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MODELLING SUSTAINABILITY First global report from Sweden Textile Water Initiative Projects

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MODELLING SUSTAINABILITYFirst global report from Sweden Textile Water Initiative Projects

Copyright: Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0)http://creativecommons.org/licenses/by-nc/4.0/

How to Cite: Modelling Sustainability: First Global Report from Sweden Textile Water Initiative. SIWI & Sustainability Outlook, 2015.

Cover photo: Frank Zhang, SIWI.Design: Elin Ingblom, SIWI.

Secretariat: Stockholm International Water Institute (SIWI) hosts the Sweden Textile Water Initiative (STWI).

Network » STWI is grounded in the idea that fashion brands must follow common guidelines and cooperate in order to achieve sustainable water use.

STWI has brought together Swedish leather and textile companies in collaboration with the specific aim of reducing water, energy and chemical use in their supply chains.

Through dedicated dialogue between member com-panies, the SIWI and experts on industrial water use, created the first set of guidelines for sustainable water and waste water management in supply chains.

Projects » STWI Projects is a public-private partnership between Sida (Swedish International Development Cooperation Agency), SIWI, STWI Brands,and their suppliers and sub-suppliers. It is the operational arm of the STWI Network.

The overall objective is to continually improve water efficiency in production processes for 160 textile and leather manufacturers in major production hubs: Bangladesh, China, Ethiopia, India, and Turkey.

Aims include:• Reducing environmental impact of factories • Building institutional capacities for improved

industrial water governance • Raising the profile of water impacted by the textile

industry in global processes • Creating International benchmarks for sustainable

water use• Continuously upgrading our guidelines and

increasing their international recognition

Our members » United in their diversity, our members collaborate for common reform in the fashion and textiles industries. STWI is funded by members.

• Acne• Åhléns • Björn Borg• Didriksons• Ellos• Filippa K• Fjällräven• Gekås• Gina Tricot• Haglöfs• Hemtex• H&M Group• IKEA• Indiska• Intersport• KappAhl• K&US

Stockholm • Lindex• MQ• NilsonGroup• Odd Molly• RNB• Rudholm

& Haak• Snickers workwear

• Stadium• Stockholms Läns

Landsting• TPC Textile• WESC

Supporting member:• Textilimportörerna

Implementation partners: • Bangladesh: Engineer-

ing Resources Interna-tional

• India: cKinetics, Sustainability Outlook, Sustainable Business Leadershop Forum

• China: Intertek Green Initiatives (ITS)

• Ethiopia: Ethiopian Textile Industrial Development Institute (ETIDI), cKinetics, and ERI

• Turkey: Escarus and cKinetics

Global support: • cKinetics

ABOUT STWI

3 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

CONTENT

Contributors 4

Introduction 5

News from STWI projects 6

STWI’s global industry baselines and benchmarks for resource efficiency 9

Zero Liquid Discharge system: A future cost for the textile sector? 17

Policy outlook and developments in 2015 22

Policy shaping sustainability in China 26

Business model for collaboration between competitors to create win-win on resource efficiency 31

IKEA suppliers can lead the way in water management 34

Update on other market initiatives driving resource sustainability 36

Nominate suppliers for 2016 38

4 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

CONTRIBUTORS

This report is produced by the Stockholm International Water Institute (SIWI) and the Sustainability Outlook team at cKinetics. Both parties are engaged jointly in the Sweden Textile Water Initiative, benchmarking global developments in supplier chains on the initiative’s drive towards sustainable supply chains.

Sweden Textile Water Initiative » The Sweden Textile Water Initiative is a collaboration of 33 Swedish brands and SIWI, with a commitment to transforming water use in the textile and leather industry. The collaboration also aims to create opportunities for best practice application and innovation. www.stwi.se

SIWI » Founded in 1991, the Stockholm International Water Institute (SIWI) provides and promotes water wise solutions for sustainable development in five thematic areas: water governance, transboundary water manage-ment, climate change and water, the water-energy-food nexus, and water economics. SIWI hosts the secretariat of the Sweden Textile Water Initiative and manages the implementation of its global projects. Learn more at www.siwi.org.

Sustainability Outlook » Sustainability Outlook is a market intelligence, discovery and collaboration platform that facilitates sustainability-linked actions amongst businesses, policy makers and investors. Sustainability Outlook actively tracks and provides market insights in resource management with focus on policy, technology and finance, to work towards creating closed loop systems. www.sustainabilityoutlook.in

This report benefits from the financial support provided by the Swedish International Development Agency, Sida, to SIWI as part of the co-financing of STWI Projects’ implementation globally.www.sida.se

5 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

INTRODUCTION

Welcome to the first edition of Modelling Sustainability: the first biannual global report from the Sweden Textile Water Initiative (STWI) Projects – the largest global public-private partnership in the field of sustainable textiles today.

Textile manufacturing is amongst the largest industrial users of water and is poised for transformation. In order to inspire this transformation towards a water wise futu-re, the Stockholm International Water Institute (SIWI) and Sustainability Outlook have teamed up to move beyond anecdotes and share fact-based trends on how the textile industry is evolving in some key production cen-tres, based on data and information gathered, analysed and collated from the Sweden Textile Water Initiative’s Global Projects. This first edition is based on information from two key sources: • Data obtained from the STWI Programme where we

are closely working with 80+ factories in China, India, Bangladesh, Ethiopia and Turkey

• Inputs from field practitioners and experts who are actively engaged in the STWI

2015 has seen some significant action at the policy level from the two largest BRICS: China and India. China’s push towards a circular economy was made concrete with the announcement of the Water 10 Action Plan, (which has several implications for textile sector that we examine in this issue). India has mandated “Zero Liquid Di-scharge” (ZLD) for several industries, including textiles, especially targeting factories in one of the key river basins (the Ganga basin).

The policies in the two countries have common drivers: economic growth, sound water governance, and pollu-tion prevention and reduction. Transformative plans were also presented in Ethiopia and Bangladesh in 2015 with the same drivers.

While the enforcement of such advanced policies may face common challenges, the textile industry will have to be pro-active to minimize financial risks associated with decreasing fresh water availability and increased water pollution.

Before 2020 the industry will look significantly different to today’s: it will operate towards circular economies with water at its centre, thus ZLD is close to becoming a reality across production hubs.

This edition showcases an example of how ZLD has been made a reality. In Tirupur, (in the state of Tamil Nadu, South India), factories are operating with very little water. Dyeing mills in this region use 6-15 litres per kg of production, compared to the STWI global average of around 100 litres per kg. However, the financial impact that has had on the final product is less than 10 euro-cents (per kg).

This article outlines the steps manufacturers take towards short-term resource efficiency. Through the STWI programme, we have data from 80+ factories in four key manufacturing countries.

This reports provides a glimpse of STWI’s global bench-mark database, putting such high-level data in the public domain for the first time.

Collaboration is a core value that goverened this report’s development. For this issue, we interviewed participants of STWI’s award-winning pilot SWAR, who provide insights into the practicalities of collaboration among competing brands and manufacturers on establishing a common learning platform.

If you have any questions, comments or suggestions pertaining to this report, please do not hestitate to contact us.

Rami Abdelrahman Programme ManagerSTWI Projects, SIWI [email protected]

Aparna KhadelwalSustainability Outlook [email protected]

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NEWS FROM STWI PROJECTS

STWI Projects are implemented in Bangladesh, China, Ethiopia, India, and Turkey by SIWI, Implementation partners, STWI brands, and their suppliers and sub-suppliers, with co-financing from Sida. www.stwi.se

Preparations for STWI Projects in 2016 underway Following this year’s active engagement of 20 Swedish brands, and around 90 suppliers and sub-suppliers in Bangladesh, China, Ethiopia, India and Turkey, the STWI Projects Management team at SIWI, is starting to lay down the foundation for broader and deeper engage-ment from 2016 onwards. Working together with a large pool of experts at cKinetics India/USA, Engineering Resources International – Bangladesh, Intertek Green In-itiatives – China, and Escarus – Turkey, the team at SIWI is excited to be developing models that build on lessons learned from STWI Projects’ first year as a scaled-up pro-ject, to deepen the understanding of the value of water, and provide tools for factories to use it more sustainably and efficiently in production. SIWI will continue to build on the STWI Projects drivers of change: Collabo-ration between companies, management engagement, reliable data generation and monitoring, and creating business-friendly growth opportunities. SIWI presented its initial ideas for engagement at a two-day closed STWI Members meeting to be held at the IKEA Headquarters in Älmhult, Sweden, on the 28-29 September 2016.

SWAR: Award-winning STWI pilot project » Sustaina-ble Water Resources (SWAR) is a joint initiative between SIWI, Sida, Swedish fashion brands Indiska, KappAhl and Lindex, and their Indian suppliers and sub-suppliers. SWAR was honoured by the Habit jury for its impact in increasing efficient water, energy and chemical use at factory level.

“SWAR piloted in densely-populated north-western India in 2013, where the groundwater situation is dire. Basin levels continue to drop at an alarming rate, and pollution continues to stagnate human development in the region. We are proud that SWAR was recognized by Habit for directly increasing the efficiency of water, ener-gy and chemical use in textile production in a systematic, cost-efficient, and sustainable way,’’ said Torgny Holm-gren, Executive Director, SIWI.

Implemented in India with the support of cKinetics as local consultants, SWAR factories saved seven per cent of their total annual water use, 360 million litres. This amount equals the daily need of more than 3.5 million people. Through its parent network, STWI, the success-ful pilot programme has now scaled up across India and in China, Bangladesh, Turkey, and Ethiopia, expanding its impact to 120 factories supplying 20 major Swedish brands.

“Water and energy are the most important resources for our business. Therefore, our biggest driver to join SWAR was water and energy conservation. Apart from this, the cultural change in the factory, resulting from SWAR also helped us to continue our water and energy conservation activities,” said Anuj Batra of Bee K Bee Prints, one of the factories participating in the programme.

