Overview of the Chemicals Management Working Group and Chemicals Management...

Overview of the Chemicals Management Working Group

and Chemicals Management Module

Ethical Sourcing Forum

New York City

March 27-28, 2014

Today’s Objectives

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INFORM webinar attendees about the Chemicals Management Working Group and Chemicals Management Module

ENCOURAGE REVIEW of the Chemicals Management Module towards broad adoption and integration

ANSWER QUESTIONS attendees may have about the CMM

PROVIDE AN OVERVIEW of a functional chemical management program

CMWG Mission

The mission of the CMWG is to drive continuous

improvement and innovation in chemicals

management practices, to accelerate the

development and use of Sustainable Chemistry.

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CMWG Vision/Envisioned Future

Statement

We envision and strive to create a world in which all

consumer products are produced using Sustainable

Chemistry practices, ultimately using inherently safer

chemicals and reducing or eliminating hazardous

chemicals, in order to preserve human health and a clean

environment.

This includes…

1. KNOWLEDGE

2. INTEGRATION

3. COMMUNITY OF PRACTICE

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Chemicals Management Community of Practice

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1. Created to strengthen the Sustainable Apparel Coalition (SAC) Higg Index. Work to develop chemicals management indicators was identified as part of the early OIA Eco Index (precursor to Higg Index) development. Purpose has always been to improve the Higg Index chemicals management “lens.”

2. Developed based on existing source frameworks, including ZDHC Roadmap, BizNGO Guide to Safer Chemicals, etc.

3. Designed to assess the maturity of a chemicals management system and guide improvements– objectives, indicators and stakeholders are interconnected. It is NOT “another chemicals management system:” it identifies desired outcomes, NOT actions taken to achieve the outcomes or procedures involved in the actions.

4. Intended to be flexible: Does not replace, prescribe or endorse any 3rd party tool(s) or service(s). Focus is on the WHAT to do, not necessarily HOW to do it (but guidance included).

5. Will evolve over time. CMM has been through a well-vetted development process and the Version 1 tool was formally launched along with the Higg 2.0 launch in December 2013. It will continue to improve over time with user feedback.

6. Designed for global applicability. The CMM was developed with input from stakeholders around the world, and is intended to be used worldwide (just like the Higg Index.)

7. Not an “OIA tool.” While OIA has been funding and administratively supporting the CMWG, from day one, the group was founded as a joint effort between OIA and SAC members. The CMM was developed and pilot tested by a wide range of companies, some from the outdoor industry, and many not. (Overview of participating companies in a later slide.)

Key facts about the CMM

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How it was created?

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Mark Rossi, Clean Production Action

Bob Buck, DuPont

Libby Sommer, U.S. Environmental Protection Agency

James Ewell, GreenBlue

Tommy Thompson, HANESbrands Inc.

Greg Scott, Mountain Equipment Co-op

Scott Echols, Nike

Chemicals Management Module Structure

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Process &

Product

Chemicals

Knowledge

Regulatory

Awareness &

Compliance

Chemical

Hazard

Assessment (low, med, high)

Safer

Alternatives

Assessment &

Preferred

Substances

Sustainable

Chemistry

Innovation &

Continuous

Improvement

Chemical

Safety & Risk

Management

know assess decide

manage

substitute

keep

innovate

insufficient

data?

regular

re-evaluation

Restricted

Substances/

Substances

of Concern

Preferred

Substances

List

Restricted

Substances

List

Substances

of Concern

List

Outputs Primary Objectives

CMM

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The Primary Objectives

CM 1.0 – Regulatory Awareness and Compliance

CM 2.0 – Restricted Substances/Substances of Concern

CM 3.0 – Process and Products Chemical Knowledge

CM 4.0 – Chemical Hazard Assessment

CM 5.0 – Chemical Safety and Risk Management

CM 6.0 – Safer Alternatives Assessment and Preferred Substances

CM 7.0 – Sustainable Chemical Innovation and Continuous Improvement

CMM Content

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2 1

CMM Web Tool

11 http://www.outdoorindustry.org/responsibility/chemicals/cmpilot.html

Environmental Design Tool /

Materials Sustainability Index

Higg Index

OIA Eco Index

3 Higg Index Modules: Brand Module

Product Module

Facilities Module

Global Social Compliance Program (GSCP)

Environmental Facilities Assessment

Level 1

Level 2

Level 3

The Higg Index: Representing a Product’s Sustainability Impact

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Facility

Do the facilities involved in making the garment have programs/policies to measure, track, and reduce their environmental impacts (water use, wastewater, energy, air emissions, waste, chemicals, etc.)? Brand

Product

What are the impacts of the materials used?

