NIKE INC.
Sustainable production in Apparel Manufacturing
Sustainable production in Apparel Manufacturing
?
? ?
Sustainable fashion: Fashion that is designed to be environmentally friendly. It is part of the larger trend of "ethical fashion.“ Sustainable manufacturing is the method involved in the production of these clothes. Its major objectives are to reduce CO2 emissions, managing waste, reducing water consumption, safeguarding the climate and protect the soil by following the principle of 3R: Reduce, Reuse, Recycle.
Sustainability Index
?
?
It is a comparative analysis of environmental achievements, challenges and priorities by a manufacturing unit. It aggregates quantitative data on company’s resource use trajectory, magnitude of pollution and its impact on human health & ecosystem vitality, policy & societal response to maintain and improve present environmental conditions into a composite index that provides the overall picture of company level sustainability.
Sustainability Index- Example Timberlands
NIKE INC.
? The
company was founded in January 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight, and officially became Nike, Inc. in 1978.
Beaverton, Oregon. USA
? Headquarters:
COMPANY POLICY FOR SUSTAINABLE PRODUCTION
Vision and Goal
? ? ? ? ? ?
Design for recycling Bring consumer products back to be recycled into new products Recycle waste that cannot be eliminated Manufacture products with less reliability on oil and water Strive to step lighter, faster into a future lowcarbon sustainable economy Use healthier chemistry to minimize the impact of product ingredients through the product lifecycle.
SUSTAINABLE PRODUCTION AT NIKE INC.
Considered Design
Collaborations for Sustainability
? Nike
partnered with Levi Strauss & Co., Starbucks, Sun Microsystems and Timberland as a founding member of Business for Innovative Climate and Energy Policy (BICEP). ? Nike has committed to strategic collaboration through BICEP to push for energy and climate legislation and rule making.
UNDERSTANDING SUSTAINABILITY INDEX ACROSS THE SUPPLY CHAIN
What is the INDEX?
? Launched
in December 2010 ? Costed Nike $5m to develop ? The Index is a systems-integrated, online tool for evaluating the predicted environmental footprint of a product prior to commercialization. ? Web address:
www.nikebiz.com/responsibility/Pages/CalculatorPage.aspx
CONSIDERED DESIGN INDEX
?
?
The Index metrics are based on more than a decade of collecting solid waste and solvent use data in footwear, and the examination of waste footprints in hundreds of apparel and footwear products across all sport categories. Products are assigned a considered score using the Index framework based on Nike’s known footprint in these areas. Only products whose score is significantly better than the corporate average can be designated as Considered.
SUPPLY CHAIN EXPECTATIONS
Environmental Footprint • Hold a deep understanding of the environmental impacts of your products and business practices (i.e. environmental footprint analysis). • Strategically manage material supply planning, optimize production efficiencies and leverage volumes to deliver the best possible price and value. CR Reporting
Nike Restricted Substance Program
• Ensure Nike RSL/PRSL compliance for materials and finished products.
EPM R+D
• Proactivity invest in research and development of Nike EPM alternatives. Actively develop closed-loop material/product take-back systems. • Understand the origin, environmental footprint and impacts of raw materials you source. • Ensure traceability of materials throughout the supply chain from raw material origin through finished product. • Integrate environmental standards, certifications and traceability systems • EPM integrity through the supply chain from feedstock/raw materal to finished product.
Supplier Footprint
Track + Trace
Verification
WORKING WITH SUPPLIERS AND VENDORS
-
-
Materials Waste Water
WORKING WITH SUPPLIERS AND VENDORS- MATERIALS
Environmentally Preferred Materials (EPM) ? Nike defines Environmentally Preferred Materials (EPMs) as materials that have significantly lower impact on the environment in one or more categories of chemistry, energy, water or waste. ? The use of EPMs is given high weightage in the product index system.
WORKING WITH SUPPLIERS AND VENDORS- MATERIALS
Environmentally Preferred Materials
- Organic cotton
- Recycled polyester - Leather - Environmentally preferred rubber - PVC and Phthalates
WORKING WITH SUPPLIERS AND VENDORS- MATERIALS
Impact Issue Chemistry Impact Metric Risk to human health A number of toxicology endpoints are considered including: • Carcinogens • Acute hazards • Chronic hazards • Endocrine disruptors/teratogens Energy Intensity/CO2 MJ/Kg of material
Energy source
Kg CO? /kg of material Physical Waste Recycled inputs Manufacturing waste Product end-of-life disposition Water Intensity >, =, < 100 litres/kg of material
WORKING WITH SUPPLIERS AND VENDORS- MATERIALS
Organic Cotton ? Nike was the first major brand to adopt a 5percent blended organic cotton goal. ? Since the yarn suppliers that Nike uses to create the blends also supply to a wide variety of other brands, the 5-percent organic blend became the standard for the industry. ? Nike expects that the same will happen as they move to 10-percent organic cotton blend.
