CSR Factsheet

ENERGY USE
fashion is hot!

Planet
Cotton and wool Man-made fibre Recycled fibre
This factsheet informs you about the reduction of energy use and the use of sustainable energy sources. All because of well once run out of oil and gas while warming-up the earth. It provides you with concrete alternatives for a less energy consuming and climate neutral fashion.

Energy use
Water use Waste water (available soon) Chemicals use

THETEXTILE CASE
Energy is used in all parts of the textile supply chain. Wet processing uses a lot of energy because the water needs to be heated. It also costs energy (electricity) to run machinery for pre-treatment and dyeing of fabrics and to transport products. Energy is also unnecessarily wasted through inefficiencies in processes. During the use of garments, a lot of energy is needed for cleaning, drying and ironing of the product. Furthermore, the synthetic fibres also use oil as basic raw material which make them even more oil consuming. Transport also costs energy , but in case of sea transport it is not a key factor in the total energy use.

Index: Factsheet
The textile case The environment issue The supply chain approach Product design and fabric selection Choose suppliers with a credible certificate Check suppliers policy and performance Work with suppliers on improvements Inform the consumer Get informed, aware, inspired and challenged Provided by:

Energy impacts (blue spheres) in the fibre to fashion chain

Pagina

CSR

Planet

Factsheet

| ENER GY

USE

THE ENVIRONMENT ISSUE

Fossil fuels like coal, oil and natural gas are non-renewable resources. This means that they will finally run out (and will become more and more expensive during getting scarce). Burning fossil fuels for electricity or heating, produces greenhouse gasses notably CO2, which contributes to global warming. Impacts of global warming ultimately lead to climate change with phenomena like sea-level rise and changes in rainfall patterns (from droughts to heavy rains). Thus increased risks of flooding at sea shores and in river basins. Higher temperatures and changing rainfall will also lead to changes in natural flora and fauna and affect the agricultural yields. Burning fossil fuels also generates other air pollutants (nitrogen and sulphur oxides, fine dust and heavy metals) that contribute to smog, still a huge problem in China, India and other developing and textile producing countries.

Improving on the energy use and carbon footprint of your product may entail applying state-of-the-art techniques by your suppliers, including energy-saving techniques and options for energy recovery. Improving on the carbon footprint related to energy use may also entail the use of sustainable energy sources like wind power, solar power, hydro power, geothermal power and energy generated from biomass where possible. These energy sources outperform fossil fuels when it comes to greenhouse gas emissions and depletion of non-renewable resources. It should be realised that growing biomass as fuel for energy production may compete with food production. This is one of the reasons why criteria are being developed to define a sustainable production of biomass. Many of the larger brands in the textile industry have already identified energy use, climate neutrality or carbon neutrality as one of the key environmental issues that needs to be covered. Consumers and retailers are increasingly aware of climate change. Therefore, the carbon footprint of a company or product is increasingly used as a way for businesses to distinguishing themselves from competitors.

THE SUPPLY CHAIN APPROACH

If you want to improve energy consumption, you need insight into the energy use and carbon footprint of both the fabrics you use and the production processes in the supply chain (with a strong focus on the wet processing phase). This includes the energy use of your own facility, even if the energy use of your facility is limited compared to other steps in the supply chain (set a good example, walk the talk). A carbon footprint is a measure for the climate change impact. This footprint is made by using fossil fuels for energy or as raw material (all synthetics), which leads to the production of greenhouse gasses. A company or product can reduce its footprint by being more energy-efficient and by using renewable energy (sun, wind, biomass) and bio-based materials. It can be made zero (carbon neutral, climate neutral) if remaining emissions of greenhouse gasses are compensated through extra energy-saving projects like buying carbon credits that balance the greenhouse gas emissions.

Pagina

3 |

CSR

Planet

Factsheet

| ENER GY

USE

What can you do? Designers and product managers:

At least be aware of the significance of energy consumption / carbon footprint in the selection of fabrics and suppliers. You make the basic decisions on the specific requirements (look, feel, colour, print) for fabric and final garment. These requirements are largely realised by wet-processing treatment (bleaching, dying, washing and finishing). Be aware that this requires a high input of energy. Fabric buyers: Look for suppliers that offer fabric (yarn, fibres) with a low carbon footprint. Sourcers and supply chain managers: Think about the energy-use in the production and processing of yarn and fabrics when you select suppliers of fabric and yarn. Start a dialogue with your suppliers on efficient energy use. Don't let the fact that there are no general rules on energy use available stop you. Company management: Define a company strategy on energy savings in the supply chain and on carbon compensation. For example: choose to become a carbon neutral company or to produce carbon neutral products.

