SGMA & Bureau VeritasProduct Integrity ProgramProduct Integrity ProgramAugust 18, 2011August 18, 2011

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Confidentiality

“BUREAU VERITAS PROPRIETARY

Confidentiality

“BUREAU VERITAS PROPRIETARY Copyright Bureau Veritas 2011 DO NOT DISCLOSE OUTSIDE YOUR ORGANIZATION WITHOUT BUREAUORGANIZATION WITHOUT BUREAU VERITAS PRIOR WRITTEN CONSENT”

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Presenters Presenters:

►Tom Cove• SGMA President & CEO

►D id Si

Presenters:

►David Simonson• Bureau Veritas Senior Manager, Business Development

►Meg Hughesg g• Bureau Veritas Senior Global Consulting Specialist, Analytical Technical Services

►Lisa Clerici• Bureau Veritas Global Consulting Specialist Analytical Technical Services• Bureau Veritas Global Consulting Specialist, Analytical Technical Services

►Ellen Roaldi• Bureau Veritas Global Consulting Specialist, Softlines Technical Services

Moderator ►V.J. Mayor

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y• SGMA Business Operations Manager

Agenda Presenters:

g►Introduction: SGMA

• Tom Cove

Presenters:

►Updates on hot topics facing the industry: Bureau Veritas • The Consumer Product Safety Improvement Act (CPSIA) – Meg Hughes• California Proposition 65 – Meg Hughes

Green Chemistry Lisa Clerici• Green Chemistry – Lisa Clerici• Restricted Substances Lists (RSL) – Lisa Clerici

►Case studies: Solutions for your quality assurance►Case studies: Solutions for your quality assurance challenges – Ellen Roaldi, Bureau Veritas

►The SGMA Product Integrity Program: Using it to your best g y g g yadvantage – David Simonson, Bureau Veritas

►Conclusion & wrap up – V.J. Mayor, SGMA

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►Q&A’s – VMayor@sgma.com

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CPSIACPSIAMeg Hughes

S i Gl b l C lti S i li t A l ti l T h i l S iSenior Global Consulting Specialist, Analytical Technical Services

• Meg has been with Bureau Veritas for over 20 years in various roles including supervision, testing, consulting, and protocol development.

• Currently she is in the Analytical Technical Services department focusing on the Americas region.

• She is intimately involved with CPSIA since its enactment.Sh i l i l d i d ti li t d ti d ti

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• She is also involved in educating clients and creating company recommendations for testing for both CPSIA and CA Prop 65.

CPSIA OverviewCPSIA Overview►Enacted Aug. 14, 2008 ►Certifications and Third Party Testingy g

• Adult products: General Conformity Certificates (GCC) based on reasonable testing programs

• Children’s products: Children’s Products Certificates (CPC) based on third party p ( ) p ytesting

• Third party testing by a CPSC approved lab

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CPSIA Overview►Lead Requirements

• Surface coatings

CPSIA Overview

• 90 ppm total lead• Coatings on furniture and children’s products, wet paints

• Substrates100 ppm total lead• 100 ppm total lead

• Children’s products (12 years and younger)• Certain low risk materials exempt from testing and certification• Bikes (higher limits), off-highway vehicles exempt

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CPSIA OverviewCPSIA Overview►Phthalates

• 1000 ppm DEHP, DBP, BBP, DINP, DIDP, DnOP• Toys and child care articles• Toys and child care articles

►Tracking Labels for Children’s Products

►Catalog and Internet Labeling for Toys and Games

►ASTM F963 Mandatory Toy Standard

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CPSIA OverviewCPSIA Overview►Public Database►Prohibited Acts and Increased Penalties

• Shall not sell any consumer product subject to voluntary corrective action

• Shall not issue a false certificate or fail to issue one at all

Sh ll t t f i d t d t bj t t l t ti• Shall not export non-conforming product, or product subject to voluntary corrective action

• Shall not sell any consumer product that is not in conformity with an applicable consumer product safety ruleconsumer product safety rule

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C lif iCalifornia Proposition 65Proposition 65

Meg Hughes

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California Proposition 65 OverviewCalifornia Proposition 65 Overview►Requires notification to a consumer if there is exposure to any

of the 850+ chemicals

►Label or warn with appropriate Prop 65 warning statement: • Product• PackagePackage• Store sign

WARNING: This product contains lead, a chemical known to the State of California to ca se birth defects cancer and other reprod cti e harmto cause birth defects, cancer, and other reproductive harm.

WARNING: The solder in this product contains a chemical known to the State of California to cause birth defects or other reproductive harm. Wash hands after handling.

