GreenScreenCertified™

“By taking a proactiveapproach, we are able to optimise chemical management in partnership with suppliers and systematically eliminate all harmful chemicals.”

2.2Environmentalstewardship

Chemicalmanagement

Efficientuseofresources

Wasteandwastewater

Managementsystem

Industrialhealthandsafety

1 2 3 4

Figure 3: The Four Pillars of Environmental Management


2. 2019 Progress

2.2.1 RESTRICTED SUBSTANCESSince2015ourManufacturingRestrictedSubstancesList(MRSL)andRestrictedSubstancesList(RSL)haveappliedtoallcommercialagreementsbetweenLidlandourtextile andshoesuppliers.Theyarereviewedannuallyandupdatedasrequired.

2.2.2 WASTEWATER TESTINGAssessingtheeffectivenessofchemicalmanagementwithinawetprocessingfacilityrequireswastewaterandsludgetesting.Theseareconductedannuallybyindependentexpertstomonitorharmfulsubstances.Inaddition,thefacility’schemicalinventoryisinspectedperiodically.AspartofourDetoxCommitment,weaimforthehighestlevelsoftransparencywhendisclosingchemicalfindingsinoursupplychain.Since2015,allsuppliersundergoingtestinghavebeenrequiredtouploadresultstotheIPE.orgdatabase.

Resultsin2019Outofour79wetprocessingsuppliers,testswereconductedat21facilitiesin2019,withatotalof89samplestaken.Wesaw100%positiveresultsforsupplyandpre-supplywatersamplesand96%forpost-treatmentandsludgesamples.Wealsorecordedtheeliminationofnineoutofthe11toxicchemicalgroups(fivefullyeliminatedandfouralmost-fullyeliminated).

Detailedfindingsalsoincluded:

• Nophthalates,flameretardants,azodyes,perfluorinatedchemicalsorchlorobenzeneswerefoundinchemicalanalyses.

• AP/APEOs,organotincompounds,chlorophenolsandshort-chainedchlorinatedparaffinswerepresentbuteliminatedinmorethan90%ofthefactoriestested.

• Chlorinatedsolventsweredetectedinthewastewaterof15%offactories• Heavymetalswereidentifiedinthewastewaterof78%offactories.Whilethis

representsa19%reductionsince2015,thereisclearlymoreworktodotoeliminateheavymetals.

AspartofourDetoxCommitment,wehavecommittedourselvestoremovingthefollowing11prioritygroupsofhazardouschemicalsfromoursupplychain: 1. Alkylphenolethoxylates(AP/

APEO)2. Phthalates3. Brominatedandchlorinated

flameretardants4. Azodyes5. Organotincompounds6. Perfluorinatedchemicals(PFC)7. Chlorobenzenes8. Chlorinatedsolvents9. Chlorophenols10. Short-chainchlorinated

paraffins(SCCP)11. Heavymetals:cadmium,lead,

quicksilverandchrome(VI)


Figure 4: The 11 Priority Groups of Detox Chemicals


2. 2019 Progress

ChlorinatedsolventsWhilechlorinatedsolventshadbeeneliminatedfrombothfreshandwastewatersamplesatourBangladeshsupplyfactoriesin2019,inChinatheywerefoundin23%offreshwatersamplesand15%ofwastewatersamplesamongoursuppliers.ThesesolventsremainachallengeinChinaastheyremainprevalentinwatersupplies.

Heavymetals–aglobalchallengeHeavymetalsweredetectedinfreshwater,wastewaterandsludgesamplesineachmanufacturingcountry.Theywerealsofoundinthesupplywaterat86%ofsites.

ChemicalsinthewatersupplyEightofthe11prioritygroupsofhazardouschemicalsintheDetoxcampaignwerealreadypresentinthewatersupply.

• Chlorobenzenes(1%ofsamples),phthalates(3%),organotincompounds(5%)andPFCs(15%)werefoundinthewatersupplyinasmallnumberofthefactories.

