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BRUSSELS RULES OK
ETHICAL TRADE THE WiMAX GAMBLE
CONSUMER COMPACTTHE QUARTERLY CONSUMER PRODUCT PUBLICATION THAT KEEPS YOU INFORMED
JANUARY 2008, VOL. III ISSUE 4
IN THIS ISSUE
European environmental and safety rules conceived in Brussels are increasingly becoming Asian standards in the factories that churn out the consumer products that we all buy, wherever we live on the planet. How the EU is becoming the world’s chief regulator is our lead story in the latest edition of Consumer Compact.
Consumer Compact continues to bring you a broad offering of features about the consumer product industries. This includes new technologies such as WiMAX, positive buying initiatives by the ETI and the growth of sustainable textiles.
There is also a lot going in within the ever-expanding network of SGS. ‘SGS in the News’ is full of stories of excit-ing new developments.
FOR ENQUIRIES
Achmad IrfanGlobal Marketing & Communication Assistant
T + 62 (0)21 781 81 11 F + 62 (0)21 780 05 [email protected] www.sgs.com/ConsumerSubscribe
DIRECTOR OF PUBLICATION :Frankie NgEDITOR IN CHIEF :Paul KanwarEDITORIAL TEAM :Achmad IrfanDimas Abdul Kadir
EDITORIAL P. 2
EDITORIAL
THE EU SETS THE STANDARD
When I toured factories in Shenzhen in 2006 it was not uncommon to see two versions of the same product rolling down production lines. One, for EU markets was lead-free, in compliance with the Restriction on Hazardous Substances (RoHS). The other, destined for the US was not.
Gradually, most of the production lines have been standardised. Regardless of the destination market European environmental and safety rules conceived in Brussels are increasingly becoming de facto Asian standards in the factories that churn out the televisions, clothing and furniture that fi ll most homes. The weight and size of the European Union’s expanded market - about 450 million people, compared with 300 million in the United States - has lifted the profi le and application of EU rules.
The big difference is that European product safety rules are enshrined in law, whereas companies in the United States are often subject only to voluntary guidelines – and these can vary from state to state. If you manufacture globally, it is clearly simpler to be bound by the toughest regulatory standard in the supply chain.
The US used to be the leader in setting product regulations and standards and the rest of the world just followed. Now the focus is less on government regulations than on a fear of lawsuits. As China and other sourcing countries lean towards the European approach, US companies are also begin to work to EU rules. This will help to improve the safety of products in the US and set a truly global standard that protects consumer everywhere.
Paul KanwarGlobal [email protected]
CONTENTS
SUSTAINABLE TEXTILES PAGE 3
BRUSSELS RULES OK PAGES 4 - 5
ETHICAL TRADE PAGES 6 - 7
THE WIMAX GAMBLE PAGES 8 - 9
INDUSTRY ROUND UP PAGES 10 - 11
SGS IN THE NEWS PAGES 12 - 14
SAFEGUARDS PAGE 14
REGIONAL CONTACTS PAGE 15
P. 3INDUSTRY NEWS - SUSTAINABLE TEXTILES
stage of the production chain from fi bre ginning, spinning, weaving, and dying, through garment processing - right to the end consumers.
SUSTAINABLE TEXTILE TESTINGIn order to provide a market-based defi nition for sustainable textiles, harmonized performance standards have been established. These incorporate procedures and protocols mentioned in national legislations, as well as Eco, Green and sustainability labels. This works towards eliminating both redundancies and potential inconsistencies in seeking out or developing environmentally-preferable processes, practices, power sources and materials.For more information please contact : [email protected].
Sustainable practices are spreading throughout the textile industry.
Due to growing awareness about climate change and increasingly scarce natural resources, consumers are more concious about sustainable practices and products.
Sustainable clothing and green ‘eco’ fashion, usually associated with hippies & eco warriors have now entered the mainstream. Sustainable textiles can be natural or synthetic, but all manufacturing processes throughout its supply chain need to be environmentally-friendly with hazardous impacts on the environment, human health, and ecological systems kept as low as possible at all stages of a product’s life cycle.
The defi nition of sustainability varies within and between cultures and the defi nition may change over time. Sustainable textiles are clarifi ed by the following 5 criteria:
1. Safe for public health and environment2. Uses renewable energy and is energy effi cient3. Applies bio-based and recycled materials4. Cuts pollution and waste5. Emphasizes reclamation, sustainable reuse and end of life management
There are, however, a number of efforts that can be taken to implement green-friendly practices:
SUSTAINABLE PROGRAMME Go for a broad approach. From farm inspection to risk assessment and quality control, criteria have been established that reference regulations and market standards. These evaluate if the textile item meets environmental, social and economic performance requirements.
It is now possible to articulate a transparent, life-cycle and consensus based concept that can be applied to textile and footwear industries. Manufacturing and operational waste and pollution will be gradually reduced by using environmentally-friendly packaging, recycling used materials and by focusing on measures that reduce energy consumption.
FIELD CERTIFICATION Fibre that is grown organically needs to be certifi ed as such as per government regulation standards, such as USDA NOP, EU2091/91, NSOP, for production, handling, labeling, social compliances, environmental criteria etc.
