Bluesign Innovation For Extremes 06.05.2009

Footnote2 | Number of slides , Date

© by bluesign technologies ag

• Introduction

• Today’s management of complex “Environment, Health & Safety” (EHS) problems

• The bluesign® standard creates transparency

• Industry challenges – resource management

Agenda for today



Part 1

• Introduction






bluesign technologies ag

The company

• Founded in 2000, based in St.Gallen, Switzerland (EMPA building)

• Emerged from a project with Schoeller Textil, Nike and Huntsman

• Development of “Supply Chain Tools” for the textile and related industry

• Recognized by leading chemical companies such as Huntsman, Clariant, DyStar, CHT-Group, etc.

• Supported by Patagonia, MEC, The North Face, VAUDE, Helly Hansen, Eileen Fisher, Haglöfs, R.E.I. etc.

• SGS as shareholder since July 2008




Goal

Textile manu-

facturers

Fibre manu-

facturers

ChemicalSuppliers

Brands & Retailers

• Vision: “One world – one standard”

• Bringing together the entire textile manufacturing chain to jointly reduce the environmental footprint of the textile industry

bluesign® standard



Part 2

• Introduction






Strict control mechanism in

the supply chain

Consumers assume that retailers are

managing allrisks (EHS, ethical)

on their behalf

Just one case of allergy or health issue in the public is enough to put the brand at risk

» Restoring a damaged reputation is extremely costly

Retailer/Brand situation

Brand

Customer loyalty• People wear it (often next to skin)• People identify with it•Emotional binding

Customer requirements•A safe product•An environmentally friendly product•A sustainable product

"Brand Protection"

Consequence



What happened in the last 20 years?



Current “ECO” approaches …

Eco labels

… the Solution?

Restricted Substance Lists (RSL)



Analyses show

» MAK-Amines

» PVC & Phthalates

» APEO

» Heavy Metals

» PFOA and PFOS

» Sensitizing dyes

» Toxic solvents

» Other toxic substances

Harmful substances in textile products!



Approach by brands and retailers

• Fact: Still a growing number of “problems”

• Sourcing in locations with unknown EHS standards

• Chemical industry can‘t handle increasing number of RSLs

• EHS data of chemical components are often not available

• In many cases, the decision maker at the manufacturing level does not possess the necessary chemical and toxicological know-how

• Uncertainty through “new” problem substances e.g. PFOA / PFOS

Unsatisfying implementation of RSLs



Practical experience

Finding

It is not possible to run a business based on analytical testing!



Material Safety Data Sheet l


Recent European ECLIPS study shows:

» Many MSDS are of generally poor quality

» Large amount of products and substances not classified correctly

» Much of important information not available

» Implementation of EU-Directive deficient in 69%



Material Safety Data Sheet ll


MSDS from company with high EHS-Standards:

» Written for environmental chemistry specialists and toxicologists

» Interpretation complicated

» For decision maker in the production difficult to implement



Material Safety Data Sheet lll


MSDS of insufficient quality:

» Data content doesn’t allow interpretation for end product

» Often simply no data or inaccurate data available

» Problem substances listed in RSLs are often not mentioned



Consequence


If You Don’t Know, You Don’t Care!



Part 3

• Introduction






» Environment

» Health

» Safety

» Resource productivity

Worldwide industry standard

The bluesign® standard



work place

EHS Aspects …

… in textile production

ground-water contamination

Soilcontamination

NO x

CO2

UFP‘s

CH4

SO2

waste water

waste

products

emission

noise

water

raw material

energy



Blackbox

Conventional approach

Focus on end-product

End-product

Brands need more information

Textile production chain

STOP



Blackbox

bluesign® approach

bluesign® standard

Monitoring & Optimisation

Input Process / Technology

Focus on input streams

STOP

STOP

End-productTextile production chain



Input stream management

The five pillars of the bluesign® standard

Over 600 restricted and banned substances are monitored within the bluesign® standard



» Use of eco-efficient products = to achieve best performance with optimized resource consumption and minimum air and water emissions

» Ecological footprint: minimized energy and material input per kg of textile product


Resource productivity



» Carcinogenic substances

» Mutagenic substances

» Neurotoxic substances

» Endocrine substances

» Sensitizing and irritating substances

» And others


Consumer safety



» Emission factor (e-factor)

» Substance emission factor (s-factor)

» Recipe calculation based on e-factors leads to VOC optimisation


Air emission




Water emission

» Biodegradability, bioelimination

» Fish-, bacteria-, daphnia-, algae toxicity

» COD, BOD, TOC

» AOX

» Aliphatic hydrocarbons, sulfate, phosphate a.o.