• Injustunderaquarterofthefactories(23%),chlorinatedsolventswerefoundinthewatersupply.

• Injustunderhalfthefactories(47%),flameretardantsweredetected.

• Andheavymetalsweredetectedinmostofthefactories(86%).

WastewatertreatmentOuranalysisoffreshwater,wastewaterandsludgerevealedthatwastewatertreatmentdoesnotcompletelypurifywater.Ifchemicalsarealreadypresentinthewatersupply,residuescanremainaftertreatment.Thisappliesprimarilytoheavymetalsandchlorinatedsolvents.

SupplychaintransparencyLidlcommittedtoestablishingthehighestleveloftransparencypossibleregardingsupplychainchemicalconsumption.Forthisreason,allsuppliershavebeenrequiredtouploadtheresultsofwastewaterteststothewwwen.ipe.org.cndatabasesince2015.

WastewatertestWastewaterresultsintestedfactoriesin2018and2019,in%

2018 2019


AP/APEOs

Phthalates

Flameretardants

Azodyes

Organotincompounds

PFCs

Chlorobenzenes

Chlorinatedsolvents

Chlorophenols

SCCPs

Heavym

etals

2 2 2 4

0 0

87

51 1

78

2

48

3 3

36

13

7

15

2

51

Figure 5: Wastewater Findings for Factories Tested in 2018 and 2019


http://wwwen.ipe.org.cn

2. 2019 Progress

2.2.3ALTERNATIVESTOHARMFULCHEMICALSIncollaborationwithchemicalmanufacturersandresearchinstitutions,aswellasourproductionpartners,wearecontinuallytestingtechnologiesthatcouldreplacetheuseofcertainchemicalsintextileproduction.Overtheyears,wehavesharedourfindingsinanumberofcasestudies.


Textile with BIONIC-FINISH® ECO Cradle-to-Cradle hooded sweatshirt

Water-basedprintingWater-basedprintingpasteshavebeenprovenasasuccessfulecologicalalternativetosolvent-basedpastesthatcontainphthalatesandPVC.In2016,wecommissionedtestingofwater-basedprintingforourUEFAT-shirtcollection.WorkingwiththeCHTGroup,EPEAGmbHandtheBeneficialDesignInstitute,afullybiodegradableprintingpastewasformulated,whichwehavesharedwithothermanufacturersofourown-brandproducts.Italsofeaturesinour2019CradletoCradleCertified™Goldcollection.

PFC-freewaterproofsWaterproofclothingsuchasjackets,skiwearandchildren’strousershavetraditionallyusedperfluorinatedcompounds(PFCs)toachieveawaterandoil-repellentfinish.Attheendofagarment’slife,PFCstakealongtimetobreakdownandcanbeharmfultotheenvironmentandhumanhealth.Since2012,LidlhasbeenreplacingPFCswithBIONIC-FINISH®ECO fluorine-freetechnologyinourtextiles.

ArtificialleatherwithoutDMFFrequentlyfoundinPUleather,dimethylformamide(DMF)carrieshealthrisks.Itisalsoresource-intensiveandpolluting.WhileexploringwaystoeliminateDMFfromthesupplychain,LidlcameacrossINSQIN®technology,whichenablesartificialleathertobemanufacturednotonlywithoutDMFbutalsoorganicsolvents.Theprocessrequires50%lessenergyand95%lesswater.Inadditiontothis,wearepermanentlytestingnewtechnologiesandcheckingwhethertheymeetourqualityandsustainabilityrequirements.


2. 2019 Progress

“We want to empower our supply chain partners to continually develop their environmental safety measures. In doing so, they can reduce negative impacts on the environment and conserve resources.”

2.3SupplychainmanagementWerecognisetheimportantrolewecanplayasamajorglobalretailer,incatalysingchangethroughoutoursupplychain.