CHAIN-OF-CUSTODY CERTIFICATIONRequirements are established for certifi cation against environmental and social compliance criteria. The tracking of sustainable products is assessed through each
SUSTAINABLE TEXTILES GO MAINSTREAM
“THE TEXTILE INDUSTRY STILL DEPENDS ON LIMITED NATURAL RESOURCES.”
SGS is specialised in agriculture, industrial pro-cess, environmental audit, textile wet processing, garment manufacturing, restricted substance evaluation and analysis. We offer know-how on sustainable textile management with the use of eco-effi ciency analysis tools at each processing stage. These ensure the whole manufacturing pro-cess and fi nished products meet the demands of the global market, while at the same time keeping the environmental impact to a minimum.
INDUSTRY NEWS - BRUSSELS RULES OK P. 4
constitutional tradition that everything is allowed unless it is forbidden, against the Napoleonic tradition codifying what the state allows and banning everything else.
Yet the more proscriptive European vision may better suit consumer and industry demands for certainty. If you manufacture globally, it is simpler to be bound by the toughest regulatory system in your supply chain. Self-regulation is also a harder sell when it comes to global trade, which involves trusting a long line of unknown participants from far-fl ung places (talk to parents who buy Chinese-made toys).
A gripping new book* by an American, Mark Schapiro, captures the change. When he began his research, he found fi rms resisting the notion that the American market would follow EU standards for items like cosmetics, insisting that their American products were already safe. But as the book neared completion, fi rm after fi rm gave in and began applying EU standards worldwide, as third countries copied European rules on things like suspected carcinogens in lipstick. Even China is leaning to the European approach, one Procter & Gamble executive tells Mr Schapiro, adding wistfully: “And that’s a pretty big country.”
The book records similar American reactions to the spread of EU directives insisting that cars must be recycled, or banning toxins such as lead and mercury from electrical gadgets. Obey EU rules or watch your markets “evaporating”, a computer industry lobbyist tells Mr Schapiro. “We’ve been hit by a tsunami,” says a big wheel from General Motors. American multinationals that spend money adjusting to European rules may lose their taste for lighter domestic regulations that may serve only to offer a competitive advantage to rivals that do not export. Mr Schapiro is a campaigner for tougher regulation of American
How the European Union is becoming the world’s chief regulator
A VICTORY for consumers and the free market. That was how the European Commission recently presented a ruling by European judges in favour of its multi-million euro fi ne on Microsoft for bullying competitors. American observers had qualms. Would a French company have been pursued with such vigour? Explain again why a squabble among American high-technology fi rms ends up being decided in Brussels and Luxembourg (where Euro-judges sit)? One congressman muttered about sneaky protectionism and “zealous European Commission regulators”. It certainly seemed zealous of the competition commissioner, Neelie Kroes, to say that a “signifi cant drop” in the software giant’s market share was “what we’d like to see”.
More broadly, the ruling confi rms that Brussels is becoming the world’s regulatory capital. The European Union’s drive to set standards has many causes—and a protectionist impulse within some governments (eg, France’s) may be one. But though the EU is a big market, with almost half a billion consumers, neither size, nor zeal, nor sneaky protectionism explains why it is usurping America’s role as a source of global standards. A better answer lies in transatlantic philosophical differences.
The American model turns on cost-benefi t analysis, with regulators weighing the effects of new rules on jobs and growth, as well as testing the signifi cance of any risks. Companies enjoy a presumption of innocence for their products: should this prove mistaken, punishment is provided by the market (and a barrage of lawsuits). The European model rests more on the “precautionary principle”, which underpins most environmental and health directives. This calls for pre-emptive action if scientists spot a credible hazard, even before the level of risk can be measured. Such a principle sparks many transatlantic disputes: over genetically modifi ed organisms or climate change, for example.
In Europe corporate innocence is not assumed. Indeed, a vast slab of EU laws evaluating the safety of tens of thousands of chemicals, known as REACH, reverses the burden of proof, asking industry to demonstrate that substances are harmless. Some Eurocrats suggest that the philosophical gap refl ects the American
BRUSSELS RULES OK
* Exposed: The Toxic Chemistry of Everyday Propoducts and What’s at Stake for American Power”, by Mark Schapiro. Chelsea Green Publishing.
INDUSTRY NEWS - BRUSSELS RULES OK P. 5
business. Yet you do not have to share his taste for banning chemicals to agree with his prediction that American industry will want stricter standards to create a level playing-fi eld at home.
Winning the regulatory raceOne American offi cial says fl atly that the EU is “winning” the regulatory race, adding: “And there is a sense that that is their precise intent.” He cites a speech by the trade commissioner, Peter Mandelson, claiming that the export of “our rules and standards around the world” was one source of European power. Noting that EU regulations are often written with the help of European incumbents, the offi cial also claims that precaution can cloak “plain old-fashioned protectionism in disguise”.
Europe had no idea the rest of the world was going to copy its standards, retorts a Eurocrat sweetly. “It’s a very pleasant side-effect, but we set out to create the legislation we thought that Europe needed.” At all events, America’s strategy has changed. Frontal attempts to block new EU regulations are giving way to efforts to persuade Brussels to adopt a more American approach to cost-benefi t analysis. That would placate students of rigour, who accuse some European governments of ignoring scientifi c data and pandering to consumer panic (as shown by European campaigns against “Frankenstein foods”).
