Make A Positive Difference

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1 Journey to Sustainability Make A Positive Difference Pepsy Wong Corporate Quality and Sustainability Dept. June

2 About Crystal Crystal Martin UK (2005) Crystal Martin FE (2005) Crystal Sweater Ltd. (1982) Elegance Industrial Co. Ltd. (1974) Crystal Apparel Co. Ltd. (1982) 2

3 Year of Establishment: 1970 Employee: 40,000 Production base: PRC, Vietnam, Bangladesh, Sri Lanka Market base: US, EU, Japan Annual production: 240M pieces 3

4 Global Customer Base -U.s. -Europe -Japan 4

5 Being Responsible Makes Perfect Business Sense Profit Sustainable People Planet Triple Bottom Line 5

6 Start from oneself and go beyond It all started from one film An Inconvenient Truth - Al Gore More passionate about the commitment we need to make Top-down Sustainability Steering Committee 6

7 Our Environmental Objectives Support social & environmental projects Sustainable solutions in operations - environmental efficiency & save costs. Continually improve our system pollution prevention + energy saving Customers Drive environmental awareness Community Government Crystal Employee & Families Suppliers 7

8 Eco Approach 8

9 Global 5-Year Environmental Targets Base Year: 2008 Progress in % 10.0% 1,045,

10 For a Sustainable Business 10

11 11

12 Yida Denim Factory (PRC) Established in 2005 Employees: 3,500 Floor Area: 866,670 ft 2 12

13 Our Focuses Energy Saving Water Conservation Waste Elimination More than 100 activities IN FACTORY 13

14 Energy Saving & Carbon Reduction Energy Cost Carbon Footprint 14

15 Lighting System Environmental-friendly lighting: T5 Individual switches in workshops Occupancy sensors for corridor Started from: 2008 Payback: 7 months 15

16 Water Curtain Cooling Started from: Payback: 14 months 16

17 Steam Condensation Recovery Started from: 2010 For Laundry use Payback: Hot water supply: 6 months 130 tons/day 17

18 Variable Frequency Devices Servo-motor in sewing m/c Started from: 2006 Payback: 10 months Air Compressor 18

19 Boiler Biomass Fuel Started from: 2011 Payback: 8 months 19

20 Solar Hot Water Supply Save 70% Dormitory Started from: 2007 Payback: 14 months Started from: Payback: Production 2010 February 22 months 20

21 Renewable Energy Road Lamps Solar Power Wind Power Save 71,000 kwh Started from: Sep 2010 Payback: 42 months 21

22 Green Logistics Cost Saving US$ 600,000 in 1 year Quicker response in factory 52 km of travel 67% CO 2 saved 22

23 Water Conservation Less fresh water use Zero discharge 23

24 Water Recycling >80% Reuse Started from: Jul 2010 Payback: 57 Annual Water Saved: 500,000 ton 24

25 Innovative Technologies G2 Technology Eco-softener 25

26 Efficient One-touch Taps Started from: 2011 Payback: 8 months 26

27 Waste Elimination Target: 27

28 Paper-less Production e-ticket: ETS + RFID ERP System SAP e-documentation Management e-form e-banking Saved 90% paper 28

29 Making the Best Use Lego-like structures, ease for re-design can be used over and over Patented! 29

30 Waste Recycling Ease & encourage recycling: Proper segregation Collection Education 30

31 Turn Food Waste into Treasure Handling Food Waste Composting to Organic Fertilizer Fertilizing Organic Garden Canteen waste + 31

32 Turn Trash into Treasure Marker Paper Cones Plastic Bags 32

33 Benefits Saving in only one year: Electricity 15% 17% 33

34 Eco Achievements Low Carbon Manufacturing Program CO 2 17% With 10+ Projects in 1 Year HKAEE Gold Awards in 2 Sectors ISO EMS Certification 34

35 Recycle into Treasure Cotton Growing: 50% Garment Production: 33% Garment 30% Production: 2011 Solid Waste: 774 ton 968 ton 35

36 Plan A Eco-Jeans Project Recycled cotton Less carbon emission Less water New design of sustainable packaging Green logistics 36

37 Sustainable Products (WITH CUSTOMERS) 37

38 Culture Building (INTERNAL & EXTERNAL) Environmental Website Environmental & Chemical Safety seminars (Employees, factories & suppliers) 38

39 Culture Building Posters 39

40 Green Culture 40

41 Tree Planting Sri Lanka China No. of trees planted: 1,045,408 Vietnam 41

42 Sustainable through Sharing 42

43 Sharing with Media 43

44 Low Carbon Manufacturing Program 44

45 Global Next 5-Year Targets ( ) Water by 10% Zero Landfill Carbon Footprint by 6% Energy by 5% Paper Consumption by 10% Renewable Energy by 5-10% Plant 1,000,000 Trees more More supplier collaboration 45

46 Our journey goes on The Environment Innovation Product Integrity Employee Care Community Engagement Create Shareholder Values 46