Overview of the Chemicals Management Working Group and Chemicals Management Module. Ethical Sourcing Forum New York City March 27-28, 2014

Transcription

1 Overview of the Chemicals Management Working Group and Chemicals Management Module Ethical Sourcing Forum New York City March 27-28, 2014

2 Today s Objectives INFORM webinar attendees about the Chemicals Management Working Group and Chemicals Management Module ENCOURAGE REVIEW of the Chemicals Management Module towards broad adoption and integration ANSWER QUESTIONS attendees may have about the CMM PROVIDE AN OVERVIEW of a functional chemical management program 2

3 CMWG Mission The mission of the CMWG is to drive continuous improvement and innovation in chemicals management practices, to accelerate the development and use of Sustainable Chemistry. 3

4 CMWG Vision/Envisioned Future Statement We envision and strive to create a world in which all consumer products are produced using Sustainable Chemistry practices, ultimately using inherently safer chemicals and reducing or eliminating hazardous chemicals, in order to preserve human health and a clean environment. This includes 1. KNOWLEDGE 2. INTEGRATION 3. COMMUNITY OF PRACTICE 4

5 Chemicals Management Community of Practice 5

6 Key facts about the CMM 1. Created to strengthen the Sustainable Apparel Coalition (SAC) Higg Index. Work to develop chemicals management indicators was identified as part of the early OIA Eco Index (precursor to Higg Index) development. Purpose has always been to improve the Higg Index chemicals management lens. 2. Developed based on existing source frameworks, including ZDHC Roadmap, BizNGO Guide to Safer Chemicals, etc. 3. Designed to assess the maturity of a chemicals management system and guide improvements objectives, indicators and stakeholders are interconnected. It is NOT another chemicals management system: it identifies desired outcomes, NOT actions taken to achieve the outcomes or procedures involved in the actions. 4. Intended to be flexible: Does not replace, prescribe or endorse any 3 rd party tool(s) or service(s). Focus is on the WHAT to do, not necessarily HOW to do it (but guidance included). 5. Will evolve over time. CMM has been through a well-vetted development process and the Version 1 tool was formally launched along with the Higg 2.0 launch in December It will continue to improve over time with user feedback. 6. Designed for global applicability. The CMM was developed with input from stakeholders around the world, and is intended to be used worldwide (just like the Higg Index.) 7. Not an OIA tool. While OIA has been funding and administratively supporting the CMWG, from day one, the group was founded as a joint effort between OIA and SAC members. The CMM was developed and pilot tested by a wide range of companies, some from the outdoor industry, and many not. (Overview of participating companies in a later slide.) 6

7 How it was created? Mark Rossi, Clean Production Action Bob Buck, DuPont Libby Sommer, U.S. Environmental Protection Agency James Ewell, GreenBlue Tommy Thompson, HANESbrands Inc. Greg Scott, Mountain Equipment Co-op Scott Echols, Nike 7

8 Chemicals Management Module Structure Primary Objectives Outputs manage Regulatory Awareness & Compliance Chemical Safety & Risk Management Substances of Concern List Process & Product Chemicals Knowledge insufficient data? Chemical Hazard Assessment (low, med, high) keep Safer Alternatives Assessment & Preferred Substances Sustainable Chemistry Innovation & Continuous Improvement Preferred Substances List regular re-evaluation substitute Restricted Substances/ Substances of Concern innovate Restricted Substances List know assess decide 8

9 CMM The Primary Objectives CM 1.0 Regulatory Awareness and Compliance CM 2.0 Restricted Substances/Substances of Concern CM 3.0 Process and Products Chemical Knowledge CM 4.0 Chemical Hazard Assessment CM 5.0 Chemical Safety and Risk Management CM 6.0 Safer Alternatives Assessment and Preferred Substances CM 7.0 Sustainable Chemical Innovation and Continuous Improvement 9

10 CMM Content

11 CMM Web Tool 11

12 Higg Index OIA Eco Index Environmental Design Tool / Materials Sustainability Index Global Social Compliance Program (GSCP) Environmental Facilities Assessment Level 1 Level 2 Level 3 3 Higg Index Modules: Brand Module Product Module Facilities Module

