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Alexandra Lang
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2 Why Change The Old Paradigm Climate Change The New Paradigm Resources Exploitation Environmental Pollution Getting the right balance between $$$ and the Environment

3 MSG polluter Vedan to pay US $6.2m compo NOT SUSTAINABLE BUSINESS PRACTICE Discharging untreated waste water into the THI VAI RIVER and effecting the livelihoods of Fish Farmers 3

4 Enable Manufacturers of Today to Think Green, Act Green, and Be Green! TGI sapproach Drivers: Environmental Legislation Climate change concerns Limited Resources Consumer demands Market Competitiveness Risks& Opportunities Think Green Enablers: Knowledge & Resources Monitoring Measurement Tools Technologies New Methods Collaborations Benchmarking Training Improvement Act Green Achievers: Environmental footprint Cost Reduction Sustainable methods Renewable Biodegradable Material efficiency Improve bottom line Be Green

5 TGI svision Providing Greater Visibility on Environmental Commitment and Performance Meet environmental regulatory requirements Reduce environmental footprint Achieve cost savings and improved material efficiency through better use of resources, reduce, recycle and reuse of materials, and waste reduction Achieve sustainable business practices Provide necessary insights for green products and sustainable purchasing Achieve good corporate governance

6 TGI What is covers Two (2) Core Compliance Modules Environmental Legal Compliance Review Environmental Management System Six (6) Environmental Modules Water Air Emissions Energy Noise Emissions Hazardous Materials, Equipment and Waste Sustainable Production

7 Six (6) Environmental Modules TGI Assessment Modules Performance Indicator Performance Indicator Performance Indicator Performance Indicator Performance Indicator Performance Indicator Assess each specific environmental area from the perspective of: (a) maturity of management systems (b) compliance performance (c) capability of pollution prevention (d) sustainability performance

8 TGI Report Provide knowledge and insights into environmental performance through visualcharts, statisticaltables andnarratives Performance Rating High Performance Medium Performance Low Performance Very Low Performance Sustainability Data collection Water & wastewater Energy Cost savings Air pollutants Solid waste Hazardous chemicals Performance Benchmark By global By country By industry

9 TGI Value Proposition A mechanism to enable an organization to demonstrate their commitment and Green credentials to their stakeholders: Investors Employees Community Customers Think Green Initiative = Preferred Supplier Status Ensuring you meet the requirements of tomorrow s Employees, Communities, Investors & Customers today

10 TGI Case study Present by : TGI team Date:

11 Communicate TGI to suppliers TGI team will communicate the program by : Before participating the program: Workshop/ Seminar Self-assessment During the program: Full assessment/onsite communication After the program: Post Survey CAP review

12 Agenda of the Seminar or Workshop Background What s TGI? Assessment result and scoring Assessment process How to use the TGI report Key environmental issues Environmental regulations & requirements Climate change and carbon emissions Concept of Sustainable Production Good Environmental Practice Q&A

13 TGI Case Study TGI factory tour Wastewater & Chemicals leak in dyeing workshop Direct discharged wastewater from dyeing workshop Exposed Asbestos 3

14 TGI Performance Analysis 54 Apparel 53 Global Average Number of total participating factories: 57 Apparel sector: No. of participating factories:

15 TGI Performance Analysis Overall performance Result Trends Total Factories: Number of Facilities Factory Performance

16 TGI Cost Saving analysis Sectors Electrical & Electronics Hardlines Bottling & Packing Apparel Footwear Total Factory number Cost Saving Data provided % 35% 67% 21% 33% 33% Cost Saving (USD) Max Min Average 147, , , ,584, , , , , ,426 1, , , , , ,584, ,163.1

17 Sustainability Index 7

18 Good Practices --Highlights Use of energy saving bulbs Set minimum temperature control for AC as 26 C Use of solar heating system Switch off lights/computers when leaving workplace or during break. Adapt to energy efficiency technologies and purchase of energy efficiency equipment One factory provided 40 bicycles for workers to use at workplacein order to reduce carbon emission. Use double sided printing to reduce paper usage Recycle and return to vendors used scrap, fabric, plastics and cartons Purchase of paper to replace polyethylene for packaging Product env. certificate such as OEKO-TEX Standard 100 and GOTS certificates Potential Cost Saving Opportunities 8

19 Act Green 10

20 Post TGI Assessment Factories Continuous Improvements Factory A: Examples of actions being taken since TGI assessments conducted in Dec 2009 Tape PVC Solid Waste Selection, Classification and Recycling Installation of Energy saving lights Achieved 16%electricity reduction 11

