Traceability in the Leather Supply Chain - Learning Series: Webinar 2: Traceability Expectations of Sustainability Standards in the Leather Supply ...

Page created by Annie Parsons
 
CONTINUE READING
Traceability in the Leather Supply Chain - Learning Series: Webinar 2: Traceability Expectations of Sustainability Standards in the Leather Supply ...
Learning Series:
Traceability in the Leather
Supply Chain
Webinar 2: Traceability Expectations of Sustainability
Standards in the Leather Supply Chain

May 20th, 2021
Traceability in the Leather Supply Chain - Learning Series: Webinar 2: Traceability Expectations of Sustainability Standards in the Leather Supply ...
Anti-Trust Statement

         Textile Exchange convenes the textile community and
             values diversity of views, expertise, opinions,
           backgrounds, and experiences. It is expected that
         members of this community will collaborate by sharing
         ideas, information, and resources of publicly available
       information only and avoid discussions on price, strategic
            plans or other private and sensitive information.
Traceability in the Leather Supply Chain - Learning Series: Webinar 2: Traceability Expectations of Sustainability Standards in the Leather Supply ...
Disclaimer

        The goal of the Responsible Leather Round Table is to be a
       platform for stakeholders in the leather industry to engage with
       each other, share information, and identify common challenges
      and opportunities. To this end, we offer opportunities for diverse
          stakeholders to share their knowledge and perspectives.

        The views, thoughts, and opinions expressed in this webinar
      belong solely to the speakers. As the leader of the RLRT, Textile
                Exchange strives to maintain a neutral role.
Traceability in the Leather Supply Chain - Learning Series: Webinar 2: Traceability Expectations of Sustainability Standards in the Leather Supply ...
5 webinars on Traceability in the Leather Supply Chain
                                                                               EDT        CET
   Webinar 1:   Understanding Traceability and the UNECE          May 4th    10 - 11am   4 – 5pm
                Guidelines

   Webinar 2:   Traceability Expectations of Sustainability       May 20th    11am -     5 – 6pm
                Standards in the Leather Supply Chain                         12pm

   Webinar 3:   Traceability Solution Providers in the            May 25th   10 - 11am   4 – 5pm
                Leather Supply Chain

   Webinar 4:   Joint webinar with NWF and GRSB                   June 1st   10 -11am    4 – 5pm
                Traceability at the farm level: focus on Brazil

   Webinar 5:   The Implementation of Traceability Solutions      June 4th   10 - 11am   4 – 5pm
                in Leather Supply Chains: Brand Experience
Traceability in the Leather Supply Chain - Learning Series: Webinar 2: Traceability Expectations of Sustainability Standards in the Leather Supply ...
Speakers

       NICOLE LAMBERT           DEBORAH TAYLOR            SABRINA FRONTINI
        Textile Exchange        Sustainable Leather             ICEC
                                    Foundation

     CHRISTINA TRAUTMANN       MIRJAM BÄNNINGER          ANNIKA SAUERHÖFER
      Leather Working Group   TESTEX AG, Swiss Textile    MADE In GREEN by
                                  Testing Institute      OEKO-TEX® Association
Traceability in the Leather Supply Chain - Learning Series: Webinar 2: Traceability Expectations of Sustainability Standards in the Leather Supply ...
Traceability Webinar 2 Agenda:
• Leather Working Group Protocol, Christina Trautmann, Program Manager at
  LWG

• ICEC, Sabrina Frontini, Director of ICEC

• OekoTex MADE IN GREEN, Annika Sauerhöfer, Product Manager MADE IN
  GREEN by OEKO-TEX® Association & Mirjam Bänninger, Group Product
  Manager, LEATHER STANDARD/ TESTEX AG

• Sustainable Leather Foundation, Deborah Taylor, Managing Director at the
  Sustainable Leather Foundation

• Q&A
Traceability in the Leather Supply Chain - Learning Series: Webinar 2: Traceability Expectations of Sustainability Standards in the Leather Supply ...
Material Traceability
                 The Leather Working Group

Christina Trautmann                              Date
LWG Program Manager                          May 2021
Traceability in the Leather Supply Chain - Learning Series: Webinar 2: Traceability Expectations of Sustainability Standards in the Leather Supply ...
About us
The LWG and Traceability
Traceability in the Leather Supply Chain - Learning Series: Webinar 2: Traceability Expectations of Sustainability Standards in the Leather Supply ...
Some facts about the LWG

  • We were established in 2005              • We have 4 audit standards that have been
                                                built to connect the supply chain and
  • Our primary focus is on conducting          increase transparency
     environmental audits of leather
     manufacturers globally, but this is         o   Leather Manufacturer Audit (flagship)
     evolving                                    o   Trader Audit
  • We are a collaborative, membership-          o   Commissioning Manufacturer Audit
     led non-profit organization with over           (new)
     1,100 members and partners,                 o   Sub-contractor Audit (new)
     including:
                                             • We have a global presence, with:
      o   Leather manufacturers & Traders
                                                 o   Audited facilities in 44 countries
      o   Brands & Retailers                         world-wide
      o   Suppliers                              o   Approximately 25% of global
      o   Associations                               finished leather production is LWG
      o   Subject experts                            audited
Traceability in the Leather Supply Chain - Learning Series: Webinar 2: Traceability Expectations of Sustainability Standards in the Leather Supply ...
LWG Certification
Built through Collaboration

