RECYCLED PET MICROFIBRE FOR INTERNAL COVERINGS FOR THE CAR SECTOR

ENVIRONMENTAL PRODUCT DECLARATION

NABUK LINE

Programme operator EPD International AB

EPD registration number S-P-00788

Approval Date 2017-01-12

Valid until 2020-01-12

Revision date and number Rev. 1, 2017-01-09

PCR PCR 2011:06, v. 2.0

Geographical scope Global

Programme: The International EPD® System www.environdec.com

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Miko S.r.l. was established in 1997 in Gorizia as a producer of non-woven fabrics for the furniture sector. Miko’s core business is the production of Dinamica® by Miko, an ecological microfibre obtained from recycled PET fibres. In the past 12 years Miko has broadened its product range to respond to the demands of other areas of application including the automotive sector. Today, internal car coverings constitute the main sector of use for Dinamica®.

In 2015, Miko was acquired by Sage Automotive Interiors, one of the world’s leading providers of automotive bodycloth with headquarters in South Carolina (U.S.).

Miko’s headquarters are in Gorizia, via Ressel 3. The whole process takes place at this exclusive site in Italy: transformation, dyeing and finishing of the raw support supplied by the Japanese partner Asahi Kasei, to obtain a product that meets the requirements of customers and the sector. The company is mainly active in the following geographical areas: Europe, North and South America, Asia and Australia. The production of Dinamica® for the automotive sector is expanding rapidly, and currently accounts for 93% of Miko’s production.

1. Company and product description1.1 THE GROUP 1.2 THE PRODUCTION SITES

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Environment

Over the years, Miko has demonstrated its constant and active commitment to preventing and minimizing the impacts of its processes and products on the environment, a commitment to which the adopted Environmental Policy bears witness.

Miko considers the respect for the environment and sustainable developments strategic factors for its operations and crucial for the consolidation of its market leadership. For these reasons, it has adopted an approach towards Life Cycle Thinking and credible communication of the environmental performance of its products.

With the scope to make systematic the method applied for the certification of the Auto Line (EPD no. S-P-00351) to all the company’s products, Miko has laid the basis of a bigger project that was completed in May 2013 with the EPD® Process Certification. This certification gives Miko the possibility to internally handle the management of EPD® data involved in the verification procedure by itself and issue new EPDs for registration such as the new Nabuk Line. This will lead to eco-design: products designed to be environmentally friendly.

1.3 ENVIRONMENT AND RESPONSIBILITY

In this context, the strategic objectives pursued by Miko are:

• to communicate the environmental data of its products through EPD® certifications;

• to monitor the environmental impacts associated with the life cycle of products through LCA;

• to improve the environmental performance of products through eco-design, in synergy with the objectives of the environmental policy;

• to activate partnerships with its customers and suppliers in order to obtain information about the environmental performance of products during the various stages of the supply chain, and to evaluate opportunities for improvement;

• to provide guidance to stakeholders through specific initiatives, to raise external awareness and communication activities, and to train the employees on the most important environmental issues.

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Miko’s attention to environmental issues is also confirmed by the certification of its Environmental Management System (EMS) in compliance with the standard ISO 14001, which systematically monitors the impact of the activities carried out in the various production phases and guarantees the conformity of the organisation to the standard. Miko’s production processes are certified to ISO 9001 and ISO 16949, underlining the conformity of its company processes to the most advanced quality assurance system applied in the automotive industry.

The maintenance of the Environmental Certification requires a series of provisions which must be fulfilled by the organization: in particular, the activity includes the planning and monitoring of environmental aspects concerning emissions into the atmosphere, waste water, noise pollution, waste materials, energy, water resources, protection of the soil and subsoil, as well as the periodical communication of the results of these activities to the competent authorities. With the scope to improve its environmental performance, Miko has optimized the production cycles leading to a significant reduction of the consumption of energy, water and chemicals. Moreover, since 2014 the company has also invested in revamping the treatment plant of process water which ensures a high level of purification and a reduction of the reagents used, by adopting the latest technology currently on the market.

