ENVIRONMENTAL SUSTAINABILITY
3 environmental product certifications 65% average consumption of solvents under 65% with respect to the limits set forth by law per sq.m. of leather in 2015 91% of waste sent for recycling +2% with respect to 2014 9799% purification efficiency of waste WATER for the main environmental parameters
ENVIRONMENTAL SUSTAINABILITY 39 Important environmental aspects of the tanning cycle Although the tanning industry continues to apply various typical artisanal processes, it has for many years assumed industrial characteristics. The transformation of raw hides is a process that requires the use of water, energy and chemicals and the environmental interactions associated with the process consist mainly of waste water, waste and atmospheric emissions. By subdividing Dani's tanning process into three main stages, the main environmental aspects may be identified: From raw hides to tanned leather: the raw hides may reach the tannery fresh (and in this case they are processed immediately) or salted to preserve the same. Bad preservation treatments may cause free ammonia and odours to develop; although these are not dangerous to health or the environment they do affect the quality of the surrounding air; in the early stages of leather processing and tanning, large quantities of water are used and the waste water has an impact on the parameters of waste water discharges such as the COD, suspended solids, chlorides, sulphates, organic nitrogen and chromium III. The waters undergo purification treatments at a central water conditioning plant where pollutants are reduced to values that do not entail risks for the environment. This treatment produces sludge which is currently taken to the disposal site. Fleshings, hair, leather trimming scraps and shaving powders are on the other hand sent for reuse (for example by the industrial, agricultural or breeding sectors); From tanner to crust: even the waste water from dyeing is sent to the water conditioning plant; the mechanical drying of skins entails low consumption of electrical and thermal energy;
40 From crust to finished leather: finishing, and in particular the application of products on the surface of the leather with compressed air spray guns, has an impact on the quality of atmospheric emissions, above all powders and volatile organic substances (VOS). All emissions caused by skin grinding and the spraying booths on the finishing lines, are discharged through filters and dust collectors, in order to ensure compliance with the limits set forth by law. REPORT ON SUSTAINABILITY 2015
ENVIRONMENTAL SUSTAINABILITY 41 Dani's environmental management and certifications All companies may play a fundamental role in improving conditions in their environment and, in a small way, act as driver for changes in the battle against global warming. It is precisely in this perspective that Dani intends to become: a point of reference in the tanning industry for the efficient use of natural resources and energy, the use of lowimpact chemicals, encouraging suppliers and customers to improve environmental operational practices, starting up research and development projects, transparent communications with local communities and the daily commitment of each and every employee. In order to strengthen this important objective and remind us every day of its importance, Dani has included the words sustainable leather in its logo, to demonstrate how it intends to do business and the approach of all its corporate activities. Dani is committed, therefore, to continuously controlling and monitoring its environmental performance in order to continuously improve the same. The environmental certifications obtained are a concrete example of this. In 2011 the Company obtained the Environmental Product Declaration (EPD), an internationally important voluntary certification system, that makes it possible to communicate objective, comparable and credible information on the main environmental impacts of the leather by examining the complete chain. 1 In the same year Dani obtained the Carbon Footprint of the Product (CFP) in accordance with ISO 14067 which quantifies the overall impact of leathers on global warming, in kg of equivalent
42 CO 2. This impact quantifies the greenhouse gases produced throughout the supply chain, starting from agriculture through to delivery of the finished leather to our customers. Der Blaue Engel is the prestigious German ecological label that certifies the high environmental performance of our leather and is awarded by the German Ministry for the Environment to products whose life cycle produces a low environmental impact. REPORT ON SUSTAINABILITY 2015
ENVIRONMENTAL SUSTAINABILITY 43 Raw materials, materials and products The most important inputs of a tannery are raw hides, chemical substances and water. Raw hides Chemical products Emissions into the air Transport Water consumption Treatment of waste and coproducts Use of packaging Electrical and thermal energy Wastewater treatment Dani processes leather from the slaughter of cattle for the production of meat for human consumption. Processing leathers from raw hides makes allows us to control all the processing stages and chemical products used, as a further guarantee of quality and health for our customers and the environment.
