Bureau Veritas Consumer Products Services WHY REDUCE THE DISCHARGE OF HAZARDOUS CHEMICALS IN WATER?

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1 WHY REDUCE THE DISCHARGE OF HAZARDOUS CHEMICALS IN WATER?

2 WHY REDUCE THE DISCHARGE OF HAZARDOUS CHEMICALS IN WATER? Contributors: Stephanie Khayat, Heiko Hinrichs, Alexa Besnard

3 TABLE OF CONTENTS BACKGROUND 4 Greenpeace Campaigns 5 Committed Companies 5 Key drivers from China 6 The Institute of Public and Environmental Affairs 6 The Chinese Government 6 PRIORITY CHEMICALS 7 11 Priority Chemical 8 Why would we find these priority chemicals in the fashion supply chain 9 APEOs, NPEs & PFCs 10 BUREAU VERITAS SOLUTIONS 11 Examples of the milestones of a one-year Pilot Program Project Plan 13 Benchmark study: identifying the extent of the water pollution at the factory level 13 Buying the right chemicals can help prevent water pollution 14 The 2020 target is simply the beginning of the journey 14 ABOUT BUREAU VERITAS 15

4 background

5 NGOs, environmental campaigners, national governments and international bodies are all putting pressure on companies to eliminate pollution of the world s waterways. Greenpeace has run a high-profile and successful campaign to stop industrial poisoning of waterways with hazardous, persistent and hormone-disrupting chemicals which has led the fashion industry to work towards more sustainable practices. Greenpeace campaigns Since July 2011, the Detox campaign by Greenpeace postulates the direct link among global apparel brands, their suppliers and global phenomenon of toxic water pollution with the consumers as unwitting accomplice. The campaign is also calling on governments to adopt a political commitment to zero discharge of all hazardous chemicals. Fieldworks and investigations in key manufacturing countries, along with testing of branded garments for traces of hazardous chemicals, resulted in a number of technical and opinion reports supporting the above postulation. In 2011, a group of major apparel and footwear brands and retailers made a shared commitment to help lead the industry towards Zero Discharge of Hazardous Chemicals (ZDHC) by The pledge commits brands, retailers and their suppliers to the public disclosure of discharge information and the elimination of hazardous chemicals in waterways. The ZDHC initiative aims to increase traceability and transparency within the entire textile and footwear supply chain, encouraging fashion companies to operate in sustainable ways and to work towards a future without usage of bio-accumulative, toxic, hormone disrupting, carcinogenic, allergenic chemicals Committed Companies: As of June 2015, global retailers and brands who are working on cleaning their supply chain - either through participation to the ZDHC Working Group or through a commitment to the Detox campaign: Adidas, Aldi, Benetton, Burberry, C&A, Coop, Esprit, G-Star Raw, Gritti Group, Gap, H&M, Inditex, Jack Wolfskin, Levi s, Li-Ning, Lidl, Limited Brands, M&S, Mango, New Balance, Nike, Primark, Puma, PVH, Rewe, Tchibo, Uniqlo, Valentino and the Italian brands Canepa, Miroglio, Berbrand, Tessitura Attilio Imperiali, Italdenim, Besani and Zip. p.5 WHY REDUCING THE DISCHARGE OF HAZARDOUS CHEMICALS IN WATER?

6 p.6 WHY REDUCING THE DISCHARGE OF HAZARDOUS CHEMICALS IN WATER? Key drivers from China In addition to the Greenpeace campaigns, water pollution has been the focus of Chinese NGOs and the Chinese Government for several years. According to official data, one third of China s major river basins and 60 percent of its underground water are contaminated, posing a major risk to public health. Pollution is also linked to chronic water shortages in some regions of the country. The Institute of Public and Environmental Affairs (IPE) ( 公众环境研究中心 ) is a registered non-profit organization based in Beijing, established in 2006 by the environmentalist Ma Jun. As a member of a coalition of NGOs throughout China, the IPE promotes a global green supply chain and wants to encourage large corporations to concentrate on responsible procurement and to check the environmental performance of their suppliers. The IPE has developed water and air pollution databases and online maps, which are publicly available and linked to government-sourced information. By disclosing the extent of the current pollution levels, the IPE aims at encouraging the public s engagement in tackling environment al issues. To make pollution data even more available to the public, the IPE has released at the end of 2014 a mobile app, Pollution Map, enabling users to search for air and water quality information by region, by city, by pollutant, and by polluter. The Chinese Government has also made water pollution a priority for several years. In April 2015, the China s State Council released The Action Plan for Water Pollution Prevention and Control, aiming at reducing water pollutants and improving the level of drinking water by One of the pledged actions is to close down polluting factories around the country from 10 industries, including the printing, dyeing and tanning sectors. The plan also stipulates that the textile printing and dyeing industry must adopt low-level wastewater emission techniques to reduce the level of chemical discharges in rivers.

