Status Report 2015 - rewe-group.com8a875501-3047-4fcf-8356... · December 2015 REWE Group Detox Status Report 2015 2 1. Introduction to the Detox Program ... We also published an

REWE Group Detox Program

Status Report 2015

December 2015

Content

December 2015 REWE Group Detox Status Report 2015 2

1. Introduction to the Detox Program

Objective and Achievements

REWE Group’s Detox Program - Summary of Achievements

The REWE Group Detox Roadmap

Scope of the REWE Group Detox Program

Timeline of the REWE Group Detox Program

Internal and external Communication

2. Process for Suppliers and Factories

Process for Suppliers and Wet Process Factories - Overview

Step 1: Information and Commitment

Step 2: Status Quo and Training

Step 3: Implementation

Step 4: Monitoring

3. Chemical Management and Phase-Out

4. Closed Loop Project

5. Next Steps for our REWE Group Detox Program

Introduction to the Detox

Program


Objective and Achievements


Achievements

Defined a roadmap to avoid hazardous chemicals in the supply chain of textiles with specific deadlines by 2020

Informed all suppliers and importers about the Detox Program with our Detox brochure

Learned about supply chain partners and their wet process factories (supply chain transparency questionnaire)

Obtained the commitment of nearly all of suppliers to Detox

Established a monitoring process for suppliers and wet process factories

Tested the waste water and sludge of 58 wet process factories that represent over 80 per cent of our textile turnover

Performed three pilot projects and conducted the first supplier workshops and events

Reviewed REWE Manufacturing Restricted Substance List (MRSL) and published an updated version, MRSL 1.0

Established a substitution strategy for hazardous chemicals

Identified the first factories that are using APEOs

Published the Detox Program and information on the corporate website

Defined the concept for a capacity development program

Conduct a regular discussion with the other detox-committed companies

Evaluated ZDHC membership

The Detox Program

Objective

The objective of Detox is to enhance the use of safer chemicals in all wet production procedures of textiles such as

apparel, footwear products and all home textiles by no later than 2020.

REWE Group’s Detox Program (1/2)

Summary of Achievements


In December 2014 REWE Group joined the Detox Campaign and set up its REWE Group Detox Program. With the

Detox program we are dedicated to bringing transparency to the textile supply chain, promoting the use of non-

hazardous chemicals in textile production and minimizing the release of hazardous substances into water by 2020.

We believe that we can achieve the ambitious targets of Detox only if we collaborate with other business partners

of the textile industry. Therefore, we are actively engaging in partnerships with relevant organizations and with

other companies on a pre-competitive basis.

Our suppliers and the wet process factories are also important partners on the path toward the safer production of

textiles. Trainings, events and information material helped to start the collaboration with our suppliers.

In line with the right-to-know principle in our Detox commitment, we are increasing transparency in the textile

supply chain with a focus on all apparel and footwear products (including all home textiles) produced and sold

(“private label / store brands”) by REWE Group. This includes all of REWE Group’s contracted suppliers or facilities

horizontally across all private label brands as well as vertically down our supply chains. Therefore, we began in the

first half of 2015 to roll out internal and external communication measures to inform our stakeholders about the

Detox Program.

To ensure that our supply chain partners comply with the strict requirements, we have developed a mandatory

process for all our apparel, shoes and home textile suppliers and their wet process factories and strengthen the

contract language regarding the use of hazardous chemicals for our textile suppliers.

REWE Group’s Detox Program (2/2)

Summary of Achievements


The regular monitoring process is the key to ensuring that our supply chain partners comply with the Detox

standards. Regular waste water and sludge tests will help to monitor the progress. A chemical inventory has to be

set up and needs to be continuously updated. If necessary, a Corrective Action Plan (CAP) has to be developed.

To evaluate the current situation and to ensure conformity with our Detox Program, we tested the waste water and

sludge of over 80 per cent (in relation to our turnover) of the textile factories within the wet processes in our supply

chain. All waste water and sludge test reports will be uploaded to the platform of the Institute of Public &

Environmental Affairs (IPE).

In order to gain more experience and learn more about ways of phasing out non-compliant substances from the

textile production, we have set up three pilot projects with different suppliers and service providers in Asia.

In line with our Detox commitment, we have worked on the update of our MRSL and the process of phasing out

non-compliant substances from the textile production processes.