44 To transform leather from raw hides into finished leather the structure of the leather is modified, making it rotproof and giving to the leather the mechanical properties and appearance required. In tanning many different chemical products are added to the drums with water and the leathers, or even sprayed on the surface. As regards the specific question of water, please see page 55. Raw hides 36,800 t.* The chemical products purchased 1 by Dani amounted to (kg): chemical products 17,900 t.** 2015 consumption by Dani * 1,800 t. subcontracted ** source: information system QLink (Prochi2) 2013 15,439,000 2014 2015 18,072,000 17,904,000 Approximately 48% of the chemical products purchased in 2015 is classified as Not Dangerous according to the new CLP classification. (No comparison may be made with previous years when the old classification was still in force). The most dangerous chemicals are above all those in the class of irritants: the procedures used by Dani to manage hazardous chemicals are designed to avoid risks to people and the environment. Operators are trained on how to handle these risks and PPE are made available to the same to ensure their safety. The company is always prepared to improve the working conditions of its personnel. 1 Source: information system QLick (Prochi2) that provides data for chemical products purchased. Given that the difference with respect to the chemical product data used is <3% and that this system makes it possible to subdivide the data into different stages, we decided to use the purchase data REPORT ON SUSTAINABILITY 2015
ENVIRONMENTAL SUSTAINABILITY 45 For each kilogram of leather processed the following quantities of chemical products were used: U.M. 2013 2014 2015 Kg/kg of leather 0.46 0.49 0.49 The following table shows the number of kilograms of chemical products used per functional unit 2 (sq.m.) of average leather processed by Dani in the three year period 3: U.M. 2013 2014 2015 kg of chemical products/sq.m. 3.04 3.42 3.40 2 The functional unit is a measure of the functional performance of the product system. The main scope of the functional unit is to provide a reference to which to link the flows, so that it must therefore be defined and measurable. The functional unit is represented by 1 sq.m. of an average piece of finished leather. 3 The calculation was carried out as follows: A calculation of the total consumption of chemical products for each macrophase (from raw hide to tanned leather, from tanned leather to crust leather, from crust leather to finished leather) B calculation of the total weight of the leather processed in each macrophase C calculation of the quantity of chemicals used per kg of leather processed in each macrophase D allocation of the correct amount of chemical product for the quantity of product defined by the different allocation coefficients of each macrophase starting from the assumption that: 1 sq.m. of finished leather weights 1 kg. This assumption may be used to calculate the different allocation coefficients of Dani leather in the other macrophases as shown by the following table: Macrophase Average weight of 1 hide (kg) Functional unit (kg/sq.m.) From raw to tanned 37 7.4 From tanner to crust 7 1.4 From crust to finished leather 5 1
46 Energy Dani mainly uses electrical energy, natural gas and diesel. Electricity is used to run machinery and equipment, while natural gas is used to reach the required processing temperatures in some stages of processing (for example liming drums, tanning, dyeing and dying) and in the workplace. Diesel is used for forklifts and mechanical claws. The tanning industry is not on the whole a high energy consumption industry. Energy consumption by year and type is as follows: Energy consumption (GJ) 3 2013 2014 2015 GJ GJ GJ Diesel used 3,969 (91,559 kg) 4,051 (93,491 kg) 3,956 (91,375 kg) Electricity used 45,194 (12,553,888 kwh) 46,683 (12,967,500 kwh) 47,852 (13,292,246 kwh) natural gas 135,342 (3,469.418 cu.m.) 123,615 (3,168.802 cu.m.) 144,451 (3,702.930 cu.m.) Total energy consumption 184,505 174,349 196,259 The total electrical energy consumption, per kilogram of leather processed was: U.M. 2013 2014 2015 Kwh/kg 0.37 0.35 0.36 REPORT ON SUSTAINABILITY 2015
ENVIRONMENTAL SUSTAINABILITY 47 Electricity consumption by functional unit in three years is as follows: U.M. 2013 2014 2015 Total Kwh/sq.m. 2.28 2.36 2.47 The increase in the last stage of the production cycle is due to the slight drop in production, on a par with electrical energy consumption. The total natural gas consumption, per kilogram of leather processed was: U.M. 2013 2014 2015 total cu.m./kg 0.103 0.088 0.101 Natural gas consumption by functional unit in three years is as follows: U.M. 2013 2014 2015 total cu.m./sq. m 0.65 0.59 0.68 The increase in consumption is caused by the loss of efficiency after the outage of the cogeneration plant. Dani owns a thermal power plant with two industrial boilers for the production of heat at HSF division, the Automotive Division and Quinta Strada. During combustion the boilers emit Nitrogen Oxides (NOx) and Sulphur Oxides (SOx), as well as carbon dioxide (CO 2). The Automotive Division is also equipped with: A cogenerator; A system for the recovery of heat from the compressors These systems reduce the use of the boilers and, consequently, reduce the emissions into the atmosphere.