But rigour can quickly look like rigidity when it involves resisting competition. There is a genuine competition to set global regulatory standards, as Europe and America have discovered. There are also rising protectionist pressures.
Perhaps zealous EU regulators may be what jumpy consumers need if they are to keep faith with free trade and globalisation. Viewed in such a light, even Microsoft’s champions might hope that this week’s verdict will help global competition in future.and pandering to consumer panic (as shown by European campaigns against “Frankenstein foods”).But rigour can quickly look like rigidity when it involves resisting competition. There is a genuine competition to set global regulatory standards, as Europe and America have discovered. There are also rising protectionist pressures. Perhaps zealous EU regulators may be what jumpy consumers need if they are to keep faith with free trade and globalisation. Viewed in such a light, even Microsoft’s champions might hope that this week’s verdict will help global competition in future.
The EU protectionist manner on Food area, EU has arrange a pile of Food Regulation that concern with food borne diseases and the safety of food ingredients. The listed below are some of the European food regulations. © The Economist Newspaper Limited,
London (Sep 20th, 2007).
EU FOOD REGULATIONS
The EU concern with food borne diseases and the safety of food ingredients. Listed below are some of the European food Directieved :
Food Additives, Maximum Levels• 95/2/EC - Food additives Directive 20th February 1995
Contaminants, Maximum Levels • Maximum residues levels for certain contaminants in food are set in Commission
Regulation (EC) No 1881/2006. This regulation came into force on 1 March 2007. and replaces Commission Regulation (EC) No 466/2001.Maximum residue levels in certain foods are set for the following contaminants:nitrate, mycotoxins (afl atoxins, ochratoxin A, patulin, deoxynivalenol,zearalenone, fumonisins, T’-2 and HT-2-toxin), metals (lead, cadmium, mercury,inorganic tin), 3-MCPD, dioxins and PCBs and polycyclic aromatic hydrocarbons(benzo(a)pyrene).
Pesticides, Maximum Levels• Maximum Residue levels (MRLs) for Pesticides as per EU Directives 2006/60/EC,
2006/61/EC & 2006/62/EC.• Maximum Residue levels (MRLs) for Captan, Dichlorvos, Ethion and Folpet as per
EU Directive 2006/92/EC
Sampling & Analysis methods• 1998/53/EC -sampling methods and the methods of analysis for the offi cial control of the levels for certain contaminants in foodstuffs 16th July 1998 Amended by - 2002/27/EC - 13th March 2002 Amended by - 401/2006 - 23rd February 2006• 333/2007/EC -for levels of lead, cadmium, mercury - Heavy Metals in Foodstuffs
- 1st June 2007• 2002/26/EC - for levels of Ochratoxin in Foodstuffs - 13th March 2002• 2003/78/EC - for levels of Patulin in foodstuffs - 11 August 2003 .• Guidance document for the competent authorities for the control compliance with
EU legislations on Afl atoxins
INDUSTRY NEWS - ETHICAL TRADE P. 6
MFA FORUM : BUYERS RESPONSIBILITY IN PROMOTING ETHICAL TRADE
The voice of a Bangladeshi supplier was also heard. Osama Taneer Director of Tiffany’s wear, spoke of the progress to date of ‘The National Forum on Social Compliance’, a coalition of government, suppliers, trade unions, NGO’s, The World Bank, UNDP, and global brands
The MFA debates positive buying practices.
Last September, the Multi Fibre Arrangement (MFA) Forum hosted its fourth international convention in London. The three day event included over 80 participants representing international brands, global retailers, non-governmental organisations, trade unions, international institutions and donor agencies - each with a concern to help the poorest garment-producing countries, to remain competitive in a post-MFA world. On one afternoon, the Forum hosted a public event that debated the issue of ‘positive buying’ – a responsible practice that respects workers’ rights.
The ‘positive buying’ debate was introduced by the Ethical Trading Initiative (ETI), an organisation that aims to improve the lives of workers making goods for global supply chains. Mr. Dan Rees, director of the ETI spoke of the troubles of some of the poorest workers in the world. In Bangladesh, for instance, 75% of its export earnings come from the garment industry, on which 20 million people depend directly or indirectly for their livelihood. Low costs have supported Bangladesh’s growth, but increased competition from China and India is now putting great pressure on the survival of the garment industry.
The UK International Development minister, Mr. Gareth Thomas called on the fashion industry to ‘raise its game and ensure that suppliers pay a living wage to its workers,’ adding: ‘There is a lack of information for consumers who want to know where products are sourced from.’
Mr. Rees pointed out that one of the problems big brands face is a lack of awareness across its global business on how decisions made at different stages in the chain can cause abuses to workers. A designer in New York wanting a last-minute garment change could lead to two weeks of working through the night for workers at a factory in Bangladesh. He spoke of how a buyer is paid on sales and profi t, so that this is the main driver behind their decisions. This leads to last minute decisions and late changes, many of which are totally unnecessary. When buyers are given knowledge of the problems this creates it is the beginning of change. Representatives from The Gap and New Look spoke of how they were tackling this apparent lack of concern within their buying teams through education and identifying “ethical champions” within their buying teams. These would be charged with identifying and infl uencing those buying practices which contributed to poor working conditions. Already individuals were volunteering to get involved.
