sustainability

35

sustainabilitySTYLE &

YEA

RS

ESQUEL CELEBRATES

Esquel Celebrating 35 Years of Innovation, Integration and Motivation

This year marks the 35th anniversary of Esquel Group, one of the

world’s leading cotton shirt producers. Among the most

dynamic and progressive global-scale textile and apparel

manufacturers, Esquel has proven that an enterprise in a

traditional industry can �nd success by innovating and

adhering to the highest standards of management.

The Hong Kong-based

group, which houses

production facilities

in China, Malaysia,

Vietnam, Mauritius, Sri

Lanka and a network of

branches servicing key

markets worldwide, has

many milestones to

celebrate. Esquel now

produces more than 100 million pieces of garments

annually. O�ering total services and solutions to a list of

household brands and retailers, the group has found itself at

the top of the list of Cotton Woven Shirt Exporters in China

for seven consecutive years.

Beyond material success, the Esquel story is one of positive

change — in the industry, for its business, in its community

and in the world at large. By rethinking business and

applying principles that are ethically and environmentally

sound, Esquel has innovated the industry.

VERTICALLY-INTEGRATEDSUPPLY CHAINTo make a shirt, there is a myriad of processes to go

through: spinning, weaving or knitting, dyeing and garment

making, as well as the use of raw materials. Any problems

incurred through the process impact the total e�cacy of the

�nished product.

To ensure the highest quality, the company gins its own

extra long staple cotton to produce high-count yarn, which

is then used to make fabric of premium quality. This

vertical integration ensures product superiority and

minimizes energy and resource consumption to

decrease Esquel’s environmental footprint.

Esquel’s design and development capability is best

showcased by its retail brand, PYE. With a focus to

create the perfect shirt, PYE leverages advanced

technology and elaborate tailoring to o�er the best

product in the market for exceptional �t, functionality

and durability.

DRIVINGSUSTAINABILITYSince it was founded, Esquel Group has

focused on di�erent elements of

sustainability: innovation, addressing

environmental concerns, empowering

its people, o�ering a breadth of

services and caring for

the community.

“Sustainability requires a

holistic approach,” says

Vice Chairman and CEO

John Cheh. “It is not

a destination but a

continuous journey. The

story of Esquel illustrates

how a non-traditional

enterprise in a traditional industry

enhances its competitiveness through

good management and appropriate

application of technology. We practise

lean, green, and ethical manufacturing

along the entire supply chain. We

continuously re-engineer and re�ne,

from �ber to shirt, so that our customers

are always o�ered quality and innovative

products. Sustainable production is not

only good for the environment, but also

for business.”

THINKING DIFFERENTLYScarcity of natural resources and degradation of the

environment are among the most acute challenges facing

the industry, especially in the environmentally-sensitive

textile business. Making environmental protection a

priority, Esquel has aggressively reduced energy and

water consumption in the production process. Between

2005 and 2012, annual water consumption per unit of

output fell by 59% and energy consumption by 45%.

While conservation has often been considered costly, Esquel

approaches it di�erently. First, the group starts with better

training and communications to reduce re-work — which

can be abundant. By reducing it, the company saves water

and energy immediately — in addition to saving money.

Next, Esquel employs equipment and better technology —

investment that will improve e�ciency. Esquel approaches

environmental conservation as a long-term investment.

Pollution hinders productivity gains and creates extra

healthcare costs, and it impedes the ability to attract and

retain talent. As a result, Esquel seeks to raise the standards

and change the mentality within the company and across

the industry.

As part of its continuous quest for

environmental sustainability, Esquel has

recently reached a breakthrough in water

conservation by launching an advanced

wastewater treatment/recycling system,

treating 5,000 tons of wastewater daily.

Half of the treated e�uent can be reused

in the dyeing and �nishing process which

e�ectively reduces the use of fresh water,

while the rest is discharged in compliance

with the industry standard.

INVESTING IN PEOPLEAs Esquel expanded its footprint in di�erent

parts of the world with a total workforce of

55,000, the company recognized that the

centerpiece of its business was its people.

“I always say that Esquel is a company of fun

people serving happy customers,” says

Chairman Marjorie Yang. “I am sure that we

got to where we are today because of this

emphasis on people.”

In 2000, the Esquel “5E-Culture” was

launched to spread core values

throughout the organization: ethics,

environment, exploration, excellence and education. For

ethics, the company encourages being a good citizen and a

good employer — to build trust across the company and

with partners. Esquel cherishes the environment, and seeks

to develop innovative solutions and utilize resources more

e�ciently. Exploration is encouraged to discover and

embrace innovative solutions. Excellence inspires a

reduction of waste and encourages employees to deliver

value through leadership, speed and quality. With

education, Esquel emphasizes people development, critical

thinking and continuous learning.

