Project Launch: Cambodia Nabi Basirun H&M Operation Manager – Cambodia 27 Aug 2013

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Objectives of this Afternoon Provide an introduction into what SAVE is and its aims Provide you a timeline of activities Provide you an indication of the required resources Introduce you to the Project Implementation Partner: ASSIST Discuss any questions you may have 3

Agenda 4

5 Project Stakeholders PUMA is one of the world’s leading sportlifestyle companies that designs and develops footwear, apparel and accessories. It is committed to working in ways that contribute to the world by supporting Creativity, Sustainability and Peace. DEG, a member of the KfW Bankengruppe (KfW Banking Group), promotes private enterprise in developing and transition countries as a contribution to sustainable growth and a lasting improvement in the living conditions of the local population. ASSIST is a leading international capacity building organization, promoting sustainable practices to address social problems in the developing world, with focus on Asia and Africa. Project Co-Financing / Management Project Delivery & Advisory Project Co-Financing Project Partner H&M is a global fashion brand and pioneer of design collaborations with many style icons and has a vision of all business operations being run in a way that is economically, socially and environmentally sustainable.

People Planet Profit H&M sustainability vision To run in a way that is economically, socially and environmentally sustainable. Turning this vision into a reality helps us do great business using fewer resources. It also allows us to contribute to better lives for people and communities around the world.

1. Provide fashion for conscious customers Make products with an added sustainability value. 2. Choose and reward responsible partners Work with partners who share our values. 3. Be Ethical Always act with integrity and respect. 4. Be Climate Smart Be energy-efficient and inspire others to reduce total CO2 emissions. 5. Reduce, Reuse, Recycle Aim for zero waste to landfill. 6. Use natural resources responsibly Conserve water, soil, air and species. 7. Strengthen Communities Contribute to the development of the communities where we operate. H&M Conscious is the name for all H&M’s work for a more sustainable fashion future. Hundreds of what we call Conscious Actions - big and small, short and long-term - work to put these commitments into practice. 7 commitments

Chemical Restrictions 1995 Better Cotton Initiative 2004 Code of Conduct 1997 Environmental inspections 2003 Cleaner Production 2005 Full Audit Program 2005 SRM strategy 2011 Water Aid 2002 Water based adhesives 2009 ZDHC 2011 Ø Water risk map 2008 Organic T-shirt by Stella McCartney 2005 Forefront Triangle 2012 GHG inventory 1999 Denim water savings 2009 CSR strategy 2009 Conscious Collection 2011 Re-cycle clothes 2011 Water Stewardship 2013 H&M ENVIRONMENTAL SUSTAINABILITY PROGRAM Risk: consumption of non-renewable resources SOI strategy 2013

Chemical management –Released in November 2011 –H&M together with Adidas Group, C&A, LiNing, Nike Inc,. and Puma –Additional signatory brands include: Esprit, G-Star Raw, Inditex, Jack Wolfskin, Levi Strauss & Co., M&S, and New Balance as ofJune 2013 –As responsible brands and retailers, we are committed to high standards of consumer, environmental and worker safety. –The Joint Roadmap sets forth a plan that includes specific commitments and timelines to realize the shared goal of zero discharge.

Project Objectives Increase the environmental capacity at a site level Identify potential resource saving improvements Create an action plan to meet 25% targets Provide the factories technical assistance through implementation phase  By 2015, reduce your energy, water, waste and CO2 by 25% compared to 2011 baseline 11

Project Participants 12 50

Project Benefits 13

Project Activities 14

Project Timelines 15

SAVE Project Teams 16

What is expected from you? A dedicated, stable and competent sustainability team Top management support Co-operation throughout the project  Investment for the improvement measures  Implement within a reasonable timeframe  Reach the 25% sustainability scorecard targets 17

Critical Success Factors Management understanding and commitment Project team to be identified before training Appointed PM for each supplier Whole team attending trainings 18

Project Team members from suppliers SAVE project needs strong support from the participating suppliers. A committed project team can ensure a successful implementation of the project in their factory. The supplier should nominate below mentioned core project team members. As the project focuses on different areas, namely Energy / GHG, Water and Waste management, the core project team should include an expert from each domain, supervising on their part a domain specific technical team. The core project team will also need support from different departments, such as finances, admin and HR/Training. 19

20 NoProject Team MemberRole (Who they are)Responsibilities (What they do) 1 Project LeaderCEO / COO / Operations Head  Manage overall the commitment of supplier / project team  Supervise the project team  Final decision maker 2 Project Manager Operation Manager Have extensive experience on the factory management  Support the Project Leader  Supervise the implementation of the project  Instruct team members 3 Energy ManagerManager of the energy specialists team  Carry out the energy and GHG specific implementations  Support the Project Leader and Project Manager  Supervise the energy team  Work in close cooperation with the local energy consultant appointed for the project 4 Water Manager Manager of the water specialists team  Carry out the water specific implementations  Support the Project Leader and Project Manager  Supervise the water team  Work in close cooperation with the local energy consultant appointed for the project 5 Waste ManagerManager of the waste specialists team  Carry out the waste specific implementations  Support the Project Leader and Project Manager  Supervise the waste team  Work in close cooperation with the local energy consultant appointed for the project

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Consulting Partner Introduction Outi Annala Manager of Projects and Grant Management Division, Mekong Project Manager, SAVE 27 Aug 2013

Who We Are About ASSIST An international, non-stock, non-profit social organization. Operates in South Asia, South East Asia, China and Africa. Focal areas are – Social Improvement & Sustainable Transformation. Our Approach We are driven by the triple C approach: Communicate – Collaborate – Capacitate 25

Our Relevant Projects in Regions (Partial List) 26 More projects at: dex.php/what-we-do

Our Methodology 27 5D H O W W E D E L I V E R T H E P R O J E C T D ISCOVER Client Understanding Project Kick-off Client Meeting Group Discussion Awareness Trainings Gap Analysis D EFINE Process Definition Brainstorming Existing Process Identification Process Mapping Process Drafting Metrics Development Technical Trainings D OCUMENT Formal Documentation Client Review Revision & Improvement Approval for Implementation D EPLOY Implementation Implementation Trainings Set-up for Roll-out Implementation Incubation Monitoring Effectiveness Check D ETERMINE Corrective Action Preventive Action Improvements Determine Lessons Learned Effectiveness Check

THANK YOU DISCUSSION SESSION 28