“SWAR has enabled us to over-perform on almost all social, environmental and business metrics that we iden-tified at the project start. In addition, it provided clear evidence and data through exact measurements of water consumption meters, project implementation sheets for each implemented projects, and testimonials provided by the factories. This kind of accurate intelligence is often very hard to secure when working across industry borders,” Indiska, Lindex and KappAhl said in a joint statement.

The SWAR initiative puts the value of water at the heart of resource efficiency and sustainable development solutions. The approach combines achieving measurable

Pilot SWAR wins Sweden’s first sustainability award STWI’s successful pilot in India – a collaboration for efficiency in water consumption, energy and chemical use in the textile industry – won the prestigious 2015 Habit Fashion Award for Sustainability.

7 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

overall management partner, will be bringing experts from different implementation countries to cater for the needs of Ethiopian factories. Stay up to date with this project at www.stwi.se.STWI brands connected to the online result tracking system »Brands participating in STWI Projects have recently received log-ins to the cKinetics’ “ComMiT” resource and result monitoring system. Each brand view contains overall performance indicators of all of their own participating suppliers and sub-suppliers in each production country. This system enables benchmarking between different countries, different factories within the same country, and overall project performance averages. The system provides live, accurate data, providing a glo-bal overview of factory-floor based developments.

STWI presented at the European Commission’s Conference on development aid » SIWI Director for the Swedish Water House, Katarina Veem, presented the results of SWAR, the STWI pilot project at the Euro-pean Development Days, the European Commission’s conference for development and aid, held in Brussels, last June. She provided a suggestion for scalable, co-operati-ve models developed by the member brands and SIWI for European actors as part of a programme entitled Responsible Management of Supply Chains: The Case of the Garment Sector.

STWI Projects’ governance component connecting with research partners » SIWI Programme Manager, Water, Energy and Food, Dr Phillia Restiani, is leading the STWI Project’s governance component, together with the STWI team consisting of Frank Zhang, Harsh Sheth and Rami Abdelrahman, to identify research partners in Bangladesh, China, Ethiopia, and India to contribute to SIWI’s research over regulatory and governance risks in production countries. The research will be carried out throughout 2016 and 2017 in each of the STWI Projects implementation countries. The aim of this research is to provide a comprehensive, scientifically objective, understanding of risks associated with indu-strial water governance between the different countries, taking into account physical water risks, and risks related to capacities, technology availability. Learn more at: www.stwi.se/projects

STWI presented at World Water Week in Stockholm »As part of a session entitled “New paradigm: incentivi-zing improvements in low and middle income countri-es”, STWI presented its drivers for change that have been proven successful in different production countries, working with suppliers and sub-suppliers to Swedish brands. The session provided an overview of water risks related to production demands globally, extraction as well as pollution, cross-fitting this with the develop-ment agenda in selected geographies, and concluding with textile specific examples. The conveners, namely STWI, H&M, Levi’s, and GAP have jointly agreed on specific challenge issues/topics that were addressed in the

results with building capacities and empowering people at brand headquarters, factory, and institutional levels. It is a market-¬driven approach that creates demand for sustainable water use in production, based on real risk mitigation, and supplies management solutions to meet that demand.

“We are honoured to be awarded this significant prize and hope that sharing our success story can inspire others to enter into similar collaborations. The co-operation between Sida, SIWI and KappAhl, Lindex, and Indiska achieved substantial results in both water and chemical savings and was a winning formula within itself,” says Charlotte Petri Gornitzka, Director General of Sida.

Ethiopia: STWI Projects implementation started in October 2015 » STWI started implementing its capacity building projects in Ethiopia in October 2015, to train suppliers and sub-suppliers to Swedish brands in efficient resource management and environmental management systems, in collaboration with the Ethio-pian Textile Industrial Development Institute (ETIDI), and Swedish brand H&M. Ethiopia is the fifth country of implementation following Bangladesh, China, India, and Turkey. Project implementation in Ethiopia follows inception and planning trips that were conducted by project partners to visit and recruit factories, meet with local stakeholders, and get a better sense of the capacity needs of the industry. SIWI, tasked as the STWI Projects

SWAR named as GLASA finalist SWAR was named as one of five finalists for the prestigious 2015 Global Leadership Award in Sus-tainable Apparel (GLASA). The GLASA network identifies an important sustainability topic to frame every year. The theme chosen for 2015 was water. The award is designed to identify the most promi-sing leadership and practices in the chosen area and in 2015, GLASA produced a State of the Apparel Sector Report focused on water. The GLASA jury is comprised of leaders from Nordic industry and Sustainability Networks such as the Sustainable Apparel Coalition, Danish Fashion Institute, SEB and the Association of Swedish Fashion Brands. The GLASA process is co-ordinated by the Sustai-nable Fashion Academy (SFA), a not-for-financi-al-profit organization. The final award was announ-ced at a global symposium and award ceremony on Thursday 27 August in conjunction with the 2015 World Water Week in Stockholm.

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8 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

session. For example: the links between natural resource use-production, (which ultimately is price-driven), and development agendas; the role of regulation – impro-ving or limiting; new trends that are seeing the industry in middle-income countries moving to lower income countries; and technology and good management prac-tices for keeping costs low in middle income countries. A thorough discussion was facilitated by SIWI on the different incentives for companies to invest in technology and improve their business practices beyond compliance. For more information on the session: programme.worldwaterweek.org/event/5020

On the SIWI Sofa at World Water Week (webcasted) »The Swedish Sustainability model for the Textile and Leather industries was discussed at the World Water Week on the “SIWI Sofa”. The discussion was filmed and focused on the fact that too few fashion brands apprecia-te the value of actively working to address water risks; let alone see the lost opportunities by failing to do so. Even for the most progressive corporates, water-related risks are exacerbated by weak compliance, arbitrary enfor-cement of national laws in production countries and corruption in the public sector.

Dedicated to enabling a world with clean water and sustainable textile and leather industries, STWI has a solution. By measuring the value of water in production processes and producing reliable, comparable data, a better understanding of the impact on water quality and quantity can be seen and acted upon.

Speakers: • Eva Kindgren de Boer, CSR and Quality Manager,

KappAhl• Sara Winroth, Sustainability Manager, Lindex• Harsh Sheth, Programme Manager, SIWI

The webcast can be found here: siwi-mediahub.creo.tv Ph

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STWI’S GLOBAL INDUSTRY BASELINES AND BENCHMARKS FOR RESOURCE EFFICIENCY

A ground-up, global view of the textile resource efficiency landscape » STWI launched its global programme in early 2015 to build capacities for suppliers and sub-suppliers of 20 Swedish brands in Bangladesh, China, India, Turkey, and Ethiopia.

In this article, we present consolidated baseline analysis on resource efficiency parameters established at around 100 factories. The information below has been collated by consultants engaged by SIWI as part of the STWI programme, and collated by cKinetics. In order to pro-duce this data, baseline assessments have been carried out at each factory by a team of water, energy and chemical experts, following pre-assessments conducted by the factories, and verification through measurement equip-ment installed or used at each factory.

The data provided here is drawn from a mix of wet-processing facilities, garment manufacturers and denim laundries in Bangladesh, China, India, and Turkey. A few of these are leather processing and carpet manu-facturers. Ethiopia data has not been fully connected and analysed at the time of writing.

Top 10 interventions » We analysed the most common-ly recommended suggestions suggested by STWI consul-tants across factories to understand the most commonly seen opportunity areas. (*Figures in brackets represent the percentage of overall projects for which the interven-tion has been recommended.)

Description (*%)

Average one time investment (€)

Annual recurring savings (€)

ROI Payback Indicative projects recommended

Efficient lighting (8%)

4,000 3,200 60% after 2 years

15 months

Installation of LED/T5 lights, rearrang-ement of lighting for optimization, Installation of lighting sensors, Instal-lation of sun tunnels

Boiler operation optimization (8%)

5,000 6,400 28% same year

9 months

Control of boiler blowdown, tuning of burner inside boiler, heat recovery from boiler exhaust gases, installation of air preheater

Plumbing optimization (4%)

290 300 3.5% same year

~1 year Replacement of ordinary taps with push taps, Installation of tap aerator diffuser, Installation of foot pedal for taps, lowering of water pressure in pipeline

Insulation of thermal utilities (4%)

800 2,400 200% same year

4 months

Insulation of hot water and steam pipelines, condensate tank, valves, boiler feed water tank, heat exchangers

Water Electricity Thermal Chemical

Contributors: Susmita Kamath, Senior Associate, cKinetics and Rami Abdelrahman, Programme Manager, SIWI

10 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

Description (*%)

Average one time investment (€)

Annual recurring savings (€)

ROI Payback Indicative projects recommended

Restricted chemicals mana-gement (4%)

Not quantified Not quantified

N/A Regular checking and strengthening of Restricted Substance List and Material Safety Data Sheets

Measurement systems (4%)

Not quantified Not quantified

N/A Sub-metering of water and electricity, Measurement of fuel consumption, Measurement of water/energy/chemical per unit of production

Compressed air optimization (3%)

730 5,800 695% same year

1.5 months

Reduction of pressure setting of compressor, Usage of air nozzles instead of open pipes, Relocation of air feeders, Maintenance of compressed air filters

Efficient motors (3%)

5,700 6,000 5.3% same year

11 months

Usage of direct drive motors for sewing machines and other equipment

Installing Variable Frequency Drives (3%)

6,300 12,000 90.5% same year

6 months

Installation of variable frequency drive on compressors, blowers of printing machines, fans of boilers, washing and drying machines

Waste heat recovery (2%)

28,000 14,300 580% third year

24 months

Heat recovery from compressors, stenters, exhaust of dryers, ovens, etc.

Typical interventions recommended across different geographies » (Figures in brackets below represent the percentage of overall projects in a given region where intervention has been recommended.)

