1. Efficiency Improvements that Prevent Pollution and Save Money Responsible Sourcing Initiative Linda E. Greer, Ph.D.

2. About us:  One of the largest and most effective environmental organizations in the United States  Founded in U.S. in 1970, launched in China since 1996  Offices in New York, Washington, Chicago, Los Angeles, San Francisco and Beijing  Staff of 400, highly trained environmental professionals in science, engineering, and policy  GOAL: Protect human health and environment from dangers of pollution

3. About RSI: Use the social responsibility of multinational apparel retailers and brands and purchasing influence as leverage to reduce the impact of factories in their supply chain on environment in China Accomplish this goal using carefully researched cost saving efficiency improvements that reduce environmental impact while saving money. Start with low hanging fruit: cheap, easy, quick pay- back Result: Dramatically improve environmental performance of factories in China with win-win approach good for business and the environment http://www.eco-transport.com/uploads/image/benefits-photo.jpg

4. Why Textiles?

5. Design of initiative: homework phase  Initial fact finding at more than a dozen fabric mills and dye houses  In-depth assessments in four selected dye houses with international expert  Identification of Ten Best Practices helpful to most mills  Expert review and comment  Real world trial at Red Bud dyeing mill in Jiangsu Province

6. Collaborators:

7. Ten Best Practices Low hanging fruit improvement opportunities estimated to deliver: 25 percent reduction in total water use 30 percent reduction in steam/coal use Money! Pay for themselves in less than 8 months

8. Ten Best Practices  Leak detection and prevention  Insulation of equipment, pipes, valves, flanges  Maintain steam traps  Recover heat from stacks (hot air)  Recover heat from hot rinse water  Screen coal, optimize boiler  Optimize compressed air system  Reuse condensate  Reuse cooling water  Reuse process water

9. Current Status  Assessing 15-20 mills in supply chain of brands actively cooperating in the program  Quick 1 to 1.5 day assessments by Reset Carbon  All types of mills: woven, knit, yarn, denim  Range in age of mills  Range in size of mills  Goal: 12 or more showcase mills – documented case studies

10. NRDC 10 Best Practices Plant/Type Production (tons/yr) Age of Plant Investment Costs (RMB) Savings (RMB) Payback (months) % Energy Reduction (steam) % Elect. Reduction (kWh) % Water Reduction (tons) Fiber (A) 6,6842,003,0003,190,286824.2%2.7%- Fiber (B) 4,523551,350644,375112.3%5.3%1% Fiber (C) 1,923531,100565,7281222.4%15.4%11% Fiber (D) 8902010757,0001,409,810760.2%1.3%- Woven (E) 87720101,100,399771,5951843.4%6.9%- Fiber(F) 6,7902006445,100752,15875.8%0.8%10.5% Denim (G) 28,60520111,468,0001,531,000126.1%21.3%3% Knit (H) 33,2291,512,0002,339,40080.8% *1.3%- Denim (I) 9,4732005935,0001,622,700712.0%10.1%32% Denim (J) 15,2012010849,0002,408,00059.4%3.7%2% *Steam made at co-generation facility

11. What’s next  Complete showcase mills – assessment and implementation  Document real-world results  Host technical workshops, promote awareness

12.  For mills:  they are busy with other things,  they do not track or care much about resource use,  buyers are not inquiring or insisting.  For retailers and brands:  Many don’t know where their suppliers get their fabric, do not develop relationships with dyeing mills  Supplier selection policies do not assess or reward environmental performance or continuous improvement Yet progress is very slow

13. Are the Ten Best Practices are an elegant solution to a problem they don’t think they have ??

14. Multinationals certainly have a problem

15. Urgent Need for Supply Chain Policies  Dyeing and finishing mills should be required to  meet basic environmental standards to do business  Meter water and energy usage data  They should be rewarded with preferred status for going beyond this minimum  They should submit data on resource use to verify performance, MNCs should spot-check  Buyers should develop direct business relationship with fabric mills and include environmental performance in score card for choosing vendors!

16. Thank you ! www.nrdc.org/cleanbydesign US Contact: Linda Greer E-mail: lgreer@nrdc.orglgreer@nrdc.org China Contact: 蔺梓馨 (Cindy Lin) E-mail: zlin@nrdc.orgzlin@nrdc.org 电话 : 010-58794079-7916