Marjorie YangChairman, Esquel Group

John ChehVice Chairman & CEO, Esquel Group

Esquel Celebrating 35 Years of Innovation, Integration and MotivationGEARING UP FOR GROWTH

SERVICE OFFERINGS & VALUE PROPOSITIONINGBy providing value-added services and collaborative

relationships with customers, Esquel has moved beyond the

position of simply an order-taking vendor to becoming a

long-term partner to customers.

Esquel sought to di�erentiate itself by becoming a

one-stop shop for customers. The company’s motto

became “the best cotton shirt partner,” and they o�ered a

total shirt solution — from high quality products to services

including product merchandising and design, product

development and innovations.

CARING OF THE COMMUNITYCorporate Social Responsibility is ingrained in Esquel’s

culture. Their code of conduct helps ensure that business is

done in an ethical and responsible way, consistent with the

values of their company.

Esquel’s dedicated CSR department works closely

with its Internal Audit department to oversee issues

and ensure Esquel’s compliance with responsible

business practice. In addition,

the company is actively involved

in programs that elevate the

welfare of the local communities

where they operate. Since 2007,

Esquel and Standard Chartered

Bank have been collaborating

to carry out the “MicroFinance

Program” in Xinjiang, providing

loans to farmers to enhance

their productivity, increase

income, and improve their living

standards. The company is also

the �rst manufacturer to be

accredited by the Fair Labor

Association.

In addition, the Esquel - Y.L. Yang Education Foundation

has been dedicating its e�orts to care for children in

need and especially in the areas of education, health

and environmental protection in poverty-stricken areas.

Esquel has built and renovated schools, sponsored

needy students, and established over 1,000

mini-libraries in Xinjiang to

promote learning.

THE SUCCESS OF GIVING BACKThe philosophy of giving starts

at the top, and goes to the

company’s core. “At Esquel, we

strive to make a di�erence in all

that we do. We aspire to be an

integral part in transforming the way our industry is

run — by improving the livelihood of our people and

preserving the environment — and in so doing create

a positive impact for all stakeholders. Everything we

do is guided by our E-Culture. These are the core

values that enhance our competitiveness by motivating

our people, steering our business strategies and carrying

out our operations,” says Chairman Marjorie Yang.

Dedicated to bettering the world around them, and armed

with a corporate culture that promotes the “5Es,” Esquel

has proven that a non-traditional approach in a traditional

industry is a key factor to success.

Esquel’s fully integrated supply chain ensureshigh product quality

This year marks the 35th anniversary of Esquel Group, one of the

world’s leading cotton shirt producers. Among the most

dynamic and progressive global-scale textile and apparel

manufacturers, Esquel has proven that an enterprise in a

traditional industry can �nd success by innovating and

adhering to the highest standards of management.

The Hong Kong-based

group, which houses

production facilities

in China, Malaysia,

Vietnam, Mauritius, Sri

Lanka and a network of

branches servicing key

markets worldwide, has

many milestones to

celebrate. Esquel now

produces more than 100 million pieces of garments

annually. O�ering total services and solutions to a list of

household brands and retailers, the group has found itself at

the top of the list of Cotton Woven Shirt Exporters in China

for seven consecutive years.

Beyond material success, the Esquel story is one of positive

change — in the industry, for its business, in its community

and in the world at large. By rethinking business and

applying principles that are ethically and environmentally

sound, Esquel has innovated the industry.

VERTICALLY-INTEGRATEDSUPPLY CHAINTo make a shirt, there is a myriad of processes to go

through: spinning, weaving or knitting, dyeing and garment

making, as well as the use of raw materials. Any problems

incurred through the process impact the total e�cacy of the

�nished product.

To ensure the highest quality, the company gins its own

extra long staple cotton to produce high-count yarn, which

is then used to make fabric of premium quality. This

vertical integration ensures product superiority and

minimizes energy and resource consumption to

decrease Esquel’s environmental footprint.

Esquel’s design and development capability is best

showcased by its retail brand, PYE. With a focus to

create the perfect shirt, PYE leverages advanced

technology and elaborate tailoring to o�er the best

product in the market for exceptional �t, functionality

and durability.

DRIVINGSUSTAINABILITYSince it was founded, Esquel Group has

focused on di�erent elements of

sustainability: innovation, addressing

environmental concerns, empowering

its people, o�ering a breadth of

services and caring for

the community.

“Sustainability requires a

holistic approach,” says

Vice Chairman and CEO

John Cheh. “It is not

a destination but a

continuous journey. The

story of Esquel illustrates

how a non-traditional

enterprise in a traditional industry

enhances its competitiveness through

good management and appropriate

application of technology. We practise

lean, green, and ethical manufacturing

along the entire supply chain. We

continuously re-engineer and re�ne,

from �ber to shirt, so that our customers

are always o�ered quality and innovative

products. Sustainable production is not

only good for the environment, but also

for business.”

