Are you doing the right thing ?

6/20/20172

Fashion Industry : Doing the right thing ?

TÜV Rheinland : Our threads to Fashion Industry1

Impact & Challenges2

Development Path & Sustainability Initiatives3

The Right Thing4

Our history : Gathering the threads

6/20/20173

Published Sustainability report as per GRI

Our Motivation : Weaving a safe future

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We continuously strive to ensure the safety, quality, and economic efficiency of the interaction between People, technology and the environment. This philosophy is embodied in our triangular logo.

Environment

People

Technology

We are committed to the principles of the UN Global Compact. a) Human rightsb) Labor standards c) Environmental protectiond) Fighting corruption

Basis of Assurance Approach

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Assurance Services

Requirements

Regulatory Requirements

NGO Recommendations Industry Standards

OECD Guidance

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Fashion Industry : Doing the right thing ?

TÜV Rheinland : Our threads to Fashion Industry1

Impact & Challenges2

Development Path & Sustainability Initiatives3

The Right Thing4

Fashion Industry : Impact

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Image Source : Danish Fashion Institute

Fashion Industry in numbers : Powerful

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ü Value of garment, textile, footwear, and luxury goods industry worth an estimated $ 2.4 trillion

ü Around 80 billion garments are produced every year – the equivalent of just over 11 garments a year for every person on the planet.

ü The bulk of production remains in least developed or developing countries in Asia, although the production market in some non-Asian developing countries is growing: e.g. Panama, Chile, Tunisia, Egypt. This industry has served as ‘a stepping stone to development’ in most countries.

üAs per ILO, about 60 million to 75 million people are employed in the textile, clothing, and footwear sector worldwide.

Fashion Industry : Scope

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Textile Supply chain web : Complex

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Image Source : REI

X

Challenges

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ü Fashion is one of the most polluting industries in the world, number 2 in terms of its environmental impact (after oil), and number 2 polluter of clean water (after agriculture).

ü Approximately 28 billion kilograms of textiles are dyed per annum in the apparel industry using over 5 trillion liters of water (2 million Olympic sized swimming pools!).

ü According to the World Bank and illustrated by ChinaWaterRisk, 17 to 20 percent of industrial water pollution comes from textile dyeing and treatment.

ü Clothing items from containing hazardous chemicals, some of which break down to form hormone-disrupting and even cancer-causing chemicals when released into waterways around the world.

ü Human rights and labor abuses prevalent throughout the supply chain.

ü Around 350k tons of clothing goes to landfills in UK alone.

ü Contribution to micro-plastic pollution in the oceans

Risks

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Source : OECD Due Diligence Guidance

Opportunities

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Sound Management of Chemicals

Responsible Social/Labor Practice

Sustainable Raw materialsIndustry + Stakeholder engagement

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Fashion Industry : Doing the right thing ?

TÜV Rheinland : Our threads to Fashion Industry1

Impact & Challenges2

Development Path & Sustainability Initiatives3

The Right Thing4

Flashback : How we got here ?

6/20/201715

1856

1941

1956

1960

1970/80

1990/2000

2010

Synthetic Dyemauveine

Polyester

Prof Ian RatteeReactive Dye

Finishing

Move to AsiaGrowth by 300%

RSLsSocial/Animal Welfare

MRSL, Upstream Supply Network

Reporting/Compliance

https://en.wikipedia.org/wiki/Textile_industryhttp://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_008075/lang--en/index.htmSDC , Nimkartek

Industry Initiatives

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Partial ListSource : OIA

Retailers with similar programs : Aldi, Lidl, Rewe

Capacity & Capability Building Programs

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§ GIZ – German technical cooperation: Practical Chemical Management Toolkit

§ UNEP – United Nations Environment Programme: Resource Kit, Toolkit for Identification and Quantification of Mercury Releases;

§ baua - German Federal Institute for Occupational Safety and Health: EMKG (Easy-to-use workplace control scheme for hazardous substances)

§ UNIDO, DANIDA, World Bank, FAO, WHO, ILO, ….

6/20/201718

Fashion Industry : Doing the right thing ?

TÜV Rheinland : Our threads to Fashion Industry1

Impact & Challenges2

Development Path & Sustainability Initiatives3

The Right Thing4

Due Diligence guidance

6/20/201719

7 Habits for Responsible Fashion Industry

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* HSE, Training, Collaboration, Materiality

* Goal, Commitments

* Engagement, Training

* Industry Collaboration

* NGO participation

* Inclusion & Strengthening

* Further researchReference : 7Habits of Dr Stephen Covey

The Path to Peak-Sustainability

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Product RSL checks as per Regulations

Training,Supplier Environmental Audit as per SAC Higg Index,

MRSL compliance for input chemical inventory

Waste Water Monitoring for Hazardous substances

Elimination of potential HS, Water efficiency program, Circular economy principles,Microfibre assessment

L0

L1

L2

L3

L4

Reference : Vaude

The Sustainability Goal : Converting Logic to Magic

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§ How you make it

§ Creating future opportunity

§ More good

§ A billion dollar opportunity

§ The smart thing to do

§ Where you spend money

§ Managing Past Impact

§ Less Bad

§ Philanthropy

§ The right thing to do

Reference : Futerra

The Formula

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DETOXed & Responsible Supply Chain =

OECD Due-Diligence Guidance X {

ZDHC (MRSL, Training, and Waste-Water monitoring)+ SAC Higg Index (Environment + Social)+ IPE (Waste-water reporting + Audit Report + Corrective Action) + OIA CMWG (Continuous Improvement)

+ Circular Economy principles (Durability, Recyclability, Reparability)

+ Microfiber assessment & remediation

}

Do the right thing!

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TÜV Rheinland Vietnam

Head OfficeUnit 805 - 806, CentrePoint Building, 106 Nguyen Van Troi, Ward 8, Phu Nhuan District, HCMCTel. +84 28 3842 0600 Fax +84 28 3842 0660 Email: info@vn.tuv.com

Softlines and Hardlines LaboratoriesBlock No. 10, Street No. 4, Quang Trung Software City, Tan Chanh Hiep Ward, District 12, HCMCTel. +84 28 3715 4025 Fax +84 28 3715 4028

Electromagnetic Compatibility (EMC) LaboratoryPlot H-1, RF-7E, Thang Long Industrial Park II, My Hao District, Hung Yen ProvinceTel. +84 221 3974 560 Fax +84 221 3974 559

Representative OfficeSuite 1007, Dao Duy Anh Tower, 9 Dao Duy Anh, Dong Da District, HanoiTel. +84 24 3574 6811 Fax +84 24 3574 7392

www.tuv.com