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A Sustainable Approach

© Intertek 2010, All Rights Reserved.

A Sustainable Approach

to Greening The Value Chain

Contact: [email protected]

TGI -- A case study of moving from

thinking green to acting green

March 18th, New York

The Old Paradigm The New Paradigm

Climate Change

Why Change

Environmental Pollution

Resources Exploitation

Getting the right balance between $$$ and the Environment

TGI’s Approach

Enable Manufacturers of Today to

Think Green, Act Green, and Become Green!

Enablers: Achievers:

Become GreenAct GreenThink Green

Enablers:

• Knowledge & Resources

• Monitoring Measurement

• Tools • Technologies• New Methods

• Collaborations • Benchmarking • Training • Improvement

Achievers:

• Environmental footprint

• Cost Reduction

• Sustainable methods

• Renewable

• Biodegradable

• Material efficiency

• Improve bottom line

Drivers:

• Environmental Legislation

• Climate change concerns

• Limited Resources

• Consumer demands

• Market Competitiveness

• Risks & Opportunities

TGI’s Vision

Providing Greater Visibility on Environmental Commitment and Performance

� Meet environmental regulatory requirements

� Reduce environmental footprint

� Achieve cost savings and improved material efficiency through

�better use of resources,

� reduce, recycle and reuse of materials,

�and waste reduction�and waste reduction

� Achieve sustainable business practices

� Provide necessary insights for green products and sustainable purchasing

� Achieve good corporate governance

TGI – What is covers

�Two (2) Core Compliance Modules

�Environmental Legal Compliance Review

�Environmental Management System

�Six (6) Environmental Modules

�Water

�Air Emissions

�Energy

�Noise Emissions

�Hazardous Materials, Equipment and Waste

�Sustainable Production

TGI Participating Supplier Quotes

� “We have never had such comprehensive environmental assessment. We

never thought there are so many opportunities for improvements and cost

reduction. ”

� “We always wanted to do something about our environmental practice, but

it has never been high on agenda; only until TGI’s implementation, our

management started paying attention to environmental management. With

management’s blessing, we can really kick off the process” management’s blessing, we can really kick off the process”

� “Previously, we did not know what is sustainable production, only after TGI

project we came to know this term. Actually it is not far from our daily

practices. For example, we always prefer to buy environmental friendly raw

material, actually this is also part of sustainable production!”

� “TGI is a good tool, it showed us the areas for environmental improvements,

at the same time, it also gave us an opportunity to showcase our good

practice to our clients. ”

TGI – What is covers

�Two (2) Core Compliance Modules

�Environmental Legal Compliance Review

�Environmental Management System

�Six (6) Environmental Modules

�Water

�Air Emissions

�Energy

�Noise Emissions

�Hazardous Materials, Equipment and Waste

�Sustainable Production

TGI Assessment Modules

� Two (2) Core Compliance Modules

Environmental Legal Compliance Overview

Environmental Management System

TGI Assessment Modules

� Six (6) Environmental Modules

Performance Indicator





Performance IndicatorPerformance Indicator

� Assess each specific environmental area from the perspective of:

(a) maturity of management systems (b) compliance performance

(c) capability of pollution prevention (d) sustainability performance

Performance Indicator Performance IndicatorPerformance IndicatorPerformance Indicator

TGI Report

risk rating bar:

•Low risk

•Medium risk

• High risk

•Severe risk

� Provide knowledge and insights into environmental performance through

visual charts, statistical tables and narratives

Performance Benchmark

•By global

•By country

•By industry

Sustainability Data collection

•Water & wastewater

•Energy

•Cost savings

•Air pollutants

•Solid waste

•Hazardous chemicals

� A mechanism to enable an organization to demonstrate their commitment and “Green” credentials to their stakeholders:

� Investors

� Employees

� Community

� Customers

TGI Value Proposition

� Think Green Initiative = Preferred Supplier Status

Ensuring you meet the requirements of tomorrow’s Employees, Communities, Investors & Customers