Likemanyapparelretailers,around80%ofourown-brandsupplycomesfromBangladeshandChina.Wethereforefocusoureffortsonsupportingsuppliersinthesecountries,payingparticularattentiontowetprocessingsites,asdyeingandwashingprocessescausethegreatestenvironmentalimpact.

2.3.1ENVIRONMENTALAUDITSAtLidl,wehavedevelopedourownmonitoringsystemforown-brandtextilemanufacturers.Since2018,alldirectandvertically-integratedwetprocessingfacilitieshavebeenrequiredtobecomecertifiedtoSTePbyOEKO-TEX®certificationsystem.In2019,approximately50%ofsuppliershadachievedthis.

Forwetprocessingoperationsfurtherdownthesupplychain(tier2suppliers),wepartnerwithaccreditedcertification

expertstoconductindependent,unannouncedinspectionstoassessenvironmentalandchemicalmanagement,pollutionandwastewatertreatment.In2019,52,tier2environmentalaudits wereconducted,representing96%offactories(comparedtojust19%in2018).Commonfindingsrelatedto‘permissionandlicense’(77%)andwastewatermanagement(62%).Eachplantreceivesacorrectiveactionplan(CAP)andexpertpartnerswillhelptoimplementthesemeasures.Iftheyremainnon-compliant,Lidlisentitledtocancelanyorder.

Focusontier2suppliers52environmentalauditswerecarriedoutinthereportingperiodandcriticalfindingswerereportedinhalfofthefactoriesaudited. Whyisthis?AlthoughLidlhasrequireditsverticallyintegratedwetprocessingfacilities(tier1suppliers)tobeSTePbyOEKO-TEX®certifiedsince2018,auditssince2019haveturnedtheirattentiontosuppliersfurtherdownthesupplychain(tier2).Thesedidn’tfarequiteaswellincomparison.96%oftier2factorieswereauditedin2019(comparedto19%in2018).Themostfrequentshortcomingswerecriticalissuesrelatingto‘permissionsandlicences’(77%)andwastewatermanagement(62%).

2.3.2 PRODUCTION DISCLOSURELidlismakingitssupplychainmoretransparent.Since2017,wehavedisclosedourmainproductionsitesfortextileandfootwearmanufacturing.Updatedeverysixmonths,the list includesthenames,addressesandcountriesandin2019,comprisedof570facilities.ThefocusareasforourDetoxCommitment,hasbeenwith79directandvertically-integratedwetprocessingfacilities,primarilyinBangladesh,Pakistan,China,IndiaandTurkey.


https://www.lidl.de/de/sortiment-verantwortung-in-der-nonfood-lieferkette/s7377409

2. 2019 Progress

“Achieving sustainable practices requires behavioural change. That is why training measures for safer chemical handling and conserving energy are just as important as establishing technical processes.”

2.4Training&capacitybuilding

2.4.1 PURETrainingoursuppliers–andenablingthemtobuildcapacityamongtheirownbusinesspartners–isfundamentaltoourpartnershipapproach.

Sincethemajorityoftheworld’stextilesareproducedinChinaandBangladesh,ouraimistobuildcapacityamongsupplierstomanageresourcesresponsiblywithregardtoourown-brandtextileproducts.Wehavedefinedthreemaingoalsforthis:

• Promotesafechemicalhandling• Reducetheuseofenergy,waterandchemicals• Improvewasteandwastewatermanagement

ConsciouslysustainableAlongsideGIZ,in2017wepilotedtheProjectforEnvironmentalandResourceEfficiency(PURE).The PUREtrainingprogrammepromotesawarenessofenvironmentalandsafetystandardsamongoursuppliersinChinaandBangladesh.Senior-levelstaffreceiveonsitetrainingdeliveredbyGIZonresponsiblechemicalmanagement(focusingonthe11high-riskchemicalgroups)sothattheycan,inturn,extendthelearningstotheirteams.Bytransferringknowledgeandsettingupanappropriatechemicalsmanagementsystem,theaimistoremovethechemicalgroupsmentionedintheLidlDetoxCommitmentfromproductionaltogetheroverthelongterm.

