Supply Chain Reaction: Getting Clear on Chemicals

 
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Supply Chain Reaction: Getting Clear on Chemicals
Supply Chain Reaction: Getting Clear
           on Chemicals
Supply Chain Reaction: Getting Clear on Chemicals
Speakers
                                     Julian Wu
            Gina Burgard
                                     Chemical and Environmental
            CR Manager – Aldi Nord
                                     Compliance Manager -
                                     G.Gueldenpfennig GmbH
                                     (GP)

Angela Dan                           Sandhya Sharma-Tosserams
Printing and Dyeing                  Chemical Specialist - amfori
division of
Rainbow Village China
Supply Chain Reaction: Getting Clear on Chemicals
amfori BEPI Supply Chain Chemical Management Module

   CAPACITY
                           UNDERSTANDING                   IMPROVING
   BUILDING

 - Self-                   - Chemical                    - Audit
   assessments               management                    corrective
 - Training                  audits                        action plan
                           - Effluent/sludge             - Training
                             testing

       Industry collaboration and alignment of tools and standards

    Visibility of and access to all locations in supply chains       amfori BEPI
                      All tools in one place                          platform

   Implementation of ZDHC tools in the textile and footwear sector
Supply Chain Reaction: Getting Clear on Chemicals
Supply Chain Reaction: Getting Clear on Chemicals
amfori Workshop
ALDI Einkauf GmbH & Co. oHG
12/06/2018
Supply Chain Reaction: Getting Clear on Chemicals
BUSINESS PRESENTATION

Milestones                                                           March 2015
                                                                     ALDI publishes its
                                                                     Detox Commitment
                                                                                                                            2018
                                      1970s:                                                                                Start of the ALDI
                                      Textiles and footwear                                        2017                     Transparency
                                      within the specials range                                    ALDI joins the           Code for Textiles
                                                                                                   amfori BEPI
            1914
            Opening of the                                                                                     2017
            very first store                                                                                   ALDI joins
                                                                                                               ECAP

                   1961
                   Division of sales territories
                   between ALDI North
                   and ALDI SOUTH
                                                    2008
                                                    ALDI joins the                    2017                                  2018
                                                    amfori BSCI                       ALDI publishes                        ALDI publishes their
                                                                                      their first Detox                     second Detox
                                                                                      Progress Report                       Progress Report

         12/06/2018      ALDI Einkauf GmbH & Co. oHG
Supply Chain Reaction: Getting Clear on Chemicals
OUR APPROACH TO CHEMICAL MANAGEMENT IN THE TEXTILES AND FOOTWEAR SUPPLY CHAIN

For the purpose of navigating the implementation
of the Detox requirements, ALDI has developed a roadmap

         12/06/2018   ALDI Einkauf GmbH & Co. oHG
Supply Chain Reaction: Getting Clear on Chemicals
OUR APPROACH TO CHEMICAL MANAGEMENT IN THE TEXTILES AND FOOTWEAR SUPPLY CHAIN

Managing chemical inputs and outputs

         12/06/2018   ALDI Einkauf GmbH & Co. oHG
Supply Chain Reaction: Getting Clear on Chemicals
OUR APPROACH TO CHEMICAL MANAGEMENT IN THE TEXTILES AND FOOTWEAR SUPPLY CHAIN

Detox requirements in our supply chain
for textiles and footwear

                                                                       Since
                                                                     2017/18
                                                                     via BEPI

         12/06/2018   ALDI Einkauf GmbH & Co. oHG
Supply Chain Reaction: Getting Clear on Chemicals
OUR APPROACH TO CHEMICAL MANAGEMENT IN THE TEXTILES AND FOOTWEAR SUPPLY CHAIN

Steps of our elimination strategy (2018-2020)

         12/06/2018   ALDI Einkauf GmbH & Co. oHG
Supply Chain Reaction: Getting Clear on Chemicals
AMFORI BEPI CHEMICAL MANAGEMENT AUDITS (CMAs)