7 PRIORITY CHEMICALS

8 11 Priority Chemicals The following chemicals are listed as the 11 priority chemicals according to the ZDHC Working Group. Chemicals considered as hazardous include PBT (persistent bioaccumulative toxic), vpvb (very persistent very bioaccumulative), CMR (carcinogenic mutagenic reproductive-toxic), ED (endocrine disruptor) and other properties of equivalent concerns. They are potentially dangerous to humans and can damage aquatic life. 1. Phthalates 2. Brominated and Chlorinated Flame Retardants 3. Azo Dyes 4. Organotin Compounds 5. Chlorobenzenes 6. Chlorinated Solvents 7. Chlorophenols 8. SCCPs (Short-Chained Chlorinated Paraffins) 9. Heavy Metals such as lead, cadmium, mercury and chromium VI 10. APEOs/APs 11. PFCs (Per Fluorinated Compounds) p.8 WHY REDUCING THE DISCHARGE OF HAZARDOUS CHEMICALS IN WATER?

9 Why would we find these priority chemicals in the fashion supply chain? Chemical Phthalates Brominated and Chlorinated Flame Retardants Azo Dyes Organotin Compounds Chlorobenzenes Chlorinated Solvents Chlorophenols SCCPs (Short-Chained Chlorinated Paraffins): Heavy Metals such as lead, cadmium, mercury and chromium VI APEOs/APs PFCs (Per Fluorinated Compounds) Possible Use Used to soften PVC, plastic. Used in artificial leather, rubber, PVC as well as in dyes. Also found in printing inks/auxiliaries, lacquer (used on metal / plastic). Flame retardant finishing widely used in the textile industry. Main type of dye used in the textile industry. Used in biocides and antifungal agents. Used in products such as socks, shoes, sport clothes to prevent odors. Used as stabilizers in plastics. Used as dyeing carriers or leveling agents for dyeing, printing and coating of textile and leather materials. Used as deodorizers, fumigants, degreasers and defoliants. Used to clean fabrics and to dissolve other substances. Pentachlorophenol (PCP) is used as a biocide in the textile industry. Mainly used as fatting agent for leather or as flame retardant in plastic materials. Used in dyes. Other key sources are paint, printing inks and auxiliaries. Used in detergents and as a scouring, coating or waterproofing agents, in printing pastes and adhesives, and in dyeing. About 90 percent of APEOs used in the textile and leather industry are NPEs (nonylphenol ethoxylates). Used in the textile industry to make textiles and leather products water and stain proof. p.9 WHY REDUCING THE DISCHARGE OF HAZARDOUS CHEMICALS IN WATER? The ZDHC Working Group has published the MRSL (Manufacturing Restricted Substances List) in This reference list includes the 11 substances from the above priority list but also includes additional substances deemed as hazardous by the ZDHC Technical Advisory Committee.

10 p.10 WHY REDUCING THE DISCHARGE OF HAZARDOUS CHEMICALS IN WATER? APEOs, NPEs & PFCs APEOs (Alkylphenol Ethoxylates) have received a lot of focus from the media since the beginning the ZDHC project. APEOs can be used in chemical formulations such as detergents, cleaning agents, wetting agents, printing pastes, dying agents, adhesives and scouring agents. The most common APEOs used in the fashion and leather industry are NPEs (Nonylphenol Ethoxylates), a non-ionic surfactant. APEOs are harmful to aquatic life. When they degrade, APEOs have been shown to form the substances APs (Alkylphenols). APs have been shown to have endocrine disruptive properties: they might mimic estrogen and are strongly suspected of causing endocrine disruption to animals and humans. The EU Regulation EC 1907/2006 (REACH) restricts the usage of NPEO in textile and leather processing in Europe. NPEO usage is only allowed if no NPEO is released into the waste water or special treatment ensures that NPEO is removed. Additionally, the marketing and use in the European Union of NPEO, as itself and in formulations that contain more than 0.1% of NPEOs, with some minor exceptions, is not allowed. However, since the REACH regulation is only applicable to members of the European Union, APEOs might not be restricted in all sourcing countries. It should therefore be the role and responsibility of retailers and brands to require their suppliers not to use APEOs in their manufacturing processes at the factory level. However, even if APEOs are not used in the manufacturing process, incoming waters used by the factory could have already been contaminated by prior pollution, hence the necessity to test these waters. Perfluorinated compounds (PFCs) are synthetic chemicals designed to repel grease and water and hence have properties to make garments, furnishing fabrics, carpets and footwear stain and water resistant and to increase their durability. Some PFCs might be based on perfluorinated chemicals such as PFOA (perfluorooctanoic acid) and PFOS (perfluoroctane sulfonic acid) that are known to have persistent, bio-accumulative and toxicological properties. Greenpeace targeted wellknown brands of outdoor clothing back in October 2012 by carrying chemical testing on 14 outdoor jackets and trousers. The report, named Chemistry for any weather, was contested by some of the brands on the basis that very low levels were found and could have been due to residual contamination. However, the report certainly brought the textile industry s attention to PFCs.

