Supply Chain Reaction: Getting Clear on Chemicals...Implementation of ZDHC tools in the textile and...

Supply Chain Reaction: Getting Clear

on Chemicals

Speakers

Gina BurgardCR Manager – Aldi Nord

Julian WuChemical and Environmental Compliance Manager -G.Gueldenpfennig GmbH (GP)

Angela DanPrinting and Dyeing division ofRainbow Village China

Sandhya Sharma-TosseramsChemical Specialist - amfori

amfori BEPI Supply Chain Chemical Management Module

Visibility of and access to all locations in supply chains

All tools in one place

amfori BEPI

platform

Industry collaboration and alignment of tools and standards

CAPACITY

BUILDINGUNDERSTANDING IMPROVING

- Self-

assessments

- Training

- Audit

corrective

action plan

- Training

- Chemical

management

audits

- Effluent/sludge

testing

Implementation of ZDHC tools in the textile and footwear sector

Supply Chain Reaction: Getting Clear on Chemicals

amfori Workshop

12/06/2018

ALDI Einkauf GmbH & Co. oHG

Milestones

BUSINESS PRESENTATION

1914Opening of the very first store

1961Division of sales territories between ALDI North and ALDI SOUTH

2008ALDI joins the amfori BSCI

2017ALDI publishestheir first DetoxProgress Report

1970s:Textiles and footwearwithin the specials range

12/06/2018 ALDI Einkauf GmbH & Co. oHG

March 2015ALDI publishes itsDetox Commitment

2017ALDI joins theamfori BEPI

2018ALDI publishes theirsecond DetoxProgress Report

2017ALDI joinsECAP

2018Start of the ALDI TransparencyCode for Textiles

OUR APPROACH TO CHEMICAL MANAGEMENT IN THE TEXTILES AND FOOTWEAR SUPPLY CHAIN

For the purpose of navigating the implementation

of the Detox requirements, ALDI has developed a roadmap



Managing chemical inputs and outputs



Detox requirements in our supply chain

for textiles and footwear

12/06/2018

Since

2017/18

via BEPI

ALDI Einkauf GmbH & Co. oHG


Steps of our elimination strategy (2018-2020)


I Mapping and assessing our supply chain in the platform→ transparency

I Use of trainings offered (together with ZDHC academy)

I Joint development of practical implementation of CMAs (ALDI was part ofthe CMA pilot group)

▪ Alignment with ZDHC protocol as industry wide standard

▪ Use of synergies and cooperation with other amfori members

▪ Share audit results with other members and avoid double effort

I Use of one single platform for SC and EC activities in the future

AMFORI BEPI CHEMICAL MANAGEMENT AUDITS (CMAs)

Why did we choose amfori BEPI as our partner?


Thank you!


GP DETOX PERFORMANCE REVIEW 2017

Amfori Unleash Opportunity 2018, Amsterdam

presented by Julian Wu, 12.06.2018

GP CICertificate

ALDI DETOX REQUIREMENT AND GP TASKFORCEALDI Detox Commitment with Greenpeace

Supply Chain Transparency

STeP Certification Trial

ALDI CMA trial round

Detox Summit

Input Chemicals

BEPI

Detox Admin

GP CMAudit

Substitution

BEPI Admin

Lily

GourabTimo

Lucy

Monzil

Shorower

Kristina

Zero

Katharina

Regina

Julian Jet

2015 Q2 Q3 Q4 2016 Q2 Q3 Q4 2017 Q2 Q3 Q4 2018 Q2 Q3

BEPI CMA GP CMAudit 2.1

ALDI Chemical Management online Course

ALDI Detox Commitment +

Supplier Requirement 5.0

MILESTONES 2017

• Further Concentration of Supply Chain: China 1/2, Bangladesh 1/3,

• GP CMAudit Screening of Supply Chain completed

• Input Chemicals: Establishment of GP CICertificate Database (China, BD follows)

• GP CCAcademy: 10 mills completed, 10 mills under process

GP CMAudit: Gueldenpfennig Chemical Management Audit, an internal screening program, established in 2016, based on the following

7 major fields, chemical policy, chemical storage, chemicals supplier management, production control on chemicals use, chemical waste

management and chemical training.

GP CICertificate: Gueldenpfennig Chemical Inventory and Certificate, an internal chemical data mining project. In this project, we

collect all the relevant data of all input chemicals, and their (M)SDS and certificates. After verification of their validation, we record them

in our database and give every our factory a feedback, so then they keep building up their chemical data management.