Water Electricity Thermal Chemical

Bangladesh Reuse of process water (28%)Water trigger nozzle (28%)Recycling of ETP discharge (20%)Process optimization (20%)

VFD installation (32%)Efficient lighting (26%)Air trigger nozzle (21%)

Optimization of boiler operation (22%)Insulation of thermal utilities (16%)Maintenance of steam traps (14%)

Enzymatic pre-treatment (44%)Recovery of salt (33%)

China Improvement in awareness (16%)One bath method (13%)EMS implementation (13%)Measrement systems (13%)

Efficient lighting (29%)Efficient motors (14%)Up-gradation of utilities (14%)

Waste heat recovery (24%)Condensate recovery system (14%)Insulation of process equipment (14%)

RSL and MSDS management (31%)Housekeeping (22%)Prevention of health hazards (13%)

11 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

Water Electricity Thermal Chemical

India Measurement systems (21%)Reuse of ETP dischar-ge (14%)Optimization of do-mestic plumbing (11%)Reuse of STP dischar-ge (9%)

Efficient lighting (32%)Efficient motors (17%)VFD installation (11%)Optimization of com-pressed air (10%)

Optimization of boiler operation (37%)Insulation of thermal utilities (12%)Waste heat recovery (12%)

RSL and MSDS mana-gement (61%)Recovery of chemicals from baths (11%)

Turkey Optimization of do-mestic plumbing (35%)Measurement systems (19%)Free water delivery test (12%)

Efficient lighting (23%)Optimization of com-pressed air (15%)Efficient switching methods (8%)Measurement systems (7%)

Optimization of boiler operation (38%)Insulation of thermal utilities (23%)Measurement systems (13%)

Optimization of pro-cess (56%)Up-gradation of pro-cess machinery (28%)

Areas where interventions have been recommended across STWI Projects-2015

12 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

A quick glimpse of the above results clearly shows that there are virtually the same opportunities for water saving project implementation across the four different countries. Such opportunities are, however, still grea-test in China and Turkey where production is relatively more automated and less labour-intensive than in India and Bangladesh. This conclusion is supported by the following indicators:

Key performance indicators for wet processing units »In order to benchmark factories’ resource efficiency across different geographies, certain “key performance in-dicators” were introduced, and adjusted jointly by SIWI, STWI Consultants and STWI brands. The following KPIs have considered various limitations associated with differences between the production of different products.

All Tirupur dyeing factories use Zero Liquid Discharge, making their fresh water use extremely efficient.

Factories in Turkey and China are relatively more automated in their energy operations – making them generally more efficient than other geographies.

KPIs for fresh water consumption and energy consump-tion per kg of production show that wet-processing in Turkey and China are relatively more efficient, primarily due to more automated and less-estimated on their energy-intensive water operations, even considering differences between the different provinces in China.

However, one deviation is the dyeing factories of Tiripur in India. All Tirupur dyeing factories now use Zero Liquid Discharge (ZLD), making their fresh water use extremely efficient. They recycle up to 92 per cent of their water, and have water consumption between five

and 15 litres per kilogram. This is largely due to the enforcement of ZLD in the state of Tamil Nadu. The higher energy consumption of the Tirupur factories should be considered in conjunction with their low water use because a significant portion of their thermal energy is spent on ZLD.

However, China and other states in India will eventually catch up as ZLD is enforced in highly industrial provin-ces. This report provides a more comprehensive overview of ZLD in practice and associated policy developments in other sections.

13 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

While the median of most regions is similar, the varia-tion in each region implies scope to work on chemical management. This also appears correspondingly from the projects that have been recommended. Data from Bang-ladesh was not yet analysed in full at the time of writing.

Different countries show different levels of maturity – largely linked to (a) their level of automation; and (b) the cost of resource access.

STWI assesses the best management practices availability at factories, and to that extent developed an assessment tool analysing 120 questions covering various areas of assessment within a facility such as water and waste water management, electrical utilities, energy management, chemical management, thermal utilities, and solid waste management.

While factories in the different countries show different levels of maturity – largely linked to (a) their level of auto-mation; and (b) the cost of resource access, it is interesting to conclude that the availability of best-management prac-tices at a facility does not immediately reflect on the KPI performance of that facility. A good facility would have the “right” management practices combined with using

“right” materials, and the “right” process technology. The next chapter covers the three rights in particular to water efficiency, pollution prevention and wastewater.

Factories’ performance according to STWI guidelines » SIWI, the STWI brands, and a number of consultants de-veloped the STWI guidelines in 2010. They were designed to help factories apply optimal technologies, management practices and materials in order to improve water effi-ciency, waste water management, and prevent pollution. The guidelines were updated with the help of cKinetics, following practical application in the SWAR programme. A tool to evaluate factories was developed. The results shown below are from the STWI assessments carried out by STWI consultants in each of the implementations.

14 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

These guidelines are meant to enable manufacturers to navigate a journey that seeks to use water sustainably. Compliance is a bare minimum requirement, and the aim is to drive water stewardship.

The three levels of the guidelines:

Level 1 Minimum: is the minimum acceptable level for water management, which means that the supplier complies with legislation and has a general awareness of water issues. This is the first step towards sustainable water management. Where there are differences between the provisions of the guidelines and national laws or

Factories in the Tirupur region emerge as clear leaders in wastewater management since they have had to implement ZLD.

other applicable standards, suppliers should adhere to the higher or more stringent requirements.

Level 2 Improver: a factory’s environmental performance has surpassed legal requirements, and is working metho-dically with water and pollution prevention action plans.

Level 3 Achiever: the supplier is a leader in the field of sustainable water usage in the textile/leather industry and uses Best Available Techniques (BAT) for reducing water use, re-using water and phasing out hazardous chemicals.

It is clear that China and India lead in water efficiency measures, driven by higher efficiencies in certain states/provinces (i.e. Tirpur). The Chinese government has tightened restrictions on water consumption in recent times to solve the resource scarcity issue and to reduce pollution. The Indian units are from the Tirupur region where water efficiency is a must owing to higher water costs.

Turkey and India emerge as leaders for water pollution management. In Turkey this is a consequence of good chemical management, and in India, (Tirupur), it is a must, since all the chemicals are recycled or are confined within factory premises.

In wastewater management, factories in the Tirupur regi-on once again emerge as clear leaders owing to mandato-ry zero liquid discharge policy by local government.

Programme design construct for STWI 2015

Goals for 2015 for wet processing » Following ba-seline establishment at the various STWI factories in all countries, the STWI consultants and the factories jointly agreed on certain goals to be achieved throughout 2015. Following is an indicative outlook of the potential impact that the different regions are planning for STWI 2015.

The goals on resource reduction range between two and five per cent of resources saved in the coming months. The next edition of this report will provide results against both the baselines and KPIs, as per the following:

15 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

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Bangladeshi factories have the highest amount of resource savings for every Euro invested.

Bangladesh factories in the programme have the highest amount of resource savings for every euro invested. A large part of this is due to the higher number of low hanging fruit that exists, (as indicated by the KPIs). The potential of factories in Turkey to save electricity (kWh) per euro invested is higher than factories in India, because India has a high number of cut-sew-pack facto-ries. These generally consume less energy and consequ-ently have less impact for every euro invested.

Data from China is being collated at the time of writing and will be provided in upcoming updates. However, an initial assessment of the potential in China finds that due to scale, fewer projects in China can achieve greater results, irrespective of the investment.

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ZERO LIQUID DISCHARGE SYSTEM: A FUTURE COST FOR THE TEXTILE SECTOR?

Synopsis: In order to meet the continued growth of the textile sector, water demand is going to increase. However, with a multitude of competing uses of water, where water is required for food, drinking and other more basic purposes, little would remain for the textile sector. Policy makers in India are aware of this and are setting Zero Liquid Discharge (ZLD) goals for the textile sector, especially for wet processing. With every kilogram of fabric needing about 100 litres of water, this means that in future, the industry would have to absorb addi-tional costs of between Rupees 15-20 per kg (€ 0.2-0.3 per kg). While this may seem high for wet processing units representing 12-18 per cent of their cost, it represents a relatively small part, (<10 euro cents), of the overall product price.

Evolution of the policy mandate for ZLD in India »Tamil Nadu was the first state in India to mandate ZLD for the textile sector back in 2008. In 2011, due to the failure of textile factories to comply with the mandate, the High Court of Tamil Nadu ordered the closure of

Contributor: Anshul Chawla, Senior Associate, cKinetics

all textile factories in the state. It took 18 months for in-dustries to finally implement ZLD in their factories and start operations again. The whole process was brutal, and many players either moved out of the region or had to shut down their business altogether. Those that survived have shown what it means to operate with very limited water. Until now, the whole ZLD issue in textiles was limited to Tirupur, but now focus on ZLD has come to the forefront following the launch of the “Namami Gange” programme last year. This is part of the election commit-ment made by the present Indian government to clean the river Ganga, one of the key rivers flowing through the country.

In 2015, the Central Pollution Control Board (CPCB) regulator introduced a mandate to drive ZLD in eight water polluting industries, including textiles, in nine states.

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Different stages of water treatment

18 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

Contrary to perception, ZLD would have limited im-pact on the end product » In the textile supply chain, increasing water costs have a significant impact on wet processing. While there may be ‘pain’ for them, it does not have a substantial impact on overall end product pri-cing, (and evidence from the Tirupur cluster that already uses ZLD supports this).

Brands and buyers that proactively source from factories that have ZLD have a two-fold advantage:1. The ability to claim that their products are manu-

factured with minimal wastewater.2. More secure supply chain because ZLD-enabled facto-

ries are unlikely to be asked to move or shut down.