WHAT TO FOCUS ON AND HOW TO IMPROVE?

Most companies will only invest in energy efficiency and improvement on their carbon footprint when there is a clear business case. The main business cases related to energy use in the textiles supply chain are: The reduced cost of energy use. Market benefits resulting from a reduced carbon footprint. A stronger corporate image (as a responsible company). Additionally, energy saving in the textile processing may lead to a more secure (preferential) energy supply to a textile mill, thus reducing the risk of energy cuts during production. There are three ways of managing your energy consumption:

A. Product design and fabric selection

When you know what the energy consumption is of a specific product throughout the supply chain, you can evaluate the role of product design in the reduction of energy consumption. For example, when specific steps in the wet processing phase require a lot of energy, the product design may be changed in such a way that the step is not necessary anymore or can be substituted by a more energy efficient one. You can review where you can use technically and economically possible fabrics from renewable resources, instead of mineral oil based synthetic fibres. This will reduce the need for (nonrenewable) mineral oil. This reduces the need for energy in the production of the fibre. For example, corn based fibres have similar properties to polyester.

A. Product design and fabric selection B. Screening, selecting and working with suppliers C. Informing the consumer about ways to reduce energy use

Pagina

CSR

Planet

Factsheet

| ENER GY

USE

B. Screening, selecting and working with suppliers

An important step in managing the energy consumption of a product is to include the use of energy in the screening and selection of suppliers and to work with suppliers to improve their performance. There are basically three ways to do this:

GOTS (Global Organic Textile Standard)

The GOTS standard requires documentation of staff training in the conservation of energy in the processing plant. As well as full record keeping of the use of energy by wet processing units. Both requirements should be part of the environmental management system.

PAS 2050/2060
You might meet carbon reduction or neutral claims that are supported by PAS 2050 or 2060 standard. Both are upcoming specifications for the calculation of CO2 emissions related to a product (PAS 2050) or to demonstrate carbon neutrality (PAS 2060). Both specifications are under development and no official certification based on it can be claimed as yet. But it is valuable and trustworthy if the specification is used in greenhouse gas emission reduction claims.

1. Choose suppliers with a credible certificate. 2. Check suppliers policy and performance. 3. Work with suppliers to implement improvement measures.

B1. Choose suppliers with a credible certificate

Although there are no certificates in the textiles sector that focus specifically on energy use, there are certain textile standards that include requirements relevant to a responsible energy use.

Oeko-Tex Standard 1000 and 100plus

The Oeko-Tex Standard 1000 focuses on environmental-friendly textile processing. Oeko-Tex 100plus is a product label combining the 100 and 1000 standard throughout the whole production chain. According to this standard energy must be used optimally. Energy use must be measured for different products and parts of production units. The use of renewable energy sources should be preferred.

B2. Check suppliers policy and performance

Energy efficiency claims are not yet very common among yarn, fabric and garment suppliers. However it is expected that suppliers increasingly will give you information on their policy, performance and specific product claims in respect to reduced energy use. Independent information is best reliable. You can always consult a MODINT CSR manager on their opinion.

What can you do? Check the suppliers sustainability report and/or raise relevant questions:
Does the supplier have a policy on energy use? Is this policy translated into specific targets on energy use? Is energy consumption monitored and reported? Verify the answers to these questions, preferably through: a signed energy or environmental policy preferably part of an environmental management system (ISO14001) a verified CSR report including specific energy consumption data. Ask for specific information about energy use and consumption, reduction and specific measures. It is important that this information can be considered reliable (no easy way-out on serious questions!).

Pagina

5 |

CSR

Planet

Factsheet

| ENER GY

USE

A supplier may also be able to show its actions on managing energy consumption by means of its active involvement in one or more sustainability initiatives. Examples of initiatives that include a focus on energy consumption are:

The Greenhouse Gas Protocol (GHG Protocol)

This World Business Council for Sustainable Development initiative has developed a standard for corporate accounting and reporting of GHG emissions. A standard for a specific product and supply chain approach is under development. Unfortunately no garment sector specific accounting tools available yet, but this is an interesting development.

UN Global Compact: Caring for Climate

"Caring for Climate" is a voluntary and complementary action platform for UN Global Compact participants who seek to demonstrate leadership on the issue of climate change. It provides a framework for business leaders with the potential of rapidly becoming the leading platform for pragmatic business solutions. All UN Global Compact business participants are invited to join by signing the Caring for Climate statement.

Climate Counts Scorecard

Climate Counts brings consumers and companies together in the fight against global climate change. Companies are compared on their climate performance with a scorecard. You can use the 22 points scorecard yourself to assess your own score and these of your suppliers.