 Cross collaboration between      The ideas and needs of our   P7 is a significant step forward to
brands, tanners, suppliers, and       members drive our         a more sustainable and secure
         organisations                  developments                  leather supply chain
LWG Certification
Securing the Leather Supply Chain through ESG Compliance

       Environmental            • Responsible management and use of resources
        Management              • Reduced emissions to the environment

                                        • Traceability of raw material, with built-in risk management
                Traceability
                                        • Continuity of traceability downstream to end customers

                                                   • Compliance to AFIRM RSL and ZDHC MRSL
                       Chemical Management
                                                   • Reduced risk of Cr VI formation

                                                • Safe & healthy environment for workers
                       Social Responsibility
                                                • Recognition of 3rd party social audits and verifications

                                        • Securing the full supply chain from raw material to finished
                Governance
                                        • Due diligence to ensure high performance and compliance
LWG Certification                                                                                           861
                                                                                                                   7

Covering all actors in supply chain                                                                                13
                                                                                                            108

                                                                           + 166% growth in         612
The LWG audit is a powerful tool that connects the                          the last 5 years        55
supply chain, from raw to finished leather production,
and increases supply chain transparency                                                  491
                                                                                          38
                                                                               405
                                                                                26
                                                              324                                           733

                                                       254                                          557
                                             229
                                 182                                                      453
                                                                                379
               129       139                                         324
  93                                         229
                                                       254
                                 182
               129        139
   93

  2011        2012       2013    2014        2015     2016          2017       2018      2019      2020     2021

         Leather Manufacturers     Traders          Subcontractors            Commissioning Manufacturers
Traceability, Supply Chain Transparency &
the LWG
• Traceability and supply chain transparency is critical, and the number 1
   priority for LWG brand members, and the number 4 priority for all LWG              “Starting point is to map your
   members                                                                              supply chain end-to-end –
                                                                                           traceability is about
• It provides assurances that materials are responsibly sourced                          understanding this data”
• It is essential in:
        •   Managing risks in the supply chain
        •   Meeting science-based targets
        •   Making reliable sustainability claims                            “Transparency about
                                                                                 your business
• The LWG philosophy is to drive positive change incrementally within the          practices”
   leather value chain, by:
        •   Phasing out harmful practices                                                                “Traceability
        •   And promoting progressive improvements                                                         provides
                                                                                                          certainty”

• The latest step forward in this direction is:                               “Knowing where
        •   the launch of P7, the newest version of the LWG Leather              a product
            Manufacturer Standard                                               comes from”

        •   the formation of the Traceability Working Group in 2020
Key Priorities for the LWG
   A complex topic, with multiple areas of development

                                                                                                                   Supply chain transparency and
                 Raw material origins                               Due diligence
                                                                                                                       consumer messaging

     • Understand what levels are possible             • Proposed legislation in the UK and                   • Link the leather value chain from raw
       per country                                       Europe, will require additional due                       to finished leather through the LWG
                                                         diligence when sourcing from                              audit, to build a transparent supply
     • Develop a system for traceability
                                                         countries where deforestation is a                        chain
       where non-commercial farming and
       slaughter is prevalent                            concern                                              • Encourage brands to map their
                                                       • Legal sourcing of exotic materials                        supply-chains
     • Encourage traceability past the
       slaughterhouse, to the farm, where              • Animal welfare                                       • Develop robust, verified product-
       possible                                                                                                    level claims

                                                                                                         Post-                               LWG
         Birth            Rearing          Finishing         Slaughter                                  tanning               T1            Brand/
                                                                              Tanning
         Farm              Farm              Farm             -house                                      and               Factory         Retailer
                                                                                                       Finishing                            Member

                                                                            Traders/ sub-contractors

The LWG is aiming to develop transparency within the leather value chain
The LWG Audit Standard
How do we address traceability?
Overview of Changes in P7
Main Highlights

Chemical Management        Effluent treatment               Traceability            Social Compliance

  The CMM is now fully   We've introduced stricter   Developed significantly and     Certification from a
       integrated             requirements             integrated as a scored      recognized 3rd party is a
                                                               section                new requirement
We are addressing traceability in 3 ways in P7

            1. Material procurement assessed to ensure upstream suppliers are
              also certified and are manufacturing in a responsible way, and
              there is a clear chain of custody