48 Activities for energy saving In the years taken into account by this report Dani started to introduce energy saving solutions: Area Situation in 2012 Activity * for the total gas consumption in a year by Dani ** for electricity consumption ATTAINED ATTAINED PLANNED ESTIMATED AS TO 31.12.2014 AS TO 31.12.2015 AS TO 31.12.2017 ENERGY SAVED COMPRESSORS 9 Compressors with inverter Inverts on the main compressor Recovery of heat from the compressors 2 1 Installation on 4 Feasibility analysis at Quinta Strada 3040 % 10% 2%* DRUMS 55 Inverter on the vats Highefficiency motors 20 24 5 3% 35 % LIGHTING 100% STANDARD LAMPS Leds in the departments and offices 5% of the total 15% of the total 3040 % of the total 5070% FORKLIFTS 40 Replacement of diesel forklifts with electric forklifts or in any case forklifts with lowenvironmental impact 3 10 20 40% FINISHING 18 BOOTHS Installation of lowpressure guns 4 6 510% HEAT Planning the installation of the cogeneration plant at the automotive factory Planning the installation of the cogeneration plant at the Quinta strada factory Installation Installation 40%** 40%** MANAGEMENT Implementation of an energy management system (iso 5001) Completion 20% REPORT ON SUSTAINABILITY 2015
ENVIRONMENTAL SUSTAINABILITY 49 Emissions The main parameters that affect air quality and are typical of tanning processes are Volatile Organic Solvents (VOS), powders and hydrogen sulphide. Emissions into the atmosphere, which are conveyed outside the tannery by suction systems equipped with dust collectors, are produced in different stages of the process, both in the drums and during the finishing treatments. Dani periodically monitors emissions as set forth by law, with checks carried out by an external accredited laboratory. The tests carried out on the chimneys and the solvent declarations are sent to Vicenza Province every year. 48 tests were carried out on the chimneys in 2015, as set forth by law. The tests were subdivided as follows: 30 dust analysis 14 4 hydrogen sulphide test nitrogen oxide test
50 The solvent declaration indicates the number of grams of solvent used per square metre of leather: 2012 2013 2014 2015 HSF Division (limit set forth by law: 75 g/sq.m.) g/sq.m. Absolute value (kg) g/sq.m. Absolute value (kg) g/sq.m. Absolute value (kg) g/sq.m. Absolute value (kg) 32.10 66,850 29. 5 76,255 27.5 62,288 30.2 72,476 It should be noted that the emission factor decreased from 2012 to 2014 (14.3%), while it increased in 2015 due to a significant difference in the type of leathers produced. 2012 2013 2014 2015 Automotive Division (limit set forth by law: 75 g/sq.m.) g/sq.m. Absolute value (kg) g/sq.m. Absolute value (kg) g/sq.m. Absolute value (kg) g/sq.m. Absolute value (kg) 17.7 37,192 17.6 53,042 18.3 54,615 22.7 61,115 It should be noted that the absolute value of the solvent emitted varies according to the performance of production and the type of leathers processed For the factory at Quinta Strada 20, no solvents Declaration is submitted since this factory does not have a finishing department. This report gives a comparison of the years 201320142015; taking into account the years 201020112012 however, the decrease in the use of solvents is even greater decrease from year to year in the Home Style and Fashion Division. This is due to an important REPORT ON SUSTAINABILITY 2015
ENVIRONMENTAL SUSTAINABILITY 51 project which was started in 2011 and ended in 2012 with the Der Blaue Engel certification for furnishing leathers: Solvent (g/sq.m.) 42 31.5 21 10.5 0 2010 2012 2014 Total solvent (g/sq.m.) Der Blaue Engel is the prestigious German ecological label that certifies the high environmental performance of our leather and is awarded by the German Ministry for the Environment to products whose life cycle produces a low environmental impact. The parameters evaluated refer to the contents of harmful substances, the emission of pollutants, the use of raw materials and water in accordance with preestablished quantitative limits. Der Blaue Engel is issued only for products that fall within specific limits well below those set forth by law. Most of our pigmented items for the furnishing industry (produced by the HSF division) comply with these requirements and are therefore authentic models of lowenvironmental impact products.