Speaking from the NGO side, Jeremy Hobbs of Oxfam, spoke of the positive strides already taken by collaborative efforts of such organisations as the ETI, but went on to emphasise the need for a massive increase in global efforts to help the world’s poor.
STRENGTH IN NUMBERS“The enormous challenge for brands is that they often may take no more than 5 or 10 per cent of volume out of a factory so that, although the perception is that they have huge power and infl uence, they often don’t. The brand is responsible but is not always to blame,” said Mr. Rees. It is through working in conjunction with other companies through forums like the ETI that they can actually have an impact, he added. The Forum certainly helped brands to talk openly about the challenges they face as labour laws are not routinely observed and practices differ greatly.
the trust and leverage necessary to help make sustained improvements to workers’ conditions.
2. Incentivise your suppliers. Make sure compliance with labour standards is built into your contracts with your suppliers, so they know how serious you are. Reward them for their efforts with repeat orders.
3. Incentivise your buyers to ‘think worker’. Educate your buyers about the impact of their decisions on workers, and make sure they include ethical criteria alongside cost and quality when selecting suppliers.
4. Improve production planning. Deciding to change an entire line of t-shirts from pink to blue when production has already started can mean workers are forced to work excessive hours in their efforts to get orders out in time. Give suppliers clear and predictable lead times, making it easier for them to ensure their employees work predictable and reasonable hours.
5. Look at the price you pay your suppliers. At the very least, make sure that it allows your suppliers to pay their workers a wage that they can afford to live on.
SGS provides a range of training and capacity building services ranging from briefi ngs for buyers and brands to capacity building for factories. Contact us for more information about how SGS can help you meet this challenge.
INDUSTRY NEWS - ETHICAL TRADE P. 7
and closed with a plea that suppliers making efforts to improve should not be penalised by another supplier offering production at a few cents less.
But the message was clear - the spotlight will not only be on the performance of supplies in complying with codes but also on purchasers who need to make their own practices a key part of their ethical trade agenda.
At the end of the forum, agreement was reached on fi ve key ways that fashion retailers can make sure their buying decisions are ethical. ETI’s fi ve top tips for buying ethically:
1. Know your suppliers – cut out the middle man and where possible, develop long-term, direct relationships with your suppliers. This will help you build
THE FORUM CERTAINLY HELPED BRANDS TO TALK OPENLY ABOUT THE CHALLENGES THEY FACE...
The MFA Forum was established in early 2004 in response to growing anticipation throughout the garment and textile industry that the phase-out of quotas would lead to major changes in the sourcing of garments, and potentially negative consequences for countries that had come to rely on garments exports.
Since 1974, the Multi-Fibre Arrangement (MFA) governed quotas restricting imports of garments and textiles to the EU and the US from countries with burgeoning production and competitive advantage due to signifi cantly lower labour costs. The phase-out of these quotas has long been pursued in the spirit of breaking down protectionist barriers that frustrate trade by developing countries.
The MFA was phased out on 1st January 2005. However, the post-MFA era holds potential dangers for the least-developed countries (LDCs) that had enjoyed exemptions from quotas and had consequently developed signifi cant garment and textile production for export. In many LDCs, the garment and textile industry provides most of that country’s income, employment and foreign exchange.
Up until now, no international multi-stakeholder initiative has been created to explore how the combined competencies of different actors could guide the transition of this sector to a post-MFA world. The failure to responsibly manage the transition to a post-MFA world carries several possible dangers or threats:(a) Foremost is the potentially negative impact on workers, communities and local and national economies.(b) The perceived culpability of business, as well as other institutions, in not preventing this negative impact, and the impact on
their reputation.(c) The further erosion of trust in the broader agenda of development through trade.
THE MFA FORUM
making VOIP (voice over internet protocol) phone calls for free. While it is not impossible to get cellular networks to provide all these services, it is tricky and expensive. Indeed, with its higher speed, simpler architecture,
cheaper equipment and smarter handling of data, WiMAX supporters expect it to make obsolete the 3G (third-generation) and 4G (fourth-generation) cellular networks that the mobile network-operating companies are currently deploying or building.
Because WiMAX was conceived primarily as a means for internet access rather than as a cellular replacement, it adheres strictly to the internet’s open-standards
approach. That means it will work with any internet-ready appliance, no matter the maker or service provider. PUBLIC BROADBANDBecause of the range of WiMAX’S and its potential to connect society as a whole, local governments are keen
The wimax gamble
The terrible tsunami of December 2004 all but destroyed everything in Aceh, Indonesia. All communication infrastructure, other than ham radio were destroyed, and with the survivors unable to communicate with others outside the province, the whole area was cut off. In this disaster zone the rescuers turned to a new generation of communication, WiMAX to provide desperately-needed wireless communication across the region, greatly assisting with relief coordination.