ProjectimpactInthepasttwoyears,morethan400managersfrom80manufacturershavecompletedPUREtrainingandsharedlearningswith148,000employees.

• 20%+energysavings• 22,728tonnesofcarbonemissionsavoidedannually• 5,877,979cubicmetersofwatersaved• 21.4millioneurossavedimplementingthesemeasures

SinceJuly2017, 80factorieshavesuccessfullycompleted thePUREprogramme.

148,000factoryworkershavenowbeenintroducedtoPURE.

Over400factoryworkersonsitehavereceivedtraininginkeyenvironmentalissues.

Energycostscanbecutbymorethan20% in individualcases.

ThankstoPURE,itispossibletosave22,728tonnesofcarbonemissionseachyear.

Factoriescanreducetheirwaterconsumptionby5,877,979cubicmetres.

Themeasureshaveenabledtotalsavingsof21,410,247eurosfortheparticipatingfactories.

Onaverage,thefactories’investmentswillpayforthemselvesinjust3years.

PURE

Figure 6: Impact in Numbers

IMPACT IN NUMBERS


2. 2019 Progress

2.5Partnerships

Formanyyears,Lidlhasbeencommittedtoimprovingthelivesofpeopleworkinginitsglobalsupplychainandprotectingtheenvironmentsinwhichtheylive.Whilstmakingsignificantprogressinreducingchemicaluseinourown-brandtextileandfootwearsupplychain,werecognisetheneedtoworktogetherwiththewidersectortoachievelasting,systemicchange.

PartnershipforSustainableTextilesAsafoundingmemberofthePartnershipforSustainableTextilesin2014,wejoinedforceswithapproximately120representativesfrombusinesses,labourunions,non-governmentalorganisations(NGOs)andthegovernmenttoimprovetheconditionsofglobaltextileproductionacrossthevaluechain.

Thepartnershipstrivestoimproveconditionsinglobaltextilesupplynetworks—fromtheproductionofrawmaterialstothedisposaloftextiles.ItsapproachtothisgoalisbasedonOECDduediligenceguidance.Membersareencouragedtojoinpartnershipinitiativesinproductioncountriestofosterstructuralchangeontheground.Theyarealsorequestedtoupholdtheirindividualresponsibilityinastructured,meaningful,andtransparentmanner.Moreover,thepartnershipservesasaplatformfordialogueandlearninginthevariousissuesrelatedtothetextileproduction.

2.6Systemicchange

Wearecontinuallyinnovatinganddevelopingnewapproachestowardsmoresustainablesystemsofproductionandconsumption,fulfillingourresponsibilitytoemployees,suppliers,societyandtheenvironment.

2.6.1 CLOSING THE LOOPHighqualitygarmentsdesignedwithlongevityinmind,combinedwithconsumerreuseandrecycling,offerthepotentialforcircular,closed-loopsystemsofproductionandconsumptionintheapparelsector.TheseCradle-to-Cradleprinciplessupportawaste-freeeconomy,inwhichrawmaterialsareusedandreusedagainandagain.

Cradle-to-CradleTheCradle-to-Cradleapproachisdevelopeduponintelligentproductdesignthatallowsproductsandtheircomponentstobereusedandreusable.Italsoensuresproductmaterialsaresourcedinwaysthatarenotharmfultohumanhealthortheenvironment.Fromtextilesandconsumergoods,tocosmeticsandpackaging–therearemanydifferenttypesofproductscanattaintheCradletoCradleCertified™(C2C)productstandard.TheconceptwasdevelopedbychemistryprofessorandprocessengineerProf.MichaelBraungartandUSarchitectWilliamMcDonough.