Key highlights of the 2015 ZLD mandate for nine Indian states:• Applicable to the textile units having daily

effluent discharge of 25 cubic metres per day or more

• Industries inside the textile parks will have to set up a CETP based on ZLD

• New factories will have to incorporate ZLD in their facility before starting operations

• Recovered water from ZLD based ETP (RO, MEE etc.) will be used in textile processing within the unit and no ground water extraction is allowed after the implementation of ZLD, except to make up water to compensate for the loss in the ZLD system

The biggest impact of ZLD would only be in the wet processing value-chain: other value-chain components can absorb it

Typical existing pricing point Possible future price

(including ZLD water cost)

Price increase

Sold product $8 / pc $8.1 / pc <1%

Ex-factory $2 / pc $2.1 / pc 2-4% increase

Wet processing only $0.3 / 250g $0.4 / 250g 12-15% increase

ZLD means no liquids are discharged from a particular facility.

What is a ZLD system? » As the name indicates, a ZLD system is a water treatment system that does not generate wastewater, i.e. no waste water is discharged. Most water is recycled and hence the factory’s requirement of fresh water decreases.

ZLD is a series of processes, (such as membrane filtra-tion, reverse osmosis, evaporation and crystallization), that extract pure water from industrial effluents, leaving behind sludge, dissolved solids, suspended particles and salt crystals.

Even though the specifications of various membranes and chemicals used will vary depending on the manu-facturing process, a typical ZLD system consists of the following steps.

Since ZLD means no liquids are to be discharged from a particular facility, ZLD systems result in 90-92 per cent water recovery, which reduces input water required by industrial processes by as much as 80 per cent.

19 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

Without Zero Liquid Discharge

Overheads – Rs. 24.05

Freight – Rs. 66.95

Manufacturing & Finishing – Rs. 239.14

With Zero Liquid Discharge

Overheads – Rs. 24.05

Freight – Rs. 66.95

Manufacturing & Finishing - Rs. 245.63

Increase in cost due to ZLD ~ Rs. 6.5/250gms

20 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

Components of ZLD System

Effluent Treatment Plant (ETP) Reverse osmosis (RO) and Ultra

filtration (UF)

Multi Effect Evaporator (MEE) and

Forced Evaporator (FE)

Crystalizer

The first step for any water recovery

system is primary and secondary

treatment of waste-water stream to

meet the input water quality para-

meters for the subsequent stages.

Typically, biological process is used

in cases where Biological Oxygen

Demand (BOD) concentration is

relatively high and physio-chemical

process is used where Chemical

Oxygen Demand (COD) is high.

Combination of both could also be

used based on the input wastewater

quality parameters.

The objective of the RO is to remo-

ve TDS (Total Dissolved Solids) from

water. Objective of UF is to remove

TSS (Total Suspended Solids).

Typically 3 stage RO plant is used

for 80-90% recovery of water from

the system. RO recovery depends

on the TDS level of input water

(post - ETP) and combination of

different membranes used.

A multiple-effect evaporator (MEE)

is an apparatus for efficiently using

the heat from steam to evaporate

water.

Forced evaporation (FE) is used to

heat wastewater, causing it to boil

and vaporize. The vapor is vented

to the atmosphere or recaptured

through a condenser/chiller. A vo-

lume reduction of up to 95% can be

achieved, leaving only the residual

solids or sludge to dispose of.

The difference between FE and MEE

is that, in MEE liquid flow is gravita-

tional and in the FE it is forced up to

avoid deposition inside the tubes.

A crystallizer can be used for salt

recovery from evaporator concen-

trated reject.

Expense of ZLD systems: Focus on recurring cost, not capital cost » Most discussion around ZLD systems revolves around upfront investment. That is an incorrect way to look at ZLD because the running costs are also substantial, (and different for different sectors).

Appropriate weight needs to be given to both compo-nents to optimize plant economics.

The team at cKinetics works with a concept of Levelized Cost of Water (LCoW). LCoW takes into account the upfront investment (CAPEX), as well as running costs (OPEX). For a wet processing unit that has a 500-cubic-metre-per-day ZLD plant, the LCoW can range from €2.5 to €4.1 per cubic metre. The LCoW takes into account utilization of the ZLD system, dosing efficiency, efficiency of the different components (RO, MEE, FE, as listed above), and capital costs.

Optimizing ZLD system design: a delicate task of balancing multiple parameters » Unlike standardized product manufacturing industries, the textile and apparel industry is subjected to a wider variation in terms of product types. Additionally, there are seasonal variations

due to rapidly changing trends in world fashion. There are also various production, quality, and infrastructure related parameters that have a direct and/or indirect impact on the cost of operating a ZLD system.

21 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

Parameters listed below need to be taken into consideration

Equipment used and the

water it consumes (also

called MLR)

Type of product

Production

re-processing rate

Existing boiler capacity

and utilization

Space availability

Existing water

discharge quality

Proposed ZLD

technology

Existing and future price

of make-up water

22 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

POLICY OUTLOOK AND DEVELOPMENTS IN 2015

Bangladesh

The government has decided to adopt an action plan for ensuring health and occupational safety in five industrial sectors including ready-made garments (RMG) and leather goods.

Bangladesh is developing as a sourcing hotspot for international buyers. Framing effective environmental and ethical labour practice regulations is the key to the success of the Bangladesh’s textile industry.

MoU to produce skilled workforce in RMG industry » The finance ministry signed a memoran-dum of understanding (MoU) with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) to improve productivity and the skills of workers and mid-level managers in the garment indu-stry through training under the “Skill for Employment Investment Program” (SEIP), funded by ADB.

Date: 13 April, 2015Governing authority: Bangladesh Ministry of Finance, BGMEAApplicable segments: RMG

Key takeaways: • This initiative has been taken to reduce the skill gap

in the Bangladeshi garment sector.• Some 43,800 garment workers and mid-level

managers will benefit from this training.Source: www.bgmea.com.bd/home/media/MoU_sig-ned_to_produce_skilled_workforce_in_RMG_industry

Move to adopt safety action plan for RMG » The government has decided to adopt an action plan for ensuring health and occupational safety in five industrial sectors including RMG and leather, sources said. Initial-ly, the government will prioritize five garment and textile sectors , leather, shrimp, ship building and breaking and chemicals considering the size of sectors. Gradually, other sectors would be included in the plan, he mentioned.

Date: 26 May, 2015Governing authority: National Industrial Health and Safety Council, BangladeshApplicable segments: RMG, yarn, dyeing

Key takeaways:• Common occupational health & safety standards will

be applicable to prioritized sectors.• Implementation strategy for National Industrial

Health and Safety Policy 2013

Source: http://mole.portal.gov.bd/sites/default/files/files/mole.portal.gov.bd/page/83b1ad06_b9b4_4dd4_97b3_a5749f81bb29/Latest%20steps-taken%20Rana-Pla-za%2020%20April%2015(SECT)%20dt.%2021.04.2015.pdf

New regulatory authority planned under the new Tex-tile Industry Act 2015 » The government has planned to create a new 'sponsoring' authority to oversee the coun-try's textile mills, making it mandatory for them to be registered with it, a senior ministry official said. This pro-vision has been incorporated into the 'Textile Industry Act 2015', already drafted by the ministry of textiles and jute. According to the proposed law, all existing textile units will also require to be registered with authorities to obtain support from the government and other trade bodies including financial institutions.

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Date: 26 March, 2015Governing authority: Ministry of Textiles & JuteApplicable segments: All segments of the textile value chain.

Key takeaways:• This is an attempt by Bangladeshi government to

bring structure to the unplanned and diffuse textile industry in a single regulatory authority.

• The government hopes to improve safety measures and environmental standards.

• If factory owners fail to enlist their factories with the sponsoring authority, they risk three months' impri-sonment or a Tk 100,000 fine.

China

Outlook: In 2008, China adopted a watered down ver-sion of Circular Economy Law inspired by Japanese and German recycling laws. Its provisions require industrial enterprises to introduce water-saving technologies, st-rengthen management, and install water-saving equip-ment in new buildings and projects, as well as recycle and make comprehensive use of waste material. It also requires government to closely monitor energy and water consumption, as well as the pollution levels of heavy consuming and polluting industries such as textiles.

China Water Action Plan » China announced an action plan that includes a list of measures to tackle water pollution, with the aim of improving the quality of the water environment across the country by 2030. The plan includes specific indicators, including:

By 2020, the quality of more than 70 per cent of the water in seven key river basins, such as the Yangtze River and Yellow River, will reach level III or above, and the amount of foul water in urban built-up areas will be controlled, and not exceed 10 per cent.

Date: 16 April, 2015Governing authority: Ministry of Water Resources, ChinaApplicable segments: Textile dyeing & finishing

Key takeaways:• By 2016, small factories in textile dyeing and finishing

that fail to comply with new national standards will be shut down;

• By 2017, textile dyeing and finishing and leather facto-ries should complete technological upgrades;

• By 2017, all industrial clusters & parks should have centralized treatment facilities and real time monito-ring of pollution discharge. Those in Beijing-Tian-jin-Hebei, Yangtze River Delta and Pearl River Delta have a shorter deadline of 2016.

• Non-compliance with the above deadlines will lead to suspension of operations of the entire industrial cluster and/or industrial park and new projects within the park can also face suspension.

• By 2020, water use in the textile and should meet the advance levels of industrial water quota standards

Environmental Protection Tax Act 2015 » On June 9, the State Council, China’s cabinet, released a draft law on environmental tax for public consultation, which propo-ses levying four environmental taxes designed to reduce pollution:• Air pollution (determined by a pollution equivalent

number converted from the pollutant emission amount); 1.2 yuan (about USD 0.20) on air pollutants

• Water pollution (determined by a pollution equivalent number converted from the pollutant material amount); 1.4 yuan (about USD 0.23) on water pollutants

• Solid waste (determined by the amount discharged); 5 to 30 yuan (about USD 0.82 to USD 4.93) for solid waste discharge

• The sponsoring authority is to help release any capital machinery and other imported goods on a preferential basis.

• Registration with the authority is renewed every five years with the payment of a fee.

