Traceability in the Leather Supply Chain - Learning Series: Webinar 2: Traceability Expectations of Sustainability Standards in the Leather Supply ...
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Learning Series: Traceability in the Leather Supply Chain Webinar 2: Traceability Expectations of Sustainability Standards in the Leather Supply Chain May 20th, 2021
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.
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.
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
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 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
Material Traceability The Leather Working Group Christina Trautmann Date LWG Program Manager May 2021
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
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
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