» ARS according TEGEWA Class I-III

» Heavy metals

» And others



Consideration of several relevant exposure scenarios:

» Evaporation at large surfaces at stenter, printing and coating applications

» Handling at the dyeing machine at high temperatures (batching tank)

» Handling of almost empty barrel


Occupational health and safety




Rating based on ecotoxicological data

blue: All foreseeable applications within the bluesign® standard

grey: Can be used for “Performance Products” under conditions provided by “Best Available Technology” – as long as consumer safety is not compromised

black: Usage ban

Component categorization

(A)(B)(C)

Rating Definition of applications




Tackle the root of the problem:

» Clean components lead to clean products and reduce environmental impact

Holistic approach



The bluesign® standard in summary

Qualitative comparison

Focus on Consumer Safety Focus on Environment

Mark

et

Pen

etr

ati

on

Focus on Resources & Processes

Eco-Labels

EU Eco Flower

bluesign® standard

GOTS

Various RSLs

bluefinder™



Various “Restricted Substance Lists”» Nike, Levi’s, New Balance, R.E.I., Columbia, adidas, PUMA, H&M,

C&A, M&S, IKEA, Coats and others

REACH

» Concentration of „Substances of Very High Concern“ (SVHC) in bluesign® approved fabrics is smaller than 0.1%

No reporting requirement according to article 33 REACH

Notification according to article 2 REACH does not apply

» Current list of SVHC on ECHA websitehttp://echa.europa.eu/chem_data/candidate_list_table_en.asp

The bluesign® standard in summary

Manufacturers fulfill the following guidelines

http://echa.europa.eu/chem_data/candidate_list_table_en.asp

http://echa.europa.eu/chem_data/candidate_list_table_en.asp



Tools – chemical industry

• Evaluation – Rating – Registration of commercially available chemical products

• Translates the specialist knowledge of chemists and toxicologists into the language of the user

• EHS-specialists of the chemical industry can register their products online on their own

• Easy to use

bluetool™



Tools – textile manufacturers

bluesign® screening

• Screening Agreement and NDA

• Preparative steps – data collection

• On-site verification

• Compatibility with bluesign® standard

• Report with recommendations and “roadmap”

Phase 1:Screening

Phase 2:Implementation

• System Partner Agreement

• Implementation of recommendations

• Analytics per range – Certificate

• Re-screening



Tools – textile manufacturers

• Selecting products for new applications

• Easily find alternatives for existing applications

• Innovation security – new products are safe from the beginning

• Online tool – accessible anytime, anywhere

• Growing database

• With these products RSLs and SVHC requirements are met

bluefinder™



Tools – brands and retailer

• Database including ecological and toxicological data of chemical substances relevant for textiles

• Access to currently issued certificates

• Overview of manufacturers:

» in screening process

» in implementation phase

» with certified products

• Manufacturers with access to the bluefinder™

blueguide™ (in development)



Part 4

• Introduction






Environmental Impacts …

… of the textile industryChemicals

•25% of the chemicals produced worldwide are used directly or indirectly for textiles (Source: Greenpeace Germany)

» Environmental impact

Energy

•High energy consumption in production, transport, retail and use

» Contribution to global warming (CO2)

•Growing of cotton: 4,000 – 30,000 l / kg cotton•Finishing of textiles: up to 700 l freshwater / kg textile•Waste water in production: up to 600 l / kg textile•Use of water for a large brand – 1,200 small lakes or43,000 Olympic-size swimming pools per annum» Mostly drinking water quality

Water



Resource management

Motivation for Manufacturers

Resource savings help to keep costs down by potentially reducing chemicals, water and energy using existing equipment…

…not dependent on capital investment!