We have established a substitution strategy for hazardous chemicals and have identified factories that are using

APEOs with the aim of working with them on the phase-out. To give our supply chain partners as well as our

customers more information on the chemicals in our MRSL, we are developing chemical fact sheets for each

chemical group that will be published on our corporate website.

We are committed to setting up a closed loop project based on a take-back system as well as a consumer

awareness program. We plan to start our closed loop project in 2016 and communicate this to our customers

through various communication channels.

The REWE Group Detox Roadmap


• REWE Group joins Detox: We decided to join the Detox

commitment in December 2014.

• Awareness Raising: To implement the Detox Program, we

started a continuous dialog with all of our textile suppliers.

• Water Testing: Waste water and sludge testing helps us to raise

the status quo, which is the starting point for any phase-out

strategy defined by the factory.

• Case Studies: In case studies, we outline examples for the

substitution of hazardous chemicals.

• Phase-Out Strategy: For any chemical defined in our MRSL, we

are developing a phase-out timeline.

• Publication and Reporting: We report on our progress to raise

awareness about the important issue of more environment-

friendly textile production.

• Capacity Building and Training: We provide trainings and

workshops to our suppliers and factories.

• Safer Textile Production: Our aim is to ensure safer textile

production by the end of 2020 in order to create a safer future

for humans and the environment.

Our Detox Program is based on eight key milestones that also

reflect the main requirements defined in our Detox commitment:

Scope of the REWE Group Detox Program


The supply chain of our private label textiles is very complex as there are many parties involved in the different stages.

With our Detox Program, we focus on the crucial stages in which toxic chemicals could be used, mainly the wet processes

in the textile supply chain.

Our top priority is that all of our products are produced in factories that have joined our Detox Program and therefore

comply with the Detox requirements or at least are working toward complying with them.

The Detox Program refers only to suppliers of our private label apparel, shoes and home textiles.

The Detox Program focuses on wet

process factories in the supply chain of

apparels, footwear and home textiles.

Timeline of the REWE Group Detox Program


2014 - 2015

2017

2018

2019 - 2020

Launch and Pilot Phase

Raise awareness about hazardous chemicals

Gain supply chain transparency

Start pilot projects as well as waste water and sludge testing

Status Quo and Training Phase

Evaluate the status of wet process factories

Create capacity and train supply chain partners

Conduct research on safer chemicals and case studies for phase-out

Substitution and Phase-Out Phase I

Conduct further research on safer chemicals

Carry out substitution and phase-out of hazardous chemicals

Continuously monitor wet process factories

Establishment and Integration Phase

Establish chemical management in wet process factories

Integrate Detox requirements into the procurement process

Continue research on safer chemicals and case studies for phase-out

2016

Substitution and Phase-Out Phase II

Continue research on safer chemicals

Finalize substitution and phase-out of hazardous chemicals

Continuously monitor wet process factories

We have set ambitious targets and defined a timeline for our Detox Program which are in line with our Detox

commitment

The goal of communication activities is to disseminate information about our Detox Program and the Detox campaign to

raise awareness about hazardous substances in textile supply chains.

In addition to communicating with our supply chain partners, we also want to inform our customers and the public about

our Detox project. After we joined the Detox campaign, we issued a press release and added our Detox Program and the

Detox brochure to the REWE Group website. The Detox Program has also been a topic at our Dialogue Forum and

Supplier Event.

We provide full public access to our restricted-substance list and audit process, and offer full public disclosure of

discharges of hazardous chemicals in our supply chain. In line with the right to know, we require our supply chain partners

to upload the finalized test reports to the IPE platform.

In addition, our internal stakeholders are regularly updated on the project. At the beginning of 2015, our local

merchandisers for textiles received training due to their direct contact with our textile suppliers. We distribute an internal

newsletter to the textile purchasing department, the buying office in Asia, the project team, the steering committee and the

REWE Group sustainability department. We also published an article in our internal REWE Group magazine.