WORKING WITH SUPPLIERS AND VENDORS- MATERIALS
Recycled Polyester ? Recycled polyester use results in fewer environmental impacts compared to virgin polyester because of reduced energy use, raw material extraction and less waste going to landfills or incineration. ? Nike’s use of recycled polyester has grown 15-fold from FY05 to FY09.
FIFA World Cup 2010- Nike created jerseys from recycled plastic water bottles.
WORKING WITH SUPPLIERS AND VENDORS- WASTES
Waste Management Centres ? In 2000, Nike led the development of waste management centres near clusters of contract factories. ? Nike did this to provide critical mass for efficient recycling of wastes that could not be reduced or reused in factories.
WORKING WITH SUPPLIERS AND VENDORS- WASTES
Waste Management Centres ? By FY06, five waste management centres operated in four countries, serving more than 85 percent of Nike-contracted footwear and apparel factories in Asia.
WORKING WITH SUPPLIERS AND VENDORS- WASTES
Closed-Loop Materials ? The waste management centres consolidate factory waste of more than 50 materials that are shipped to the materials vendors to be recycled back into the materials that the company buys. ? In FY09, 11 percent of manufacturing waste was recycled back into closed-loop materials.
WORKING WITH SUPPLIERS AND VENDORS- WATER
WORKING WITH SUPPLIERS AND VENDORS- WATER
Nike Water Program ? Borrowing water responsibly and returning it clean to communities. ? Nike Inc. pushes suppliers to use water more efficiently to avoid borrowing more than needed. ? Returning it clean means the water used is returned to the community as clean, or cleaner, than originally found.
WORKING WITH SUPPLIERS AND VENDORS- WATER
Apparel Supplier Participation and Compliance with Water Program Guidelines
OUTCOMES OF PRIMARY RESEARCH
K. Mohan & Co. (Exports) Pvt. Ltd- Waste Management ? K. Mohan uses effective techniques to manage the waste created during the cutting till the packaging process. ? Fabric wastes after cutting are recycled and machine oil residues of sewing machines are sent to Waste Mgmt Company (Shweta Industries & ACTS Institute) located at Bangalore. ? Recycled plastics and paper used for all poly bags and cartons.
Source: Mr. Sudhir Khanna, Factory Manager, K. Mohan & Co.
OUTCOMES OF PRIMARY RESEARCH
K. Mohan & Co. (Exports) Pvt. Ltd- Water Management ? Equipped with Rain water harvesting system K. Mohan & Co. (Exports) Pvt. Ltd- Reuse ? Hangers are returned by the buyer for reuse
Source: Mr. Sudhir Khanna, Factory Manager, K. Mohan & Co.
References
?
Interaction with Mr. Sudhir Khanna, Factory Manager, K. Mohan & Co. Building a business case for sustainable apparel production system, Chandrima Chatterjee, Director, Apparel Export Promotion Council (http://parivartanforum.in/ppt/Textile%20Track/AEPC.pdf) Nike Inc. Social Responsibility Report FY 07 08 09 Nike Contract Factory Disclosure List 2009 (http://www.nikebiz.com/responsibility/documents/FactoryDisclosureList6.1.09.pdf) Nike Environmental Design Tool (http://www.nikebiz.com/responsibility/nikeenvironmentaldesigntool) Understanding the Tool (http://www.nikebiz.com/responsibility/Pages/Documents/Understanding%20the%20Tool.pdf) Materials Scoring (http://www.nikebiz.com/responsibility/Pages/Documents/Materials%20Scoring.pdf) Waste Scoring (http://www.nikebiz.com/responsibility/Pages/Documents/Waste%20Scoring.pdf) Garment Treatment Scoring (http://www.nikebiz.com/responsibility/Pages/Documents/Garment%20Treatment%20Scoring.p df) http://www.kmohan.com
?
? ?
?
?
?
?
?
?