21 Post TGI Assessment Factories Continuous Improvements Factory A: Examples of actions being taken since TGI assessments conducted in Dec 2009 Planted new lawn Installation of dust control equipment 12

22 Factory A: Post TGI Assessment Factories Continuous Improvements Examples of actions being taken since TGI assessments conducted in Dec 2009 Installation of air emission control facilities Improvements for generators Installation of noise buffers 13

23 Good Practices --Highlight Good Practice Factory 1 Factory 2 Factory 3 Factory 4 Energy Efficiency /Renewable Energy = Cost Savings RMB2,521,440 $365,426 Recycle heat from air pressed generator and reuse in dyeing process RMB120,000 $17,931 Solar heating system for dormitory showers RMB196,152 $28,427 Energy saving bulbs Good Practice Factory 1 Factory 2 Resources & Material Efficiency Recycling of wastewater Achieved 0.7% recycling rate Rp.1,872,000, ,200 Energy saving bulbs Raw material usage efficiency improvement Achieved 8% solid waste reduction rate 9

24 Factory B: Post TGI Assessment Factories Continuous Improvements Examples of actions being taken since TGI assessments conducted in Dec 09 月份 Jan Feb 年份 Y Y Cost Cut (RMB) Cost Cut (USD) 166 7,041 1,135 48,020 月份年份 Jan Feb Y Y Cost Cut (RMB) Cost Cut (USD) 4,745 2,593 32,362 17,668 *Table made on March 12,2010, by 周娟 ( Zhou Juan) 14

25 Factory B: Post TGI Assessment Factories Continuous Improvements Examples of actions being taken since TGI assessments conducted in Dec 09 月份年份 Jan Feb Y Y Cost Down (RMB) 2,727 3,326 Cost Cut (USD) 月份年份 Jan Feb Y Y Cost Down (RMB) 28,819 46,959 Cost Cut (USD) 4,225 6,885 Table made on March 12,2010, by 周娟 ( Zhou Juan) 15

26 Post TGI Assessment Factories Continuous Improvements Factory B: Examples of actions being taken since TGI assessments conducted in Dec 09 月份 (month) 循環再用水 (Recycled Water ) 1,391 1,551 3,671 5,571 9,770 10,59614,97317,29316,633 7,230 13,284 Table made on March 12,2010, by 周娟 ( Zhou Juan) 16

27 Being Green 17

28 TGI Achievement Award Supplier TGI achievement Award Ceremony in Hong Kong (June 8) 18

29 Case studies - TGI Achievement Award Winning factory 19

30 Case studies - TGI Achievement Award Winning factory 20

31 Case studies - TGI Achievement Award Winning factory 21

32 Case studies - TGI Achievement Award Winning factory 22

33 Take Home Message Supply Chain Assessment Solutions # 1 New Supplier Improvement Approach 1. Web based community platform 2. Benchmarking drives improvement 3. Visibility through measure results 4. Move from Policemen to Partner 5. Supported with Training Programs 6. Factories able to showcase results TAKE AWAY MESSAGE #2 Key Themes Covered 1. Intertek ID and Factory Profile 2. Who & where are you, what do you make & can you be trusted 3. Cover key themes including: Quality = SQP Environment = TGI Social = WCA Security = GSV #3 Tools to facilitate continuous improvement Making better factories 1. All standards aligned with Industry best practice, key brands & retailers requirements 2. Not a pass or fail program but rather a continuous improvement journey 3. Factories take control, become proactive and engage in continuous improvement 4. Factories motivated through Industry, Country & Global benchmarking 5. Outcome results in better Factories and Products Import with confidence

34 Pilot Program for TGI Package The TGI full package covers followings. Awareness Training Workshop Onsite Audit CAPAR Review Training Workshop 2nd Audit Workshop Benchmarking & best practice sharing Please communicate to the below mentioned persons: Mr. Thanh Nguyen Operations Manager Cell : Mr. Hanh Tran Sales and Marketing hanh.tran@intertek.com Cell: Contact: Ext-114

35 Total Customer Focus THANK YOU!

BUILDING CONFIDENCE THROUGH VISIBILITY

ASSURANCE SOLUTIONS BUILDING CONFIDENCE THROUGH VISIBILITY Management Systems Auditing Services Total Quality. Assured. For more than 130 years, companies around the world have depended on Intertek to