13 The Higg Index: Representing a Product s Sustainability Impact Materials Packaging Manufacturing Transport Use & Service End of Life Facility Do the facilities involved in making the garment have programs/policies to measure, track, and reduce their environmental impacts (water use, wastewater, energy, air emissions, waste, chemicals, etc.)? Brand Is the brand aware of its product s impacts? Is it creating a platform of policies/programs that support reduced impacts? Product What are the impacts of the materials used? How efficient is the manufacturing process (i.e. marker efficiency)? What happens to the product at end-of-life? 13

14 Integration of CMM into Higg Index 2.0 (Dec release) Indicators in Brand (General Brand) and Facilities (Section 7) Modules First question in both modules is UNSCORED for 2.0 to allow further testing/refinement of the CMM: Has this brand/facility assessed its chemicals management performance using the Chemicals Management Module Supplier indicators? What was the score from your most recent completed assessment? Please upload your most recent completed assessment Additional option for both brands and facilities to score on a sub-set of additional highpriority indicators if full set of chemicals management indicators ( Chemicals Management Module ) not completed. This allows brands/facilities to get started with less complexity, but still allows for a more comprehensive assessment if desired. Brand Module 8 indicators Facility Module 9 indicators 14

15 CMM next steps 2014: CMM integration/adoption - including education/training curriculum Development of CMM guidance/ know-how, including resources matrix Translation of CMM into key languages Exploration of updated web-based format for CMM Partnership with Zero Discharge of Hazardous Chemicals (ZDHC) brands, including integration of CMM as structure for several key ZDHC work streams 15

16 The Apparel Universe Apparel companies have limited chemical expertise on staff Few apparel facilities have trained environmental professionals Often chemical suppliers are blending houses with limited technical resources themselves Many apparel factories rely on chemical supplier expertise Published technical chemical data is limited Chemical data sheets are grossly ineffective Industry economics

17 Major Challenges 1. Global Supply Chains 2. Language Barriers 3. Cultural and Legal Differences 4. Chemical Supplier Expertise 5. Unknown Feed Stocks 6. Chemical Confidentiality 7. Regulatory Explosion 8. Finished Goods Analy$i$ 9. Definition of Green Chemistry 10.Product Certifications 11.Green Washing

18 Tools Towards Success HBI REQUIREMENTS

19 Hanesbrands Inc. The HBI Chemical Management System Chemical suppliers Must provide adequate chemical ingredient and regulatory information Confidentiality Agreements to Protect IP Voluntary Product Environmental Profile Fabric and Textile Suppliers Under contract agree to comply with HBI chemical management programs May be required to provide chemical information for certain products On-site chemical audits to verify compliance

20 The Hanesbrands Inc. The HBI Chemical Management System All chemicals require dual environmental and safety approval prior to purchase Combined chemical data and global regulatory database Implement at the R & D/PD stage Top of Production HBI Chemical Environmental Data forms VPEP Contract language with fabric and textile suppliers requires compliance with the HBI chemical restrictions/bans Chemical Audits Minimized Product Testing

21 Third Party Chemical Certifications

22 Establish a Company Management System

23 Starting Your Chemical Management Program Management Support Documented System (OIA Chemical Framework) Internal Manufacturing Sourcing RSL(s) MSDS s and VPEP s Cross Reference MSDS s and VPEP s with RSL s Take Action on Any Chemicals of Concern

24 Chemical Management Program Finished Goods Agreement (2005) 2016 Audit Tier II +97% Supply Chain Audited Chemical Audits of Sourcing Textile Mills Accessories, Fabrics Agreement (2007) HBI Chemical Environmental Data Form (2002) Third Party Global Chemical Regulatory Reference Tool (2002) Initiated Audits of Textile Mills in Supply Chain (1995) ALL Chemicals and Ingredients Populated in Database (1992) Partnered with Chemical Suppliers (1991) Chemical Approval Requirement for Corporation (1991) Company RSL Developed (1991) Electronic Database with US Regulatory Applicability Embedded (1990) Internal Tracking of Applicable Global Regulations (1990) Executive Champion Hanesbrands Inc

25 Thank You! Q & A Link to Chemicals Management Module web tool and guidance: 25