THANK YOU
doc_356122478.pdf
Sustainable production in Apparel Manufacturing
Sustainable production in Apparel Manufacturing
?
? ?
Sustainable fashion: Fashion that is designed to be environmentally friendly. It is part of the larger trend of "ethical fashion.“ Sustainable manufacturing is the method involved in the production of these clothes. Its major objectives are to reduce CO2 emissions, managing waste, reducing water consumption, safeguarding the climate and protect the soil by following the principle of 3R: Reduce, Reuse, Recycle.
Sustainability Index
?
?
It is a comparative analysis of environmental achievements, challenges and priorities by a manufacturing unit. It aggregates quantitative data on company’s resource use trajectory, magnitude of pollution and its impact on human health & ecosystem vitality, policy & societal response to maintain and improve present environmental conditions into a composite index that provides the overall picture of company level sustainability.
Sustainability Index- Example Timberlands
NIKE INC.
? The
company was founded in January 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight, and officially became Nike, Inc. in 1978.
Beaverton, Oregon. USA
? Headquarters:
COMPANY POLICY FOR SUSTAINABLE PRODUCTION
Vision and Goal
? ? ? ? ? ?
Design for recycling Bring consumer products back to be recycled into new products Recycle waste that cannot be eliminated Manufacture products with less reliability on oil and water Strive to step lighter, faster into a future lowcarbon sustainable economy Use healthier chemistry to minimize the impact of product ingredients through the product lifecycle.
SUSTAINABLE PRODUCTION AT NIKE INC.
Considered Design
Collaborations for Sustainability
? Nike
partnered with Levi Strauss & Co., Starbucks, Sun Microsystems and Timberland as a founding member of Business for Innovative Climate and Energy Policy (BICEP). ? Nike has committed to strategic collaboration through BICEP to push for energy and climate legislation and rule making.
UNDERSTANDING SUSTAINABILITY INDEX ACROSS THE SUPPLY CHAIN
What is the INDEX?
? Launched
in December 2010 ? Costed Nike $5m to develop ? The Index is a systems-integrated, online tool for evaluating the predicted environmental footprint of a product prior to commercialization. ? Web address:
www.nikebiz.com/responsibility/Pages/CalculatorPage.aspx
CONSIDERED DESIGN INDEX
?
?
The Index metrics are based on more than a decade of collecting solid waste and solvent use data in footwear, and the examination of waste footprints in hundreds of apparel and footwear products across all sport categories. Products are assigned a considered score using the Index framework based on Nike’s known footprint in these areas. Only products whose score is significantly better than the corporate average can be designated as Considered.
SUPPLY CHAIN EXPECTATIONS
Environmental Footprint • Hold a deep understanding of the environmental impacts of your products and business practices (i.e. environmental footprint analysis). • Strategically manage material supply planning, optimize production efficiencies and leverage volumes to deliver the best possible price and value. CR Reporting
Nike Restricted Substance Program
• Ensure Nike RSL/PRSL compliance for materials and finished products.
EPM R+D
• Proactivity invest in research and development of Nike EPM alternatives. Actively develop closed-loop material/product take-back systems. • Understand the origin, environmental footprint and impacts of raw materials you source. • Ensure traceability of materials throughout the supply chain from raw material origin through finished product. • Integrate environmental standards, certifications and traceability systems • EPM integrity through the supply chain from feedstock/raw materal to finished product.
Supplier Footprint
Track + Trace
Verification
WORKING WITH SUPPLIERS AND VENDORS
-
-
Materials Waste Water
WORKING WITH SUPPLIERS AND VENDORS- MATERIALS
Environmentally Preferred Materials (EPM) ? Nike defines Environmentally Preferred Materials (EPMs) as materials that have significantly lower impact on the environment in one or more categories of chemistry, energy, water or waste. ? The use of EPMs is given high weightage in the product index system.
WORKING WITH SUPPLIERS AND VENDORS- MATERIALS
Environmentally Preferred Materials
- Organic cotton
- Recycled polyester - Leather - Environmentally preferred rubber - PVC and Phthalates
WORKING WITH SUPPLIERS AND VENDORS- MATERIALS
Impact Issue Chemistry Impact Metric Risk to human health A number of toxicology endpoints are considered including: • Carcinogens • Acute hazards • Chronic hazards • Endocrine disruptors/teratogens Energy Intensity/CO2 MJ/Kg of material
Energy source
Kg CO? /kg of material Physical Waste Recycled inputs Manufacturing waste Product end-of-life disposition Water Intensity >, =, < 100 litres/kg of material
WORKING WITH SUPPLIERS AND VENDORS- MATERIALS
Organic Cotton ? Nike was the first major brand to adopt a 5percent blended organic cotton goal. ? Since the yarn suppliers that Nike uses to create the blends also supply to a wide variety of other brands, the 5-percent organic blend became the standard for the industry. ? Nike expects that the same will happen as they move to 10-percent organic cotton blend.
