Supply Chain Reaction: Getting Clear
on Chemicals
Speakers
Gina BurgardCR Manager – Aldi Nord
Julian WuChemical and Environmental Compliance Manager -G.Gueldenpfennig GmbH (GP)
Angela DanPrinting and Dyeing division ofRainbow Village China
Sandhya Sharma-TosseramsChemical Specialist - amfori
amfori BEPI Supply Chain Chemical Management Module
Visibility of and access to all locations in supply chains
All tools in one place
amfori BEPI
platform
Industry collaboration and alignment of tools and standards
CAPACITY
BUILDINGUNDERSTANDING IMPROVING
- Self-
assessments
- Training
- Audit
corrective
action plan
- Training
- Chemical
management
audits
- Effluent/sludge
testing
Implementation of ZDHC tools in the textile and footwear sector
Supply Chain Reaction: Getting Clear on Chemicals
amfori Workshop
12/06/2018
ALDI Einkauf GmbH & Co. oHG
Milestones
BUSINESS PRESENTATION
1914Opening of the very first store
1961Division of sales territories between ALDI North and ALDI SOUTH
2008ALDI joins the amfori BSCI
2017ALDI publishestheir first DetoxProgress Report
1970s:Textiles and footwearwithin the specials range
12/06/2018 ALDI Einkauf GmbH & Co. oHG
March 2015ALDI publishes itsDetox Commitment
2017ALDI joins theamfori BEPI
2018ALDI publishes theirsecond DetoxProgress Report
2017ALDI joinsECAP
2018Start of the ALDI TransparencyCode for Textiles
OUR APPROACH TO CHEMICAL MANAGEMENT IN THE TEXTILES AND FOOTWEAR SUPPLY CHAIN
For the purpose of navigating the implementation
of the Detox requirements, ALDI has developed a roadmap
12/06/2018 ALDI Einkauf GmbH & Co. oHG
OUR APPROACH TO CHEMICAL MANAGEMENT IN THE TEXTILES AND FOOTWEAR SUPPLY CHAIN
Managing chemical inputs and outputs
12/06/2018 ALDI Einkauf GmbH & Co. oHG
OUR APPROACH TO CHEMICAL MANAGEMENT IN THE TEXTILES AND FOOTWEAR SUPPLY CHAIN
Detox requirements in our supply chain
for textiles and footwear
12/06/2018
Since
2017/18
via BEPI
ALDI Einkauf GmbH & Co. oHG
OUR APPROACH TO CHEMICAL MANAGEMENT IN THE TEXTILES AND FOOTWEAR SUPPLY CHAIN
Steps of our elimination strategy (2018-2020)
12/06/2018 ALDI Einkauf GmbH & Co. oHG
I Mapping and assessing our supply chain in the platform→ transparency
I Use of trainings offered (together with ZDHC academy)
I Joint development of practical implementation of CMAs (ALDI was part ofthe CMA pilot group)
▪ Alignment with ZDHC protocol as industry wide standard
▪ Use of synergies and cooperation with other amfori members
▪ Share audit results with other members and avoid double effort
I Use of one single platform for SC and EC activities in the future
AMFORI BEPI CHEMICAL MANAGEMENT AUDITS (CMAs)
Why did we choose amfori BEPI as our partner?
12/06/2018 ALDI Einkauf GmbH & Co. oHG
Thank you!
12/06/2018 ALDI Einkauf GmbH & Co. oHG
GP DETOX PERFORMANCE REVIEW 2017
Amfori Unleash Opportunity 2018, Amsterdam
presented by Julian Wu, 12.06.2018
GP CICertificate
ALDI DETOX REQUIREMENT AND GP TASKFORCEALDI Detox Commitment with Greenpeace
Supply Chain Transparency
STeP Certification Trial
ALDI CMA trial round
Detox Summit
Input Chemicals
BEPI
Detox Admin
GP CMAudit
Substitution
BEPI Admin
Lily
GourabTimo
Lucy
Monzil
Shorower
Kristina
Zero
Katharina
Regina
Julian Jet
2015 Q2 Q3 Q4 2016 Q2 Q3 Q4 2017 Q2 Q3 Q4 2018 Q2 Q3
BEPI CMA GP CMAudit 2.1
ALDI Chemical Management online Course
ALDI Detox Commitment +
Supplier Requirement 5.0
MILESTONES 2017
• Further Concentration of Supply Chain: China 1/2, Bangladesh 1/3,
• GP CMAudit Screening of Supply Chain completed
• Input Chemicals: Establishment of GP CICertificate Database (China, BD follows)
• GP CCAcademy: 10 mills completed, 10 mills under process
GP CMAudit: Gueldenpfennig Chemical Management Audit, an internal screening program, established in 2016, based on the following
7 major fields, chemical policy, chemical storage, chemicals supplier management, production control on chemicals use, chemical waste
management and chemical training.