            2. Incoming material traceability has been developed to include
              new levels, to increase the ability of all actors to achieve the best
              level of traceability possible in their region
                                                                        New!
            3. Outgoing traceability has been introduced to incentivize
              downstream traceability to the final customer
P7                  Production data
                                              Chain of custody
1. General facility details
2. Subcontracted operations
3. Social audit                 • Material procurement assessed to ensure LWG chain of custody
4. Operating permits            • Gold medal requirement:
5. Production data
                                      o   100% of materials to come from LWG certified sources (with a
6. Traceability (incoming)
                                          conditional 5% allowance if trialing new suppliers)
7. Traceability (outgoing)
8. EMS
9. RSL, Compliance, CrVI        • Additional levels remain:
10. Energy consumption
11. Water usage
12. Air & noise emissions      Section    Requirement                  Gold        Silver     Bronze     Audited
13. Waste management
14. Effluent treatment
15. H&S, Emergency Plans                  % of material must be
                               Chain of
16. Chemical Management        Custody
                                          purchased from LWG       100%         ≥75%        ≥65%         ≥25%
                                          certified sources
17. Operations Management
P7           Incoming Traceability
                                       Overview
1. General facility details
2. Subcontracted operations
3. Social audit                   All leather manufacturers will need to have an established
                               traceability system as a qualifying requirement for this section
4. Operating permits
5. Production data
6. Traceability (incoming)               Raw material traceability requirements increased to include:
7. Traceability (outgoing)               • Slaughterhouse for commercial contexts
8. EMS                                   • Regional level for non-commercial contexts
9. RSL, Compliance, CrVI
10. Energy consumption
                                         Physical marking of material is preferred over documented
11. Water usage                          traceability
12. Air & noise emissions
13. Waste management
14. Effluent treatment                   Additional evidence is required for material sourced from areas at
15. H&S, Emergency Plans                 risk of deforestation
16. Chemical Management
17. Operations Management
                                         100% of exotic materials should be sourced legally
Incoming Traceability
              4 Levels of traceability in the LWG audit standard

•   There are now 4 levels of traceability in the LWG audit standard, which is increased from 2 previously
•   Regional traceability has been introduced for countries where farming and slaughter are informal and dispersed
•   Traceability of a hide/skin to a group of slaughterhouses has been introduced for manufacturers further down the
    supply chain, such as those processing splits, where traceability is challenging

Number Type              Level               Audit Requirement                                Detail

          Physical                           hides/skins should be individually, physically   Sourcing from commercial
    1     traceability
                         to slaughterhouse
                                             marked and traceable to the slaughterhouse       slaughterhouses
          Documented                         hides/skins are traceable through robust         Sourcing from commercial
    2     traceability
                         to slaughterhouse
                                             documentation                                    slaughterhouses
                                             hides/skins should be individually, physically
          Physical       to group of                                                          mostly applicable to splits, split
    3     traceability   slaughterhouses
                                             marked and traceable to a group of
                                                                                              marked to identify supplier
                                             slaughterhouses
                                             hides/skins should be obtained from a supplier
          Documented                                                                          Applicable to non-commercial
    4     traceability
                         to a region         whose trading premises has been geo-
                                                                                              material sourcing
                                             referenced
Material sourced from areas at risk of
              deforestation
•   Additional requirements for those sourcing from geographies where expansion of cattle
    ranching is causing illegal conversion of natural landscapes
                                                                                                  Robust evidence will
•   Existing LWG guidance on sourcing from Brazil has been expanded, based on the advice          need to be provided to
    of the NWF and WWF                                                                            prove compliance
•   We have increased regions to include the 3 biomes at risk in South America:                   during an audit, for
                                                                                                  example:
     o   Amazon Biome (Brazil)
                                                                                              o    copy of evidence of
     o   Cerrado (Brazil)                                                                          compliance from
     o   Gran Chaco (Paraguay)                                                                     meatpacker’s in-house
                                                                                                   monitoring system
•   Leather manufacturers will need to demonstrate the level of supply chain
                                                                                              o    copy of report from 3rd
    governance of their suppliers and provide verifiable evidence that they are working to
                                                                                                   party monitoring service
    fully monitor their supply chain, in order to minimize the risk of sourcing from actors        provider
    involved in illegal deforestation
                                                                                              o     copy of an IBAMA report
•   Section score awarded based on % traceable material and level of evidence provided             (relevant to Brazil)
•   We also have created a new sourcing policy for all companies who source from these
    regions
New!
                              P7                   Outgoing Traceability
                                                   Incentivizes the continuity of traceability
1. General facility details
2. Subcontracted operations
                                     • Created to incentivise the continuity of traceability downstream in the supply
3. Social audit                          chain
4. Operating permits                 • Leather Manufacturers will need to track material through facility, including
5. Production data                       information on:
6. Traceability (incoming)                o   Material batches, including the recipes of chemicals used in production
7. Traceability (outgoing)                o   Raw material origin
8. EMS                               • There is also an incentive for the physical marking of splits to identify producing
9. RSL, Compliance, CrVI                 tannery
10. Energy consumption               • Additional details:
11. Water usage
12. Air & noise emissions
13. Waste management               Section         Requirement                 Gold       Silver         Bronze      Audited
14. Effluent treatment
15. H&S, Emergency Plans           Outgoing
                                                   Tracking of
                                                                      Comprehensive,
                                                   material through
16. Chemical Management            Material
                                                   facility,
                                                                        established                System in place
                                   traceability                           system
17. Operations Management                          downstream
What’s next?
We have ambitious plans for the future