Photo: Cradle-to-Cradle collection


2. 2019 Progress

2.6SystemicchangeIn2019,welaunchedourfirstCradletoCradletextilecollectionaspartofapilotproject.Thecollectionincludedshirts,pyjamasandbeddingandtheproductswerecertifiedtoeitherCradletoCradleGoldorSilverCertified™andprintedwithfully-biodegradabledyes.Allaspectsoftheproductionwereassessedbyindependentpartners,fromresource-efficiency,waterandchemicaluse,torenewableenergyandrecyclability.Thecollectionoffersourcustomersproductsthatarekindertotheenvironmentandgentleonskin.

WhatsetsCradle-to-Cradletextilesapartisthefactthattheycanberecycled.Duringtheproduction,particularattentionwasgiventotheeffectiveuseofrawmaterials,responsiblehandlingofchemicals,watercleanlinessandtheuseofrenewableenergy.

FromsourcetosourceWithinthetextilesector,theCradle-to-Cradleprojectisjustonewayinwhichtheindustryisworkingtowardsasystemicshifttoacirculareconomy.AspartofourbroaderCSRobjectives,wecontinuetoincreasetherecycledcontentofpaper,cardboardandplasticusedinourprimarypackaging.WorkingwiththeSchwarzGroup’s360°REsetPlasticstrategy,wearealsocontinuallyincreasingtherecyclabilityofpackagingmaterials.Goingforward,weseektoscaleandreplicateCradle-to-Cradleproductsandprocesses.

Figure 7: Biodegradable Textiles at Lidl

Biodegradable textiles at Lidl CRADLE TO CRADLE CERTIFIED™ TEXTILES AT LIDL

Designedforthebiosphere–inharmonywithnature! Firstbiodegradabletextilecollectionswithprints

C2C-certifiedinGoldandSilver

Completelybiodegradable

100%compatiblewithpeople&theplanet

Madeusingrenewableenergies

Goodforhealthandtheenvironment

Allcomponentsarebiologicallyvaluable

andtested!

OurCradletoCradleCertifiedTMtextilesaredesignedtobecompletelybiodegradable–includingthedyeusedtoprintthem!

The‘CradletoCradle’conceptdescribesthevisionofa‘waste-freeeconomy’inwhichrawmaterialsarereusedinclosedcycles.CircularproductscanbecertifiedwiththeCradletoCradleTMcertifiedproductstandard.Thestandardtakesallaspectsoftheproductionprocessintoconsideration–fromtheeffectiveuseoftherawmaterialsandtheuseofchemicals,tokeepingwatercleanandtheuseofrenewableenergy.


2. 2019 Progress

2.6Systemicchange

2.6.2 MORE SUSTAINABLE FIBRESCottonisthemainfibreusedinourgarmentsandwesourcearound178,000tonneseachyear.Thisisfollowedbypolyester,ofwhichwesource62,000tonnes.Despitecottonandpolyesterbeingtwoverydifferentmaterials,bothareassociatedwithvariousenvironmentalchallenges.Whethermicroplasticspollutionlinkedtopolyester,orwaterandpesticide-intensivecottoncultivation,weareworkinghardtoreduceourrelianceoncottonandpolyesterbydeployingmoresustainablealternatives.

Statusquo:Liketherestofthesector,Lidl’smostusedfibrefortextileproductioniscotton(approx.178,000tonnes),followedbypolyester(around62,000tonnes).Thenegativeimpactsofboththesefibresarewidelyknown,fromtheuseofoilasanon-renewableresourceandtheresultingmicroplasticpollutioninthecaseofpolyesterproducts,tothehighvolumesofwaterandintensiveuseofpesticidesandotherchemicalsinconventionalcottoncultivation.Toguaranteemoresustainableconsumption,Lidliskeentoidentifyalternativefibresthatmakeefficientuseofresources,orfibresthatarerecycled,recyclableand/ororganicallysourced.Thelong-termaimistoconstantlyincreasetheproportionofsuchfibresinuse.Organiccottonisoneareainwhichparticularlygoodresultshave beenachieved.