What is WiMAX and what makes it so special? Think of it as WiFi’s big brother. But whereas Wifi provides reliable wireless connection speeds across a busy coffee shop or airport lounge, WiMAX is capable of at least 10 megabits per second over much longer distances – over 8 kilometres or more with the right infrastructure. In a nutshell, where Wi-Fi provides high bandwidth but not distance, and current cellular mobile systems provide distance but not high bandwidth, WiMAX will provide both. Better still, in its mobile form, WiMAX can ‘hand off’ connections from one radio tower to the next as users roam around - just like a cellular network - but at broadband speeds.
As WiMAX demonstrated in Aceh, it works well in rural areas and developing countries, where existing infrastructure is unreliable and laying cables or telephone lines is too expensive. WiMAX can also provide internet access to mobile users from nearly anywhere. Imagine an internet that goes along for the ride, wherever you are. In the most obvious application, cars, buses and trains would benefi t from having internet access - as much for their own use as for the passengers’ benefi t. This will open up a whole new market for mobile carriers as well as for makers of internet-access equipment and suppliers of web services.
AN OPEN STANDARD FOR EVERYONEAs WiMAX is built upon internet principles, it also works seamlessly with the plethora of internet services developed over the past decade - web surfi ng, social networking, instant messaging, e-mailing, video streaming, music downloading and, of course,
INDUSTRY NEWS - BIG BROTHER IS COMING P. 8
BIG BROTHER IS COMING
“WiMAX ADHERES STRICTLY TO THE INTERNET’S OPEN STANDARDS APPROACH”
BUSINESS MODELS
There are three main ways that WiMAX could be fi nanced(a) Free service supported by
advertising - works if there are a lot of people using the network.
(b) Subscription-based model – people pay according to duration and/or connection speeds
(c) Municipal-use wireless network with public access - where the network is partially paid for by the municipality.
INDUSTRY NEWS - BIG BROTHER IS COMING P. 9
supporters of WiMAX. Often called municipal broadband, city-wide provision of WiMAX offers many advantages to both public and private applications. As a public service, the idea is to provide high speed internet access for free or at least cheaper than other current broadband service providers.
There is a strong argument that municipal broadband networks also help to boost the economy. They can improve worker productivity because they give city offi cials (such as police offi cers and fi refi ghters) remote access to information. Police offi cers can access security cameras, blueprints, criminal records and other necessary information. Networks can let offi cers show witnesses mug shots or “virtual line-ups” at the scene of a crime, instead of at a police station.
Municipal broadband networks also make cities more attractive to businesses, especially desirable high-tech and research companies. It also enables small and home-based businesses to participate in international, as well as regional, commerce. Finally, it allows companies to recruit new employees without relocating them, for municipal broadband enables workers to telecommute.
But fi nding the right model to pay municipal broadband has been hard. WiMAX can be expensive to deploy and needs the support and latest technology from telecommunications companies. Not surprisingly the harshest critics of municipal networks are incumbent telecom operators and cable companies. Many such operators do not want local governments to set up municipal broadband networks (or even partner with private providers) because these networks, which are not controlled by the incumbent companies, compete with their service. The fear is that if these networks get built, they will lose customers.
In 2007, the private company EarthLink which was committed to build municipal wireless broadband networks in partnership with local governments,
pulled back because the costs of deployment were signifi cantly higher than they expected and the return on investment continues to be uncertain. A number of providers are continuing to build municipal wireless networks but in these projects, the local government is an anchor tenant. Certain municipalities are going a head with deploymeny and paying for it directly because they use it for municipal purposes such as automated meter reading, public safety,
MUNICIPAL BROADBAND NETWORKS ALSO MAKE CITIES MORE ATTRACTIVE TO BUSINESSES”
traffi c management, etc.
LUXURY VS. NECESSITYDebate about whether or not cities should set up municipal networks begs the question: Is the internet is a luxury or a necessity? Because of the internet’s huge impact on society, many say that all citizens should have easily available and affordable internet - they are not excluded from an increasingly online culture. Others think the internet is a luxury, and that tax money should be invested in more vital enterprises. People with this view oppose the implementation of municipal networks.
Regardless of what you believe, WiMAX continues to grow and the technology is being adopted in more than 70 countries across the world. The business case, however, is yet to be proven, and for those who dream of a superhighway connecting homes, cars and people, how will WiMAX pay for itself?
INDUSTRY ROUND UP P. 10
A MORE CARING WAY TO FISH With many continental fi sh stocks in steep decline, some fi shing fl eets have adopted bottom-trawling as a way to keep supplies fl owing. Powerful boats tow nets which extend to the sea fl oor; on the end of the net is a heavy roller or plough which keeps the net in contact with the bottom. This ensures that any fi sh in the vicinity are caught, but so is everything else.
Fishing by bottom-trawling is known to cause all sorts of environment damage as it rips open the seabed, dragging up whatever deep sea occupants are caught in the net. This method of capture can destroy whole ecosystems, removing the vital coral, tube worms, and sponges that support so much sea life. While Governments attempt to monitor the situation through global agreement, a new invention could allow for continued deep sea fi shing, without damaging the environment.