52 As regards the quantification of environmental impacts produced by Dani, two certifications were obtained recently: Carbon Footprint 4 Project HSF Division Ours was the first tannery in the world to obtain this certification; the CFP is a quantification of the overall impact of a product on global warming, expressed in grams of equivalent CO 2 per unit of product considered. The calculation is carried out as set forth by ISO TS 14067 standards, and represents the sum of greenhouse gases (GHG) emitted during the entire life cycle of a particular product or service. 1 Results To produce 1 sq.m. of finished bovine leather, 45.52 kg of CO 2 eq are emitted, subdivided as follows: Finished bovine leather (1 sq.m.) Upstream Core Agriculture Breeding Slaughter Transport Production Total GREENHOUSE EFFECTGWP 100 (kg CO 2 eq.) 40.92 4.60 45.52 % 89.9% 10.1% 100% The activities with the greatest impact with respect to the different stages of the life cycle of the product are the following: UPSTREAM: cattle breeding, in particular emissions of the animals and the use of manure and nitrogen fertilizers. CORE: natural gas consumption during production, transportation of raw hides, packaging and some chemicals. 4 2014 data REPORT ON SUSTAINABILITY 2015
ENVIRONMENTAL SUSTAINABILITY 53 Environmental Product Declaration 5 Project HSF Division The EPD is a process, structured in accordance with ISO 14025, which quantities the environmental impacts of a product through categories of parameters calculated in an LCA study. The impact categories analysed are the greenhouse effect, acidification, photochemical smog formation, eutrophication and destruction of the ozone layer. The EPD for the finished leather product is carried out in accordance with the provisions of the PCR (Product Category Requirement) Finished bovine Leather ; the PCR are substantially guidelines specifically created to ensure that LCA studies are compatible with the EPD. Our Environmental Product Declaration may be downloaded from the website: www.environdec.com Results The following table shows the environmental impacts relevant to the production of 1 sq.m. of finished leather by Dani, subdivided by upstream (agriculture and bovine breeding), core (tanning cycle), downstream (transport to customers): Finished bovine leather (1 sq.m.) Upstream Core Downstream Impact categories Total Production of raw materials Leather production/ Transports Distribution of finished leather GREENHOUSE EFFECTGWP 100 (kg CO 2 eq.) ACIDIFICATION (g SO 2 eq.) REDUCTION OF THE OZONE LAYER (mg CFC11 eq.) PHOTOCHEMICAL SMOG (g C 2 H 4 eq.) EUTROPHICATION (g PO 43 eq.) 45.27 38.50 4.56 2.21 772.09 746.64 15.66 9.79 1.41 0.36 0.66 0.40 7.63 6.53 0.73 0.36 322.25 317.07 3.57 1.61 5 2014 data
54 Taking into account the energy sources used and consumption for the year, the carbon footprint of DANI may be calculated in terms of equivalent CO 2 : Calculation of emissions of equivalent CO 2 (tons CO 2 eq.) 2013 2014 2015 Direct emissions* Emissions from diesel consumption 0.3 0.3 0.3 Emissions from natural gas consumption 6,790 6,201 7,246 Indirect emissions** Emissions from electricity consumption 4,837 4,996 5,121 Total 11,627 11,198 12,368 * Direct emissions (scope 1) are produced by the plants and machinery of the company, such as the heating systems (natural gas consumption), and forklifts (diesel). ** Indirect emissions (scope 2) are produced by the energy consumption of all the factories. Dani intends to further perfect the calculation of emissions, taking into account other emission factors. REPORT ON SUSTAINABILITY 2015