Currently, Miko covers part of its energy requirements using renewable energy produced by the photovoltaic plant of 1 MW located on the rooftop of the facility.

Responsibility

The Board of Directors of Miko S.r.l. formally adopted the Organization and Management Model (Modello di Organizzazione e Gestione), pursuant to Legislative Decree no. 231/01 (Liability of legal persons), together with the relevant Code of Ethics and Conduct.

This fundamental document is geared to ensure fairness and transparency in the conduct of business and corporate activities, to protect its position and image, as well as the expectations of its stakeholders.

In 2014, Miko obtained the authorisation for atmospheric emissions, for the discharge of industrial wastewater and compliance with the provisions of the future acoustic zoning of the industrial area with a validity of 15 years.

During the same year, the organisation has implemented a fire prevention and protection system – emergency management - technically upgrading its personnel and undergoing specific risk scenarios.

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Dinamica® is a microfiber for the automotive sector produced through the use of recycled materials. Its production process avoids the extraction of virgin raw materials since it is based on the recycling of waste that would otherwise be discharged in landfills or incinerations. The recycled polyester contained in Dinamica® derives from polyester fibres (T-shirts, fabrics, fibres) and PET (bottles, plastic, etc..). Recycling polyester means reducing energy consumption and CO2 emissions into the atmosphere by 80% compared to the traditional petrol-based polyester production process. Under the microscope, Dinamica® is composed of three layers: face, inner scrim and backing.

Submerged in a water solution, the inner scrim attracts small polyester fibres, which are suspended in the liquid, to both surfaces; these are compacted using a water-based needle punching process.

1.4 THE PRODUCTThe microfibre is then immersed in a water polyurethane bath, which, in contrast to normal production cycles, does not contain the solvents that are harmful to health and the environment. This process compacts the fibres, making them elastic and resistant. During dyeing, the use of neutral, non-toxic colouring agents is a further guarantee of the product’s naturalness and respect for health and the environment. Miko guarantees eco-sustainability along the whole Dinamica® production cycle, ensuring a low level of polluting emissions and energy consumption during production. Finally, Dinamica® is designed for easy disposal, and is 100% recyclable at the end of its useful life.

For the automotive sector, in addition to the Auto line (EPD no. S-P-00351), Miko has developed a new product called Dinamica® Nabuk Plus to meet specific stylistic demands for new automotive customers.

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1. POLYESTER RECYCLING

2. SPINNING AND CUTTING

3. WEB FORMING 4. WATER NEEDLING 5. BUFFING 6. WATER BASED POLYURETHANE IMPREGNATION

8. DYEING9. DIPPING IMPREGNATION

WITH FR CHEMICALS 10. DISTRIBUTION

7. BUFFING

Photovoltaic plant of 1 MW

Fig. 1.1. Dinamica® Nabuk Plus production process from Asahi Kasei to Miko.

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TYPE OF TEST TEST METHOD UNIT VALUE

Weight ISO 12127 g/m2 350 +/- 40

Thickness ISO 5084 mm 1,05 +/- 0,12

Usable width UNI EN 1773 mm ≥ 1420

Tensile strength ISO 13934/1 N ≥ 600

Tensile strength (after aging in water) ISO 13934/1 % ≥ 70

Tensile strength (after light exposure) ISO 13934/1 % ≥ 70

Elongation structure (static at 125N) PV 3909 % L 9 +/- 3 — T 12 +/- 3

Elongation structure (permanent at 125N) PV 3909 % ≤ 3

Abrasion resistance (Martindale method) ISO 12947-1 (35000 cycles, 12Kpa) Grey scale ISO 105-A02/A03Change in color ≥ 3

Stain cloth ≥ 3/4 — Pilling ≥ 3

Abrasion resistance after high temperature (Martindale method) ISO 12947-1 (10000 cycles, 12Kpa) Grey scale ISO 105-A02/A03 Change in color ≥ 3