Internal and external Communication


Brochure

Website Supplier Event

REWE Detox Event

Dialog Forum

Press Release

Newsletter

Internal

Training

Intranet

Process for Suppliers

and Factories


• Brochure

• Website

• Supplier event

• Commitment

Information & Commitment

• First waste water tests

• Chemical inventory

• Workshops

Status Quo and Training

• Chemical management

• Phase-out of hazardous chemicals

• Disclosure

Implementation

• Waste water tests

• Corrective Action Plan

• Audit

Monitoring

Process for Suppliers and Wet Process Factories

Overview


To help our supply chain partners comply with the Detox requirements, we have developed a four-step process which is

mandatory for our suppliers and their wet process factories. The process involves 1) “information and commitment”, 2)

“status quo and training”, 3) “implementation” and 4) “monitoring”. REWE Group will support its supply chain partners during

the entire process with information materials, trainings and coaching. With this process, we want to promote strong

environmental performance and continuous improvement throughout the supply chain. Each individual step is necessary to

ensure a more sustainable and safer textile supply chain by 2020.

Step 1: Information & Commitment


The first step is key as this is the step in which we raise awareness about

the issue of non-compliant chemicals in the textile production. We have

informed our supply chain partners about our Detox Program and its

requirements. To facilitate the flow of information, we have created

supporting documents such as our Detox brochure, which is available as

printed publication or in digital form on our website. The brochure

includes key information about the Detox campaign as well as about our

Detox Program. Since our supply chain partners are located in different

countries around the world, the brochure is available in four languages

(German, English, Chinese and Turkish).

We have also published information about our program on our corporate

website. To ensure the full support and commitment of our supply chain

partners, we have developed a REWE Group Detox commitment that

nearly all of our current suppliers have signed. By signing our Detox

commitment, the suppliers agree to accept and promote the goals and

requirements defined in the commitment.

As a retail company with stores in Europe, we frequently have no direct

contact with the wet process factories. As the information about the wet

process factories is critically important, we are collaborating with our

suppliers of apparel, footwear and home textiles. We ask them to

disclose their wet process factories in our Detox questionnaire and ask

them to support us to communicate the Detox requirements in our supply

chains. A total of 86 per cent of our suppliers have agreed to be

transparent and disclosed their supply chain partners in the

questionnaire.

DONE

Commitment to safer textile production

88 per cent of our suppliers fully support

our Detox Program and have signed the

Detox commitment.

Questionnaire

REWE Group Website

Step 1: Information & Commitment

Detox Supplier Events and Workshops


To raise supplier awareness about more sustainable and safer textile production, we furthermore organized a Detox kick-off

workshop and events to which we invited our suppliers.

Therefore, in November 2014, selected suppliers and their wet process factories have been invited to our kick-off workshop

for pilot projects. Following an introduction of the overall Detox Program and a presentation on chemicals in the textile supply

chain, the service providers introduced the different project set-ups defined for our pilot phase. In-depth discussions about

the pilot projects and the defined steps were held in various working groups.

In August 2015 we invited all of our suppliers with factories to our supplier event in Bangkok. The event started with an

introduction to REWE Group and its buying offices REWE Far East (RFE) in Asia, followed by speeches by different service

providers and representatives of the chemical industry. The suppliers had the opportunity to ask questions after the speeches

and exchange ideas with each other during breaks. The event concluded with a panel discussion in which representatives of

the textile industry and service providers took part.

DONE



To evaluate the current situation in the wet process factories, together with qualified test institutes, who are responsible to

ensure the sampling and the analysis we have defined a test program for waste water and sludge testing. These test

reports and the chemical inventory that is requested from each factory give us a clear picture of the current situation in the

factory.

As the results of the waste water and sludge tests are the starting point for the substitution of chemicals, it is very

important that the factories understand the results and are able to take corrective actions.

For this reason, together with our service provider, we are planning to hold workshops in three different regions (China,

India and Bangladesh). In these workshops, the results of the tests will be explained and further actions will be discussed.

We have learned that many factories have insufficient knowledge about the input and process chemicals they use.

Establishing chemical management that consists of chemical inventories and safe chemical storage as well as handling

regulations are vital for factories that want to comply with the strict Detox requirements. Therefore, in addition to these

workshops, further training and onsite coaching will be provided to key factories. To provide an onsite coaching we are in

the process of establishing a capacity development project to create a trainer pool of chemical management experts for

our suppliers in 2016.

In progress


Waste Water and Sludge Testing


The waste water and sludge test results help us to raise the status quo and to control compliance with the requirements of

our Detox Program. 58 waste water and sludge tests, which represent over 80 per cent of our turnover in 2014, have

already been completed. The waste water and sludge sampling and testing are carried out by an external service provider

which has been paid by us. In case of unsatisfactory test results, a corrective action plan needs to be created. Continuous

monitoring and regular meetings with our suppliers and their factories help us to improve the sustainability in our textile

supply chain.