                                  Join in the discussion!
Our philosophy and aims for the future

                           • For the first time, incoming material traceability is included as a scored section in
  Increasing LWG audit         the LWG audit
          requirements     •   We plan to progressively increase the traceability requirements in the next
                               iteration of the LWG Audit Standard according to our roadmap

                           • This means that having limited traceability and exposure to deforestation will start
                               to negatively impact medal ratings
Realistic and achievable
                   goals   •   This phased approach will ensure that all actors are fully engaged and that our
                               goals are realistic and achievable

                           • The LWG’s vision for the future is for 100% deforestation and conversion free
   Collaboration on our        leather
  sustainability journey   •   We collaborate with expert NGOs, stakeholders, and LWG members in our journey
                               to improve supply chain governance

               Please reach out to us directly and join in the discussion!
                           info@leatherworkinggroup.com
Our areas of development

Auditing & Data-driven Insights
• Driving increased traceability and supply chain transparency through the LWG audits, with
   changes planned according to our roadmap
• Digitalisation of the audits and data-driven insights, to help brands to meet science-based
   targets and make credible claims
Stronger communication and consumer-messaging
• Development of our current LWG claims framework, to include verification of product-
   level claims and introduction of purchase certificates
• Voluntary Supplier Scorecard:
   •     To empower LWG Leather Manufacturers to communicate performance and
          achievements in a clear, transparent, and consistent way
     •    Support development of consumer messaging, end-to-end environmental claims,
          and story telling
Engagement and collaboration
• Continued focus on key areas of raw material development, with a focus on:
   •     Deforestation due diligence project, in collaboration with WWF and NWF
   •     Regional traceability project
•   Continued valuable engagement with key stakeholders through the Traceability                Supplier Scorecard
     Working Group
Thank you

Please reach feel free to reach out to us at the Leather Working Group
               christina@leatherworkinggroup.com
The Certification Institute for the Leather Sector
                      (ICEC)
                Sabrina Frontini
How we work

ICEC is the Quality Certification Institute in Europe and worldwide
specific ONLY FOR THE LEATHER SECTOR

It counts almost 25 YEARS OF ACTIVITIES being established in late 1994.

It’s ACCREDITED BY ACCREDIA (the Italian Body of Accreditation):
competence, impartiality, no conflicts of interest

VOLUNTARY certifications of THIRD TYPE:
NO obligation, YES to CONFIDENTIALITY of data
How many kinds of ICEC TS traceability schemes?

Since 2012, FOR COMPANIES PRODUCING-SELLING LEATHERS:

ICEC TS 410: TECHNICAL SPECIFICATION FOR LEATHER’S TRACEABILITY APPLICABLE TO A SYSTEM OF
DIFFERENT PRODUCTS

ICEC TS 412: TECHNICAL SPECIFICATION FOR LEATHER’S TRACEABILITY APPLICABLE TO INDIVIDUAL
PRODUCTS (e.g. with specific origin)

ICEC TS 414 : TECHNICAL SPECIFICATION FOR THE TRACEABILITY OF FINAL GOODS IN THE LEATHER
SECTOR (E.G. PRODUCERS OF BAGS, FOOTWEAR)

                                            ICEC Traceability logo (recorded)
                                            IT’S A PRODUCT CERTIFICATION!
How many ICEC TS 410/412 released and where?

TOTAL NUMBER OF ICEC TS 410/412 TRACEABILITY CERTIFICATIONS ALREADY
RELEASED: >80

TOTAL NUMBER OF ICEC TS 410/412 TRACEABILITY CERTIFICATIONS ONGOING:
>20

Where? e.g. Italy, Spain, Tunisy, Turkey, Netherlands, Serbia, etc..
(*Italy produces 65% in value of leathers in Europe and >20% worldwide)

                 NAMES OF TANNERIES/PRODUCT CERTIFIED:
                       ICEC DATABASE www.icec.it
Key points of ICEC TS 410/412
• Traceability of the LEATHERS: raw materials or semi-manufactured hides
  and skins, or finished leathers (any kind of leather: bovine, calf, goat,
  sheep, exotic, etc..)

• Organisations of any size regardless of what production stages they
  undertake (e.g. wet blue producers, finished leathers producers, traders)

• The main aim is to provide an accurate indicator (rating) as to the level of
  monitoring by the Organisation over the raw materials purchased in terms
  of the geographical traceability of the stages of realization, also for
  reducing the risks associated with a failure to monitor such issues.
Different type of leathers….
                      ….different type of solutions

•   Captive and ranched animals
•   Wild species
•   Split leathers
•   Brazilian/sud America origin (DCFL)

What changes is only the way of collecting data in the excel map
(e.g. for wild species we don’t have the farm but a geographical area of growing, for split
leathers we collect also the places where the leathers are split)
ICEC TS certification structure
MANAGEMENT SYSTEM REQUIREMENTS:
      (PRE-REQUIREMENTS+
     SYSTEM REQUIREMENTS)

   EXCEL MAP WITH PURCHASE ORDERS
          (WEIGHTED RATING)
PRE REQUIREMENTS OF THE CERTIFICATION

1.LEGISLATIVE COMPLIANCE APPLICABLE TO RAW MATERIALS
(Ex. Reach): knowledge, management, application, updating

1. AT LEAST DOCUMENTAL VERIFIABILITY OF THE DECLARATION AND DATA
SUPPLIED AND RECEIVED AT EVERY LEVEL (keeping documents related to
batches and/or physical marks on each leathers).