THINKING DIFFERENTLYScarcity of natural resources and degradation of the

environment are among the most acute challenges facing

the industry, especially in the environmentally-sensitive

textile business. Making environmental protection a

priority, Esquel has aggressively reduced energy and

water consumption in the production process. Between

2005 and 2012, annual water consumption per unit of

output fell by 59% and energy consumption by 45%.

While conservation has often been considered costly, Esquel

approaches it di�erently. First, the group starts with better

training and communications to reduce re-work — which

can be abundant. By reducing it, the company saves water

and energy immediately — in addition to saving money.

Next, Esquel employs equipment and better technology —

investment that will improve e�ciency. Esquel approaches

environmental conservation as a long-term investment.

Pollution hinders productivity gains and creates extra

healthcare costs, and it impedes the ability to attract and

retain talent. As a result, Esquel seeks to raise the standards

and change the mentality within the company and across

the industry.

As part of its continuous quest for

environmental sustainability, Esquel has

recently reached a breakthrough in water

conservation by launching an advanced

wastewater treatment/recycling system,

treating 5,000 tons of wastewater daily.

Half of the treated e�uent can be reused

in the dyeing and �nishing process which

e�ectively reduces the use of fresh water,

while the rest is discharged in compliance

with the industry standard.

INVESTING IN PEOPLEAs Esquel expanded its footprint in di�erent

parts of the world with a total workforce of

55,000, the company recognized that the

centerpiece of its business was its people.

“I always say that Esquel is a company of fun

people serving happy customers,” says

Chairman Marjorie Yang. “I am sure that we

got to where we are today because of this

emphasis on people.”

In 2000, the Esquel “5E-Culture” was

launched to spread core values

throughout the organization: ethics,

environment, exploration, excellence and education. For

ethics, the company encourages being a good citizen and a

good employer — to build trust across the company and

with partners. Esquel cherishes the environment, and seeks

to develop innovative solutions and utilize resources more

e�ciently. Exploration is encouraged to discover and

embrace innovative solutions. Excellence inspires a

reduction of waste and encourages employees to deliver

value through leadership, speed and quality. With

education, Esquel emphasizes people development, critical

thinking and continuous learning.

SERVICE OFFERINGS & VALUE PROPOSITIONINGBy providing value-added services and collaborative

relationships with customers, Esquel has moved beyond the

position of simply an order-taking vendor to becoming a

long-term partner to customers.

Esquel sought to di�erentiate itself by becoming a

one-stop shop for customers. The company’s motto

became “the best cotton shirt partner,” and they o�ered a

total shirt solution — from high quality products to services

including product merchandising and design, product

development and innovations.

CARING OF THE COMMUNITYCorporate Social Responsibility is ingrained in Esquel’s

culture. Their code of conduct helps ensure that business is

done in an ethical and responsible way, consistent with the

values of their company.

Esquel’s dedicated CSR department works closely

with its Internal Audit department to oversee issues

and ensure Esquel’s compliance with responsible

business practice. In addition,

the company is actively involved

in programs that elevate the

welfare of the local communities

where they operate. Since 2007,

Esquel and Standard Chartered

Bank have been collaborating

to carry out the “MicroFinance

Program” in Xinjiang, providing

loans to farmers to enhance

their productivity, increase

income, and improve their living

standards. The company is also

the �rst manufacturer to be

accredited by the Fair Labor

Association.

In addition, the Esquel - Y.L. Yang Education Foundation

has been dedicating its e�orts to care for children in

need and especially in the areas of education, health

and environmental protection in poverty-stricken areas.

Esquel has built and renovated schools, sponsored

needy students, and established over 1,000

mini-libraries in Xinjiang to

promote learning.

THE SUCCESS OF GIVING BACKThe philosophy of giving starts

at the top, and goes to the

company’s core. “At Esquel, we

strive to make a di�erence in all

that we do. We aspire to be an

integral part in transforming the way our industry is

run — by improving the livelihood of our people and

preserving the environment — and in so doing create

a positive impact for all stakeholders. Everything we

do is guided by our E-Culture. These are the core

values that enhance our competitiveness by motivating

Esquel Group

13/F, Harbour Centre

25 Harbour Road

Wanchai, Hong Kong

Phone (852) 2811 8077

Fax (852) 2960 6988

info@esquel.com

www.esquel.com

Esquel Apparel Inc.

14 East 33rd Street

New York, NY 10016

Phone (212) 481 0886

Fax (212) 481 0447

our people, steering our business strategies and carrying

out our operations,” says Chairman Marjorie Yang.

Dedicated to bettering the world around them, and armed

with a corporate culture that promotes the “5Es,” Esquel

has proven that a non-traditional approach in a traditional

industry is a key factor to success.

PYE creates the perfect shirt for the man on the go

Esquel’s R&D activities are conducted across the company,securing its leading position in the industry

Esquel’s own brand, PYE, showcases the company’s design and development capabilities

Wastewater treatment is part of Esquel’s holistic approach towards sustainability

Continuous investment in technology helps improve e�ciency and raise productivity