in higg index adoption - sfbchiggweb.sfbc.org.hk/attachments/article/189/sac-lf higg index.pdf ·...
TRANSCRIPT
Li & Fung’s Involvement
In Higg Index Adoption
Barry Tang
25 September 2015
Who is Li & Fung (LF) ?
Fung Holdings (1937) Ltd.
A privately held entity and major shareholder of the Fung Group
The Fung Group
Retailing
Global Brands GroupListed on SEHK
DistributionTrading
Li & Fung LimitedListed on SEHK
Logistics
Fung Retailing LimitedPrivately Held Entity
Convenience Retail
Asia Limited
Listed on SEHK
Trinity Limited
Listed on SEHK
Branded Lifestyle Holdings Limited
LiFung Kids (Holdings) Limited
Toys “R” Us (Asia)
Suhyang Networks
UCCAL Fashion Group
Privately Held Entities
Our business today
Trading Logistics
LF
Sourcing
PrincipalAgency
LF
LogisticsLF Asia LF Beauty
LF
Fashion
LF Private
Label
LF
Products
• 109 years of history & evolution
• US$19.28B turnover
• 25,000+ employees
• 100+ acquisitions
• 300+ offices in 40+ countries
• 8,000 customers in 100 countries
• 15,000 vendors in 60 countries
Li & Fung today
Kids
Home furnishing / craft Brands
Department stores & massBeauty
Specialty retail
Key customer base
LF Vendor Compliance and Sustainability (VCS)
VCS Service Evolution
from
Auditing
to
Assessment,
Remediation &
Capacity Building
Value- added services
Our competitive advantage to customers is that we deliver value-added services at every step of their supply chains
that we manage.
Environmental Sustainability
Phase 1 – Foundation and Low-Hanging Fruit
Goal:
Establish environmental sustainability management team, identify quick-win opportunities, build the business case, and prepare to
make use of audit results and technical resources
• Establish the baseline measurement for energy & water usage and
wastes streams at the facilities, which includes product output data
• Identify quick-win opportunities for factory and provide coaching
support on their implementation
• Facility visits by the LF Team, Facilities’ management and/or external
technical expert
• Actively engage in different industrial sustainability programme, such
as SAC
• Help some of customers to monitor their environmental programme • Track progresses and report
Overview Environmental Sustainability Program
Environmental Sustainability Improvement Examples
Increase energy efficiency of
manufacturing process & equipment
Retrofit lighting system Upgrade air-conditioning system Renewable energy
Energy Efficiency & Carbon Reduction
Increase energy efficiency of
steam boilers
Improve piping insulation
Environmental Sustainability Improvement Examples
Wastewater recycling Collection of rainwater
Water Resource Management
Wastewater reuse Proper treatment
Environmental Sustainability - Food Waste Management
Food waste from factory cafeteria is an
opportunity for sustainability improvement.
Such waste is a burden to landfill and may
cause hygiene problems. On the other
hand, if properly handled, this could be a
valuable resource.
Compost
from food waste
Collaboration with SAC & LF Customers
Actively involve and support the development of Higg Index (the FW
working group ).
Participated in the pilot testing of facility modules
Share our training resource with SAC as leader membership
Support some of the translations
Cascade customers’ requirements to relative suppliers
Exchange information on supplier performance
Collect feedback to SAC and customers
Involve with Suppliers Arrange training session for suppliers on
Designate responsible and learn basic knowledge on Facility Module (Environmental and Social/Labor-if needed) and set up their goals
Use Higg Index Web Tool to complete and post their Module and connect with Li Fung and customers.
Provide environmental improvement suggestion in Li Fung website -
Sustainability Resource Center (SRC)
Monitor and ensure module completion of each supplier
Collaborate to make their Higg Index better score
Next Steps
In order provide more value added services to our customers
Work with SAC on internal verification
Support Customer with Higg Index data analysis
17
Higg Index Data Analysis
Property of Schneider Electric
Country Analysis Dashboard
Property of Schneider Electric
Country Analysis Dashboard
Q & A
Thank you