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Overview of the Chemicals Management Working Group
and Chemicals Management Module
Ethical Sourcing Forum
New York City
March 27-28, 2014
Today’s Objectives
2
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.
3
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
4
Chemicals Management Community of Practice
5
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
6
How it was created?
7
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
8
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
9
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
10
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
13
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)
14
CMM next steps
15
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!
25
Link to Chemicals Management Module web tool and guidance:
http://www.outdoorindustry.org/responsibility/chemicals/cmpilot.html