Source: http://motj.portal.gov.bd/sites/default/files/files/motj.portal.gov.bd/news/23dacdbd_6b1c_47e8_9747_a9a18da0aacf/New-Correction-2015.docx-01.pdf

24 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

• Building construction and industrial noise 3 yuan (about USD 0.49) per square metre for construction surface area noise, and a range of 350-11,200 yuan (about USD 57 to USD 1,841) per month for deci-bels ranging above the standard from 1 decibel to 16 decibels.

Date: 9 June, 2015 Governing authority: Ministry of Finance, State Administration of Taxation and Ministry of Environ-mental Protection, ChinaApplicable segments: All segments in the textile value chain.

India

India is aiming for a 20 per cent improvement in the efficiency of its water use to 2020, with 2005 as the base year.

Key takeaway:• Essentially a Chinese version of the polluter pays

principle.• Government listed all the pollutants and has set a

taxable value per kg of pollutant emitted.• Aim is to promote energy efficient and environmen-

tally friendly industry.• Taxpayers who fail to declare and pay tax owed to the

tax authorities, or competent tax and environmental protection authorities, and who violate the environ-mental tax law's provisions and cause "major dama-ge", are to be punished according to the provisions of China's Taxation Collection and Management Law, Environmental Protection Law, and other relevant laws and regulations.

India is aiming for a 20 per cent improvement in the efficiency of its water use to 2020, with 2005 as the base year. Pricing and investment in new technology are two key ways India hopes to achieve this. So we can expect water prices in India to improve in the next few years to more realistic and practical levels. An integral part of the National Mission for Enhanced Energy Efficiency is to also reduce the energy intensity of designated energy

consumers through mandatory policies. The PAT scheme is the outcome of this initiative and is also applicable to the textile sector.

The government has also recently decided to reinvigorate the river Ganga Action Plan, under which the govern-ment has mandated water polluting industries, such as textiles, to implement ZLD and recycle water. There-fore, in the near future, India’s textile industry will face significant pressure from the government to improve its resource efficiency.

At the same time, states such as Maharashtra and Andhra Pradesh are providing incentives to promote Textile Industrial Parks.

ZLD Mandate » The CPCB recently announced a mandate to achieve ZLD in eight main water-polluting industries, including the textile industry.

In line with this, Uttarakhand and Haryana state pollu-tion control boards sent notices to textile companies in their respective states and have given them one month to develop action plans to implement ZLD in their factories before the end of 2016.

Date: 24 February, 2015Governing authority: CPCB, SPCBsApplicable segments: Dyeing and wet processingKey takeaways:• This is applicable to the textile units having daily

effluent discharge of 25KLD or more.• Industries outside industrial parks have to achieve

ZLD in their factories in a timely manner.• Industries inside textile parks are required to establish

a CETP based on ZLD. Government has a financing scheme for CETPs under which,

– 50 per cent will be financed by central government – 25 per cent will be financed by state government – The remaining 25 per cent will have to be financed through debt and equity

25 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

• New factories will have to incorporate ZLD systems in their facility before starting operations.

• Recovered water from the ZLD based ETP (RO, MEE etc.) shall be used in textile processing within the unit and no ground water abstraction shall be allowed after the implementation of ZLD, except to make up water to compensate for loss in the ZLD system.

• Prepare the action plan for implementation within 15 days and should be submitted to the respective SPCB, which will be reviewed every six months.

• The implementation is the responsibility of state pol-lution control boards. In line with these, the National Green Tribunal instructed the Uttar Pradesh Pollution control Board (UPPCB) to notify textile dyeing hou-ses in the Ganga river basin.

Source: http://cpcb.nic.in/upload/Latest/Latest_107_Di-rection_textile_160715.pdf

Andhra Pradesh textile policy 2015 »The governme-nt of Andhra Pradesh (GoAP) aims to promote and develop a robust textile industry that provides sustainable employment to weavers and posits Andhra Pradesh as a destination of choice to global textile majors. The policy aims to modernize textile manufacturing and improve productivity in order to ensure availability of quality fabric at affordable prices to cater to domestic and inter-national demand.

Date: 2 April, 2015Governing authority: Government of Andhra PradeshApplicable segments: All segments in the textile value chain.

Key takeaways:• Interest subsidy under TUF scheme.

• Power subsidy of Rs 1/unit spinning and modern ginning and at Rs.1.50/unit for other categories (including technical textiles).

• Capital subsidy up to Rs 10 crores for 20 per cent of fixed assets in MSMEs and 10 per cent of fixed assets in mega projects.

• VAT/CST/SGST concession which can be claimed only within eight years from the date of commence-ment of commercial production limited to a five year period.

Source: www.apindustries.gov.in/APIndus/Data/Industry/Textile%20Policy_April_2_2015.pdf

Maharashtra budget with subsidies for textile sector »The Maharashtra government came up with the 2015-16 budget, which includes various subsidies and low interest loans for development of the textile sector in the state.

Date: March, 2015Governing authority: Government of MaharashtraApplicable segments: All segments in the textile value chain.

Key takeaways:• An outlay of Rs 59.66 crore is proposed in the year

2015-16 towards interest subsidy of five to seven per cent on long-term loan of the eligible textile industrial units in the state.

• Also an outlay of Rs 28 crore is proposed towards 10 per cent capital subsidy on the long-term loan of eli-gible textile industrial units in Vidarbha, Marathwada and North Maharashtra.

• Power subsidy to power looms an outlay of Rs1232.53 crore is proposed.

Source: www.maharashtra.gov.in/PDF/Budget_2015_English_Part_I.pdf

International and trade agreements

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India, China agree to exploit complementarities in textiles

During an official visit to China in May this year, Indian prime minister Narendra Modi, and Chinese premier Li Keqiang agreed that both countries would take necessary measures to remove impediments to bilateral trade and investment, facilitate greater market access to each other’s economies, and support local governments of the two countries to strengthen trade and investment exchanges,

with a view to optimally exploiting the present and potential complementarities in identified sectors in the Five Year Trade and Economic Development Plan signed in September 2014, including Indian pharmaceuticals, Indian IT services, tourism, textiles and agro-products.

Date: 15 May, 2015Governing authority: Governments of India and China.Applicable segments: All the segments in the textile value chain.

Key takeaways:• This will facilitate free bilateral trade between two

countries.• This will enable both countries to benefit from each

other’s competitive advantage.

Source: http://pib.nic.in/newsite/PrintRelease.aspx?relid=121755

26 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

POLICY SHAPING SUSTAINABILITY IN CHINA

Contributor: Frank Zhang, STWI Programme Co-ordinator for China, SIWI

Examining how China’s circular economy is paving the way for the next generation textile factories

China’s Circular Economy Plan » In April 2015, the National Development and Reform Commission (NDRC) issued the Circular Economy Promotion Plan for 2015, which has actions and targets to use resources, (water, metals, land, and coal), more efficiently and to better manage resources and waste in industry, agricultu-re as well as in cities.

The plan targets the circular transformation of Yangtze and Pearl River delta where most of China’s textile in-dustry is situated. One of the major agendas in this plan is to revise the water quota for industrial output. This is where the recent 10-point water action plan, (referred to as Water-10), and norms for effluent treatment, (GB 4287-2012), come into the picture. These two have come

into existence to collectively improve the water use effi-ciency of industries.

Water 10 Action Plan and the upcoming environmen-tal tax law: applicability to textiles » In April 2015, the Chinese government introduced the Pollution Prevention and Control Action Plan, also known as Water 10. It is the latest addition in the China’s war on water pollution. This is the most comprehensive water policy to date and lists a total of 238 actions.

Phot

o: F

rank

Zha

ng

27 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

Water 10 Impact on Textile Sector

By 2016, small factories that fail

to comply with new national

standard GB 4287-2012 will be

shutdown

By 2017, factories should complete

technological upgrades

By 2017, all industrial clusters

& parks should have CETPs and

real time monitoring of pollution

discharge

Polluting factories in urban areas

to move, retrofit or shutdown

China’s 10-point water action plan (Water 10) will have a significant bearing on the textile sector.

It is a roadmap that the Chinese government would like to use to tackle following issues:• Control pollution discharge, promote economic and

industrial transformation, and recycle resources• Promote science and technology progress• Strengthen management and ensure water environ-

ment safety• Clarify responsibilities and encourage public

participation• In the same month, the Chinese government added

amendments to the effluent standard GB 4287-2012 for the textile sector to clarify the following:

• Different targets for individually situated textile facto-ries and factories situated in textile industrial parks

• Real-time effluent monitoring has become mandatory• Certain pollutants like mercury, arsenic, etc, will have

to measured by the standard methods provided by government

China is also exploring an Environmental Protection Tax law based on the polluter pays principle. It is planned as a new economic regulatory tool through which the en-vironment value of the products is added into the value chain. It aims to further deepen industry’s awareness and understanding of the environment aspect of its business and products.

Environment Tax Law Impact on Textile Sector

Companies will have to pay tax

based on the amount of water

pollutant the discharge into the

surface and ground water bodies

Each pollutant has a prescribed

weightage that will be multiplied

with the amount of pollutant di-

scharged to calculate tax payable

These regulatory reforms are encouraging the Chinese textile industry to recycle and reuse the waste generated in their process and become truly circular.

The proposed draft has identified major industrial para-meters and established a monetary value for per unit of effluent discharged in the surrounding environment.Together, these regulatory reforms are encouraging the Chinese textile industry to recycle and reuse the waste generated in their process and become truly circular.

Lofty goals? No, says the industry » The view from the industry is that these policies, if uniformly applied, can enable the textile sector to make structural changes to compete for the future.