Cliff Goudey, of the Massachusetts Institute of Technology and his team has designed a dredge that, it is claimed, can dislodge scallops without touching the seafl oor. The dredge has several hemispheric scoops in the place of the toothed bar. As it is pulled along, the scoops direct water downward. That creates a series of gentle jets that can shuffl e the scallops from their resting places – but the streams of water are not powerful enough to damage the long-term tenants at the bottom of the ocean. Most ingeniously, the scoops swivel out of the way if they encounter anything solid, so the dredge does not destroy sealife that sticks up from the ocean fl oor.
Best of all, from the fi sherman’s point of view, it takes less effort to fl oat a dredge of water jets than it does to drag it across the uneven surface of the seabed. That makes Dr. Goudey’s new device a more fuel-effi cient way to fi sh than the bottom-trawling method.
SHOPPING LISTS ‘GET MORE ETHICAL’Blackberries from Mexico, cherries from Chile, onions from Peru and broccoli from Kenya – these are just some of the fruits and vegetables on UK supermarket shelves. British shoppers take it all for granted - fresh produce available all the year round regardless of whether it is in season in the UK.
A recent survey by research fi rm Nielsen suggests that food shoppers are becoming more concerned about green issues - and there has been quite a marked shift in the last year. With responses from more than 5,000 shoppers, their survey probes the question of why certain products are bought, providing an authoritative guide to current shopping habits.
The survey shows that 57% actively try to buy local products, up from 48% six months earlier. Some 46% said it was worth paying extra for ethically-produced goods or those seen as kind to the environment.
On organic produce, 83% of respondents had purchased at least one item over the last year. But only 21% thought it was worth paying more for organic, a reduction on previous polling. This might suggest that as organic goods enter the mainstream of food buying, shoppers are less willing to pay premium prices.
But at a time when climate change is high on the political agenda, the greenhouse gas emissions associated with food production and transport are coming under increasing scrutiny. Transporting food from Africa or central and South America may be more environmentally friendly than cultivating it in heated greenhouses in northern Europe during the winter. Importantly, food production for export is a source of income and employment for developing nations.
Air transport of food has risen dramatically in recent times - 11% in 2006 alone. But it is worth remembering that air accounts for just 1% of total UK food imports. Whatever mode of transport is used, the CO2 emissions associated with moving food are on the increase.
SGS IN THR NEWS P. 11
Population growth, new market emergence and increasing textile consumption are not the only issues that the textile industry faces. Regardless of industry sector, there is a need to address concerns such as the worker’s welfare and rights and sustainable environmental practices. Meanwhile governments continue to enact trade policies and legislate for technical regulations and conformity assessment procedures to protect and ensure the health and safety of consumers.
In October SGS Hong Kong organised the ‘Softlines Forum’, the foremost event of its kind in the textile business. The Forum brought together experts from all sectors of the textile industry to discuss these global issues and how best to develop the industry.
Supported by a diverse range of individuals and institutions that have an interest in the textile industry, the forum provided a platform for policy-makers and business leaders to air their views on how sustainable development can be achieved. The title for this year’s forum, held at HK Polytechnic University, was ‘Corporate Sustainability – The Trends, The Rules, The Ways’. Two broad areas of corporate sustainability were debated - corporate compliance and sustainable textiles. As a framework for analysis, the PESTEL approach was used: Political, Economical, Social, Technological, Environmental, and Legal situation of the industry.
In contrast to low cost, low price provided through sweat shop production, buyers nowadays are looking for reasonable and fair sourcing initiatives as addressed by ICS, representing an association of renowned French retailers and brands. Fair trade has proved to be a successful win-win business model, increasing by about 40% over the last ten years in UK market.
In regulatory terms, the EU’s REACH was discussed at length. As an all-in-one chemical control policy it is seen by some as the future of industry regulation. Most
SOFTLINES FORUM 2007
agreed that China is taking great strides to set higher national manufacturing standards. US has modernised the recall process so that increase in recall cases in 2007 has signifi cantly impacted on the confi dence of manufacturers.
SGS is committed to the sustainable development of the industry. We aim to ensure that companies are in-the-know about the latest international regulations and global market trends and familiar with the required quality assurance procedures. We are grateful to have had the industry magazine ‘Fashion Technology’ as the offi cial supporting media for the ‘Softlines Forum 2007’, and also to have the support of various key associations and organizations including Hong Kong Clothing Industry Training Authority (CITA), Hong Kong Fair Trade Power, Consumer Council, Institute of Textiles and Clothing (ITC) of Hong Kong Polytechnic University and The Social
Clause Initiative (ICS).
SGS IN THE NEWS P. 12
IECEE, International Electro-technical Committee for Electrical Scheme (scheme for mutual recognition of testing results of electrical products) has developed a new so-called IECEE Hazardous Substances Reporting Service.
The service aim is to offer industry, regulatory authorities and certifi cation organisations a procedure for evaluating the percentage of hazardous substances (from components and materials) used in electrical products. SGS Fimko will offer this service through the SGS worldwide laboratory network. Testing methods and certifi cation will be based on international standard IEC 62321 for testing of hazardous substances. The service will be launched during 2008 when the standard is fi nally approved and published.