ENVIRONMENTAL SUSTAINABILITY 55 Management of water resources Consumption and water purification are the most important environmental aspects of a tannery. Leather is indeed processed through a number of different stages carried out in water (liming, tanning and dyeing drums). The Dani tannery is connected with the water conditioning plant Acque del Chiampo S.p.A., which supplies and treats water and provides through its website www.acquedelchiampospa.it details of consumption and concentration of pollutants in realtime. For each kilogram of leather processed the following quantities of water were used: 22.1 cu.m./t. in 2013 21.5 cu.m./t. in 2014 21.9 cu.m./t. in 2015
56 Water consumption by functional unit in three years is as follows: U.M. 2013 2014 2015 total cu.m./sq. m 0.15 0.15 0.15 All waste water undergoes an initial screening treatment on the company's premises before reaching the water conditioning plant. Approximately 9.9% of the water treated at the water conditioning plant in 2015 come from Dani (773,725 cubic meters of the 7,796,982 cu.m. treated). The concentrations of pollutants at the sewer of the water conditioning plan and the limits that the water conditioning plant must comply with are as follows: Average concentration of pollutants of Acque del Chiampo 2014 parameter (mg/l) Limits set forth by law (mg/l) Suspended solids 13 35 COD (Chemical oxygen demand) 105 150 Chlorides 1,362 1,830 Sulphates 1,196 1,530 Chromium III 0.37 0.70 REPORT ON SUSTAINABILITY 2014 2015
ENVIRONMENTAL SUSTAINABILITY 57 The water conditioning plant treats waste water and handles the disposal of sludge from the water conditioning process. In 2014, the water conditioning plant guaranteed the following abatement percentages: 99% Suspended solids 96.6% Filtered COD 97.3% Total nitrogen 99% Chromium III
58 Management of waste and byproducts The main waste products of a leather tannery are leather residues that cannot be used for the finished product scrapped during processing. According to the production cycle, various kinds of waste used for different purposes will be produced. Leather also produces large quantities of byproducts that are recovered by other industries (food, fertilizers etc.) such as fleshings and shavings. The tables below show the quantities of waste produced in 2013 20142015, their final uses and the percentage of hazardous waste. Kg 2013 % 2014 % 2015 % Disposed of waste 842,780 11% 860,660 11% 718,536 9% Recycled waste 7,023,613 89% 7,118,268 89% 7,216,616 91% Total waste 7,866,393 100% 7,978,928 100% 7,935,152 100% hazardous 17,248 0.21% 14,149 0.17% 9,701 0.12% As can be seen the % of recycled waste continues to be high and stable while there is a decrease in the production of hazardous waste. The waste produced is shown by square metre of finished leather produced during the three years: U.M. 2013 2014 2015 Kg of waste/sq.m. 1.30 1.55 1.54 REPORT ON SUSTAINABILITY 2015
ENVIRONMENTAL SUSTAINABILITY 59 61% of the waste consists of tanned leather (scraps, residue, cuttings, shaving dust), 13% of salt, 8% of sludge Solvents are the main hazardous waste The table shows the quantity of byproducts obtained in 2013 20142015 and the same figure compared to the number of tons of raw hides processed: Kg 2013 2014 2015 Byproducts 14,718,868 16,834,300 16,062,471 Kg/t. soaked hides 437 457 437 During waste management there were no spills or contamination of the environment. In 2015 Dani incurred costs of approximately 3,571,760 for the treatment and disposal of waste.