Frank Zhang of SIWI engaged different industry experts to build a view on how the textile sector looked at the emerging policy framework in China. The panel of experts included:• Hu Kehua, Deputy Director, Office for Social

Responsibility of CNTAC• Ma Zhifang, Secretary of Zhejiang Dyeing and

Printing Association• Xi Danli, Professor, Donghua University• Yao Fanglong, Senior Engineer, Jiangsu Energy

Conservation Center• Li Yuru, Deputy Director, Zhejing academy of • Environmental Sciences

What are your views on the recent spate of legisla-tions emerging from the Water 10 action plan and its impact on the textile sector? » Views from Hu Kehua, Deputy Director, Office for Social Responsibility of CNTAC

In terms of impacts on the textile industry, the first priority of the ten in the W10 is to intensify the work on prevention and control of industrial water pollutions in 10 prioritized industries, including textile industry. As the Chinese manufacturing sector is undergoing major structural transformations, the textile industry has been actively increasing its investment on the dyeing and water treatment processes in order to improve water and energy efficiency and reduce environmental impacts. Along with such structural transformations, the W10 will help to quicken transformations and upgrades within the textile industry by improving behaviours and practices of the small and medium enterprises (SMEs) and further increases their awareness of corporate social responsibility.

How do you see the performance of the Chinese textile industry against the GB 4287–2012 effluent standards? » Views from Hu Kehua, Deputy Director, Office for Social Responsibility of CNTAC and Xi Danli, Professor, Donghua University

28 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

The effluent norm, (GB4287-2012), entered into effect in January 2013 and clarified the standards for toxic and harmful chemical substances in the water discharges of the dyeing and printing industries. Overall, with support from the industrial associations at different levels, the textile businesses have achieved initial progress with the implementation of the new standards.

Amendment in April 2015: The original GB4287-2012 standards were more focused on individual factories. As a part of the twelfth five-year plan for textile industry, (2011-2015), industrial textile clusters are being formed at ever-faster rates. As more and more independent business have been/will be relocated into industrial parks, the central government decided to further tighten standards to guarantee sufficient treatment at centralized treatment facilities.

Temporary respite announced in June 2015: Based on the implementation of the original standards, especi-ally the amendment in April, the new amendment has temporarily ceased the implementation of the following standards:1. Standards for aniline and hexavalent chromium in

table 2 and 3. Meanwhile, apply the standard in table 1 instead.

2. Cease the implementation of the newly added footno-te for the "indirect discharge" column “if the wastewa-ter goes to the municipal sewage treatment plant or through the municipal sewage pipeline, the standards for ”direct discharge” should be applied.”

What are the key opportunities for the Chinese textile sector that will emerge from the implementation of Water 10? » Views from Hu Kehua, Deputy Director, Office for Social Responsibility of CNTAC, Ma Zhifang; Secretary of Zhejiang Dyeing and Printing Association and Yao Fanglong; Senior engineer, Jiangsu Energy Conservation Center.

Implementation of W10 will further stimulate business investment in technical upgrades and quicken the elimi-nation of outdated production capacities. Therefore, this would lead to a structural transformation in the textile

industry. At the factory level, it helps the companies to reduce water and energy use and increase water reuse and water footprint monitoring. W10 also stimulates the bu-sinesses to prioritize more on the products that are more environmentally friendly which also meet the require-ment from an increasing number of consumers.

Different impact for different regions: Water 10’s impacts on different provinces will be different. Provinces such as Jiangsu, Zhejiang and Guangdong which are among the wealthiest provinces with more developed industries have in the recent years had their own very strict provincial campaigns tackling the environmental issues meaning that their textile industries are facing less additional pres-sures and in a better position to successfully implement the W10 action plans. In addition, the expert committee for drafting W10 made several visit to the leading provin-ces, not least Zhejiang, to obtain inspiration and lessons learned for the W10.

The provincial campaigns have already been putting increasingly strict regulations on local textile companies even before the release of Water 10.

Alternate view: According to some experts, implementa-tion of regulations such as Water 10 tends to be less strict and more tolerant in less developed, (industrialized), areas in the west and northwest parts of China where achieving economic growth is still the primary concern. This generally creates increasingly strong incentives for textile companies to move to these areas.

Do you think these policies will drive the uptake of wastewater recycling technologies in the textile sector? Or do you feel that the textile industries would prefer to move to other regions that are not covered by the basins covered by the Water-10 plan? » Views from Xi Danli, Professor, Donghua University and Hu Kehua, Deputy Director, Office for Social Responsibility of CNTAC

Textile companies in China have limited room for cut-ting costs in terms of salaries and taxes. Instead, saving costs by improving efficiency on resource, energy and chemical use becomes an only option for many factories to reduce costs and the new policies and standards will further encourage the factories to develop their busines-ses towards that direction. In turn, the new policies and standards will also benefit the promotion and upscale of different green technologies, not least the wastewater

Implementation of W10 will further stimulate business invest-ment in technical upgrades and quicken the elimination of outdated production capacities.

Phot

o: c

Kine

tics

29 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

reuse technologies which are key to saving water and reducing costs.

National regulations and standards make exactly the same requirements on different provinces. In line with one of the most important sectorial strategies stated in the twelfth five-years plan for textile industry, there is an ongoing geographical relocation from the coastal areas of China to central and western areas. A number of companies are discussing with local government in these provinces, and many textile industrial parks have been established leading to increased job opportunities and economic development. A wide range of benefits in addition to environmental requirements, are driving this relocation of the textile industry. The government has been especially cautious about the issues that are associa-ted with such relocations that risk relocating pollution as well as factories.

What is the expected economic impact on the textile industry due to the investment required for techno- logy upgrades? » Views from Hu Kehua, Deputy Director, Office for Social Responsibility of CNTAC

In the short term, investment in technical upgrades reduces businesses’ profit. However, such investment is required to survive the increasingly strict standards and policies for improving the environment in China. In addition, both domestic and international customers will have increasingly strong preference for environmentally friendly products for which significant technical upgrades are necessary.

What will be the impact on SMEs? » Views from Li Yuru, Deputy Director, Zhejing Academy of Environ- mental Sciences

Compared to larger businesses, SMEs tend to face greater pressure from stricter regulation as they have difficultly in affording costly technical upgrades to meet new stan-dards. Government authorities and banks provide special funding and support to encourage companies to invest in greener solutions, but SMEs have limited access to such resources. This could be one reason why the very first concrete measure in the W10 document is to close down dirty and small enterprises in 10 prioritized industries. In addition to existing SMEs, the threshold for starting up new SMEs in the textile industry will be increasingly dif-ficult in terms of acquiring advanced technical solutions. Based on local conditions, different campaigns normally have clear targets determined in terms of numbers and timing of factories that need to be closed down or moved into industrial parks.

For effective implementation of such policies, regular monitoring of pollution parameters is required. Does the government currently have any system through which they can monitor pollution parameters? »Views from Xi Danli, Professor, Donghua University

There is a decent water pollution monitoring system established especially in provinces in which the textile industry has traditionally been very strong. In provinces such as Zhejiang, Jiangsu, Fujian and Guangdong, online monitoring equipment that is connected with local environmental protection authorities has been set up for almost all textile companies of a significant size, (annual production value of more than RMB 20 million). Water pollution discharge is better monitored at so called “above the scale” companies that account for about 35 per cent of the total number of textile companies in China. The experts have very different estimations on how much water pollution these 35 per cent contribute in relation to the total water pollution discharges.

However, China has a long way to go to having sufficient monitoring and regulation of smaller mills, especially given the significant amount of pollution they contri-bute. Implementation of W10 is expected to reduce the gap, (in terms of standards and method), between the monitoring, (regulation), systems in different provinces.

How do you feel about the overall effect of Water 10 action plan, environment protection tax law, and the Circular Economy Development Strategies of the Chinese government on the textile sector as a whole? »Views from Li Yuru, deputy director, Zhejing Academy of Environmental Sciences and Hu Kehua, Deputy Di-rector, office for Social Responsibility of CNTAC

China’s textile industry has a long tradition as being one of the pillars of Chinese industrial development and has made a significant contribution to economic growth and foreign trade.

At the same time, the industry’s previous path of growth has caused significant environmental problems, so there is no doubt that circular economy should be further developed within the textile industry.

For instance, the Chinese National Textile and Apparel Association (CNTAC) has, together with the Chinese Association for Integrated Resource Utilization, establis-hed the Alliance of Technology for Waste Textiles with the aim of co-ordinating the authorities’ work on the use and reuse of waste textiles. CNTAC has also contributed to annual reports on integrated resource utilization in China and also policies and lists for tax incentives for integrated resource utilization.

China has a long way to go to have sufficient monitoring and regulation of smaller mills.

30 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

Efficiency Economics: six technologies to be phased out

On 26 January 2015, the Ministry of Industry & In-formation Technology (MIIT) and Ministry of Water Resources (MWR) held a meeting to set national bench-marks for water use efficiency in the textile industry. To achieve these targets, equipment upgrades are mandatory. MIIT has issued a list of water-intensive processes, tech-nologies and equipment that are not to be used in textile and dyeing factories.

Six types of dyeing machines have to be eliminated by December 2017 or 2018. Although at first it looks like a challenge, it offers an opportunity as well. The factories will have to invest in new technology, but at the same time they will benefit from the potential savings through reduction in water, energy and chemical usage.

Dyeing equipment to be phased out Applications Timeline Possible replacement(s)

Rope dyeing machine (that typically

have 1:15 bath ratio and high water

usage)

Fabric dyeing, pre-processing

and washing

Dec 2017 Soft flow dyeing machines, tank-type overflow dyeing

machines

Box-type skein dyeing machine (have

a bath ratio over 1:12)

Skein dyeing and washing Dec 2017 Package dyeing machines/ cone dyeing machines

Spray type hank dyeing machine

(have a bath ratio of 1:10)

Skein dyeing and washing Dec 2017 Package / cone dyeing machines. Except for silk and acry-

lic dyeing for this a modified hank dyeing machine needs

to be used. (Eg. Hank master, THIES having 1:5 bath ratio)

74-type Combined machine with back

boiling and bleaching (has significant

steam losses)

Fabric open-width de-sizing, boiling

off and bleaching

Dec 2017 For open width fabric de-sizing, scouring/bleaching,

continuous bleaching range (CBR) is suitable

Open flat washing tank (has high

stam loss and uses excess water)

Fabric open-width washing Dec 2018 Continuous open width washing machines or industrial

garment washing machines

Tube type (1:10 or more) high tem-

perature and high pressure overflow

dyeing machine

Fabric dyeing, pre-processing

and washing

Dec 2018 Air flow Jet dyeing machine

For 200kg capacity, except for the Continuous Bleaching Range (CBR) all the other machines can be acquired well below $150,000. Depending upon the type of the machine, • Total water consumption will reduce by 30-50 per cent• Total chemical consumption 20-50 per cent• Electrical consumption may vary from -15 to +

15 per cent• Steam consumption reduces by 20-30 per cent

Therefore, these technologies will not only make textile industry less water intensive but also they will help in increasing the bottom line by consuming fewer resources.