Done

Step 3: Implementation


The main objective of the third step is the requirement for factories to implement and establish a chemical management

system. The workshops and training courses will enable our supply chain partners to implement new measures that are

necessary to create more transparency and comply with the Detox requirements.

After evaluating the input chemicals based on the chemical inventory, the factory has to start searching for safer chemicals

if the chemicals in use are defined as hazardous substances in REWE Group MRSL.

Start in 2016

To give our supply chain partners additional insights and background

information on the different chemical groups, we are developing chemical

fact sheets for each chemical group.

With the help of the fact sheets, we are working to provide our supply

chain partners with a better understanding of chemicals that are used

during the textile production. The fact sheets will provide information on

potential risks and their environmental impacts. They also offer advice on

how to find compliant and safer substances.

We plan to publish and communicate the first fact sheets to our

customers and supply chain partners end of 2015.

Step 4: Monitoring


Waste Water and Sludge

Testing

Chemical Inventory

Corrective Action Plan

(CAP)

On-Site Audit

Regular waste water

and sludge testing are

required for all wet

process suppliers

The factory is

responsible for

establishing the

chemical inventory

and updating this

regularly

Based on the waste water

and sludge testing reports

and the chemical inventory,

a CAP must be developed

On-site audits may apply

to ensure implementation

of corrective actions

Within the monitoring process step, we have developed a four-segment circle that helps us to ensure the usage of safer

chemicals in the production of textiles. Waste water and sludge testing will also play an important role for the continuous

monitoring. That is why waste water and sludge tests have to be updated regularly. After the evaluation of the waste

waster and sludge test and the chemical inventory, a corrective action plan must be set up, if necessary. An on-site audit

may be required to ensure and determine that all corrective actions are completed. This cycle will be an ongoing and

required process for all factories that produce textiles for REWE Group.

Ongoing until 2020

Step 4: Monitoring

Pilot Projects


REWE Group has set up three pilot projects with wet process factories from different suppliers and with various service

providers to learn more about ways to phase out unwanted substances from the textile supply chain. The service providers

were commissioned and paid by REWE Group. One pilot project has been finished, and the other two are still being

conducted.

The first pilot project which is completed took place at a garment manufacturer in Bangladesh and its dyeing as well as

washing mill. The service provider supported the garment manufacturer during the process of eliminating hazardous

chemicals by establishing a chemical inventory, analysis of effluent water and by developing a substitution concept for

non-compliant chemicals. All private label textile products that will be sold in any REWE Group store must undergo

physical and chemical tests based on a specific testing plan. During our regular pre-production sample tests, unwanted

chemicals in the fabric samples were found. The supplier determined that the chemicals were used by two sub-suppliers.

As the sub-suppliers refused to find safer alternatives, our supplier immediately terminated all business relationships with

them and reallocated its production to other factories that had good test results.

The other two pilot projects are being conducted at textile suppliers who are based in Hong Kong and have factories in

China. Both suppliers were audited, and waste water and sludge tests have been done. At the moment, our service

providers together with the suppliers are working on the substitution process of phasing out non-compliant substances

from their production operations.

To evaluate the different service providers, we have done a benchmark to identify the ones that are suitable for our Detox

Program.

Ongoing till Q1 2016

Chemical Management and

Phase-Out


Overview: Chemical Management and Phase-Out


Summary

In line with our Detox commitment, we worked on the update of our MRSL and the process of phasing out non-

compliant substances from the textile production processes.

We have also established a substitution strategy for hazardous chemicals and identified factories that are using

APEOs and that we can work with on the phase-out.

Challenges

In the future, we will have to address the challenge of integrating the new MRSL into our quality requirements and,

thus, into the purchasing process.

Another challenge we face is that the best-available test methods used by major testing organizations do not meet the

strict detection limits defined by Detox MRSL.

Chemical Management and Phase-Out

REWE Group MRSL v 1.0


We have taken the following actions while updating our

MRSL, including work on detection limits, tolerance levels,

test methods for input chemicals, waste water, sludge and

product testing:

- Comparing different MRSLs

- Discussing with testing institutes

- Reviewing by internal experts

- Considering feedback from service providers

- Reviewing requirements of Öko-Tex Standard 100 and the

parameters of ZDHC – the Roadmap to Zero Discharge of

Hazardous Chemicals

The updated MRSL will include updated limit values and will

be published on our REWE Group website by the end of

2015. Any new chemical that was identified in the updating

process has been added to a separate list and is being

internally evaluated at the moment.