Why did we choose amfori BEPI as our partner?
I Mapping and assessing our supply chain in the platform → transparency
I Use of trainings offered (together with ZDHC academy)
I Joint development of practical implementation of CMAs (ALDI was part of
  the CMA pilot group)
  ▪ Alignment with ZDHC protocol as industry wide standard
  ▪ Use of synergies and cooperation with other amfori members
  ▪ Share audit results with other members and avoid double effort
I Use of one single platform for SC and EC activities in the future

         12/06/2018   ALDI Einkauf GmbH & Co. oHG
Thank you!

    12/06/2018   ALDI Einkauf GmbH & Co. oHG
GP DETOX PERFORMANCE REVIEW 2017
Amfori Unleash Opportunity 2018, Amsterdam

presented by Julian Wu, 12.06.2018
ALDI DETOX REQUIREMENT AND GP TASKFORCE
    ALDI Detox Commitment with Greenpeace
                                                 Katharina   Kristina Lily Monzil
          Supply Chain Transparency   Detox Admin

                           STeP Certification Trial                      Zero Timo Gourab

                                       ALDI CMA trial round          GP CMAudit
                                                                                              Lucy Shorower
                                               Input Chemicals            GP CICertificate
                                                                                                   Julian Jet
                                                               Detox Summit         Substitution
                                                                                                      Regina
                                                                            BEPI     BEPI Admin

                                                                                            ALDI Chemical Management online Course

                                                                                                          BEPI CMA GP CMAudit 2.1

                                                                                                                 ALDI Detox Commitment +
                                                                                                                 Supplier Requirement 5.0

2015 Q2     Q3     Q4 2016 Q2               Q3        Q4 2017 Q2                      Q3      Q4 2018 Q2              Q3
MILESTONES 2017
•   Further Concentration of Supply Chain: China 1/2, Bangladesh 1/3,
•   GP CMAudit Screening of Supply Chain completed
•   Input Chemicals: Establishment of GP CICertificate Database (China, BD follows)
•   GP CCAcademy: 10 mills completed, 10 mills under process

GP CMAudit: Gueldenpfennig Chemical Management Audit, an internal screening program, established in 2016, based on the following
7 major fields, chemical policy, chemical storage, chemicals supplier management, production control on chemicals use, chemical waste
management and chemical training.
GP CICertificate: Gueldenpfennig Chemical Inventory and Certificate, an internal chemical data mining project. In this project, we
collect all the relevant data of all input chemicals, and their (M)SDS and certificates. After verification of their validation, we record them
in our database and give every our factory a feedback, so then they keep building up their chemical data management.
GP CCAcademy: Gueldenpfennig Chemical Compliance Academy, provided by assigned service providers to give course in Chemical
Management , to accompany on-site improvement, and measure final achievement.
CONCENTRATION OF WET-PROCESS MILLS IN CHINA

     1st Whitelist    2nd Whitelist    3rd Whitelist
    at end of 2016   at mid of 2017   at end of 2017

       104               70               49
CONCENTRATION OF WET-PROCESS MILLS IN BANGLADESH

     1st Whitelist    2nd Whitelist    3rd Whitelist
    at end of 2016   at mid of 2017   at end of 2017

        63               45               42
Average

SEITE 17
22.06.2018
                                                                              .