31 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

BUSINESS MODEL: COLLABORATION BETWEEN COMPETITORS TO CREATE WIN-WIN ON RESOURCE EFFICIENCY

Contributors: Eva Kindgren de Boer, CSR and Quality Manager, KappAhl, Pramod Mehra, Founder, Chairman, Global Fashion and Anuj Batra, Owner, Bee K Bee Prints

Between 2013 and 2014, Program SWAR (Sustainable Water and Resource management) brought together more than 64 factories in India and three Swedish brands; Indiska, Lindex and KappAhl. The aim was to work on resource efficiency. The project has contributed to saving 360 million litres of water and 402 tonnes of chemicals annually. The factories were also able to save an average of three per cent of their energy costs and three per cent of their operational costs.

Competing manufacturers frequently sat across the table to collaborate, and to build competencies for the future. We interviewed Eva Kindgren de Boer of KappAhl, Pramod Mehra of Global Fashion, and Anuj Batra of Bee K Bee Prints to learn more.

They represent a view from three different constituents of Programme SWAR.

What were the key drivers for your firm to participate in Program SWAR? Eva Kindgren de Boer(EKB): This type of co-operation was a perfect way for us to join. We may be big and belong to a major chain store company in Sweden and other Nordic countries, but compared to the environme-ntal challenge we are small.

We started working on SWAR together with two similar companies as KappAhl with whom we share the same views and have the same drive to make the project work and get results. We were not afraid to work together and share information; and that was key. This was not as common a few years back and is getting more accepted today.

Pramod Mehra (PM): We were aware of the importance of water and energy but due to our routine busy life we had not paid enough attention to the need for conser-vation of these two vital sources. In fact, we never made an attempt to study the impact of using these elements in relation to costs and the environment. When Renee Andersson of Indiska made us aware of Program SWAR, I knew we had to participate in it and start with at least one of our manufacturing plants. For me, the key drivers were costs and environmental impact.

Anuj Batra, Bee K Bee Prints (AB): Water and energy are the most important resources for our business. The-refore, our biggest driver for us to join Program SWAR was water and energy conservation. Apart from this the cultural change in the factory, which was the result of Program SWAR, also helped us to continue with water and energy conservation activities.

During Programme SWAR different players often shared experiences, (in ongoing meetings and workshops), even though they were competitors. Did you find that useful? Are there any specific things that your firm has learnt?EKB: I think this journey with STWI and SWAR helped KappAhl understand that co-operation is the right way

KappAhl is one of the Nordic region’s leading fashion retailers with close to 400 stores in Sweden, Norway, Finland and Poland, and Shop Online. Eva Kindgren de Boer, from KappAhl led the brand’s engagement in the Programme.

Global Fashion is a garment manufacturer based in the Delhi Region of India, specializing in supply-ing high fashion retailers in Europe. Owner, Pramod Mehra was responsible for Programme SWAR at Global Fashion.

Bee K Bee Prints is a dyeing and printing firm based in the Delhi region, working exclusively with export-oriented manufacturers. Anuj Batra is one of the co-owners and was the Program SWAR cham-pion. He initiated the organization towards taking measures proposed by Programme SWAR.

32 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

to make a difference. We need to stand together, work together to make change happen – together we can be strong.

Also, as a responsible buyer, KappAhl wanted to know more about our suppliers and understand the challeng-es that they face on the daily basis. We needed more information and knowledge, and could only obtain this collectively.

It was also a unique opportunity because we were able to engage with our sub-suppliers in the project.

PM: Listening to other manufacturers, which were also our competitors, gave us the impetus to try things that they had already tried and were successful at. We were able to learn from the efforts of others.

AB: Apart from the knowledge about water and energy efficiency, through listening to other suppliers and their experiences we started believing in ourselves.

Do you feel that such co-operation can also happen if you met manufacturers from other regions? EKB: We and our customers are very well informed about the water and chemicals used in production, so that was one of the key drivers to be able to find out more, to obtain information, to learn more, both here at our head office, and at our production office in Delhi.

The SWAR project really made us understand the process and increased our overall knowledge.

PM: Yes, most definitely. One can never stop learning

and knowledge from the efforts of people from other regions would also be a welcome move.

AB: Yes, these interactions will only help the industry and will help us move forward together. The Delhi region is small compared to other regions such as Rajashtan, Tirupur. Although Tirupur is more advanced than the Delhi region in terms of water management, there is still scope for energy management activities as it has become a major issue over there in recent years.

How do you feel you can benefit by engaging with manufacturers from other regions? Which regions would you like to interact with?EKB: I think the three companies joining forces through SWAR have set a standard for other companies to work together. In the process we learned many new things and our suppliers also understood that they could gain by working together.

As I understand the SWAR project has got a good reputation in the textile industry in whole India. That made it interesting to now try it in Tiripur and ideally take it across the globe.

PM: Each Region has its own particular characteristics. People from the North are more prone to think of the “Jugad” solution. They are adept at finding temporary but effective solutions. People from South tend to resear-ch a bit more before attempting solutions and so forth.I would like to interact with South India because that is also a textile hub; and interact with factories in Turkey and China: who are also good at fashion.

AB: Every region has developed by adapting to the

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bdel

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Waste Water

management has

been a key

component in

SWAR

33 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

respective geographical conditions. This enabled them to develop specialty. It will be a great if we can learn from their experiences and also share our experiences with them.

I would like to interact with companies in Tirupur as they have successfully implemented Zero Liquid Dis- charge (ZLD) in their factories which has been the first in the world. It will be a good learning experience for us as in future we also have to implement ZLD in our factories.

How can such a programme be developed further to help the industry? PM: Other manufacturers, who are not sponsored by the Brands, should also be given a chance to participate for wider impact. An individual manufacturer may shy away from consulting experts due to the high costs. However, when the costs are divided it comes under the reach of many manufacturers who are keen to adopt environmen-tal friendly measurers and energy saving methods.

AB: I feel brands should showcase the initiatives imple-mented by the suppliers on their platform. This will help us to grow our business.

About Programme SWARSWAR was a pilot project carried out between 2013 and 2014, within the framework of STWI, and was a co-operation between Swedish brands and their Indian suppliers, SIWI, Sida, and cKinetics. SWAR was co-financed by the brands and Sida, in a public-private partnership that linked business and international developme-nt goals. Learn more about SWAR at: stwi.se/SWAR-Habit

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Water harvesting in water-stretched Jaipur, India

SWAR worked with block printers who developed their own

guidelines for sustainble industry practices

34 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

IKEA SUPPLIERS CAN LEAD THE WAY IN WATER MANAGEMENT

Contributor: Sandesh Waje, Water Sustainability Specialist, IKEA

In the context of the textile industry, one should also consider other elements like usage of chemicals, waste generated during the processes and even energy consumption.

IKEA is leading ready-made affordable furniture brand. They have been striving to reduce the environmental impact of their business for almost a decade. Through these efforts they have set benchmarks for other companies on how to use resources responsibly. To discover more about Swedish furniture

manufacturer’s efforts, we interviewed Sandesh Waje from IKEA.

What are the initiatives taken by IKEA to promote water efficiency in their supply chain in south Asia? The first step is IWAY, which is our sustainability code of conduct for suppliers, and includes IKEA’s minimum requirements relating to the environment and soci-al and working conditions. The IWAY standard is an integral part of IKEA’s business, and we only work with IWAY-approved suppliers . This ensures a baseline of suppliers wherein minimum standards are fulfilled.However, our water sustainability strategy goes far beyond IWAY and works at two levels. The first level is operational wherein we support our suppliers with the requisite knowledge and training to set up effluent treat-ment plants, (ETPs) within their factories, and to enhan-ce water efficiency in their operations. For example, in Bangladesh and Pakistan, our suppliers were pioneers in setting up ETPs.

The second level operates at a community level wherein we are trying to take our water strategy initiatives beyond the four walls of the factories. This involves educating surrounding communities about efficient use of water and promoting comprehensive and dignified ‘WASH’ practices (Water, Sanitation and Hygiene).

What are the key challenges faced in implementing IKEA’s sustainability strategy in the supply chain?The major challenge in the initial stage was to convince our suppliers to adopt water efficiency initiatives. This is because water is not priced according to its availability and is inexpensive. Therefore, most textile factories did not see any economic benefit in implementing water effi-ciency measures even though they are operating in one of the most water stressed areas in the world.

How does IKEA support their suppliers to improve their water footprint?We support our suppliers in three ways. First, we support our suppliers with required trainings and guidelines to ensure optimum functioning of their ETPs. Monitoring and review of the ETPs is also an integral part of this exercise.

Second, we work with our water consumptive suppliers to identify water efficiency projects which are low cost measures, and which can be implemented instanta-neously. We also make them aware of future water risks, and their impact on business practices through various workshops and forums. This helps them to implement water efficiency measures. Through the successful imple-mentation of these projects we saved 714 million litres of water in 2014.