Self declarations are not accepted.

IF PRE-REQUIREMENTS ARE NOT APPLIED ICEC DOESN’T ISSUE THE
CERTIFICATION
SYSTEM REQUIREMENTS

PURPOSE

IT IS IMPORTANT THAT THE COMPANIES HAVE A MANAGEMENT SYSTEM FOR TRACEABILITY
BASED ON MINIMUM REQUIREMENTS DEFINED IN ICEC TS 410/412, PROVIDING A STANDARD
OPERATIVITY AND PROCEDURES IN THE MANAGEMENT OF THE DAILY TRACKING PRODUCT.

IT IS NOT SUFFICIENT ONLY TO CHECK THE ORDERS THROUGH THE MAPPING.
THE COMPANY MUST ENSURE THAT THE MANAGEMENT SYSTEM OF IDENTIFICATION AND
TRACKING OF THE PRODUCTS IS SOLID AND EFFECTIVE (ONSITE AND OUTSIDE THE COMPANY).
EXCEL MAP (and a rating from 0 to 100):
                      how is it calculated?

The rating is calculated through a mapping on the excel sheet provided by ICEC, which
is filled in by the company with entering data for a 12 months purchase orders of
hides/skins under certification.

ANNUAL CERTIFICATION
EVERY YEAR: from half a day to one day of annual audit in the tannery/company
to verify the accuracy of the reported information and to check the onsite-outside
traceability
Let’s see the example of the excel mapping (fac-simile of TS410)

                                                               OFFAL RAW
                                                                MATERIAL                15                  15                   40                  20                    10
                                                                  RAW
                                                                MATERIAL                 0                   30                   40                 20                    10
                            WET BLUE           13,5                1,5                   0                   15                   40                 20                    10
 CRUST         9               1                9                   1                    0                   10                   40                 20                    10
                                                                                    FOR OFFAL           -50% IF WE           -50% IF WE
                                                                                        RAW             HAVE A LIST          HAVE A LIST
                                                                                    MATERIAL: -         OF PLACES            OF PLACES
                                                                                    10% OF THE           AND NOT A            AND NOT A
                                                                                   SCORE IF WE            PUNTUAL              PUNTUAL
                                                                                    KNOW THE               PLACE             PLACE (* IF,
                                                                                   COUNTRY BUT                              REFERRINGTO
                                                                                      NOT THE                                 A ONL ONE
                                                                                       PLACE                                COUNTRY OF
                                                                                                                             ORIGIN, THE
                                                                                                                            SLAUGHTERS
                                                                                                                            BELONG TO A
                                                                                                                                UNIQUE
                                                                                                                            GROUP, FULL
                                                                                                                               SCORE)

                                                                                      ONLY FOR
                                                                                     OFFAL RAW                                                  COUNTRY/COUN
                                                                                     MATERIAL:          COUNTRY OF                               TRIES OF THE
           COUNTRY OF       PLACE OF       COUNTRY OF           PLACE OF           COUNTRY AND         ORIGIN OF THE                               FARMING
                        S               S                  S                  S                    S                   S      PLACE OF      S                   S     PLACE/PLACES    S
            ORIGIN OF     ORIGIN OF THE   ORIGIN OF THE      ORIGIN OF THE            PLACE OF             RAW                                   (WHERE THE                                THEORETICAL SCORE
                        C               C                  C                  C                    C                   C     SLAUGHTER      C                   C    OF THE FARMING   C                                                           ANOMALIES    POINTS TO REMOVE FOR
             CRUST        CRUST WHERE        WB/WW               WB/WW             ORIGIN OF THE         LEATHERS                                ANIMAL WAS                                 OF TRACEABILITY ON       PONDERED AVERAGE OF
VOLUME %                O               O                  O                  O                    O                   O    (NAME OF THE    O                   O    (NAME/S OF THE   O                                                         RELATED TO THIS ANOMALIES OF THIS
           (WHERE THE      THE CRUST       (WHERE THE         (WHERE THE               OFFAL             (COUNTRY                                 FARMED. IF                               THE INDIVIDUAL LINES THEORETICAL SCORE (ON % VOLUME)
                        R               R                  R                  R                    R                   R     SLAUGHTER      R                   R        FARMING      R                                                          MAPPING TABLE   MAPPING TABLE (**)
           CRUST WAS          WAS         WB/WW WAS          WB/WW WAS                MATERIAL          WHERE THE                                 MORE THAN                                 OF ORDER (MAX 100)
                        E               E                  E                  E                    E                   E       HOUSE)       E                   E       HOUSE/S)      E
           PRODUCED)       PRODUCED         PRODUCED)          PRODUCED)            (WHERE THE          ANIMAL WAS                              ONE, WE MUST
                                                                                       OFFAL           SLAUGHTERED)                             CONSIDER THE
                                                                                      MATERIAL                                                    LAST ONE)
                                                                                      WAS CUT)