GP CICertificate: Gueldenpfennig Chemical Inventory and Certificate, an internal chemical data mining project. In this project, we
collect all the relevant data of all input chemicals, and their (M)SDS and certificates. After verification of their validation, we record them
in our database and give every our factory a feedback, so then they keep building up their chemical data management.
GP CCAcademy: Gueldenpfennig Chemical Compliance Academy, provided by assigned service providers to give course in Chemical
Management , to accompany on-site improvement, and measure final achievement.
CONCENTRATION OF WET-PROCESS MILLS IN CHINA
1st Whitelist
at end of 2016
104
2nd Whitelist
at mid of 2017
70
3rd Whitelist
at end of 2017
49
CONCENTRATION OF WET-PROCESS MILLS IN BANGLADESH
1st Whitelist
at end of 2016
63
2nd Whitelist
at mid of 2017
45
3rd Whitelist
at end of 2017
42
22.06.2018 PLATZHALTER PRÄSENTATIONSTITEL
SEITE 17
2
3
4
5
6
7
8
9
10
11
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Detox Performance China 2017
8.4 (2016)8.7 (2015)
27.4% (2017) .
Detox W/S Average
7.6 (2017)
Average GP CMA
22.06.2018 PLATZHALTER PRÄSENTATIONSTITEL
SEITE 18
2
3
4
5
6
7
8
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DETOX Performance Bangladesh 2017 Detox W/S AverageAverage GP CMA
18.5% (2017) .
3.6 (2015)3.7 (2016)3.8 (2017)
INPUT CHEMICALS AND CERTIFICATES CHINA
23
208
172
250
Chemical Data
Basic Chemicals
Certified Dyes & Aux
Blusign Sys Partner Chemicals
Not certified Dyes & Aux
24
17
8
Factories
Active (>20%)
Inactive (<20%)
No response
CHEMICAL MANAGEMENT CAPACITY BUILDING – SYSTAIN*
40%
47%
35%33%
35%33%
27%24% 23%
18%
14%
49% 48%
38%36% 36%
34%
28%25% 24%
20%17%
0%
10%
20%
30%
40%
50%
60%
Boron Weixing Xingmeida(adapted)
H&S Nanhua RainbowVillage
Bailiheng Taifu/Kailan Beihai Furun(adapted)
Damei(adapted)
CMA before CMA after
Improvement in average in GP CMA: 2%
Gueldenpfennig paid 50,000 €
SYSTAIN: is a consultation company based in Berlin and Hamburg, Germany. As a daughter company of OTTO GmbH & Co. KG, SYSTAIN is active in
Germany, offering consultation services in different fields such as social responsibility, Environmental and Resource Management, Climate and Energy.
CHEMICAL MANAGEMENT CAPACITY BUILDING - RUNNING
37% 34% 32% 30%
8%
0%
20%
40%
60%
Angel JiaHuang Huachang Yongxin Xiechao
CMA before
47%
36%
19% 17%11%
0%
10%
20%
30%
40%
50%
60%
Raiyan Knit CottonDyeing
GenerationNext
KC Wash Hameen
CMA after
GoBlu* in Bangladesch (Oct.2017 → Sep.2018)
Gueldenpfennig paid 25,000 €
MASINORY* in China (Oct. → Dec.2017)
MASINORY: is a consultation company based in Hong Kong, earlier as an internal consulter of HKGCC (Hong Kong General Chamber of Commerce);
recently is offering services in Chemical Management Academy for textile industry in China.
GoBlu: A Consultation company based in Germany and USA, together with external partners in developing countries, is offering services in Chemical
Management Academy for textile industries in most of the textile production countries in Asia.
BEPI – AN ACTIVE PARTNER FOR IMPLEMENTING SUPPLY
CHAIN SUSTAINABILITY
✓ GP actively implements chemical management tools offered within the framework of
amfori BEPI Supply Chain Chemical Management Module (SCCM) such as the ZDHC
CMA 2.0.
✓ GP participated in the Chemical Management Audit (CMA) pilot project group and has
nominated “Rainbow Village” to conduct a pilot CMA.
✓ GP continues to be an engaged amfori BEPI member within the chemicals related amfori
working groups, such as the project group on chemicals in Textiles and Footwear.
Together with ALDI, GP supports BEPI CMA and will roll out the CMA for all the active
manufacturers in the coming year to achieve a total transparency in Chemical Management.