                                             10%
                                                        20%
                                                               27.4% (2017) 30%
                                                                                  40%
                                                                                            50%
                                                                                                          60%
                                                                                                                      70%
                                                                                                                            80%
                                                                                                                                      90%
                                                                                                                                            100%

                                       0%
                      Siris
                                                                                                                                                   GP CMA

                 Yangtse
                     Delin
                     Xiefu
                    Boron
  East Dye (New Bond)
                  Xinqiao
                    Angel
                 NanHua
              Xingmeida

      PLATZHALTER PRÄSENTATIONSTITEL
                     H&S
        Rainbow Village
               Huachang
  Yongsheng (YaoLing)
                Zonghua
                     Deyi
                  Weilian
                 Yongxin
                   Foison
                   Yuhao
                  Junma
              YunSheng
               Consinee
                   Kailan
                   BeiHai
                  Dingxin
  Jiale (refer Red Print)
    Jinhong (Kamhung)
                   Lihong
  Red Print (refer Jiale)
                 Yichang
                 Dayang
                Huaneng
               ChengXin
                                                                                                                                                     Detox Performance China 2017

                    Furun
                 Huaxing
                 TengMa
               Zhenhong
                   Damei
                Rusheng
          Huimei (Hmei)
                 Suming
                 Desaier
                   Caidie
          Dongxin Huafu
                 Huahao
                 Lisheng
     RongXin (Jiangsu)
                XieChao
                                                                                        9
                                                                                                  8
                                                                                                               7
                                                                                                                      6
                                                                                                                            5
                                                                                                                                  4
                                                                                                                                        3
                                                                                                                                            2

                                       15
                                            14
                                                   13
                                                          12
                                                                      11
                                                                                  10
                                                                                                                                                   Detox W/S

                                                                                            8.7 (2015)
                                                                                            8.4 (2016)
                                                                                                         7.6 (2017)
                                                                                                                                                   Average
Average

 SEITE 18
 22.06.2018
                                                                      .

                                             10%
                                                       18.5% (2017) 20%
                                                                          30%
                                                                                40%
                                                                                      50%
                                                                                            60%
                                                                                                  70%
                                                                                                                      80%
                                                                                                                                 90%
                                                                                                                                       100%

                                        0%
     Raiyan Knit Composite
                                                                                                                                              GP CMA

     Zaber & Zubair Fabrics
                   Nice Denim
   Cotton Dyeing&Finishing
                      KC Wash
   Hossain Dyeing&Printing…
  Turag Garments & Hosiery
          Noman Terry Towel
                       Zahintex

       PLATZHALTER PRÄSENTATIONSTITEL
                Envoy Textiles
                         Evince
  Generation Next Fashions
                Purbani fabrics
            Ringshine Textiles
                 AKH washing
                  Dhaka Wash
             NAZ Bangladesh
                 Fakir knitwear
              Tamisha Dyeing
  Unique Washing & Dyeing…
             Chaity Composite
      Dynasty Sweater (BD)
             Mahmud Denims
                Mitali Fashions
                       Knit Plus
                       Thermax
              Apex Yarn Dying
                    JL Fashion
                  JL Sweaters
NRG Composite Yarn Dyeing
                                                                                                                                                DETOX Performance Bangladesh 2017

      Queen South Textiles
 Anamica Washing & Dyeing
                N & I Washing
   Delta Composite Knitting
              Ha-meem denim
            Zong Sine Textiles
                   Prime Wash
          Fair Trade Washing
    Unifill Composite Dyeing
     Dhaka Beijing Dyeing &…
                  FKN Printing
               Urmee Knitwear
                                                   8
                                                                          7
                                                                                  6
                                                                                            5
                                                                                                   4
                                                                                                                             3
                                                                                                                                       2

                                        9
                                                                                                                                              Detox W/S

                                                                                                        3.6 3.7
                                                                                                            (2015)
                                                                                                                3.8
                                                                                                                                              Average

                                                                                                                (2016)
                                                                                                                    (2017)
INPUT CHEMICALS AND CERTIFICATES CHINA
          Chemical Data
                                         23
Basic Chemicals

Certified Dyes & Aux            250        208
Blusign Sys Partner Chemicals
                                         172
Not certified Dyes & Aux

