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]
Enabled by © Intertek 2010, All Rights Reserved.
The Problem ?
PollutionPollution
WasteWaste
Hazardous Material & Waste ManagementHazardous Material & Waste Management
Using the wrong Energy & GlobalwarmingUsing the wrong Energy & Globalwarming
Enabled by © Intertek 2010, All Rights Reserved.
Don’t associate your products with this?
3
Knowing your supply chain? ✘✘✘✘
Enabled by © Intertek 2010, All Rights Reserved.
Associated your products with green practices
4
✔✔✔✔
Knowing your supply chain?
Enabled by © Intertek 2010, All Rights Reserved.
The Old Paradigm The New Paradigm Climate Change
Environmental Pollution
Resources Exploitation
Why Change
Getting the right balance between $$$ and the Environment
Enabled by © Intertek 2010, All Rights Reserved.
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.
Enabled by © Intertek 2010, All Rights Reserved.
Global Carrying Capacity – the planet can support1 Billion1 Billion
4 Billion4 Billion
14 Billion14 Billion
Enabled by © Intertek 2010, All Rights Reserved.
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
Enabled by © Intertek 2010, All Rights Reserved.
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
Enabled by © Intertek 2010, All Rights Reserved.
World Population History
Enabled by © Intertek 2010, All Rights Reserved.
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
Enabled by © Intertek 2010, All Rights Reserved.
• 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
Enabled by © Intertek 2010, All Rights Reserved.
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
Enabled by © Intertek 2010, All Rights Reserved.
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
Enabled by © Intertek 2010, All Rights Reserved.
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)
Enabled by © Intertek 2010, All Rights Reserved.
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
Enabled by © Intertek 2010, All Rights Reserved.
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
Enabled by © Intertek 2010, All Rights Reserved.
How do you benchmark your performance?
Enabled by © Intertek 2010, All Rights Reserved.
Contact: [email protected]
Enabled by © Intertek 2010, All Rights Reserved.
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
Enabled by © Intertek 2010, All Rights Reserved.
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
Enabled by © Intertek 2010, All Rights Reserved.
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
Enabled by © Intertek 2010, All Rights Reserved.
TGI Assessment ModulesSix (6) Environmental ModulesPerformance Indicator
Performance Indicator
Performance Indicator
Performance Indicator
Performance Indicator
Performance Indicator
Performance Indicator
Performance Indicator
Performance Indicator
Performance 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
Enabled by © Intertek 2010, All Rights Reserved.
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
Enabled by © Intertek 2010, All Rights Reserved.
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
Enabled by © Intertek 2010, All Rights Reserved.
Enabled by © Intertek 2010, All Rights Reserved.
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
Enabled by © Intertek 2010, All Rights Reserved.
TGI Pilot Factory Performances (Sep 2010)
60% of Factories are in the Red & Orange Zone60% of Factories are in the Red & Orange Zone
Enabled by © Intertek 2010, All Rights Reserved.
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
Enabled by © Intertek 2010, All Rights Reserved.
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
Enabled by © Intertek 2010, All Rights Reserved.
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
Enabled by © Intertek 2010, All Rights Reserved.
TGI Pilot Factories – Best Practices
Factory A: Examples of actions being taken since TGI assessments conducted in Dec 2009
Planted new lawn Installation of dust control equipment
12
Enabled by © Intertek 2010, All Rights Reserved.
TGI Pilot – Best Practice
Factory A: Examples of actions being taken since TGI assessments conducted in Dec 2009
Installation of air emission control facilities Installation of noise buffersImprovements for generators
13
Enabled by © Intertek 2010, All Rights Reserved.
TGI Pilot Factories – Best Practices
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
Enabled by © Intertek 2010, All Rights Reserved.
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
Enabled by © Intertek 2010, All Rights Reserved.
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
Enabled by © Intertek 2010, All Rights Reserved.
TGI Achievement AwardSupplier TGI achievement Award Ceremony in Hong Kong (June 8)
18
Enabled by © Intertek 2010, All Rights Reserved.
THE FITTEST AND THE FASTEST TO ADAPT
THE WINNERS
In A New World……
Enabled by © Intertek 2010, All Rights Reserved.
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
Enabled by © Intertek 2010, All Rights Reserved.
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
Enabled by © Intertek 2010, All Rights Reserved.
Associate your products with being Green
43
✔✔✔✔
GREEN UP YOUR SUPPLY CHAIN
THANKYOUTHANKYOU
Enabled by © Intertek 2010, All Rights Reserved.
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