Color fastness to Light PV 1303 (3 cycles) Grey scale ISO 105-A02 ≥ 3

Color fastness to Water TL 52310 : 2014-05 Grey scale ISO 105-A03 Stain ≥ 4/5

Color fastness to Rubbing ISO 105-X12 Grey scale ISO 105-A03Dry ≥ 4 — Wet ≥ 3/4

Alcaline ≥ 3/4 — Acid ≥ 3/4

Water vapour permeability DIN EN ISO 14268 Mg/cm2h ≥ 3

Air permeability DIN EN ISO 9237 l/min/dm2 ≥ 30

Seam resistance DIN ENE ISO 13935/1 N ≥ 400

Tear propagation strength ISO 13937/2 N ≥ 25

Resistance to cleaning agent TL 52310 : 2014-05 Visual evaluation No ring formation or color change

Soiling and cleaning with Empa 104 TL 52310 : 2014-05 Grey scale ISO 105-A02 ≥ 4

Flammability TL 1010 Speed (mm/min.) < 100 mm/min

Emission behavior Requirements in according to VW 501 80

Tab

. 1.1

– T

echn

ical

sp

ecifi

cati

on

of

the

nonw

ove

n D

inam

ica®

Nab

uk P

lus

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Dinamica® Nabuk Plus: 83% polyester (virgin and recycled) and 17% polyurethane. The recycled polyester comes from:

Dinamica® Nabuk Plus is a microfibre used to cover seats, backrests, headrests, and door panels. Thanks to its excellent perforance, it is also suitable for bolster and armrest applications where the microfibre is subjected to a high level of abrasion. At the end of its life cycle, Dinamica® is disposed of in compliance with the directives concerning vehicles in the various countries of use and disposal. Miko is starting partnerships with some European car manufacturers interested in monitoring the life cycle of Dinamica® from cradle to grave. This study will allow us to understand the concrete impact of Dinamica® on the environment, but will also offer food for thought on the end-of-life management of non-woven fabrics. Some initial tests have shown that Dinamica® can be recycled, fully transformed in its appearance and reused inside cars as a filler.

1.5 PRODUCT COMPOSITION

1.6 INFORMATION ON THE PHASES OF USE AND END-OF-LIFE MANAGEMENT

PLASTIC BOTTLES (PET) UNIFORMS CLOTHING BANNER FOR ADVERTISING PRODUCTION WASTE

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The system boundaries, presented in Figure 2.1, include the Upstream Processes and the Core Processes of the non-woven Dinamica® fabric. The definition of the system boundaries complies with the rules laid down in the referenced PCR document.

The treatments of the process waters and production waste are included in the system boundaries. Moreover, the R&D activities (electricity consumption, chemicals, etc.) are included in the system boundaries. Due to the lack of reliable data, Use phase and End-of-life treatment are excluded from the system boundaries.

The Upstream Processes include:• extraction and processing of the raw materials;• production of inputs for the production of the raw non-woven fabric; • production of chemicals for dyeing, finishing and water treatment; • production of packaging for the non-woven fabric and the finished product;• transport of waste for the production of recycled PET.

• The Core Processes include:• production of raw non-woven fabric;• dyeing and finishing;• treatment of process waters;• transport of inputs for the production of raw non-woven fabric;• transport of chemicals for dyeing, finishing and water treatment;• transport of the raw non-woven fabric;• transport and treatment of waste produced in the various phases.

2.2 SYSTEM BOUNDARIES

The environmental performance of Dinamica® has been assessed using the LCA (Life Cycle Assessment) analysis method, starting from the extraction of the raw materials up to the completion of the finished product. The study was carried out in conformity with the ISO 14040 standards, following the Product Category Rules (PCR), approved by the technical committee of the International EPD System: PCR 2011:06 NONWOVENS FOR CLOTHING, PROTECTIVE CLOTHING AND UPHOLSTERY.

The functional unit is represented by 1 m2 of Dinamica® non-woven fabric with a weight of 350 g/m2.