The IECEE CTL will establish an expert task force to handle interpretation and uniform application of testing methods for hazardous substances (HS). The aim is to create harmonized testing procedures that can be consistently and easily applied. SGS Fimko, as a National Certifi cation Body (NCB) will be accredited to issue HS Statement of Test Results. In the future, the scheme’s website, www.cbscheme.org, will publish all test results.
Mr. Jukka Vuorinen, Business Director of SGS Fimko is the convenor of the IECEE working group, working to develop the new service. Other members of the group include representatives from Australia, Belgium, The Netherlands, Japan, China, France, Germany and The US. For more information, please email [email protected].
SGS FINLAND TO INTRODUCE HAZARDOUS SUBSTANCES REPORTING SERVICE
SGS Hong Kong and SGS-CSTC Shanghai have successfully gone through the DAP (ISO/IEC 17025) assessment on respectively 5th - 6th July and 2nd - 3rd July.
Hong Kong was offi cially accredited on September 16th and the Shanghai branch on October 22nd 2007. The testing scope of the accreditation covers the chemical and physical-chemical testing of the following product categories:
• Textiles, Leather and leather goods• Toys, Rubber, Plastics, Food Containers• Fashion Jewellery, Skin-contacting articles• Electrical & Electronic Equipment
In Hong Kong, 75 testing methods were accredited, including 65 international standard methods (ISO, EN, DIN, AS, BS, CEN/TS, EPA, JIS, LFGB, ASTM etc.). For certain testing parameters (such as VOC, pesticides and extractable heavy metals), SGS Hong Kong is the 1st laboratory in Southern China to achieve the DAP accreditation.
In Shanghai, 65 testing methods were accredited, including 59 international standard methods (ISO, EN, DIN, AS, BS, CEN/TS, EPA, JIS, LFGB, ASTM etc.). For certain testing parameters (such as VOC, pesticides) SGS-CSTC Shanghai Branch is the 1st laboratory in Eastern China to achieve the accreditation.
DAP, Deutsches Akkreditierungssystem Prüfwesen (German Accreditation System for Testing), is a legally independent accreditation body in Germany responsible for the accreditation of testing and research laboratories, of certifi cation bodies for products
and of inspection bodies in the voluntary areas.
DAP is the member of the German Ac-creditation Council (DAR), the European co-operation for Accreditation (EA), the International Laboratory Accreditation Co-operation (ILAC), the International Accreditation Forum (IAF), and their Multilateral Agreements for Recognition (MLA and MRA), a member of the Euro-pean Federation of National Associations of Measurement, Testing and Analytical Laboratories (EUROLAB), the European Organisation for Quality (EOQ), the German Society for Quality (DGQ) and the German Institute for Standardization (DIN).
DAP accreditation is widely recognized and accepted by German and European buyers. To open up a new market and/or to enhance the customers’ confi dence level, please do not hesitate to contact SGS for service details.
DAP ACCREDITATION FOR SGS HONG KONG & SGS-CSTC SHANGHAI
P. 13SGS IN THE NEWS
AATCC has approved 8 SGS Locations for conducting AATCC international training course. It covers Hangzhou (China), Hong Kong, Macau, India, Pakistan, Singapore, Taiwan and Thailand. SGS’s trainers can deliver standard and tailor-made training for many of AATCC’s most used test methods and evaluation procedures covering colourfastness, physical properties and fi bre identifi cation.
About AATCCThe American Association of Textile Chemists and Colourists (AATCC) was founded by Dr. Louis Olney of the Lowell Textile School in 1921. The AATCC is the world’s leading not-for-profi t professional association for the textile design, materials, processing, and testing industries. Association members are employees of textile, apparel, and home goods manufacturers; dye and chemical manufacturers; testing laboratories; consumer and retail organizations; state and federal government agencies; and colleges and universities. AATCC has thousands of individual and corporate members in more than 60 countries world wide.
The association is internationally-recognized for its standard methods for testing dyed and chemically treated fi bres and fabrics to measure and evaluate such performance characteristics as colourfastness to light and washing, smoothness appearance, soil
AATCC CERTIFIED TRAINING COURSE DELIVERED BY SGS AROUND THE WORLD
Concious of increased demand for furniture testing, SGS announces the opening of Furniture laboratories in France, Indonesia and Vietnam with the opening of these new furniture testing operations, SGS extends its international reputation leading global partner on furniture safety to minimize consumer risks.
Functional and performance testing for compliance with general safety requirements. Test performed meet recognised standards (EU, US, Japanese, Canadian, etc) and can include but are not limited to :
• Complete physical and mechanical testing • Performance and durability testing • Flammability testing • Textile testing • Testing for restricted substances to support compliance of VOC, formaldehyde, azo dyes
SGS is accredited furniture laboratories cover a large product portfolio: domestic, kitchen, outdoor, offi ce furniture and furniture accessories. The
NEW FURNITURE CAPABILITIESIN FRANCE, VIETNAM & INDONESIA
new laboratories complement SGS’s global network of 7 furniture laboratories located in Hong Kong, China, Taiwan, UK and USA.SGS also offers a comprehensive range of value-added services such as validation of technical dossiers, GS mark certifi cation, audit and inspection. For details information please contact: [email protected]
release, shrinkage, water resistance, and the many other conditions to which textiles may be subjected. New and updated test methods are published annually in the AATCC Technical Manual. The many aspects of textile wet processing, design, and testing are also covered in handbooks, textbooks, and proceedings of AATCC’s workshops, symposia, International Conference & Exhibition (IC&E), monthly magazine, AATCC Review, and monthly electronic newsletter, AATCC News. To fi nd out more or to book your place in one of our courses, get in touch with [email protected], [email protected], [email protected].
