Brandix Environmental Strategy

Iresha SomarathnaHead of Energy and Environmental Management

We are Brandix

• Sri Lanka’s largest apparel exporter

• Employing over 25,000 Associates and generating indirect

employment to an equivalent number

• Supported by 27 manufacturing facilities in Sri Lanka and

strategically positioned international Sourcing Offices

• Providing over 50% of value addition locally through our

backward-linked operations in textiles, thread, buttons, and

hangers

“To be THE inspired solution for branded clothing”

• Motive for Brandix Climate Change Strategy

• Brandix initiatives towards Climate Change

Contents

Brandix Risk Assessment

Is climate changesignificant to Brandix customers?

Physical assets, and production processes

Turnover sustenance

Utilities and logistics

Level 3 Risk

Climate is not a high priority

Immediate threat based on current climate conditions?

Does the threat involve a long term investment or contract, a lengthy implementation period or substantial financial outlays involved in decision making to respond to the threat?

Level 2Risk

Build long term strategy

Is a high value at stake if a wrong decision is made?

Level 1Risk

Take action to assess risk in detail and respond

Y

Y

Y

Y

N

N

N

NRaw materials and supplies

Rationale for Environmental Strategy

• Brand Alliances: Align with Brands that will build brand leverage on Climate Change Strategy and differentiate against Competitive Landscape

• Compliance Requirements: Build a more prepared framework to address Carbon footprint disclosure requirements in the near future against Competitive Landscape

• Operational Efficiencies: Build a more competitive cost model against Competitive Landscape

Valu

e Cre

atio

n

Brand Alliances

2008 carbon footprint at Brandix 85, 252 MTC

Where we are now

• Greenhouse gas emissions for 1 USD of Revenue - 202 g

CO2e

Textile Processing 1.68 kg CO2e /m

Textile Printing 0.643 kg CO2e / m

Thread Processing 2.18 kg CO2e /kg

Textile Cutting 0.037 kg CO2e/m

Hangers 0.691 kg CO2e/kg

Button Manufacturing 0.002 kg CO2e/button

Garment Washing 0.326 kg CO2e/pcs

Garment Sewing 1.57 kg CO2e/SAH

Where we are now

We have pledged to reduce our Group-wide Carbon Footprint by 30% by 2012

2007 2012 20170

10000

20000

30000

40000

50000

60000

70000

80000

9000030% reduction from Green Initiatives

70% reduction from Renewable Energy Generation Source

Co2 E

quiv

alen

t MT

Brandix Target on Carbon Reduction

2008

• “A ‘green’ building places a high priority on health, environmental and resource conservation performance over its life-cycle.”

• Sustainability • Financial• Environmental

• Optimal use of resources• Energy• Land• Water & material

• The healthiest Work Place• Physical health• Psychological health • Improved safety

Brandix Green factory Concept

Janu

ary

Mar

chM

ay July

Septe

mbe

r

Novem

ber

Jan-

08

Mar

-08

May

-08

Jul-0

80

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

7,000

9,000

11,000

13,000

15,000

17,000

19,000Energy consumption

Electricity

Furnace Oil

Ele

ctri

city

\ (

kWh

)

Fu

rnac

e o

il /

(L

iter

s)

Before the Project After the project0

500

1000

1500

2000

2500

0

5

10

15

20

25

30

35

40

45

50

2076

422

32

8.4

15

0.5

Annual emissionsC

O2

emis

sio

ns

\ (

Met

ric

To

ns)

SO

2 &

NO

x \

(Met

ric

To

ns)

CO2

CO2

SO2

SO2

NOxNOx

Carbon Footprint 80%

Climate change impact

50%

• Impact on global warming

• Impact on acid rains• Reduction of particulate

matter• Optimal use of Energy

Waste

Zero Land filling

Rational use of water

Food waste for bio gas generation

Harvesting tank

Anaerobic

treatment

plant

tertiary filtration

Purification Plant

Rain water

Ground water

• Zero wastewater discharge

• Reduced water pollution

• In house water treatment

facility

• Ensuring quality of drinking

water

• Rainwater Harvesting

Rational use of water

LEED Baseline Current Consumption 0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