11 Bureau Veritas Solution

12 In response to the needs of the global fashion industry to eliminate harmful substances from the supply chain, have developed a Chemical Monitoring Solution. This solution is designed to help fashion retailers and brands know where they stand with regards to water pollution in their supply chain via a combination of chemical management policies, environmental auditing, water sample testing and reporting. The service also includes establishing measures for continuous improvement. Evolution Monitoring & Improvement Requirements Management Consult, Program Set-up p.12 WHY REDUCING THE DISCHARGE OF HAZARDOUS CHEMICALS IN WATER? Sampling, Testing & Reporting Discharge Monitoring Water Sustainability Approach Facility Review Knowledge Share Training Auditing & Assessment

13 Example of the milestones of a one-year Pilot Program Project Plan: Below is an example of a step-by-step program Products Services can put in place to help a retailer or a brand assess which hazardous chemicals are currently found in its factories and define the improvement actions. The core components of the program are Waste Water Testing and Environmental Audits Milestone One Milestone Two Milestone Three Milestone Four Program Set-up Kick off meeting + Training to factory Water/Sludge testing + Factory audit + Auxiliary chemical testing Draft Corrective action plan to factory Milestone Five Final Corrective action plan issued to client & factory Month 1 Month 2 Month 3-4 Month 5 Month 6 Month 7-8 Month 9 Milestone Six Corrective action plan implementation + Progress checking Milestone Seven Final factory performance report to client & factory Benchmark study: identifying the extent of the water pollution at the factory level Waste water and sludge are tested to identify the presence of the 11 priority chemicals groups. On average, 4 samples are collected per factory, which is dependent on the size of the factory and the kind of wet processes conducted, such as dyeing, printing, washing etc. Below is an example of a sampling program for one factory. Benchmark Study - Factory Timeline Week 1 Incoming water, waste water & sludge sample collection Week 2-3 Week 4 Week 5-6 Week 7 Every 3-12 months Incoming water, waste water & sludge testing Environmental audit & chemical sample collection Chemical testing Review of all reports & consolidated findings to clients Repeat process to see improvement p.13 WHY REDUCING THE DISCHARGE OF HAZARDOUS CHEMICALS IN WATER? The solution offered by is not only dedicated to retailers and brands who have officially committed to the Detox campaign. The solution is also ideal and adaptable for all fashion companies who are looking at developing a sustainable strategy to reduce the amount of harmful chemicals used in their supply chain. For retailers and brands who currently have no chemical or environmental policy in place, the first step is to gain an understanding of the current state i.e. are their suppliers using hazardous chemicals in their manufacturing process and if yes, what is the extent of the environmental issue? For companies starting their sustainability journey, suggest to launch a series of pilot projects with a selection of priority sites (with a particular focus on dye houses, printing and washing facilities). Our consultants will then assess the performance of these sites in term of water pollution by measuring the presence of the 11 priority chemicals in water (i.e. incoming water, wastewater before treatment, water after treatment and sludge).

14 Buying the right chemicals can help prevent water pollution The global textile and footwear industry is very price-driven and factories might be tempted to use the cheapest (which are often the poorest quality) chemicals on the market. To help factories make better purchasing choices, the chemical industry has issued a so called positive list with alternative good quality chemicals. Good quality chemicals might be more expensive to buy but using these chemicals would ultimately lead to less audits and testing and most importantly less environmental pollution. The 2020 target is simply the beginning of the journey The 2020 target will not be the end of the improvement process; instead one can see it as a key milestone to safeguard our environment from harmful chemicals. Even if 11 priority chemicals have been currently identified, we can expect many more to be added to the list in the future. The companies committed to the Detox campaign and those who are joint partners of the zero discharge committee have already been working very hard on the reduction and replacement of the 11 priority chemicals and the results are extremely encouraging. p.14 REDUCING THE DISCHARGE OF HAZARDOUS CHEMICALS IN WATER

15 ABOUT Bureau Veritas Bureau Veritas is a world leader in laboratory testing, inspection and certification services. Created in 1828, the Group has more than 66,500 employees in around 1,400 offices and laboratories located all across the globe. Bureau Veritas helps its clients to improve their performance by offering services and innovative solutions in order to ensure that their assets, products, infrastructure and processes meet standards and regulations in terms of quality, health and safety, environmental protection and social responsibility. Bureau Veritas is listed on Euronext Paris and belongs to the Next 20 index. Bureau Veritas Consumer division is a leading global quality assurance provider for the global consumer product and retail markets. It offers an array of specialized services including testing, inspections, audits and engineering services for a wide range of consumer products. These products include hard goods; toys and juvenile products; soft goods; premiums; electrical and electronic products including wireless and mobile devices; automotive equipment; food products as well as health, beauty, cosmetics, and household products. Learn more: References: Copyright 2015 Product Services

16 Americas: Europe, Middle East & Africa: Asia:

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