OrganiccottonIn2019,weusedapproximately11,200tonnesofGOTS-certifiedorganiccottoninourown-brandtextiles.Thisequatesto6%ofourtotalfibreusageacrossournon-foodproducts,growingfrom5%in2018.However,intheglobalmarket,organiccottonproductiononlyrelatesto0.7%ofthetotalproduced(TextileExchange,OrganicCottonMarketReport2019).Wehavemadethecommitmentthatallourcottonwillbesourcedfromsustainablesourcesby2025,includingCottonMadeinAfrica,GOTSorFairtradecertificationstandards.

PolyesteralternativesBytheendof2019,wehadreplacedallsyntheticviscoseinourown-brandtextilesrangewithEcoVero™.EcoVero™isamoreresource-efficient,wood-basedfibre,sourcedfromsustainably-managedforests.WehavealsobeenincreasingouruseofrecycledpolyesterfollowingtheGlobalRecyclingStandard(GRS)andwelookforwardtoscalingthisfurther.

Textiles made from LENZING™-ECOVERO™ fibres. Photo: Richard Ramos, Lenzing AG


2. 2019 Progress

2.7SustainableconsumptionPromotingtheimportanceofmoresustainableconsumptionisakeyaspectofourenvironmentalresponsibilityacrossoursupplychain.It’scrucialthatwesharethisinformationandawarenesswithourcustomersacrossmultiplechannels,includingourwebsite,socialmedia,CSRreporting,in-storemessagingandproductlabelling.

2.7.1 PRODUCT LABELLING AND CERTIFICATIONWeworkwiththird-partycertificationschemestosupportmoresustainableminimumstandards.Theseschemeshelptoinformandeducateourcustomersonthestepswearetakingtoensurethesustainabilityofproductsthattheybuyinourstores.

FairtradeTheFairtradeLabelstandsforfairlyproducedandfairlytradedproductsthatcomplywithcertainsocial,ecological,andeconomiccriteria.FairtradecertificationensurestheproducerorganisationreceivesaFairtradeMinimumPricethatcoversthecostofsustainableproduction,andanadditionalFairtradePremiumthattheycanchoosetoinvestindevelopmentprojectsintheirlocalcommunity.WeofferarangeofFairtradeproductsandin2016,wewontheFairtradeRetaileroftheYearAward.

GlobalOrganicTextileStandard(GOTS)GOTSidentifiesexceptionallyhighecologicalandsocialstandardsintextileproduction.Onlyproductscontainingmorethan70%organically-producednaturalfibresreceivethisseal.

CradletoCradleIn2019,welaunchedourfirstCradletoCradletextilecollectionaspartofapilotproject.Thecollectionincludedshirts,pyjamasandbeddingandtheproductswerecertifiedtoeitherCradletoCradleGoldorSilverCertified™andprintedwithfully-biodegradabledyes.Allaspectsoftheproductionwereassessedbyindependentpartners,fromresource-efficiency,waterandchemicaluse,torenewableenergyandrecyclability.

Sustainabilitylabelsandcertificationsappliedin2019

• BlueAngel• CradletoCradleCertified™• EUEcolabel• Fairtrade• FurFreeRetailer• GOTS • GRS• OEKO-TEX

Inadditiontotheaforementionedlabels,wearealreadypreparingtointroduceothers:

Green ButtonIn2020,weareaimingtoadoptGermany’sFederalMinistryofEconomicCooperationandDevelopment’s(BMZ)‘GreenButton’scheme.Thisisthefirstinitiativeofitskind,wherebyasealwillfeatureonidentifiedproductsthatmeet46socialandenvironmentalcriteriaverifiedbyanindependentagency,DAkkS.WehavealreadycompletedtheapplicationprocessforGreenButtonandaimtoachieveitsstampon90productsbythemiddleoftheyear.