GP CCAcademy: Gueldenpfennig Chemical Compliance Academy, provided by assigned service providers to give course in Chemical

Management , to accompany on-site improvement, and measure final achievement.

CONCENTRATION OF WET-PROCESS MILLS IN CHINA

1st Whitelist

at end of 2016

104

2nd Whitelist

at mid of 2017

70

3rd Whitelist

at end of 2017

49

CONCENTRATION OF WET-PROCESS MILLS IN BANGLADESH

1st Whitelist

at end of 2016

63

2nd Whitelist

at mid of 2017

45

3rd Whitelist

at end of 2017

42

22.06.2018 PLATZHALTER PRÄSENTATIONSTITEL

SEITE 17

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Detox Performance China 2017

8.4 (2016)8.7 (2015)

27.4% (2017) .

Detox W/S Average

7.6 (2017)

Average GP CMA


SEITE 18

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DETOX Performance Bangladesh 2017 Detox W/S AverageAverage GP CMA

18.5% (2017) .

3.6 (2015)3.7 (2016)3.8 (2017)

INPUT CHEMICALS AND CERTIFICATES CHINA

23

208

172

250

Chemical Data

Basic Chemicals

Certified Dyes & Aux

Blusign Sys Partner Chemicals

Not certified Dyes & Aux

24

17

8

Factories

Active (>20%)

Inactive (<20%)

No response

CHEMICAL MANAGEMENT CAPACITY BUILDING – SYSTAIN*

40%

47%

35%33%

35%33%

27%24% 23%

18%

14%

49% 48%

38%36% 36%

34%

28%25% 24%

20%17%

0%

10%

20%

30%

40%

50%

60%

Boron Weixing Xingmeida(adapted)

H&S Nanhua RainbowVillage

Bailiheng Taifu/Kailan Beihai Furun(adapted)

Damei(adapted)

CMA before CMA after

Improvement in average in GP CMA: 2%

Gueldenpfennig paid 50,000 €

SYSTAIN: is a consultation company based in Berlin and Hamburg, Germany. As a daughter company of OTTO GmbH & Co. KG, SYSTAIN is active in

Germany, offering consultation services in different fields such as social responsibility, Environmental and Resource Management, Climate and Energy.

CHEMICAL MANAGEMENT CAPACITY BUILDING - RUNNING

37% 34% 32% 30%

8%

0%

20%

40%

60%

Angel JiaHuang Huachang Yongxin Xiechao

CMA before

47%

36%

19% 17%11%

0%

10%

20%

30%

40%

50%

60%

Raiyan Knit CottonDyeing

GenerationNext

KC Wash Hameen

CMA after

GoBlu* in Bangladesch (Oct.2017 → Sep.2018)

Gueldenpfennig paid 25,000 €

MASINORY* in China (Oct. → Dec.2017)

MASINORY: is a consultation company based in Hong Kong, earlier as an internal consulter of HKGCC (Hong Kong General Chamber of Commerce);

recently is offering services in Chemical Management Academy for textile industry in China.

GoBlu: A Consultation company based in Germany and USA, together with external partners in developing countries, is offering services in Chemical

Management Academy for textile industries in most of the textile production countries in Asia.

BEPI – AN ACTIVE PARTNER FOR IMPLEMENTING SUPPLY

CHAIN SUSTAINABILITY

✓ GP actively implements chemical management tools offered within the framework of

amfori BEPI Supply Chain Chemical Management Module (SCCM) such as the ZDHC

CMA 2.0.

✓ GP participated in the Chemical Management Audit (CMA) pilot project group and has

nominated “Rainbow Village” to conduct a pilot CMA.

✓ GP continues to be an engaged amfori BEPI member within the chemicals related amfori

working groups, such as the project group on chemicals in Textiles and Footwear.

Together with ALDI, GP supports BEPI CMA and will roll out the CMA for all the active

manufacturers in the coming year to achieve a total transparency in Chemical Management.