                                                                                                                              FRANCE -
              NOT
                                                                                   FRANCE - BBB                             PARIS - WWW
   33      APPLICABLE          NA               NA                 NA                           15        FRANCE       15               40                                                        70,0                       23,3                                      0,0
                                                                                     TANNERY                                SLAUTHERHOU
              (NA)
                                                                                                                                 SE

                                                                                                                            FRANCE -
                                                                                                                           PARIS - XXX
   20         NA               NA             FRANCE      13,5 LULU' TANNERY 1,5        NA                FRANCE       15                40        FRANCE       20                                90,0                       18,0                                      0,0
                                                                                                                          SLAUTHERHOU
                                                                                                                               SE
                                                                                                                          ITALY - ASTI -
                                                                                                                               ZZZ                                   DDD BREEDING
   47         NA               NA              ITALY      13,5 AA TANNERY    1,5        NA                 ITALY       15                40         ITALY       20                    10          100,0                      46,7                                      0,0
                                                                                                                           SLAUGHTERH                                   HOUSE
                                                                                                                              OUSE
  100                                                                                                                                                                                                                        88                                        7,0            81
FINAL RATING IN THE CERTIFICATE
                      MINIMUM: 30 POINTS TO RELEASE THE CERTIFICATE

 LEVELS AND ASSESSMENTS                    Rating           AVERAGE TRACEABILITY OF
                                                                 THE ARTICLES

         SUFFICIENT                          30                  Information up to
                                                               the country of origin
                                                                  of raw materials
           GOOD                            31-70                 Information up to
                                                                      the place
                                                                   of slaughtering
         VERY GOOD                         71-90                 Information up to
                                                              the country of breeding
         EXCELLENT                         91-100                Information up to
                                                               the place of breeding

Country = Nation
Place = Company name
Origin = Where the slaughter of the animal happens
Current situation and developments
  Developments: INTEGRATION OF TS410/412 WITH :

• DEFORESTATION ISSUES (DCFL PROJECT WITH NWF) –
  COMPLETED

• ANIMAL WELFARE ISSUES (ONGOING)
40                        BRAZILIAN ORIGIN OF LEATHERS:
                                 DCFL certification
PROBLEM:
DEFORESTATION AND SOIL CONVERSION
(MEAT, BUT LEATHER IS INDIRECTLY INVOLVED TO GIVE GARANTEES)

PARTNERSHIP:
ICEC-NWF

PROJECT:
DCFL certification (Deforestation and Conversion Free Leathers)

CONTENTS:
TS410/412 CERTIFICATION + ADDITONAL DATA REQUIRED + DCFL POLICIES + NWF ANALYSIS

GARANTEES:
THE TANNERY BUYS FROM A SUPPLY CHAIN (INCLUDING DIRECT AND INDIRECT FARMERS) NOT INVOLVED
IL DEFORESTATION (certifications already released)
Animal welfare (AW) issues…
1) MAPPING OF AW LAWS APPLICABLE IN DIFFERENT COUNTIRES
   (ALREADY DONE BY VETERINARY UNIVERSITY OF MILAN)
2) MAPPING OF VOLUNTARY CERTIFICATIONS OR BEST PRACTICES
   ADOPTED BY FARMERS AND SLOUGHTERHOUSES (ONGOING)
3) ALLOCATIONS OF THESE DATA (POINT 1 AND 2) TO THE SPECIFIC
   SUPPLY CHAIN OF THE CERTIFIED COMPANIES
4) AW RISK ANALYSIS RELEASED TO THE CERTIFIED COMPANIES
   (IT WILL BE A CUSTOMIZED SERVICE PROVIDED BY ICEC TO
   COMPANIES WITH ICEC TS410/412 CERTIFICATION)

DEADLINE: END OF 2021.

                                                               41
and other developments

With new revisions of TS410/412 ICEC will put a focus on:

• information related to (physical) marks on leathers

• voluntary certifications on AW adopted by the supply chain

Deadline: 1st June 2021

                                                               42
Thank you
                                      for information:
ICEC – Quality Certification Institute for the leather sector

                   e-mail: icec@icec.it (Mrs. Sabrina Frontini)

                                  web site: www.icec.it

                     Adress: Via Brisa 3, 20123 Milan (Italy)

        On ICEC web site (www.icec.it) you find the DATABASE
                 with all the certified Companies.