Resource management

Resource inflation components (rici):• Electrical Energy ric1

• Water ric2

• Base Chemicals ric3

• Additives ric4

• Calorific Energy ric5

Resource inflation components:

Resource inflation factor: rif = 2.01

rici =

1.0 1.551.0 1.771.0 2.241.0 1.671.0 2.61

BAT current

Resource inflation factor



Cost inflation factor

Resource management

Total = 2.01

Electrical energy = 1.55Water = 1.77Base chemicals = 2.24

Additives = 1.67Calorific energy= 2.61

Resource Inflation (rif):

Cost Inflation (cif):

Total = 2.09



0

0.5

1

1.5

2

2.5

3

Energy el. Water Chemicals Auxiliaries Energy cal.

eff. valueBAT internal

Resource management

Overview of the production process

rif 2.01

Cost 0.07 €/kWh 2 €/m3 0.45 €/kg 1.1 €/kg 0.015 €/kWh

cif 2.09

Cost savings 897’000 €

BAT



Resource management

Convergence to BAT R

esou

rce I

nfl

ati

on

Facto

r (r

if)

Cost Inflation Factor (cif)

Initial-Screening

Optimum

0

1

2

3

1

1. Re-Screening

2. Re-Screening

2.5 1.75




» Rating of all components in use

» Monitoring of processes

» Data acquisition and balancing of resources

» Screening report with recommendations considering the current local situation

» Indication of resources and cost saving potentials compared to “Best Available Technology”

Full factory analysis




» Transparency in the production

» Breaking down complex EHS-issues to a manageable level

» Solution oriented

» Compliance with all common RSLs and meeting SVHC requirements

» “Insurance” for manufacturers, retailers and brands

Outcome



The bluesign® standard

• Consumer Safety Only approved components low on harmful substances are used

• Conserving Resources Minimized resource consumption leads to a sustainable product

• High-tech and ComfortNo compromise in functionality, quality or design

Developed in Switzerland

The bluesign® standard …

… trademark strategy

Semi Finished Product

Components

• Chemical comp.• Accessories• Yarns

Final Product

Labels

Hang Tags


EMPA Building

Lerchenfeldstrasse 5

CH-9014 St. Gallen

Fon +41 (0) 71 272 29 90

Fax +41 (0) 71 272 29 99

[email protected]

www.bluesign.com

Thank you



Supporter

bluesign® system partner

» Huntsman, Switzerland

» Clariant, Switzerland

» DyStar, Germany

» ERBA, Switzerland

» Granger‘s, UK

» SANITIZED, Switzerland

» Sympatex, Germany

» CHT/BEZEMA, Germany

» Asahi Glass, Japan

» Mahlo, Germany

» Benninger, Switzerland

» Polygiene, Sweden




» Hong Kong Textiles, Hong Kong

» G-FUN Industrial, Taiwan

» Utermost Dyeing & Finishing, Taiwan

» Paltex, Taiwan

» Ho Chien Enterprise, Taiwan

» Youngone, Korea

» Grand Textile, Taiwan

» Fortune Spring, Taiwan

» Fabricoat, Taiwan

Manufacturers in screening process




» Polartec, USA

» FILÓ, Brazil

» M.I.T.I., Italy

» Bischoff Gamma, Thailand

» Guan Lin / Synnix Technology, Taiwan

Manufacturers in implementation phase




» Schoeller Textil, Switzerland

» Eschler, Switzerland

» Formosa Taffeta, Taiwan

» Getzner, Austria

» Everest Textile, Taiwan

» Schoeller Wool, Austria

» Lauffenmühle, Germany

» Singtex, Taiwan

» HOYU, Taiwan

» Kingwhale, Taiwan

» Trueway, Taiwan

» Sunny Textile, Taiwan

» and others

Manufacturers with certified products



bluesign® member

» Patagonia, USA

» Mountain Equipment CO-OP, Canada

» The North Face, USA

» VAUDE Sports, Germany

» Helly Hansen, Norway

» Eileen Fisher, USA

» Haglöfs, Sweden

» Jako-O, Germany

» R.E.I., USA

» Deuter, Germany

Brands and retailers