THANK YOU VERY MUCH
22.06.2018 PLATZHALTER PRÄSENTATIONSTITEL
SEITE 23
Chemical Management Practice in
Printing and Dyeing Division of Rainbow Village Group
by Angela Dan, 2018, Amsterdam
Company Profile
SHAOXING RAINBOW VILLAGE
KNITTNG AND TEXTILE CO., LTD
ZHEJIANG RAINBOW VILLGAE
PRINTING AND DYEING CO.,LTD
ZHEJIANG INQ
FASHION CO., LTD
Rainbow Village Group
Printing &
Dyeing
Knitting &
Textile
Fashion
Our Expertise
KNITTING
◆Circular knitted fabrics in multiple specs.
◆Annual output 7,000 tons.
Our Expertise
DYEING
◆Overflow high-temp. dyeing and jet dyeing
◆Functional finishings
◆Knitted and woven fabrics
◆Cotton, viscose, polyester and their blends
◆Energy and water-efficient machineries
◆Annual capacity 1.2 million tons
Our Expertise
PRINTING
◆Flat-mesh, round-mesh, digital one-press printings
◆Knitted and woven fabrics
◆Cotton, viscose, polyester and their blends
◆Pattern development and fashion design
◆Annual capacity 15 million meters
Our Clients
Chemical Management
PROCUREMENT
✓ Chemical: SDS, TDS and certificates for risk control
✓ Raw material: declaration of compliance with RSL, basically OEKO-Tex Standard 100
✓ Product: random check by both internal lab and third-party.
Challenge: The more control, the higher the price, the less competitive, if there is not an
effective mean to raise acknowledgement → reason why we align with BEPI
Chemical Management
(M)RSL CONTROL
✓ (M)RSL provided by customers are collected
✓ (M)SDS provided by chemical suppliers are collected
✓ Declaration of compliance is mandatory for each chemical supplier
✓ Well-known brands/bluesign system partners preferred: Dystar, Huntsman, Yorkshire,
Lonsen…
✓ Certificate of quality, positive list are required if available
✓ Chemical inventory is regularly updated and checked against (M)RSL
Chemical Management
CHEMICAL HANDLING
✓ Workers handling chemicals are trained according to risk level
✓ Chemical storage areas are segregated by solid/liquid, hazards and risks
✓ (M)SDS, warning signs, PPE instructions, emergency tools are provided on site
✓ Secondary containment and lifted floor are used to control spill and moisture
✓ Daily inspection checks implementation of rules
Chemical Management
Chemical Management
USAGE CONTROL
✓ Only authorized persons are permitted to enter chemical storage and dispensing areas
✓ High-risk chemicals are strictly controlled and segregated in isolated rooms
✓ Recipe sheet, requisition sheet, deliver sheet are used to control and record chemical flow
✓ All chemical related documents are kept for at least 1 year
✓ Related persons are regularly trained for updates of chemical inventory
✓ Chemical stock and inventory will be checked every month
Chemical Management
DISCHARGE CONTROL
✓ Wastewater discharge is strictly monitored by instruments connected to local EPA
✓ Chinese discharge standard for printing/dyeing industry GB4287 are fully met
✓ On-site ETP is upgraded for higher efficiency
✓ Off-site ETP secures the final discharge to environment
✓ Exhaust gas from machineries are also collected and “washed” with special equipment
Chemical Management
Chemical Management
WASTE CONTROL
◆ Sludge, package material, fabric, expired chemicals…are stored in respective areas.
◆ Sludge will be burnt by thermal power plant authorized by local EPA
◆ Other solid wastes are handled by qualified recyclers.
◆ If possible, reusable materials will be sent back to their suppliers
Chemical Management
QUALITY CONTROL
✓ Oeko-tex Standard 100 with Appendix 6 are fully adopted as EU clients required
✓ H&M quality system with certified laboratory was established
✓ Quality tests by third-party on daily basis
✓ Cooperation with consultants and training providers for EHS compliance
✓ Communication with chemical suppliers for (M)RSL compliance
Chemical Management
COMPLIANCE EFFORT
◆ Registered on BEPI platform as clients required
◆ Responsible persons attended external training programs for further development
◆ CMAs by clients and BEPI were conducted and and the respective corrective action plans are
being implemented accordingly:
✓ Automatic chemical dispensing system is under construction to reduce risks
✓ An upgraded ERP system will be online for more detailed chemical management
✓ ETP and exhaust gas purification are upgraded for higher legal requirements
THANK YOU VERY MUCH!
Thank You!
NOTICE: Pick Up Your General Assembly Voting
Device – From 12:45 Outside the Plenary