WORKING WITH SUPPLIERS AND VENDORS- MATERIALS
Recycled Polyester ? Recycled polyester use results in fewer environmental impacts compared to virgin polyester because of reduced energy use, raw material extraction and less waste going to landfills or incineration. ? Nike’s use of recycled polyester has grown 15-fold from FY05 to FY09.
FIFA World Cup 2010- Nike created jerseys from recycled plastic water bottles.
WORKING WITH SUPPLIERS AND VENDORS- WASTES
Waste Management Centres ? In 2000, Nike led the development of waste management centres near clusters of contract factories. ? Nike did this to provide critical mass for efficient recycling of wastes that could not be reduced or reused in factories.
WORKING WITH SUPPLIERS AND VENDORS- WASTES
Waste Management Centres ? By FY06, five waste management centres operated in four countries, serving more than 85 percent of Nike-contracted footwear and apparel factories in Asia.
WORKING WITH SUPPLIERS AND VENDORS- WASTES
Closed-Loop Materials ? The waste management centres consolidate factory waste of more than 50 materials that are shipped to the materials vendors to be recycled back into the materials that the company buys. ? In FY09, 11 percent of manufacturing waste was recycled back into closed-loop materials.
WORKING WITH SUPPLIERS AND VENDORS- WATER
WORKING WITH SUPPLIERS AND VENDORS- WATER
Nike Water Program ? Borrowing water responsibly and returning it clean to communities. ? Nike Inc. pushes suppliers to use water more efficiently to avoid borrowing more than needed. ? Returning it clean means the water used is returned to the community as clean, or cleaner, than originally found.
WORKING WITH SUPPLIERS AND VENDORS- WATER
Apparel Supplier Participation and Compliance with Water Program Guidelines
OUTCOMES OF PRIMARY RESEARCH
K. Mohan & Co. (Exports) Pvt. Ltd- Waste Management ? K. Mohan uses effective techniques to manage the waste created during the cutting till the packaging process. ? Fabric wastes after cutting are recycled and machine oil residues of sewing machines are sent to Waste Mgmt Company (Shweta Industries & ACTS Institute) located at Bangalore. ? Recycled plastics and paper used for all poly bags and cartons.
Source: Mr. Sudhir Khanna, Factory Manager, K. Mohan & Co.
OUTCOMES OF PRIMARY RESEARCH
K. Mohan & Co. (Exports) Pvt. Ltd- Water Management ? Equipped with Rain water harvesting system K. Mohan & Co. (Exports) Pvt. Ltd- Reuse ? Hangers are returned by the buyer for reuse
Source: Mr. Sudhir Khanna, Factory Manager, K. Mohan & Co.
References
?
Interaction with Mr. Sudhir Khanna, Factory Manager, K. Mohan & Co. Building a business case for sustainable apparel production system, Chandrima Chatterjee, Director, Apparel Export Promotion Council (http://parivartanforum.in/ppt/Textile%20Track/AEPC.pdf) Nike Inc. Social Responsibility Report FY 07 08 09 Nike Contract Factory Disclosure List 2009 (http://www.nikebiz.com/responsibility/documents/FactoryDisclosureList6.1.09.pdf) Nike Environmental Design Tool (http://www.nikebiz.com/responsibility/nikeenvironmentaldesigntool) Understanding the Tool (http://www.nikebiz.com/responsibility/Pages/Documents/Understanding%20the%20Tool.pdf) Materials Scoring (http://www.nikebiz.com/responsibility/Pages/Documents/Materials%20Scoring.pdf) Waste Scoring (http://www.nikebiz.com/responsibility/Pages/Documents/Waste%20Scoring.pdf) Garment Treatment Scoring (http://www.nikebiz.com/responsibility/Pages/Documents/Garment%20Treatment%20Scoring.p df) http://www.kmohan.com
?
? ?
?
?
?
?
?
?
THANK YOU
doc_356122478.pdf