Sandesh Waje has worked

as Water Sustainability

Specialist with IKEA in

their Purchase Operation

Area South Asia for the

past five years. Sandesh is a

highly motivated sustaina-

bility professional and has

an excellent understanding

of business supply chain

sustainability issues.

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35 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

Third, we have also started working with suppliers for water related community projects in the region, whe-re they operate. For example, two villages in southern India have been adopted to pilot the water stewardship programme this year.

Can you elaborate on the project that saved 714 million liters of water?In 2013, we carried out a pilot project with one of the Textile suppliers in Bangladesh. This project was a success in terms of water savings and with the help of the lessons learned from this pilot project; we implemented the similar practices at three other suppliers in 2014. The total outcome of these four projects was an annual saving of 714 million litres of water.

What was your key takeaway from these projects?The key takeaway from the pilot project is that focusing only on water is not enough. Especially in the context of the textile industry, one should also consider other elements such as the use of chemicals, waste generated during the processes, and even energy consumption.

How does IKEA promote energy efficiency in their supply chain? As part of our energy strategy our main focus is on energy efficiency and renewable energy. One of our initi-atives is ‘Supplier Goes Renewable’ (SGR) under which we encourage and support our suppliers to increase the energy efficiency and use of renewable energy to power their operations.

How does IKEA monitor supplier performance in terms of water and energy efficiency?We have a created a tool, SISU (Sustainability Infor-mation from Suppliers), wherein annual data from our suppliers regarding water, energy and waste footprint is analysed rated according to their performance in these areas. The SISU tool is integrated into our business decisions.

What are the next steps that you plan to take?After the success of the water efficiency projects at our main suppliers, we want to extend the initiative further into the business supply chain. We have already started working with Tier 2 suppliers since the start of 2015 and the expectation is that in the near future we will be able to take the project to the Tier 3 suppliers and ensure water efficient operations throughout our value chain.

Also, we are trying to combine our energy and water approaches to achieve better results.

Being a big brand, how do you think buying power can help drive sustainability measures in their supply chain?Yes, the buying power of the brands is one of the factors in driving sustainability measures in their supply chain in South Asia. Another important factor is the change in attitude of suppliers. Many suppliers now appreciate the risks and impacts of water scarcity and not just the financial implications. They are aware of legal obliga-tions, increasing energy and water costs, and the threat of having no water whatsoever for their operations. Due to these factors, suppliers have become more proactive than ever before in taking sustainability measures.

Being a water specialist who has worked in the textile sector, what is your take on achieving water sustainable operations in the industry

I feel that even if our suppliers are using water efficient-ly in their operations but the futuristic way is water stewardship. Therefore, we’ve started encouraging them to work on water stewardship with nearby factories, and in their communities and villages. I am confident that IKEA suppliers can lead the way in water management, and they have a great opportunity to influence and create wider positive change.

Many suppliers now appreciate the risks and impacts of water scarcity and not just the financial implications.

36 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

UPDATE ON OTHER MARKET INITIATIVES DRIVING RESOURCE SUSTAINABILITY

Contributors: Zero Discharge of Hazardous Chemicals (ZDHC), European Apparel and Textile Confederation (EURATEX) and Energy Made-to-Measure: more energy efficient textile and fashion companies

Voluntary initiatives such as ZDHC, EURATEX etc. are making headway in cleaning up the textile supply chain and improving the resource efficiency of the entire sector.

Here are the latest updates from these initiatives. Zero Discharge of Hazardous Chemicals (ZDHC) » In 2011, a group of major apparel and footwear brands and retailers made a shared commitment to help lead

the industry towards zero discharge of hazardous chemi-cals, ZDHC, by 2020.

As a part of the commitment and first steps towards ZDHC, the group of brands published a Joint Roadmap in November 2011. The document demonstrates the group’s collaborative efforts in leading the apparel and footwear industry towards ZDHC for all products across all pathways by 2020.

ZDHC presents progress report » The ZDHC Group has released its 2014 Annual Report which presents detai-led progress towards its 2020 zero discharge goals, inclu-ding the release of the ZDHC Manufacturing Restricted Substances List (MRSL), the carrying out of supplier training in chemical management and the development and testing of an environmental audit protocol. "These tools will be instrumental in delivering environmental performance improvements to all parts of the supply chain – brands, chemical suppliers, manufacturers and other intermediaries," says the report. "Our intent rema-ins to work with dye houses, chemical suppliers, other

brands and key stakeholders to adopt ambitious chemical management standards." Members of the ZDHC Group include Adidas Group, Benetton, Burberry, C&A, Esprit, Gap Inc., G-Star, H&M, Inditex, Nike and Puma.

Source: ZDHC websitewww.roadmaptozero.com/pdf/2014_Annual_Report.pdf

ZDHC pushes for ambitious chemical management standard » The Group continued to develop and deploy tools designed to assist dye houses, chemical suppliers, other brands and key stakeholders to adopt ambitious chemical management standards including a landmark manu-facturing restricted substances list (MRSL)* and chemicals management training curriculum for suppliers in Asia.

Source: ZDHC website www.roadmaptozero.com/pdf/MRSL.pdf

European Apparel and Textile Confederation (EURATEX) » EURAT-EX is the European Con-federation representing the interests at the level of the EU institutions of the

European textile and clothing industries as a whole. A Secretariat deals with the numerous policy issues that are of direct interest to our industry.

Energy Made-to-Measure: more energy efficient textile and fashion companies » Since 2014, EURATEX, the Europe-an Apparel and Textile Con-federation based in Brussels, in collaboration with dozens

of organisations across Europe, has run the Energy Made-to-Measure campaign. The campaign provides companies, notably SMEs, with analytical tools, best practice advice and staff training to assess options and take informed decisions on energy efficiency measures.

The ZDHC Group has released its Annual Report which presents detailed progress towards its 2020 zero discharge goals.

37 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

Solutions for companies » Its first Energy Made-to- Measure campaign focused on three international projects co-founded by the European Union, namely, the Artisan, SESEC, and SET (Save Energy at Textile SMEs). The actions have ultimately enabled companies to become aware of their energy saving potential, as well as of opportunities, upcoming legal obligations, and financial incentives.

For instance, the SESEC project supported more than 45 companies in applying a self-assessment tool, lear-ning from best practice, and supported investments in energy efficiency of about €1.5 million. Estimates indicate that energy savings of 1 million kWh/year were already achieved in the SESEC timeframe and planned measures are expected to generate additional savings of 7 million kWh/year.

In 2014, thanks to 21 Energy Made-to-Measure public events organised in eight countries, some 500 professio-nals learned and discussed opportunities to spare energy and cut costs for more sustainable manufacturing.

Sustainability conference » The Energy Made-to- Measure campaign will be featured along with a number of other sustainability initiatives at the conference “Innovating for Sustainability in European Textiles and Clothing” organised by EURATEX on 28 October 2015 in Brussels.

Source: Sofiya YevchukCommunication Officer, EURATEX

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38 | Modelling sustainability – First global report from Sweden Textile Water Initiative Projects

NOMINATE SUPPLIERS FOR 2016

Are you interested in joining Sweden Textile Water Initiative Projects? Write to us at: [email protected]

What’s in it for factories?

• World class performance: We aspire to assist each factory to achieve our vision of becoming world leaders in resource efficiency, long term risk mitiga-tion and resilient sustainability. Factories that engage in the Sweden Textile Water Initiative improve their business, environmental and social reputation.

• Improved resource efficiency: Assessment of the re-source efficiency of utilities, manufacturing processes and waste water treatment, as well as a comprehensive improvement plan with financial advice.

• Best Management Practices: Assessment of best in-ternational management practices in managing water, energy and chemical resources, as well as a compre-hensive improvement plan with financial advice.

• Resource Monitoring Systems: STWI will set-up a resource monitoring system for your own factory to help you track resource consumption patterns, iden-tify gaps and inefficiencies, and compare your data with national and international averages. In certain cases, we also set-up temporary resource measurement equipment at the process and sub-process level to bring you a higher resolution of data analytics.

• Technical support by world-class consultants to im-plement suggested projects throughout the year.

• Capacity building: through training staff, as well as department and process managers, the level of knowledge and experience at the factory is improved. STWI will also help you systematize this learning and spread it among the staff.

• Improved productivity: By improving the amount of water, energy and chemical use per kilogram or meter of production, factories will witness improved productivity.

• Result reports: Each factory will receive high level re-ports that track their own performance. These reports are confidential and are only available for the factory. The Final report of the year will provide the factory with their own improvement results.

• Recognition: all participating factories are recognized for their participation in the programme with STWI certificates, all individual participants at workshops receive a workshop diploma. Best performing factories will also receive awards for their water, energy and chemical management performance. Factories can then use their certificates, diplomas and awards for marketing to current and new clients.

• Networking: throughout our workshops you will meet with other factories and share challenges and opportunities. During closing and opening workshops you will also meet with different brands and other actors.

• Business intelligence: STWI will provide you with the latest developments in policy affecting production markets in Bangladesh, China, Ethiopia, India and Turkey. It will also provide you with the latest tech-nological advancements, best management practices, as well as benchmarks to compare your own factory’s performance with national and international resource efficiency averages.

• Becoming part of the first global resource efficiency factory network: our vision is that by 2017 we will have a national textile water initiative in each pro-duction country, linked to our business intelligence systems, and to provide a platform for continuous learning, technical support, investment and improve-ment.

About SIWI

Founded in 1991, the Stockholm International Water Institute (SIWI) provides and promotes water wise solutions for sustainable development in five thematic areas: water governance, transboundary water management, climate change and water, the water-energy-food nexus, and water economics.

www.siwi.orgContact: [email protected]

About Sustainability Outlook

Sustainability Outlook is a market intelligence, discovery and collaboration platform facilitating sustainability linked actions amongst businesses, policy makers and investors. Sustainability Outlook actively tracks and provides market insights in resource management with focus on policy, technology and finance to work towards creating closed loop systems.

www.sustainabilityoutlook.inContact: [email protected]