TGI Pilot Project

TGI Pilot Project Performance Analysis

5656

5353

Supplier Group A

Global Average

Electrical & Electronics

Hardlines

Apparel

Bottling & Packaging

5151

6666

5555

6161

Number of total participating factories: 28

13

Supplier Groups Sectors Number of factories Location

Group A

Electrical & Electricity 3 China

Hardlines 5 China

Bottling & Packing 1 China

Group B Apparel 19 China, Indonesia,

Thailand , Bangladesh

Supplier Group A

Overall Performance

Supplier Group A

11%

34%

22%

Low Riks

Medium Risk

High Risk 34%33% High Risk

Severe Risk

Supplier Group A

Section Performance

55

79

60

52

64

50

60

70

80

90

Supplier Group A

38 38 38

0

10

20

30

40

Environmental Legal

Compliance Overview

EMS Water Energy Hazardous materials,

equipment and waste

Air emission Noise emission

Sustainable Production

Supplier Group A

Environmental Management Personnel Review

Supplier Group A

2, 22%

6, 67%

1, 11%� Complete

� Incomplete

� Absent6, 67%

� It is recommended that each environmental area is overseen by designated

environmental personnel.

Environmental Management Personnel Review

�

Best Practices -- Highlight

� Energy saving = Carbon reduction = Cost saving

Supplier Group A

78%

22%

Best Practice Noted

� No Best Practices

� Energy saving = Carbon reduction = Cost saving

� Use of energy saving bulbs

� Set minimum temperature control for AC as 26°C

� Use of solar heating system

� Require employees to switch off lights/computers when leaving workplace.

Energy Efficiency

Cost Savings

Factory 1 Factory 2

5000RMB

735.3 USD

120,000RMB

17,931USD


Best Practice Factory 1 Factory 2

Resources & Recycling of

wastewater

Raw material usage

efficiency improvement

= Efforts to protect environment

Supplier Group A

= Carbon reduction

=Saved cost

18

Resources &

Material

Efficiency

wastewater efficiency improvement

Achieved 80%

recycling rate

Achieved 8% solid waste

reduction rate

� Use alternative materials = Efforts to protect environment

� Use hot water to replace degreaser to remove oil from products

during pretreatment.

� Purchase of paper to replace polyethylene.

� Use of environmental friendly paint in manufacturing process.


� Carbon Management = Efforts to protect environment =

Saved cost

� One factory provided 40 bicycles for workers to use for free.

Supplier Group A

% of the factories provided

Energy

sources

data

Electricity

data sources

only

More than one

energy source

data

Energy

saving

methods

Cost savings

through

energy

reduction

100% 44% 56% 50% 22%

TGI Workshop Observation

� Post TGI assessments -- Factory perspectives:

� TGI is not another exam for “fail” or “pass”

� TGI is an baseline assessment which accelerates our environmental

improvement process

� TGI assessors were working as our partner throughout the process

Participants : Supplier Group A

� TGI is a leading environmental initiative, we hope local government and

authority share the same level of awareness and efforts

� Environmental good practice sharing is very important as some can be

implemented quickly, easily and cheaply

� Environmental good practice can lead to direct cost savings

� We own the TGI assessment report, we can share it with multiple buyers.

� TGI assessment report addresses sustainability requirements set by various

retailers and brands.

20

TGI Pilot Project

Post TGI Assessment –

Factories’ Continuous Improvements

� Factory A:

Examples of actions being taken since TGI assessments conducted in Dec 2009

� Monitors sleep mode on office computers to save electricity usage

� Promote double sided printing to save paper usage

� Recycle news paper and printed paper for product packaging protection

� Improved environmental practice for generator

Commitments and focuses for 2010 environmental improvements Commitments and focuses for 2010 environmental improvements

� Environmental management training for key management staff

� Obtain relevant certificates in order to improve the skill sets and capability of current

environmental personnel

� Set 2009 environmental data and sustainability data as baseline, finalize targets for 2010

environmental management, utilize the format of project management to ensure full

scale implementation.

� Further improvement internal environmental management awareness and knowledge

transfer.