BSR Energy Efficiency Partnership Program

The Business for Social responsibility (BSR) is launching a supply chain energy efficiency program that can save 20 percent or more of your suppliers' energy costs, and create momentum for addressing broader sustainability issues in your value chains. The Energy Efficiency Partnership Program offers cost-effective ways to help companies design a robust strategy, effectively engage and train suppliers, manage data, and ultimately motivate suppliers to continuously improve.

What can you do? You can either join an initiative yourself or work with suppliers that joined one of these initiatives. By using
their publicly available tools and measures (see websites) you may be able to further shape your energy management throughout the supply chain.

B3. Working (with suppliers) on energy efficiency and greenhouse gas reduction
Apart from a screening and selection of suppliers based on their energy management/performance, your company can also actively work with suppliers to map and minimize energy consumption. Of course this also goes for the companys own operations (show a good example, walk the talk). You can explore several methods and measures to manage and reduce energy consumption.

Generally applicable
- Monitor your energy use: check on increases and reductions where possible in production processes; - Make a plan to reduce energy use including targets for the years to come; - Switch off unused appliances or lighting; - Insulating materials around machinery vessels and pipes (e.g. sides, tops, backs. This reduces heat losses and energy consumption for process heating.

Pagina

CSR

Planet

Factsheet

| ENER GY

USE

These measures can be discussed and reviewed during a processing plant visit.

C. Inform the consumer

The use of energy in the use phase of the textile product is determined by the cleaning, drying and ironing of the laundry by the consumer. You can raise awareness at the consumer level about sustainable measures, like the use of full machines and modern energy efficient washing machines. Clean your yeans!

More advanced
Heat exchangers use exhaust heat e.g. from used, warm process water to warm up new process water; Reusing warmed-up cooling water to heat working spaces (e.g. with radiators). These measures will require a cost/benefit analysis before implementation. They are usually only financially feasible when the use of energy is charged appropriately. Depending on the relation with supplies (e.g. the textile processor), these measures can also be discussed with suppliers.

What can you do? Inform consumers about:

Washing with full machines Modern washing machines (energy label A/B) Washing only when necessary Low(er) temperature washing

Best practices
An energy management system enables a structural approach to reducing energy use. This includes training sessions. These measures can be included in the selection process of nominated suppliers.

Line drying

Renewable energy
Apart from reduction of energy use in the production process a very important perspective is using renewable energy. You can consider this for your own energy use in the Netherlands or Europe. But you can also explore the availability or even the generation of green electricity (sun, wind) at your production facilities abroad.

Transport and flights

Also try to be very restrictive in transporting goods by air. Sea transport is much more energy efficient. Also realize that skipping business flights is it always needed to visit the suppliers? will directly reduce your CO2 footprint!

Carbon footprint
And finally, talking again about carbon footprint, you can consider to compensate your greenhouse gas emissions in order to become carbon neutral. But take it seriously and prevent the pitfall of window dressing. The safe way of compensating is to work with a credible initiative for compensation like Trees for Travel or the Climate Neutral Group (see also klimaatcompensatie.nl)

Pagina

CSR

Planet

Factsheet

| ENER GY

USE

GET INFORMED, AWARE, INSPIRED AND CHALLENGED! Designers

provide them with information (awareness raising) and challenges (targets!?) to address the relation between design and energy consumption and GHG emisions Buyers provide them with information (awareness raising) and challenges (targets!?) to explore and purchase energy-efficient fabrics Sourcers/Product managers explore the availability and purchase recycled fabric or garments aim on certified products and suppliers CSR and Supply chain managers gather information from (potential and present) suppliers on energy consumption performance select suppliers or discuss with suppliers on energy consumption aim on certification or co-operation on specific issues Management develop a structural energy efficiency policy, management and best practices approach, preferably together with your most relevant suppliers set targets (priority) and providing means (budget) on energy saving for production, transport and business travel consider the use of renewable energy/ green electricity calculate your carbon footprint and consider CO 2 compensation

This series of factsheets is produced by MODINT and CREM in co-operation with VGT, CBW-MITEX, MADE-BY and Solidaridad, supported by VROM and AgentschapNL. version: October 2010 The information in this factsheet is composed with utmost care based on public available information. Any liability cannot be claimed on the composers. The information is a selection of the most relevant according the composers. This is a first public version of the factsheet series, all users are invited to give comments and suggestions for improvements via [email protected] . You can indicate yourself as user also via [email protected] (subject: factsheet user) in order to get a notification when a new version of factsheets is available.