 This document is owned exclusively by ICEC. Any reproduction in whole or in part is prohibited.
                                                                                                   43
How to achieve
                               transparency in the
                              leather supply chain
                             with MADE IN GREEN
                                   by OEKO-TEX®
                                                   Annika Sauerhöfer
                                               OEKO-TEX® Association

                                                     Mirjam Bänninger
                              TESTEX AG, Swiss Textile Testing Institute

                                                              May 2021
© Getty Images / Westend61
THIS IS OEKO-TEX®

INPUT CONTROL

                                    45
TRACEABILITY CHALLENGES FOR COMPANIES
                                  IN THE APPAREL INDUSTRY

                                                                                                                         ?    ?       ?
                                                                                                                                  ?
                          of CPO’s apparel and footwear companies
  56%                     see transparency & sustainability as #1 priority*

  65%                     expect to achieve full traceability from source
                          to store by 2025*

*Source: McKinsey CPO Survey 2019, n=65, sourcing executives responsible for sourcing of 100 billion USD (apparel&footwear)               46
TRACEABILITY
   IS KEY:
 OEKO-TEX®
LABEL CHECK

1. Enter Product ID

 OEKO-TEX® website
 www.oeko-tex.com

         OR

2. Scan QR Code

                      47
TRACEABILITY IS KEY: OEKO-TEX® LABEL CHECK

     M1000002
                                                                                  Golf Fashion                         x
                                                                                  Hauptstrasse 2
                                                                                  60311 Frankfurt
                                                                                  Germany

                                                                                                                      Cotton Lining         x
                                                                                                                      20200 Denizli
                                                                                                                      Turkey

                                                                          Making up facility         x                Types of operation:
                                                                          20158 Milan
                                                                          Italy

                Golf leather glove   Leather glove with cotton lining x
                                     Sheep leather
                                     Chrome tanned
                                                                                          Vertical Facility                     x
                                                                                          310000 Wenzhou
                                                                                          China
                                     Article number:
                                     2535158                                              Types of operation:

                                     Colours:

                                                                                                 Finishing Facility         x
                  Golf Fashion                                                                   515000 Shantou
                                                                                                 China
                 Hauptstrasse 2
                 60311 Frankfurt
                    Germany

                                                                                                                                                48
HOW TO OBTAIN A MADE IN GREEN LABEL?

                                 +                  +

Leather articles of all production   Certification for production facilities   Label offers transparency
stages which have been tested          which manufacture textile and            through supply chain
   for harmful substances            leather articles under sustainable               traceability
                                                  conditions

                                                                                                       49
OUTLOOK

                         Collaboration is key to exchange knowledge,
                         complement and benefit from each individual
                         strengths and to achieve supply chain
                         transparency

                         •   With Multi stakeholder dialogue (e.g., SLF,
                             LWG)

                         •   With industry partners (e.g., SPOOR)

                         •   Between all actors in the leather supply chain

                         Transparency is important to foster
                         trust, safety & sustainability.

                                                                              50
© iStock.com / diane39
ANNIKA SAUERHÖFER
             PRODUCT MANAGER MADE IN GREEN
             OEKO-TEX® Association

             Contact

             P   + 41 44 501 26 04
             E   annika.sauerhoefer@oekotex.com
                 www.oeko-tex.com
Thank you!
             W

             MIRJAM BÄNNINGER
             GROUP PRODUCT MANAGER
             LEATHER STANDARD
             TESTEX AG, Swiss Textile Testing Institute

             Contact

             P   + 41 44 501 26 04
             E   mirjam.baenninger@testex.com
             W   www.testex.com                      51
Disclaimer
Copyright
The entire content of this document is subject to copyright with all rights reserved. Without prior written consent this
document or any part thereof may not be modified or used than for an other purpose than the one originally planned
by OEKO-TEX® Association and its member institutes.

No reliance and no warranty
This document may include technical or editorial inaccuracies or typographical errors. The information on this
document has been prepared solely for information and training purposes. While we have made every effort to
ensure that the information on this document is accurate at the time of publication, we make no representation or
warranty in any manner, expressly or by implication, as to the accuracy, reliability or completeness of the
information provided in this document.

                                                                                                                           52
Sustainable Leather
Foundation’s pathway to a
traceable and transparent
leather industry
Textile Exchange
Traceability Webinar
Thursday 20th May 2021
Why Traceability is important?

    Traceability:                                                             Transparency:
    “The ability to identify and trace
    the history, distribution, location                                       “relevant information being
    and application of products,                                              made available for all elements of
    parts and materials, to ensure                                            the value chain in a harmonized
    the reliability of sustainable                                            way, which allows for common
    claims, in the areas of human                                             understanding, accessibility,
    rights, labour (including health                                          clarity and comparison”2
    and safety), the environment
    and anti-corruption”1

1. United Nations Global Compact Office, A Guide to Traceability A Practical Approach to Advance Sustainability in Global Supply Chains (New
York, 2014). Available at: https://d306pr3pise04h.cloudfront.net/docs/issues_doc%2Fsupply_chain%2FTraceability%2FGuide_to_Traceability.pdf
 2. European Commission, A Background Analysis on Transparency and Traceability in the Garment Value Chain (2017)
https://ec.europa.eu/international-
partnerships/system/files/european_commission_study_on_background_analysis_on_transparency_and_traceability_in_the_garment_value_cha
in.pdf
Why Traceability is important?