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CA Prop 65: ResponsibilitiesC op 65 espo s b t es

Enforcer Defendant

• Prove “contact” with the chemical

Easy to prove

• Prove no significant risk

• Quantify exposure Easy to prove y p

Difficult to prove

Many chemicals have no exposure levels set by the statelevels set by the state

Exposure levels are often extremely low

Exposure level must be translated to chemical content of product

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CA Prop 65 OverviewCA Prop 65 Overview►Settlements

• Clothingg• Lead and Phthalates

• Weights• Lead

• Bags, backpacks, etc.• Lead and Phthalates

• Footwear• Lead and PhthalatesLead and Phthalates

• Bicycle components and accessories• Lead and Cadmium

• Fishing tackle• Lead

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Green ChemistryGreen ChemistryLisa Clerici

Gl b l C lti S i li t A l ti l T h i l S iGlobal Consulting Specialist, Analytical Technical Services

• Lisa has been with Bureau Veritas for over 20 years and involved with many aspects of the company including testing, quality, consulting, and technical governance.

• Currently she is in the Analytical Technical Services department focusing on the Americas region.

• She is a member of several ASTM committees and is the secretary of F40

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• She is a member of several ASTM committees and is the secretary of F40 (Declarable Substances). She is also a member of the AAFA RSL Task Force in charge of updating the AAFA Restricted Substance List every 6 months.

Green ChemistryGreen Chemistry►California Green Chemistry Initiative

D t t f S b t C t l (DTSC) h b t k d t d l l ti• Department of Substance Control (DTSC) has been tasked to develop regulations for this law. A Green Ribbon Science Panel has been created to act as an advisory panel to the DTSC.

• Sub-committees have been formed to address the following:Sub committees have been formed to address the following:• Chemical Identification and Prioritization• Product Identification and Prioritization• De Minimus and Unintentionally Added Chemicals

• Alternatives Assessments are also being discussed

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Green ChemistryGreen Chemistry►Washington Children’s Safe Products Act (CHPA)

• Department of Ecology adopted final rule on July 22, 2011

• 66 chemicals of concern identified to date

• Manufacturers must report if any of these chemicals are present whether intentionally added or as a contaminanty

• Reporting dates are based on company sales as well as product tiers• Companies classified into six classes which range from 1 billion in sales to less than

$100,000• Four product tiers identified

– Tier 1: products intended to be placed in the mouth or applied to the skin– Tier 2: Products intended to be in prolonged contact with the skin– Tier 3: Products intended to be in short contact with the skin– Tier 4: Products with no skin contact (case by case)

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Restricted Substances ListRestricted Substances ListLisa Clerici

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More Regulation = More Complexity

Green ChemistryGreen ChemistryGreen Chemistry

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REACHREACHEUPEUP

REACHEUP

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CPSIACA Prop 65

TSCA

Korea RoHS

RRR

ompl

exity

Washington Chapter 288TSCA

16 CFR 1303

CA Phthalates

California RoHS

IL PPA

EU RoHS

EN 71Japan RoHS

Japan RoHS

WEEECo

Number of Regulations

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Restricted Substances List►Restricted Substance List (RSL)

The heart of a Restricted Substance Program

Restricted Substances List

• The heart of a Restricted Substance Program

• Simply – various chemicals that can present health hazards• Carcinogens – formaldehyde, heavy metals• Toxins – PVCToxins PVC• Sensitizers – nickel (allergenic)

►Purpose of RSL• Hazards to the EnvironmentHazards to the Environment

• During production – chemical waste– Airborne, water, and solid waste

• Impact to end-of-life (EoL) propertiesR li– Recycling

– Proper disposal– Chemical impact on ground and drinking water

• Hazards to the Health of Users

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• During production – exposure of employees to chemicals in process• Chemicals in products – exposure of consumers

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How do they get into my products?y g y p

RAW MATERIAL SEMI–FINISHEDPRODUCT

FINISHED PRODUCT

Constituent Materials:LeatherSynthetic PUT til

Upper Materials:InsolesDecorations

Stamping

RSRSRSRS

AdditivesTextiles Latex RubberEVA Foam

LabelsLacesZippersVelcro-closures

StampingCementingSewingProcess Chemicals

AdditivesDyestuffsPigmentsCoatingPrinting

PlasticsInk/PaintsAdhesivesMetals

Outsole:OutsoleH l

Finished Plansg

Others Heel

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Material Problem

Production Problem

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Elements of a Successful ProgramElements of a Successful Program ►Policy Setting►Train Supply Chain►Train Supply Chain►Chemical Compliance Register►Monitor & Control►Validate

Train Supply Chain

ChemicalCompliance

RegisterMonitor &

Control ValidateProcess PolicySetting

CHEMICAL Compliance

It’s NOT about test reports

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p

Case StudyEllen Roaldi

Gl b l C lti S i li t S ftli T h i l S i

Case StudyGlobal Consulting Specialist, Softlines Technical Services

• Ellen has been with Bureau Veritas for 20 years in various roles, including Softlines technical governance for testing and quality, regulatory review for internal

ti d t l ltioperations and external consulting.• She is currently in the Softlines Technical Services department focusing on the

Americas region.• She is a member of several committees, including AAFA Steering Committee,

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She is a member of several committees, including AAFA Steering Committee, CAF, ASTM, AATCC, IABFLO and serves on the advisory board for Buffalo State College.