THANK YOU VERY MUCH


SEITE 23

Chemical Management Practice in

Printing and Dyeing Division of Rainbow Village Group

by Angela Dan, 2018, Amsterdam

Company Profile

SHAOXING RAINBOW VILLAGE

KNITTNG AND TEXTILE CO., LTD

ZHEJIANG RAINBOW VILLGAE

PRINTING AND DYEING CO.,LTD

ZHEJIANG INQ

FASHION CO., LTD

Rainbow Village Group

Printing &

Dyeing

Knitting &

Textile

Fashion

Our Expertise

KNITTING

◆Circular knitted fabrics in multiple specs.

◆Annual output 7,000 tons.

Our Expertise

DYEING

◆Overflow high-temp. dyeing and jet dyeing

◆Functional finishings

◆Knitted and woven fabrics

◆Cotton, viscose, polyester and their blends

◆Energy and water-efficient machineries

◆Annual capacity 1.2 million tons

Our Expertise

PRINTING

◆Flat-mesh, round-mesh, digital one-press printings

◆Knitted and woven fabrics

◆Cotton, viscose, polyester and their blends

◆Pattern development and fashion design

◆Annual capacity 15 million meters

Our Clients

Chemical Management

PROCUREMENT

✓ Chemical: SDS, TDS and certificates for risk control

✓ Raw material: declaration of compliance with RSL, basically OEKO-Tex Standard 100

✓ Product: random check by both internal lab and third-party.

Challenge: The more control, the higher the price, the less competitive, if there is not an

effective mean to raise acknowledgement → reason why we align with BEPI

Chemical Management

(M)RSL CONTROL

✓ (M)RSL provided by customers are collected

✓ (M)SDS provided by chemical suppliers are collected

✓ Declaration of compliance is mandatory for each chemical supplier

✓ Well-known brands/bluesign system partners preferred: Dystar, Huntsman, Yorkshire,

Lonsen…

✓ Certificate of quality, positive list are required if available

✓ Chemical inventory is regularly updated and checked against (M)RSL

Chemical Management

CHEMICAL HANDLING

✓ Workers handling chemicals are trained according to risk level

✓ Chemical storage areas are segregated by solid/liquid, hazards and risks

✓ (M)SDS, warning signs, PPE instructions, emergency tools are provided on site

✓ Secondary containment and lifted floor are used to control spill and moisture

✓ Daily inspection checks implementation of rules

Chemical Management

Chemical Management

USAGE CONTROL

✓ Only authorized persons are permitted to enter chemical storage and dispensing areas

✓ High-risk chemicals are strictly controlled and segregated in isolated rooms

✓ Recipe sheet, requisition sheet, deliver sheet are used to control and record chemical flow

✓ All chemical related documents are kept for at least 1 year

✓ Related persons are regularly trained for updates of chemical inventory

✓ Chemical stock and inventory will be checked every month

Chemical Management

DISCHARGE CONTROL

✓ Wastewater discharge is strictly monitored by instruments connected to local EPA

✓ Chinese discharge standard for printing/dyeing industry GB4287 are fully met

✓ On-site ETP is upgraded for higher efficiency

✓ Off-site ETP secures the final discharge to environment

✓ Exhaust gas from machineries are also collected and “washed” with special equipment

Chemical Management

Chemical Management

WASTE CONTROL

◆ Sludge, package material, fabric, expired chemicals…are stored in respective areas.

◆ Sludge will be burnt by thermal power plant authorized by local EPA

◆ Other solid wastes are handled by qualified recyclers.

◆ If possible, reusable materials will be sent back to their suppliers

Chemical Management

QUALITY CONTROL

✓ Oeko-tex Standard 100 with Appendix 6 are fully adopted as EU clients required

✓ H&M quality system with certified laboratory was established

✓ Quality tests by third-party on daily basis

✓ Cooperation with consultants and training providers for EHS compliance

✓ Communication with chemical suppliers for (M)RSL compliance

Chemical Management

COMPLIANCE EFFORT

◆ Registered on BEPI platform as clients required

◆ Responsible persons attended external training programs for further development

◆ CMAs by clients and BEPI were conducted and and the respective corrective action plans are

being implemented accordingly:

✓ Automatic chemical dispensing system is under construction to reduce risks

✓ An upgraded ERP system will be online for more detailed chemical management

✓ ETP and exhaust gas purification are upgraded for higher legal requirements

THANK YOU VERY MUCH!

Thank You!

NOTICE: Pick Up Your General Assembly Voting

Device – From 12:45 Outside the Plenary

Supply Chain Reaction: Getting Clear on Chemicals...Implementation of ZDHC tools in the textile and...

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