How efficient is the manufacturing process (i.e. marker efficiency)?

What happens to the product at end-of-life?

Is the brand aware of its product’s impacts?

Is it creating a platform of policies/programs that support reduced impacts?

Materials Packaging Manufact-

uring Transport

Use & Service

End of Life

Indicators in Brand (General Brand) and Facilities (Section 7) Modules

First question in both modules is UNSCORED for 2.0 – to allow further testing/refinement of the CMM:

Has this brand/facility assessed its chemicals management performance using the Chemicals Management Module “Supplier” indicators? • What was the score from your most recent completed assessment? • Please upload your most recent completed assessment

Additional option for both brands and facilities to score on a sub-set of additional high-priority indicators if full set of chemicals management indicators (“Chemicals Management Module”) not completed. This allows brands/facilities to get started with less complexity, but still allows for a more comprehensive assessment if desired.

Brand Module – 8 indicators

Facility Module – 9 indicators

Integration of CMM into Higg Index 2.0 (Dec. 2013 release)

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CMM next steps

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2014: • CMM integration/adoption - including education/training curriculum • Development of CMM guidance/”know-how,” including resources matrix • Translation of CMM into key languages • Exploration of updated web-based format for CMM • Partnership with Zero Discharge of Hazardous Chemicals (ZDHC) brands,

including integration of CMM as structure for several key ZDHC work streams

The Apparel Universe

Apparel companies have limited chemical

expertise on staff

Few apparel facilities have trained

environmental professionals

Often chemical suppliers are blending houses

with limited technical resources themselves

Many apparel factories rely on chemical supplier

expertise

Published technical chemical data is limited

Chemical data sheets are grossly ineffective

Industry economics

Major Challenges

1. Global Supply Chains

2. Language Barriers

3. Cultural and Legal Differences

4. Chemical Supplier Expertise

5. Unknown Feed Stocks

6. Chemical Confidentiality

7. Regulatory Explosion

8. Finished Goods Analy$i$

9. Definition of Green Chemistry

10.Product Certifications

11.Green Washing

HBI REQUIREMENTS

Tools Towards Success

Hanesbrands Inc. The HBI Chemical Management System

Chemical suppliers

–Must provide adequate chemical ingredient and regulatory information

–Confidentiality Agreements to Protect IP

–Voluntary Product Environmental Profile

Fabric and Textile Suppliers

–Under contract agree to comply with HBI chemical management programs

–May be required to provide chemical information for certain products

–On-site chemical audits to verify compliance

The Hanesbrands Inc. The HBI Chemical Management System

All chemicals require dual environmental and safety approval prior to purchase

Combined chemical data and global regulatory database

Implement at the R & D/PD stage – Top of Production

HBI Chemical Environmental Data forms

VPEP

Contract language with fabric and textile suppliers requires compliance with the HBI chemical restrictions/bans

Chemical Audits

Minimized Product Testing

Third Party

Chemical Certifications

Establish a Company

Management System

Starting Your Chemical Management Program

Management Support

Documented System (OIA Chemical Framework)

– Internal Manufacturing

–Sourcing

RSL(s)

MSDS’s and VPEP’s

Cross Reference MSDS’s and VPEP’s with RSL’s

Take Action on Any Chemicals of Concern

Chemical Management

Program

Company RSL Developed (1991)

Electronic Database with US Regulatory Applicability Embedded (1990)

Internal Tracking of Applicable Global Regulations (1990)

ALL Chemicals and Ingredients Populated in Database (1992)

HBI Chemical Environmental Data Form (2002)

Finished Goods Agreement (2005)

Executive Champion- 1990

Third Party Global Chemical Regulatory Reference Tool (2002)

Initiated Audits of Textile Mills in Supply Chain (1995)

Chemical Approval Requirement for Corporation (1991)

Accessories, Fabrics Agreement (2007)

+97% Supply Chain Audited – 2012

2008 – Chemical Audits of Sourcing Textile Mills

Partnered with Chemical Suppliers (1991)

2016 – Audit Tier II

Hanesbrands Inc

Q & A

Thank You!

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Link to Chemicals Management Module web tool and guidance:

http://www.outdoorindustry.org/responsibility/chemicals/cmpilot.html