          Factories
                                     8
Active (>20%)
Inactive (
CHEMICAL MANAGEMENT CAPACITY BUILDING – SYSTAIN*
60%
            49%
                                                                             Improvement in average in GP CMA: 2%
                     47%48%
50%                                                                          Gueldenpfennig paid 50,000 €
        40%
40%                                  38%
                                  35%             36%       35%36%
                                               33%                       33%34%
30%                                                                                   27%28%
                                                                                                   24%25%       23%24%
                                                                                                                                20%
20%                                                                                                                          18%             17%
                                                                                                                                          14%

10%

0%
         Boron       Weixing     Xingmeida       H&S        Nanhua       Rainbow     Bailiheng Taifu/Kailan      Beihai       Furun        Damei
                                 (adapted)                                Village                                           (adapted)    (adapted)
                                                            CMA before         CMA after

 SYSTAIN: is a consultation company based in Berlin and Hamburg, Germany. As a daughter company of OTTO GmbH & Co. KG, SYSTAIN is active in
 Germany, offering consultation services in different fields such as social responsibility, Environmental and Resource Management, Climate and Energy.
CHEMICAL MANAGEMENT CAPACITY BUILDING - RUNNING

    MASINORY* in China (Oct. → Dec.2017)                                    GoBlu* in Bangladesch (Oct.2017 → Sep.2018)
                                                                            Gueldenpfennig paid 25,000 €
    60%                                                                  60%
                                                                         50%      47%
    40%      37%        34%                                                                   36%
                                   32%        30%                        40%
                                                                         30%
                                                                                                          19%         17%
    20%                                                                  20%                                                      11%
                                                          8%
                                                                         10%
     0%                                                                   0%
              Angel    JiaHuang Huachang Yongxin Xiechao                        Raiyan Knit    Cotton   Generation KC Wash        Hameen
                                                                                               Dyeing     Next
                                                       CMA before            CMA after

MASINORY: is a consultation company based in Hong Kong, earlier as an internal consulter of HKGCC (Hong Kong General Chamber of Commerce);
recently is offering services in Chemical Management Academy for textile industry in China.
GoBlu: A Consultation company based in Germany and USA, together with external partners in developing countries, is offering services in Chemical
Management Academy for textile industries in most of the textile production countries in Asia.
BEPI – AN ACTIVE PARTNER FOR IMPLEMENTING SUPPLY
CHAIN SUSTAINABILITY
✓ GP actively implements chemical management tools offered within the framework of
  amfori BEPI Supply Chain Chemical Management Module (SCCM) such as the ZDHC
  CMA 2.0.
✓ GP participated in the Chemical Management Audit (CMA) pilot project group and has
  nominated “Rainbow Village” to conduct a pilot CMA.
✓ GP continues to be an engaged amfori BEPI member within the chemicals related amfori
  working groups, such as the project group on chemicals in Textiles and Footwear.

Together with ALDI, GP supports BEPI CMA and will roll out the CMA for all the active
manufacturers in the coming year to achieve a total transparency in Chemical Management.
THANK YOU VERY MUCH

22.06.2018   PLATZHALTER PRÄSENTATIONSTITEL
SEITE 23
Chemical Management Practice in

Printing and Dyeing Division of
Rainbow Village Group

by Angela Dan, 2018, Amsterdam
Company Profile

   ZHEJIANG INQ
FASHION CO., LTD                                      ZHEJIANG RAINBOW VILLGAE
                                                      PRINTING AND DYEING CO.,LTD
                   Fashion   Rainbow           Printing
                              Village             &
                                               Dyeing
                              Group
                                        Knitting   SHAOXING RAINBOW VILLAGE
                                                   KNITTNG AND TEXTILE CO., LTD
                                           &
                                         Textile
Our Expertise

KNITTING

  ◆ Circular knitted fabrics in multiple specs.