� Ensure the involvement of factory staff at different levels in term of awareness raising and

environmental good practice.

22



� Factory A:


Solid Waste

Selection, Classification and Recycling

Installation of Energy saving lights

• Achieved 16% electricity reduction



� Factory A:


Planted new lawn Installation of dust control equipment

TGI Post Assessment –


� Factory A:


Installation of air emission control facilities Installation of noise buffers

Improvements for generators



� Factory B:

Sustainability measures being taken since TGI assessment:

� Mainly on energy saving, including electricity, natural gas, water, diesel oil, and waste

water recycling

Benefit gained through sustainability measures:

� Through these measures, the energy saving is improved, please refer to the

attachment.

26

attachment.

Cost saving tracking and calculation:

�Total cost down: RMB178,746, details please refer to next few slides.

Benefits gained through TGI project

�Improved energy saving and cost down;

�Enhanced employee environment protection consciousness.

�Improved current ISO14001 environmental management system and integration of

TGI and ISO14064 requirements;



� Factory B: Examples of actions being taken since TGI assessments

conducted in Dec 2009

547276

621872

548660563311

500000 520000 540000 560000 580000 600000 620000 640000

單位

:度U

nit

: K

W.h

電使用量對比圖 (Electricity Usage Benchmark) Y2009

Y2010

月份

年份Jan Feb

Y2009 547276 621872

Y2010 548660 563311

Cost Cut

(RMB)1,135 48,020

Cost Cut

(USD)166 7,041500000

Jan Feb

單位

月份Month

(USD)166 7,041

Table made on March 12,2010, by 周娟 ( Zhou Juan)

24435 19345 18656

16190

0

5000

10000

15000

20000

25000

30000

Jan Feb數量

(單位

:立方

米)U

nit

M3

天燃氣使用量對比圖

(Natural Gas Usage Benchmark)

Y2009

Y2010 月份年份

Jan Feb

Y2009 24435 19345

Y2010 18656 16190

Cost Cut

(RMB)32,362 17,668

Cost Cut

(USD)4,745 2,593

TGI Post Assessment –


� Factory B: Examples of actions being taken since TGI assessments

conducted in Dec 2009

2099 2134

1612 1540

1240

1740

2240

米U

nit:

M3

柴油使用量對比圖 Diesel Usage Benchmark Y2009

Y2010

月份年份

Jan Feb

Y2009 2099 2134

Y2010 1612 1540

Cost Down2,727 3,326

-260

240

740

Jan Feb單位

:立方

米 Cost Down

(RMB)2,727 3,326

Cost Cut

(USD)400 488


29251 33454

18656 16190

0

10000

20000

30000

40000

Jan Feb(單位

:立方

米)

Uni

t: M

3 自來水使用量對比圖 Water Usage Benchmark Y2009Y2010

月份年份

Jan Feb

Y2009 29251 33454

Y2010 18656 16190

Cost Down

(RMB)28,819 46,959

Cost Cut

(USD)4,225 6,885

14000160001800020000

Un

it:

ton

09.04-10.02循環再用水推移圖

April 09 to Feb 10 Recycled Water Trend Analysis



� Factory B:


02000400060008000100001200014000

2009.04 2009.05 2009.06 2009.07 2009.08 2009.09 2009.10 2009.11 2009.12 2010.01 2010.02

單位

:噸U

nit

: to

n

月份Month


月份 (month) 2009.04 2009.05 2009.06 2009.07 2009.08 2009.09 2009.10 2009.11 2009.12 2010.01 2010.02

循環再用水(Recycled Water )

1,391 1,551 3,671 5,571 9,770 10,596 14,973 17,293 16,633 7,230 13,284

Our Environment, the world in which we live and work, is

a mirror of our attitudes and expectations

--- Earl Nightingale

Thank You

[email protected]

Documents

TGI -- A case study of moving from thinking green to ...cdn-ecomm.dreamingcode.com/public/157/documents/Version-2011… · Factories’ Continuous Improvements Factory A: Examples