21,572,897

8,995,545

Annual water consumption

Wat

er c

on

sum

pti

on

/ (

m3)

Total water saving = 58 .3%

Non-green fac-tory

Green Factory0

20

40

60

80

100

120

140

160Land fill waste divertion

Total

Recycled

La

nd

fill

wa

ste

to

ns

/an

n

Divert from Landfill 99%

Divert from landfill 20%

• Zero landfill waste

• Reduced land & water

contamination

• Reduced hazardous emissions

• Reduced visual pollution

Impact from waste

Health & Comfort

Improving the working environment

Minimizing environment impact

Global Warming

Resources Chemicals

Security and safety

Comfort and convenience

Condition of health

Value for new work place

How it Improves Health Conditions ?

• Utilization of natural light

– Reduce eye stress

– Improved green views

• Asbestos, PCB (Poly Chlorinated Biphenyl) and Smoking free environment

– Prevent carcinogenic material– Lower incidence of asthma

• Isolated copying/printing room

How it Improves Comfort Level ?

• Improved indoor air quality– Controlling CO2, Temperature,

Humidity to set levels

• Improved ergonomics

• Extended pathways

• Indoor courtyards

• Improved sanitation

facilities

How it improves Security and Safety

• Access control system• High grade safety clothing & equipment• Isolated chemical mixing and storage area• Isolated waste collection area• Automated building management systems• Advance fire protection system

Our Green Achievements

The world’s first LEED Platinum rated Apparel Factory

• One of three nominees for the Energy Globe World Award in the ‘Air’ category

• Rated Platinum for Corporate Accountability

• National Cleaner Production Awards 2008, in recognition of environment friendly production practices – Gold & Silver awards

WHAT DOES IT DELIVER? COST OF INVESTMENT US$

US$ SAVING PER ANNUM

PAYBACK PERIOD YEARS/MONTHS

       Roof insulation

$ 3,300 N/A See belowRoof painting $ 24,500 N/A See belowPaving Blocks $ 48,300 N/A See belowSuper efficient Central air conditioning system

$ 780,300 N/A See belowTotal on AC $

856,400 $ 160,000

5 years 3 months

       LED lights at sewing points

$ 20,000 N/A See belowPrismatic (or high transmission) sky lights

$ 49,400 N/A See below

Windows $ 19,900 N/A See belowLow energy factory lighting system $

89,300 $ 41,000 2 years 2 months

       Boiler & steam distribution system $ 42,000 $ 46,000 10 months       BMS (Building Management System)

$ 60,000 N/A See below       

Total On Energy $ 1,047,700

$ 247,000 4 years 2 months

Financial Sustainability

WHAT DOES IT DELIVER? COST OF INVESTMENT US$

US$ SAVING PER ANNUM

PAYBACK PERIOD YEARS/MONTHS

Water recycled system (including rainwater harvesting) $ 64,600 $ 4,900 13 yearsWater efficient fixtures

$ 6,000 $ 1,300 5 yearsIndirect rainwater harvesting

$ 9,000 N/A N/A       Greenery area

$ 9,800 N/A N/AAlternative fuel vehicles $ 16,000 $ 1,200 13years 6 monthsBicycles

$ 7,000 $ 2,000 4yearsOn site renewable electricity generation - Wind mill $ 700 $ 300 2 years 10 months

       WASTE      

Waste Recycling schemes $ 2,900 $ 1,200 2 years 3 months

Bio gas system $ 5,000 $ 6,000 9 months

Waste Stream Audit $ 5,200 N/A N/AComposting             

Low mercury bulbs at QC and in Finishing $ 500 N/A N/A

Overall Total $ 1,195,700 $ 263,900 4 years 6 months

Thank You…