SGS IN THE NEWS P. 14
HARDLINESPAPER AND BOARD FOOD PACKAGING MATERIALS : GERMAN BFR SETS MIGRATION LIMITS FOR DI-ISOBUTYL PHTHALATE [DIBP]The German Federal Institute for risk assessment (BFR) has recommended migration limits on Di-isobutyl (DiBP). It is also proposed to be classifi ed as a reprotoxic chemical. DiBP is used as a plasticizer in dispersion glues for folding cartons and corrugated paper packaging and deemed to cause damage to offsprings and impair fertility. Click here to read more.
NEW EUROPEAN CANDLE STANDARDSThe European standards for safety of candles have reached the fi nal stage for formal vote and are expected to become effective in 2008. These standards cover fi re safety, labeling requirements and safety of soot release, such as : EN 15493, EN 15494, EN 15426. Click here to read more.
SOFTLINESUPDATE ON REGULATORY LIMITS OF FREE FORMALDEHYDE IN TEXTILESFormaldehyde resins used in the textile industry can cause effect harmful to consumers with chemical sensitivity or textile dermatitis such as breathing diffi culties, skin and eye irritation. Click here to read more.
FOODGUEAR GUM CONTAMINATIONThe EU Rapid Alert System for Food and Feed (RASFF) informed Member States of a contamination of certain batches of guear gum, with dioxins and pentachlorophenol (PCP). As a result, several batches of food additives containing guear gum had to be recalled. Learn more
SAFEGUARDS
EXPANSION OF MEXICAN MULTILABA joint venture between SGS México S.A. de C.V. and the National Textile Industry Chamber of Mexico (Canaintex) has enabled a recent and considerable expansion of laboratory facilities to provide textile testing services.
This 1st class Multilab is accredited by the Mexican Accreditation Entity (EMA) under the norm NMX-EC-17025-IMNC-2006, equivalent to the international ISO/IEC 17025:2005, covering the scope of 45 tests accredited under Mexican and American standards (ATCC & ASTM) as well as approved internal methods.
This new venture allows SGS to broaden its service offering to manufacturers, retailers and importers of textile products, helping them to enhance the quality and reliability of their products, as well as supporting them with product classifi cation and compliance for domestic and export purposes.
With more than 700 members, Canaintex actively participates in the defi nition of regulations applicable to the textile products in order to promote quality and fair competition within the Mexican textile industry. For more information about SGS Multilab S.A. de C.V. services, please contact us at [email protected]
© 2008 SGS SA. All rights reserved. This newsletter is a publication of SGS SA although certain contents have been submitted by third parties or have otherwise been licensed for use by SGS SA and all copyrights in such third party contents remain vested in such third parties. Contents identifi ed as being from third parties refl ect solely the positions of such third parties and SGS SA neither endorses nor disapproves of said contents. This newsletter is intended to provide general information on a particular subject or subjects and is not an exhaustive treatment of such subject (s). Accordingly, the information in this newsletter is not intended to constitute consulting or other professional advice or services. This newsletter is provided “as is” and SGS SA does not warrant that the information contained therein will be error-free or will meet any particular criteria of performance or quality. The information may not be quoted or referred to in any other publication or proceeding without the prior written consent of SGS SA.
AMERICAS SGS US TESTING SERVICES291, Fairfi eld Ave, Fairfi eld New Jersey 07004Tel: +1 973 575 5252 Fax: +1 973 575 1193E-mail: [email protected]
ASIA SGS HONG KONG LTD.5-8/F & 28/F, Metropole Square, On Yiu Street, Siu Lek YuenShatin, N.T. Hong Kong, SARTel: +852 2334 4481 Fax: +852 21447001E-mail: [email protected]
EUROPE SGS UNITED KINGDOM LTD.7th Floor, Westec W5 Hanger LaneEaling, London W5 1YYTel: +44 (0) 20 8991 3410 Fax: +44 (0) 20 8991 3417E-mail: [email protected]
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MIDDLE EAST SGS SGEKS A.S. ABIDE-I Hurriyet Cad. GecitSk. No.10 Sisli Istanbul, TurkeyTel: +90 212 368 40 00 Fax: +90 212 296 47 82/83E-mail: [email protected]
AUSTRALIASGS AUSTRALIA PTY.LTDSuite 1 Enterprise Unit 3, de LaeterWay Technology Park BENTLEY WA 6102Locked Bag 10, Bentley Deliver Center Tel: +61 (0) 3 97903418 Fax: +61 (0) 3 9701 0988E-mail: [email protected]
P.15REGIONAL CONTACTS
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