Supply Chain Reaction: Getting Clear on Chemicals
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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
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 amfori Workshop ALDI Einkauf GmbH & Co. oHG 12/06/2018
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
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
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
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
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
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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