Market Trends for Chrome-free and eco- leather

Beverley ThorpeSeptember 30, 2009

Drivers for Cr-free leather

• Legislation: European Union’s Directive on End of Life Vehicles (2000)

• Consumer demand• Eco-labels and standards• green chemistry R&D• Auditing protocols

Why Chromium-free demand?

• CrVI is restricted and highly hazardous (carcinogen)

• CrIII used in tanning process could oxidise to CrVI through excessive neutralisation prior to dyeing or application of bleaching (oxidising agents) to create pale leathers.

• Chromium is persistent: it cannot be destroyed and will always be present in some form within the environment. Incineration, composting and gasification will not eliminate chromium; prevents eco-recycling of materials

Directive on End of Life Vehicles (2000)

Recycling quotas and design objectives Substances bans

Mandates hazardous material phase outs in new cars put on European market as of July 2003:

• Pb• Hg• Cd• Cr VI

…to improve design and production of new vehicles to facilitate their dismantling, reuse, recycling, and recovery

Clean Production Action - CAW/EPR

Auto shredder residue (ASR) is hazardous

• Mixture of plastics, fluids, rubber, glass, dirt, and metallic fines which makes it hazardous waste in many countries

• ASR is approx 25% of the car, almost all disposed to landfill

Lincoln's MKR concept car features "guilt-free" luxury (in the words of the manufacturer) such as chrome-free leather, an oak instrument panel made from recycled wood, mohair carpet, and soy-based seat foam.

Another significant low-emission accomplishment is the development of luxury chrome-free leather - designed to comply with the European Union end-of-life directive.

The market responds

The driver and passenger seats, thin in design with a focus on spinal support, are covered in Pearl chromium-free leather and trimmed with Leaf Green stitching, giving the interior a sporty and luxurious look.

Chrysler 200C EV Concept - February 25, 2009

In line with IUV's determination to care for the environment, it has also developed chrome-free tanned automotive leather, in the production of which the use of heavy metal salts has been eliminated. It is friendly to the users and can be disposed of in an environmentally safe manner.

IUV is also the first company to have entered and established itself in the car industry with high-quality pigskin leather…, Among IUV customers are some of the largest car producers, including AUDI.

AUTOMOTIVE PIGSKIN LEATHER FROM IUV

All Leather In All Volvo Car Interiors Chrome-Free For Allergy-Sufferers

In addition to benefiting those with chrome allergy, it also reduces environmental impact from the tanning process. All leather in Volvo car interiors also fulfills the requirements of Oeko Tex Standard 100.

GOTHENBURG, Sweden – January 21, 2009:

To alleviate for those who have chrome allergy, all leather used in Volvo car interiors has been treated in a chromium-free tanning process, using either natural or synthetic tanning materials.

for full substance list visit: /www.oeko-tex.com

Press Information05/08/2009

Textiles Tested for Harmful Substances and Produced Sustainably - Products from ready-to-wear clothing manufacturers in Asia to be first producers in Asia to be marked with Oeko-Tex® Standard 100plus

Chrome tanned leather cannot pass EN71 test which is also used for children’s (under 36 months old) footwear

Cr substitution research ongoing• Iron, Titanium or Zirconium salts can be substituted for

chromium (www.cprac.org published 2000)

– Observation: leather texture more stiff• Vegetable tannins can be used but slow down the tanning

process– Observation: ultrasonication and supercritical fluid

extraction may reduce impregnation time for alternative tanning agents Introduction to Green Chemistry, Albert Matlock. 2002

• Aldehyde tanning (wet white) widely used for automotive industry (no disposal problems of shavings and trimmings; less chemicals used; quality of the leather is improved…)

What about other chemicals in process and product?

• All chemicals in process should be screened for inherent hazards

• Substitution should be priority for any carcinogen, mutagen, reproductive toxic, persistent, bioaccumulative and toxic chemicals

• Pentachlorophenol? Tetrachloroethylene? Formaldehyde? Azo dyes? Nonyl phenol ethoxylates? Fungicides? Toluene? Xylene?

www.blcleathertech.com

Inputs for improved eco-profile Key elements in eco leather

Tannery Environmental Auditing Protocol for Gold/Silver/Bronze scoring – British Leather Technology Centre.

Oct 2008. www.blcleathertech.com

Tanners/suppliers involved• Asiatan• Industrija Usnja Vrhnika d d• ISA - Tan Tec Guangzhou, China• LeFarc SA de CV• Pieles Temola S.A. de C.V.• Perrin-Rostaing Tannery• PrimeAsia Leather Corporation• Sadesa SA• Shanghai Richina Leather Co. Ltd.• Simona Tanning Inc• Wolverine LeathersSuppliers:• BASF AG• Crest Leathers• E-Leather Ltd• Lanxess

Companies involved • Adidas-group• Chaco Inc• Clarks International• Ikea of Sweden• Levi Strauss & Co.• Marks & Spencer plc• New Balance Athletic Shoe, Inc.• NEXT Retail Ltd• Nike, Inc• Pentland Group plc• The North Face• The Timberland Company• Wolverine World Wide Inc

Competitive advantage• 25 audits have been undertaken since

2008 in the following countries:• Brazil• Dominican Republic• China• India• Mexico• Netherlands• Taiwan• Thailand• UK• USA• Vietnam

Cradle to cradle focus• More focus now on full supply

chain accountability and cradle to cradle scope ie. source of leather > processing > product > end of life

• Leather Working Group now assessing standards for sourcing of animals. Animal hides from deforested rainforests now an industry concern

Thank you for listening

Beverley ThorpeInternational Director

Clean Production ActionBev@cleanproduction.org

+1 514 933 4596www.cleanproduction.org