2. Evaluation of environmental performance

2.1 FUNCTIONAL UNIT

PET WASTE

ENERGY

EXTRACTION ANDPROCESSING OFRAW MATERIALS

PRODUCTION OFRAW NONWOVEN

PRODUCTION OFSEMI-PRODUCTS

CHEMICALS PACKAGING

TREATMENTOF WASTE

AND PROCESSWATER

END OF LIFE

WASTERECYCLINGPROCESSES

System boundaries

DYEING ANDFINISHING OF

THE NONWOVEN

UP

STR

EA

MC

OR

ED

OW

NST

RE

AM

USE

Transportation

Transpo

rtation

Transportation

Transportation

Transportation

Transportation

Fig. 2.1 – System boundaries

System boundaries

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Around 1% of the inventory data concerning the total inputs to the Core Processes was excluded, complying with the maximum percentages of exclusion laid down in the referenced PCR document.

The data quality requirements considered in the study are those laid down in the referenced PCR document. In line with these rules, specific data taken directly from the production sites for the year 2015 were used, as well as secondary data taken from the Ecoinvent v3.1 database.

2.3 CUT-OFF RULES

2.4 DATA QUALITY

* Dinamica Nabuk Plus was developed by the Miko R&D during the course of 2014. Thus, in 2015 the production capacity of the supplier Asahi Kasei did not guarantee the regular sea-cargo supply of the raw non-woven making air shipments necessary to fulfil the client’s orders.

Extraction and processing of the raw materials, the production of all input materials for the raw non-woven, the dyeing, and finishing as well as for the production of packaging.

UPSTREAM PROCESSES

RAW MATERIALS PRODUCTION

Core Processes carried out by Asahi Kasei (Japan) include all the operations for the production of raw non-woven fabric.

RAW NON-WOVEN FABRIC PRODUCTION

PACKAGING PRODUCTION

Transport of the raw non-woven fabric. In 2015, the transportation was mainly done by air*.

RAW NON-WOVEN FABRIC TRANSPORT

Core Processes carried out by Miko include all the operations for dyeing and finishing of the raw non-woven fabric which lead to Dinamica® final products.

DYEING AND FINISHING

CORE PROCESSES

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Here below is the environmental profile of Dinamica® Nabuk Plus, the data concern the production of 1 m2 of non-woven fabric. In the tables totals may not match because of rounded data.

2.5 ENVIRONMENTAL PROFILE OF THE PRODUCT

USE OF RESOURCESRAW MATERIALS

PRODUCTIONRAW NON-WOVEN

FABRIC PRODUCTIONPACKAGING

PRODUCTIONRAW NON-WOVEN FABRIC TRANSPORT

DYEING AND FINISHING

UPSTREAM PROCESSES CORE PROCESSES

TOTALUNIT

NON-RENEWABLE RESOURCES

ENERGY

Oil g 362,71 7,49 107,95 1230,62 45,24 1754,00

Coal g 433,63 32,90 459,55 54,56 210,87 1191,51

Natural gas g 345,74 8,23 212,46 50,31 539,39 1156,13

Uranium g 0,01 0,00 0,02 0,00 0,00 0,03

MATERIALS

Gravel g 207,58 16,17 772,23 43,70 100,55 1140,22

Sodium chloride g 390,32 0,20 2,71 0,53 38,86 432,62

Calcite g 88,44 8,14 134,19 8,87 23,13 262,78

Iron g 11,76 24,43 57,29 8,31 9,46 111,25

Clay g 34,37 0,97 59,87 2,53 6,15 103,90

Others g 67,87 5,09 37,42 12,35 26,85 149,59

RENEWABLE RESOURCES

ENERGY

Hydroelectric MJ 0,907 0,058 1,296 0,113 1,032 3,405

Biomass MJ 0,780 0,944 0,561 0,053 0,395 2,734

Wind MJ 0,102 0,004 0,060 0,007 0,213 0,385

Solar MJ 0,000 0,000 0,002 0,000 1,536 1,538

MATERIALS Biomass g 30,29 44,68 30,01 2,73 20,71 128,42

WATER USE

Water* litres 224 6 841 18 264 1353

* 40% of the consumption is represented by the cooling water used in industrial processes, in particular for those related to the production of electricity for which the energy mixes of the new Ecoinvent 3.1 database have been used.