  ◆ Annual output 7,000 tons.
Our Expertise

DYEING

  ◆ Overflow high-temp. dyeing and jet dyeing

  ◆ Functional finishings

  ◆ Knitted and woven fabrics

  ◆ Cotton, viscose, polyester and their blends

  ◆ Energy and water-efficient machineries

  ◆ Annual capacity 1.2 million tons
Our Expertise

PRINTING

  ◆ Flat-mesh, round-mesh, digital one-press printings

  ◆ Knitted and woven fabrics

  ◆ Cotton, viscose, polyester and their blends

  ◆ Pattern development and fashion design

  ◆ Annual capacity 15 million meters
Our Clients
Chemical Management

PROCUREMENT

  ✓   Chemical: SDS, TDS and certificates for risk control

  ✓   Raw material: declaration of compliance with RSL, basically OEKO-Tex Standard 100

  ✓   Product: random check by both internal lab and third-party.

  Challenge: The more control, the higher the price, the less competitive, if there is not an

  effective mean to raise acknowledgement → reason why we align with BEPI
Chemical Management

(M)RSL CONTROL

  ✓ (M)RSL provided by customers are collected

  ✓ (M)SDS provided by chemical suppliers are collected

  ✓ Declaration of compliance is mandatory for each chemical supplier

  ✓ Well-known brands/bluesign system partners preferred: Dystar, Huntsman, Yorkshire,

     Lonsen…

  ✓ Certificate of quality, positive list are required if available
Chemical Management

CHEMICAL
HANDLING

  ✓ Workers handling chemicals are trained according to risk level

  ✓ Chemical storage areas are segregated by solid/liquid, hazards and risks

  ✓ (M)SDS, warning signs, PPE instructions, emergency tools are provided on site

  ✓ Secondary containment and lifted floor are used to control spill and moisture

  ✓ Daily inspection checks implementation of rules
Chemical Management
Chemical Management

USAGE CONTROL

  ✓ Only authorized persons are permitted to enter chemical storage and dispensing areas

  ✓ High-risk chemicals are strictly controlled and segregated in isolated rooms

  ✓ Recipe sheet, requisition sheet, deliver sheet are used to control and record chemical flow

  ✓ All chemical related documents are kept for at least 1 year

  ✓ Related persons are regularly trained for updates of chemical inventory

  ✓ Chemical stock and inventory will be checked every month
Chemical Management

DISCHARGE CONTROL

  ✓ Wastewater discharge is strictly monitored by instruments connected to local EPA

  ✓ Chinese discharge standard for printing/dyeing industry GB4287 are fully met

  ✓ On-site ETP is upgraded for higher efficiency

  ✓ Off-site ETP secures the final discharge to environment

  ✓ Exhaust gas from machineries are also collected and “washed” with special equipment
Chemical Management
Chemical Management

WASTE CONTROL

  ◆ Sludge, package material, fabric, expired chemicals…are stored in respective areas.

  ◆ Sludge will be burnt by thermal power plant authorized by local EPA

  ◆ Other solid wastes are handled by qualified recyclers.

  ◆ If possible, reusable materials will be sent back to their suppliers
Chemical Management

QUALITY CONTROL

  ✓ Oeko-tex Standard 100 with Appendix 6 are fully adopted as EU clients required

  ✓ H&M quality system with certified laboratory was established

  ✓ Quality tests by third-party on daily basis

  ✓ Cooperation with consultants and training providers for EHS compliance

  ✓ Communication with chemical suppliers for (M)RSL compliance
Chemical Management

COMPLIANCE EFFORT

  ◆ Registered on BEPI platform as clients required

  ◆ Responsible persons attended external training programs for further development

  ◆ CMAs by clients and BEPI were conducted and and the respective corrective action plans are

     being implemented accordingly:

      ✓ Automatic chemical dispensing system is under construction to reduce risks

      ✓ An upgraded ERP system will be online for more detailed chemical management

      ✓ ETP and exhaust gas purification are upgraded for higher legal requirements
THANK YOU
VERY MUCH!
Thank You!
NOTICE: Pick Up Your General Assembly Voting
Device – From 12:45 Outside the Plenary
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