                                               Challenges:

                                                     Globalisation
                                                 Complex Supply Chains
            Risks:                                 Farming Practices
                                                 Commercial Sensitivities
          Animal Welfare
Biodiversity & Land Use Conversion
           Chemical Use
           Deforestation
      Environmental Pollution
        Ethical Governance
    Fair Treatment of Workers
      Resource Consumption

        www.sustainableleatherfoundation.com
SLF’s Solution
                People + Partnership:
SLF is a fully accessible and inclusive, not-for-profit
Foundation that actively supports improvement across
the whole leather value chain

                          Tools:
With the creation of a suite of tools designed to support
the process – from grassroots training materials,
consumer communication materials and audit standard all
brought together with the SLF Transparency Dashboard™

                         www.sustainableleatherfoundation.com
SLF’s Solution
Level 1:             Level 2:                 Level 3:                 Level 4:                 Level 5:

Manual               Manual                   Manual                   Documentation            Documentation system
documentation-       documentation-           documentation-           system that includes     that includes full
based chain of       based chain of           based chain of           full lifecycle           lifecycle passport,
custody, with mass   custody, coupled         custody, coupled         passport, coupled        including auditable and
[material] balance   with physical            with physical            with physical            verifiable information
that shows origin    marking [identifiers],   marking [identifiers],   marking [identifiers],   about birth farm of the
and destination      with mass [material]     with mass [material]     with mass [material]     animals, coupled with
                     balance that shows       balance that shows       balance that shows       physical marking
                     origin and               origin and               origin and               [identifiers], with mass
                     destination              destination and that     destination and that     [material] balance that
                                              speaks to an             speaks to an             shows origin and
                                              electronic system        electronic system        destination and that
                                                                                                speaks to an electronic
                                                                                                system

                                       www.sustainableleatherfoundation.com
SLF Transparency Dashboard ™
                       • The SLF Transparency
                         Dashboard will clearly
                         indicate a value chain
                         partner’s ability to
                         demonstrate their own
                         traceability on a 1-tier up
                         and 1-tier down approach.

                       • Through the system behind
                         the Transparency
                         Dashboard, each tier will be
                         connected without the need
                         to disclose commercially
                         sensitive data to other value
                         chain parties

www.sustainableleatherfoundation.com
SLF Transparency Dashboard ™

                                       This view will be open
                                       source – anyone who
                                       visits the desktop
                                       website or mobile app
                                       will be able to view the
                                       top-line information.

                                       However, they will not
                                       be able to access the
                                       detail behind the
                                       headline.

www.sustainableleatherfoundation.com
SLF Transparency Dashboard ™
This view will be only be accessible for paid up partners of SLF. This will add value to the
information and create more incentive for companies to financially support the Foundation.

                        www.sustainableleatherfoundation.com
What about consumers?

    Licensed Brands can use the
    Logo and QR technology to
    direct consumers to
    verifiable, demonstrable
    information.

    This information will be
    permission based in
    partnership with value chain
    and SLF

www.sustainableleatherfoundation.com
What about consumers?

      Option One:              Option Two:              Option Three:
 Fully integrated value       Less granular         Specific controls not
chain – QR code points    integration – QR code   verifiable yet – QR code
     to the leather            points to SLF           points to Brand
     manufacturers            Transparency        commitment / policy on
  dashboard or other      Dashboard homepage       their website or to SLF
  specific information                                     website
Thank You

More Information:
Pathway Paper:
https://www.sustainableleatherfoundation.com/sustainability-
matters/slfs-pathway-to-a-traceable-and-transparent-leather-industry

Email:
Deborah@sustainableleatherfoundation.com

www.sustainableleatherfoundation.com
5 webinars on Traceability in the Leather Supply Chain
                                                                              EDT        CET
  Webinar 1:   Understanding Traceability and the UNECE          May 4th    10 - 11am   4 – 5pm
               Guidelines

  Webinar 2:   Traceability Expectations of Sustainability       May 20th    11am -     5 – 6pm
               Standards in the Leather Supply Chain                         12pm

  Webinar 3:   Traceability Solution Providers in the            May 25th   10 - 11am   4 – 5pm
               Leather Supply Chain

  Webinar 4:   Joint webinar with NWF and GRSB                   June 1st   10 -11am    4 – 5pm
               Traceability at the farm level: focus on Brazil

  Webinar 5:   The Implementation of Traceability Solutions      June 4th   10 - 11am   4 – 5pm
               in Leather Supply Chains: Brand Experience
Thank you

                                                  TextileExchange.org

                                                          © Copyright Notice

       This presentation is protected by U.S. and International copyright laws. Selected iconography from thenounproject.com

           Textile Exchange welcomes you to use slides from this collection for your presentations on the condition that:
       • The slides are not altered from the way it is presented in its original format, this includes changing colors and style.
                                        • The Textile Exchange logo should not be removed.
                  • Adding logos and/or content is not permitted without written permission from Textile Exchange.
       • Any presentation using this content or any form of this content should acknowledge Textile Exchange as the author.
You can also read