PRODUCT HEALTH AT A GLANCE - Ekoteks

1 INDITEXPRODUCT HEALTH AT A GLANCE10th EkoteksSymposiumIstanbul, May 3rd2017 INDITEX Picking ProgramR&DCollaborationsReady To Manufacture (RTM)Green To Wear(GTW)RCAA uditsINDITEX PRODUCT HealthProgramsThroughoutItsSupplyChainTh e List by INDITEXP roduct Healthand (19)orparameters(6)relatedtotheuseofchem icalproductsinallINDITEX productionswiththeaimofprotectingcustome rs * Dyestuffs* PigmentsFormaldehyde* Chemicals forPrintingHeavy Metals* Buttons* ZippersFiberComposition* CompositionTolerancesColourFastnesspH* AuxiliaryProductsINDITEX PRODUCT HealthStandard: Introductionto Clear To Wear(CTW) PRODUCT Healthand SafetyINDITEXRawMaterialsSpinningWeaving WetprocessesStitchingFinal ArticleINDITEX PRODUCT HealthStandard: Clear To Wear(CTW) ScopeProduct Healthand SafetyBEFORE Production Pre-Production ProgramDURING Production Picking ProgramRCAA uditsAFTER Production Control at distribution centresSameimplementationlevelin allINDITEX brandsINDITEXINDITEX PRODUCT HealthPrograms: REACTIVE ProgramsProduct Healthand SafetyINDITEXINDITEX PRODUCT HealthPrograms: REACTIVE Programs: Picking Tests Picking ProgramDESCRIPTION: Individualchemicalrisksallocationforever ysinglearticleproducedbyINDITEX.

2 Healthand SafetyINDITEXDESCRIPTION:Technicalaudits carriedoutbyexpertsintextile/leathersect oronceadetection/CTWnocomplianceisdetect edbyPickingprojectOBJETIVE:Todetermineth esourceofthedetection/CTWnocompliancetop reventitinthefuture365 RCA Audits> Chemicals TestedINDITEX PRODUCT Healthand Safety Programs: REACTIVE ProjectsIssuesTo Be Checked: Facilitycapacity Machinaryavailable Manufacturingprocess Manufacturingprocessr cipe Chemical productsinvolvedOutcomes: Analyticalresultsof theChemicals involved Conclusionsaboutthesourceof theproblem RecommendationsRootCause Analysis(RCA)AuditsINDITEXS ustainabilityand PRODUCT HEALTH & Safety Programs: ProactiveProgramsDESCRIPTION:Investmenti ndifferentprogramstoimprovethetechnicalc apabilitiesofthesupplychainandconsequenl y,itssustainabilitybythereductionof: CTWnoncompliances:oDuetothecomsumptionof moreresources(rawmaterials,energy,chemic als,etc.)

3 ODuetoproductionrejections Manufacturingcosts ManufacturingtimesPROACTIVEP rogramsREACTIVEP rogramsINDITEX Picking ProgramR&DCollaborationsReady To Manufacture (RTM)Green To Wear(GTW)RCAA uditsINDITEX PRODUCT HealthProgramsThroughoutItsSupplyChainTh e List by INDITEXP roduct Healthand SafetyINDITEXThe List by INDITEX: : : INDITEX epidemiologicalstudiesshownthatmostof CTW non compliancesare relatedto theuse of badqualitydyestuffsand Healthand SafetyCTW CategoriesChemical ClassificationAccordingto CTW CategoriesCodesDescription(A) Can be used(B) Can be usedbutapplicationneedsto be tested(C) Cannotbe usedCTW Non ComplianceDescription(1) Formaldehyde(2) Heavy Metals(3) Chromium(4) Arylamines (azodyes)Chemicals FamilyINDITEXThe List by INDITEX: Description(I)PARTICIPANTINDITEX(1)Forma ldehyde(2)Heavy Metals(3)Chromium(4)Arylamines (azodyes)(5) Chlorophenols(6) Phthalates(7)Fluorocarbons(8)OthersThe List by INDITEX.

4 Description(II)PARTICIPANTIE dition(11/13)IIEdition(01/15)IIIE dition(03/17)10 new companiesTotal: 22companies15 Requests64 Requests50+RequestsProduct Healthand SafetyINDITEXThe List by INDITEX: EvolutionKey Parameters1stEdition2ndEdition3rdEdition CompaniesInvolved101522 Chemical ProductsIncluded4,2248,258 Approx. 20,000 Numberof TestsPerformed1,7748,289 Approx. 32,000 Chemicals classifiedas B or C 710 (17 %)1,548 (19 %)Approx. 6,800 (34 %)INDITEXThe List by INDITEX: Commitmentsof Participants Elimination/progresivereductionofregulat edsubstances Assumptionoffinalcialpenalties Removalofnoncomplaintlotsfromthemarket Acceptanceofauditstotheirproductionsites onaregularbasisReactive25%Disperse20%Vat 10%Direct10%Acid5%Others30%Global Estimationof DyestuffsDistribution 40-45%ofreactivedyestuffsarebasedonblack reactive5.