Bureau Veritas Case Study27

Assessing Athletic Sporting Goods

BUSINESS CHALLENGE• In an environment where no specific regulations or

COMPANY PROFILE

A sporting goods manufacturer t d t b i i tiIn an environment where no specific regulations or

Industry standards exist, how can companies best assess the performance and safety of their products for market success?

• For manufacturers and retailers this growth area comes with new challenges as they strive to evaluate these products which use new materials and technologies for

wanted to bring a new innovative product to market to better protect the athlete in a contact sport. This is a new growing market segment with limited regulatory and performance standardsproducts, which use new materials and technologies, for

both protective and apparel wearing concerns.

SOLUTION• Bureau Veritas offers physical, durability, performance,

analytical testing to ensure that these types of products meet the current regulatory requirements for softlines In

PERFORMANCE PADDED APPAREL

Performance padded apparel is a close fitted shirt and / or shorts

standards.

Client came to Bureau Veritas looking for best in class industry recommendations for their risk management program.

meet the current regulatory requirements for softlines. In addition, Bureau Veritas can identify ways to develop, adapt and integrate further testing specific to a particular product offering based on industry best practices.

BENEFITS• Customized Testing: Involvement of all parties provides

providing a base layer of protection which is to be worn under sports specific pads. This apparel contains integrated pads stitched or applied to the fabric and moves naturally with th l b d t t Customized Testing: Involvement of all parties provides

for greater unity in establishing a product specific testing program to meet the growing consumer market for innovative athletic protection apparel.

• Benchmarking: Bureau Veritas leverages its knowledge by adapting industry standards and methods to provide data for the client for comparison purposes to help

the complex body structure while providing for ultimate comfort; impact and shock absorption protection in critical areas exposed by the limitations of the sports specific pads.

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data for the client for comparison purposes to help compensate where formal requirements are non-existent.

SGMA P d t I t itSGMA Product Integrity Program

David SimonsonS i M B i D l t

ProgramSenior Manager, Business Development

• David has been with Bureau Veritas for over 14 years. Through a variety of positions he’s gained an in-depth understanding of the quality assurance process f th t il d d t i d tfor the retail and consumer products industry.

• Currently his responsibilities include global account management and business development in addition to technical and regulatory services associated with risk management, consultation, and client training.

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• David is the Account Manager representing the SGMA Product Integrity Program.

The SGMA Product Integrity ProgramThe SGMA Product Integrity Program►Using SGMA solutions to your best advantage

• Product Integrity Program – offers solutions and tools for success in today’s challenging marketplace:

• Knowledge Products – Seminars, Webinars, Bulletins, BVO S R h R t & Whit PBVOneSource, Research Reports, & White Papers

• Technical Consultation – Design Evaluations, Defect Analysis & Evaluations, Product Innovation Collaboration

• Supply Chain Services – Factory Inspections, Factory Audits, & Product Testing

• Incentives Program – Dedicated Administrative Resources, Dedicated Technical Resources & Discount StructureDedicated Technical Resources, & Discount Structure

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The SGMA Product Integrity ProgramThe SGMA Product Integrity ProgramSGMA

RISK MANAGEMENT “RED CARPET” SOLUTION SET

The“Big Picture” EDUCATION & GLOBAL PROGRAM EXECUTEDg

S R & ESERVICES REQUESTED & EXPEDITED

DELIVERABLES DISTRIBUTED & POSTED TO BVONESOURCE

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QUARTERLY BUSINESS REVIEW & CONTINUOUS IMPROVEMENT

Thank You for Attending!Thank You for Attending!

For more information about the SGMA Product I t it P t tIntegrity Program, contact:

V.J. Mayor - SGMAvmayor@sgma.com or 301.495.6321 or y @ gwww.sgma.com/about/affinity/bv

David Simonson – Bureau Veritasdavid simonson@us bureauveritas com or

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david.simonson@us.bureauveritas.com or 716.505.3509 or www.bureauveritas.com/sgma

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