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RAW MATERIALS PRODUCTION

RAW NON-WOVEN FABRIC PRODUCTION

PACKAGING PRODUCTION

RAW NON-WOVEN FABRIC TRANSPORT

DYEING AND FINISHING

UPSTREAM PROCESSES CORE PROCESSES

TOTALUNIT

IMPACT CATEGORY

Global warming kg CO2 eq. 2,26 0,11 2,04 3,95 2,18 10,54

Photochemical oxidation kg C2H4 eq. 7,05E-04 4,99E-05 4,98E-04 6,48E-04 3,78E-04 2,28E-03

Acidification kg SO2 eq. 0,0120 0,0006 0,0099 0,0176 0,0066 0,0466

Eutrophication kg PO43- eq. 0,0030 0,0003 0,0021 0,0027 0,0023 0,0104

WASTE (CORE PROCESSES) UNIT NON-HAZARDOUS

Recycling g 15,99

Waste to energy g 40,65

Landfill g 80,68

ENVIRONMENTAL IMPACT CATEGORIES

* Dinamica Nabuk Plus was developed by the Miko R&D during the course of 2014. Thus, in 2015 the production capacity of the supplier Asahi Kasei did not guarantee the regular sea-cargo supply of the raw non-woven making air shipments necessary to fulfil the client’s orders. It is assumed that within 2017, shipments will be made only by sea with a consequent improvement of the environmental impacts related to the transport of the raw non-woven fabric.

Recycled material content per functional unit 68g of recycled PET fibre is used to produce 1m2 of Dinamica® Nabuk Plus, corresponding to approximately 19% of the total product weight.

OTHER ENVIRONMENTAL INDICATORS

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MIKO S.r.l.: via Ressel n.3 - Gorizia, Italia - Tel. +39 0481 523232 Fax. +39 0481 20668 www.dinamicamiko.com

Technical support: Dr. Paolo Simon Ostan, appointed LCA specialist for the Miko S.r.l. EPD® Process

Internal auditor: Dr. Anna Bortoluzzi Quota Sette S.r.l.

For more information regarding this EPD®, please contact: Benedetta Terraneo, marketing manager MIKO S.r.l.

b.terraneo@dinamicamiko.it

The review of the PCR document was conducted by: Technical Committee of the International EPD® System.

Chair: Massimo Marino. info@environdec.com

PCR Moderator: Paolo Simon Ostan

Independent verification of the declaration and data, according to ISO 14025: External

EPD Process Certification

Third party verifier: SGS Italia S.p.A. via Caldera, 21 _ 20129 - Milano Tel. +39 02.73931 - Fax +39 02.70124630 - www.it.sgs.com

Programme: The International EPD® System EPD International AB Box 210 60 SE-100 31 Stockholm - Sweden — www.environdec.com

- Simon Ostan P., 2015. Life Cycle Assessment (LCA) di un tessuto non tessuto in microfibra di PET Dinamica® Nabuk Plus, rev. 0 – Settembre 2016.

- PCR 2011:06, NONWOVENS FOR CLOTHING, PROTECTIVE CLOTHING AND UPHOLSTERY, version 2.0 of 2014-05-16, www.environdec.com.

- IEC, 2013. General Programme Instructions for the International EPD® System. The International EPD Cooperation. Document version 2.01 dated 2013-09-18, www.environdec.com.

- ISO (UNI), 2006. Environmental labels and declarations - Type III environmental declarations - Principles and procedures, ISO 14025:2006, International Organization for Standardization, Geneve, Switzerland.

CONTACTS BIBLIOGRAPHY

3. Additional information

EPD registration number S-P-00788

Published 2017-01-12

Valid until 2020-01-12

Revision date 2017-01-09

Product Category Rules PCR 2011:06, vers. 2.0

Product group classification 27922

Reference year for data 2015

Geographical scope GlobalMIKO is a SAGE Company. For more information, please visit: www.sageai.com