REWE Group

MRSL 1.0

DETOX MRSL

Internal experts

Feedback service

providers

Öko-Tex Standard 100 parameters

ZDHC parameters

MRSL other companies

Done

REWE Group MRSL v 2.0


REWE Group

MRSL 2.0

DETOX MRSL

Quality department

Feedback service

providers

Öko-Tex Standard

100

ZDHC parameters

Research Study

Other MRSL companies

In 2016, we will work on the MRSL v 2.0. For this reason, we

are planning to conduct a research study on every chemical

group.

In this process, different universities and institutes have been

asked to assist this work. In addition to the results of the

research study, we will also take the results of the waste

water and sludge tests that we have analyzed so far as well

as the results of our pilot projects into consideration for the

MRSL v 2.0.

After our internal evaluation, we might add new substance

groups to the MRSL 2.0 and define tolerance levels. The

MRSL v 2.0 will be published and communicated to our

supply chain partners end of 2016.

On a yearly basis, we will analyze new chemical groups and

update the MRSL. The following sources will be used for this

update:

Feedback and new information from service providers

Benchmark of MRSLs and standards

Research studies

Internal evaluation of chemicals

Ongoing until end of

2016

Substitution of Hazardous Chemicals


To support our suppliers and their wet process factories, we have defined a four steps for the substitution of hazardous

chemicals. Wet process factories using hazardous chemicals are identified by the evaluation of test results of waste water

and sludge as well as product tests. Based on an evaluation of test results and information gained from chemical

inventories, further steps for substitution will be defined. Each individual step will be monitored and summarized in a case

study. The purpose of the case studies is to show how to substitute hazardous chemicals and how to find better

alternatives, as well as to point out the challenges and benefits.

Selection of factories

Evaluation

Substitution

Case Study

• Based on Detox

questionnaire

• Based on product

tests

• Based on waste

water testing results

• Based on chemical

inventory

• Based on product

tests

• Based on waste

water and sludge

tests

• Immediate total ban if

possible

• Support of suppliers

• Check for availability

of safer chemicals

• Completion of product

tests to ensure ban

• All measures will be

summarized in a

case study

• Case studies are

published

Ongoing until 2020

Closed Loop Project



Our Closed Loop Project

As part of its Detox Commitment, REWE Group wants to

promote the reuse of textiles.

We are developing a take-back program for clothes (ours

as well as those of other producers). We are also

determining whether recycled fibers can be used in the

production for our textiles.

As our supermarkets are located across Germany,

customers can easily drop off their used textiles at our

stores.

Therefore we hope this service will increase the number

of clothing donations and help to conserve resources by

creating awareness about the issue and offering a

convenient service to producers.

We will examine the environmental impact of textiles

following an analysis of the economic value of take-back

and recycling systems.

We also want to inform customers about the issue of

reused textiles by providing information in our stores and

on our website.

Our Approach to Close the Loop

Timeline:

• Q2 2016: Conduct economic analysis of

environmental impact and start the pilot phase of the

Closed Loop Project

Next Steps


Next Steps for our REWE Group Detox Program


For 2016, we have set challenging targets to create a more sustainable and safer textile supply chain:

• Distribute a second questionnaire to obtain more detailed supply chain information

• Further upgrade IT systems to improve the mapping of the supply chain

• Continue waste water and sludge testing

• Finalize pilot projects and evaluation

• Update the test strategy and define audit strategy

• Monitor Detox compliance

• Set up a capacity development project

• Continue publishing information material and conducting trainings

• Roll-out further training courses in line with capacity building project

• Publish a guideline on sustainable textiles

• Start the research project on every chemical group

• Publish a case study on substitution of APEOs and PFCs

• Engage with suppliers on substitution programs

• Publish MRSL 2.0 and guidelines for sustainable textiles


Contact:

REWE Far East

E-mail: [email protected]

Website: www.rewe-group.com

Documents

Status Report 2015 - rewe-group.com8a875501-3047-4fcf-8356... · December 2015 REWE Group Detox Status Report 2015 2 1. Introduction to the Detox Program ... We also published an