5 Blackreactive5consumptionisabout180,000 200,000 Tons/year(12%oftotaldyestuffsconsumption ). Allblackreactive5contain150 700ppmpCAduetoeliminationcostsanddifficu lty. Asaconsequenceofimposedproductionimprove ments, ConsumptionEstimation: milliontonsProduct Healthand SafetyINDITEXThe List by INDITEX: Case Study: Black Reactive 5 OUTCOMES: Toguaranteethecomplianceof ZeroDischargeofHazardousChemicals commitment. Toprohibittheuseofmostpollutingchemicals inInditexproductions. Toimprovequalityofchemicalsandwastewater sbyimposingcontinuosproductionimprovemen ttoallparticipants. Toleadchemicalindustrytoimprovetheirmanu facturingprocessesandqualityoftheirprodu ctsbycreatingchemicalsrisksawarenessinto thetextile/leathersectors.

6 Toreduceproducthealthinternationallegisl ationnoncompliancesinINDITEX andotherretailersproductions. Healthand SafetyINDITEXThe List by INDITEX: Outcomes InclusionofNewParticipantsandParameters CreationofaSpecificSectionforSustainable ManufacturingProcesses IndicationofSustainableChemicals OnlineVersionProduct Healthand SafetyINDITEXThe List by INDITEX: Picking ProgramR&DCollaborationsReady To Manufacture (RTM)Green To Wear(GTW)RCAA uditsINDITEX PRODUCT HealthProgramsThroughoutItsSupplyChainTh e List by INDITEXP roduct Healthand To Manufacture: IntroductionRaw MaterialTestingFinished ProductPretreatment Beam HouseTanningDyeing PrintingWashingCrusting FinishingDyes, Pigments, AuxiliariesGrey Yarn / Fabric ,Raw Hide/ SkinProduct Healthand SafetyINDITEXR eady To Manufacture: DescriptionoSection 1 -Mill StaffoSection 2 -General Warehouse ConditionsoSection 3 -Raw Materials WarehouseoSection 4 -Auxiliaries and Dyestuffs/Pigments WarehouseoSection 5 -Finished Goods WarehouseoSection 6 -Work In ProgressINTERNALSTRUCTURE:2chapters: Directsuppliersandsub-suppliers: Millincludedinthesupplychainofdirectsupp liersorsub-suppliers:OBJECTIVE:Toensuref ullcomplianceofINDITEX producthealthstandard(CTW).

7 Dyeingandprintingmills, 7 -Dyeing and WashingoSection 8 -Printing oSection 9 -Water Discharge EffluentsoSection 10 -Production and Chemicals ControloSection 11 -CTW ManagementoAnnexes (templates and decision charts)oSection 1 Direct Supplier StaffoSection 2 Traceability DocumentsProduct Healthand SafetyPARAMETERSCONTROLLED:Arylamines;Fo rmaldehyde;pH;ColourFastness,FiberCompos ition, , To Manufacture: Implementationand VerificationTypeof FacilityAudited/Trained% ImprovementDirectSuppliers33589 %Mills1,50671 % Healthand Safety Increaseoffactoriessustainability/reduct ionofenvironmentalimpact:oPower, Reductioninmanufacturingtimesandcostsass ociatedtoarticlereprocessing.

8 Optimizationofchemicalsinventory. Improvementinriskmanagement. Increaseprofitabilitybyreducingvariation s, Healthand SafetyImportant: AllRTM implementationbenefitscouldbe enjoyedby To Manufacture: ImplementationBenefitsINDITEXINDITEXThe List by INDITEX and Ready To Manufacture ApplicationsStatus fortheIII EditioProduct Healthand SafetyINDITEX Picking ProgramR&DCollaborationsReady To Manufacture (RTM)Green To Wear(GTW)RCAA uditsINDITEX PRODUCT HealthProgramsThroughoutItsSupplyChainTh e List by INDITEXP roduct Healthand SafetyINDITEXL atestR&D Collaborations: IntroductionUniversities: TechnologicalCenters: R&D Laboratories: Chemical Manufacturers/Consultancy: Supervisingand Sectorial Organisms.

9 PRODUCT Healthand SafetyINDITEX Picking ProgramR&DCollaborationsReady To Manufacture (RTM)Green To Wear(GTW)RCAA uditsINDITEX PRODUCT HealthProgramsThroughoutItsSupplyChainTh e List by INDITEXP roduct Healthand SafetyWhereAre