Efficiency Improvements that Prevent Pollution and Save Money

Responsible Sourcing Initiative

Linda E. Greer, Ph.D.

About us:About us:

One of the largest and most effective environmental organizations in the United States

Founded in U.S. in 1970, launched in China since 1996 Offices in New York, Washington, Chicago, Los Angeles,

San Francisco and Beijing Staff of 400, highly trained environmental professionals in

science, engineering, and policy GOAL: Protect human health and environment from

dangers of pollution

About RSI:About RSI:

Use the social responsibility of multinational apparel retailers and brands and purchasing influence as leverage to reduce the impact of factories in their supply chain on environment in China

Accomplish this goal using carefully researched cost saving efficiency improvements that reduce environmental impact while saving money.

Start with low hanging fruit: cheap, easy, quick pay-back

Result: Dramatically improve environmental performance of factories in China with win-win approach good for business and the environment

http://www.eco-transport.com/uploads/image/benefits-photo.jpg

Worst performers by sector, Jiangsu, 2006

Others 9%

Commercial 3%

Plating 4%

Machinery 5%

Other Manufacturing

17%

Food 5%Metal 10% Power 2%

Construction material 4%

Chemical 26%

Textile 15%

Why Textiles?

Design of initiative: homework phase

Initial fact finding at more than a dozen fabric mills and dye houses

In-depth assessments in four selected dye houses with international expert

Identification of Ten Best Practices helpful to most mills

Expert review and comment

Real world trial at Red Bud dyeing mill in Jiangsu Province

Collaborators:

Ten Best Practices

Low hanging fruit improvement opportunities estimated to deliver:

• 25 percent reduction in total water use• 30 percent reduction in steam/coal use

• Money! Pay for themselves in less than 8 months

Ten Best Practices

Leak detection and prevention Insulation of equipment, pipes, valves,

flanges Maintain steam traps Recover heat from stacks (hot air) Recover heat from hot rinse water Screen coal , optimize boiler Optimize compressed air system Reuse condensate Reuse cooling water Reuse process water

Current Status

Assessing 15-20 mills in supply chain of brands actively cooperating in the program

Quick 1 to 1.5 day assessments by Reset Carbon All types of mills: woven, knit, yarn, denim Range in age of mills Range in size of mills

Goal: 12 or more showcase mills – documented case studies

NRDC 10 Best PracticesPlant/Type

Production

(tons/yr)

Age of Plant

Investment Costs

(RMB)

Savings

(RMB)

Payback

(months)

% Energy

Reduction

(steam)

% Elect. Reduction (kWh)

% Water Reductio

n(tons)

Fiber (A)6,684

2,003,000

3,190,286

8 24.2% 2.7% -

Fiber (B) 4,523 551,350 644,375 11 2.3% 5.3% 1%Fiber (C) 1,923 531,100 565,728 12 22.4% 15.4% 11%Fiber (D)

890 2010 757,0001,409,8

107 60.2% 1.3% -

Woven (E) 877 2010

1,100,399

771,595 18 43.4% 6.9% -

Fiber(F) 6,790 2006 445,100 752,158 7 5.8% 0.8% 10.5%Denim (G) 28,605 2011

1,468,000

1,531,000

12 6.1% 21.3% 3%

Knit (H)33,229

1,512,000

2,339,400

8 0.8% * 1.3% -

Denim (I)9,473 2005 935,000

1,622,700

7 12.0% 10.1% 32%

Denim (J)15,201 2010 849,000

2,408,000

5 9.4% 3.7% 2%

*Steam made at co-generation facility

What’s next

Complete showcase mills – assessment and implementation

Document real-world results Host technical workshops, promote awareness

For mills: they are busy with other things, they do not track or care much about resource use, buyers are not inquiring or insisting.

For retailers and brands: Many don’t know where their suppliers get their

fabric, do not develop relationships with dyeing mills

Supplier selection policies do not assess or reward environmental performance or continuous improvement

Yet progress is very slow

Are the Ten Best Practices are an elegant solution to a problem they don’t think they have??

Multinationals certainly have a problem

Urgent Need for Supply Chain Policies

Dyeing and finishing mills should be required to meet basic environmental standards to do business Meter water and energy usage data

They should be rewarded with preferred status for going beyond this minimum

They should submit data on resource use to verify performance, MNCs should spot-check

Buyers should develop direct business relationship with fabric mills and include environmental performance in score card for choosing vendors!

Thank you ! www.nrdc.org/cleanbydesign

USContact: Linda GreerE-mail: lgreer@nrdc.org

China Contact: 蔺梓馨 (Cindy Lin)E-mail: zlin@nrdc.org电话 : 010-58794079-7916