CottonMadeinAfricaProductscertifiedtoCottonMadeinAfricawillstartappearinginourstoresfrom2020.Thesegarmentsmustmeetstringentecological,socialandeconomiccriteriaforcottonproductionandprocessing.Revenuefromthiscertificationisreinvestedinprojectsinsub-SaharanAfricathatsupportsmall-holderfarmerstoadoptmoreenvironmentally-friendlyfarmingmethodsthroughagriculturaltrainingcourses.

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3. Summary & Outlook

3.1Overview& nextsteps

3.2What’snext?

Between2015and2020,weachievedthefollowingstepsaspartofourDetoxCommitment:

Responsibleproduction

• Establishedsaferandmoreenvironmentallyfriendly productionsystems.

• Avoidedoreliminatedall11Detoxchemicals• Introducedlistsofbannedchemicals• Conductedenvironmentalauditsandwastewatertests• ImplementedSTeP-by-OEKO-TEXcertificationasarequirement

fortier1supplierswithwetprocessingfacilities• Deliveredinformationandtrainingeventswithmanufacturers

thatdeploywetprocessesinBangladeshandChina• PublishedcasestudiesforthesubstitutionofPFCandDMFin

PUartificialleather,aswellaswater-basedprinting• Ensuredgreatertransparencyofthedownstreamtextile

supplychain• Developedandimplementedatrainingprogrammein

cooperationwiththeGIZ(GermanCorporationforInternationalCooperation)forproduction-integratedenvironmentalprotection.

Systemicchange

• Scrutinisedourprocesses,switchingtoresource-efficientmaterialsandcatalysingacirculareconomy.

• Developedaclosed-loopconcept• LaunchedaCradle-to-Cradlecollection• Recordedfibrequantitiesandimplementsolutions• Switchedtoalternativefibresthataremore

environmentally-friendly• IncreasedtheproportionofGOTS-certifiedorganiccotton

Sustainableconsumption

• Promotedthesaleofmoreinnovativeandsustainableproductsmadefromecologicaland/orrecyclablematerials.

• Providedcustomerswithclearandcredibleinformationtohelpthemmakeinformeddecisions

• Introducedsustainabilitycertificationstonon-foodproducts

AtLidlwearededicatedtocontinuousimprovement,workingtowardsbettersocialandenvironmentalproductionconditionsinthetextileandshoemanufacturingindustry.Weknowthatonlythroughcollaborationcanweexpecttoseelastingchange.WithGreenpeace’sDetoxCampaignendingthisyear,wewouldliketoexpressourgratitudetoGreenpeaceandtheotherorgani-sationsthathaveenabledustomakestridesineliminatingtheuseanddisposalofharmfulchemicalsfromourgarmentproduction.Wealsoextendthankstoouremployeesandsupplychainpart-nerswhohaveembracedourDetoxCommitmentsandwillcontin-uetoupholdthemintheyearsahead.

OngoingcommitmentsAnimportantcomponentofthiscampaignthatwillcontinuetobestrengthenedfurtherincludestheSTeP-by-OEKO-TEXcertificationwithourtier1wet-processingsuppliers.Wewillalsobebuildingonourcommitmentsbyintensifyingoureffortstoremoveharmfulchemicalsfurtherdownthesupplychain,throughourtrainingand

widerengagementprogrammesthatreachourtier2manufacturingsites.Finally,weplantoexpandtheCradle-to-Cradlemodeltomoreproductsaswecontinuetoworkwithotherstoenablesystemicshiftstowardscircularsystemsofproductionandconsumption.

WorkingtowardsasustainablefutureAlthoughthiscampaignhasreacheditsconclusion,theworkre-mainsongoingandthespiritofcollaborationismoreimportantthanever.ThisreporthasdisclosedourongoinggoalsandhowtheywillremainanintegralpartofourCSRagendatoprotectbothhumanrightsandtheenvironmentacrossourglobalsupplychain.


Documents

LIDL DETOX COMMITMENT