The OIA Eco Working Group Eco Index Presenters: Amy Roberts, Outdoor Industry Association

1. The OIA Eco Working Group Eco Index Presenters: Amy Roberts, Outdoor Industry Association Pamela Brody-Heine, ZWA

2. Webinar Overview • OIA and EWG Updates – Amy Roberts • Eco Index Development – Pamela Brody-Heine • Summary of Phase 1 - Pamela Brody-Heine • Discussion 2

3. Sustainability and Fair Labor Advisory Council • Appointed by the OIA Board of Directors • Had a 2-day meeting in September • Members include: 3

4. EWG Voting Members Growing Steadily – Currently over 50! 3M Adidas Backpacker Magazine Big Agnes Black Diamond Equipment Bluesign Technologies Brooks Bureau Veritas Cascade Designs Inc Chaco Chun Wo Ho Cocona Columbia Sportswear Dansko Eagle Creek Egan & Associates LLC GoLite Innate Invista/Cordura John Cooley Inc. Keen Levi Strauss & Co. Marmot Merquinsa North America Merrell Footwear / Wolverine Mountain Equipment Co-op (MEC) National Textile Association Nau New Balance Athletic Shoe Inc. Nikwax North America Nuwa Textiles OASIS Environmental OIA Creative Packaging Solutions Outdoor Research Outdoor Retailer • Pacific Market International/Stanley • Patagonia, Inc. • Petzl • Polartec • REI • Sierra Designs • Sierra Magazine • Sportif USA/Aventura Clothing • Summer Rayne Oaks, LLC • Teko Socks • The North Face • The Timberland Co. • Toray Ultrasuede • Verde PR & Consulting • W. L. Gore • Z2 Marketing • YKK

5. Fair Labor Working Group (FLWG) • Re-launching the FLWG • Looking to engage both new and former participants  • FLWG will make recommendations on how social compliance tools should compliment the Eco Index • FLWG will work to develop a Fair Labor tool (could be released at the same time as the Phase 1 Eco Index)  • Contact me if you are interested 5

6. European Outdoor Group (EOG) • OIA and EOG have made a commitment to cooperate on sustainability projects • Intend to produce complementary tools for the industry companies: • Facilitating cross-adoption throughout the industry • Optimizing stakeholder engagement 6

7. Eco Index Implementation • Index (Guidelines, Indicators and Metrics) will be open source • Supporting tools may be fee-based 7

8. Eco Index - Development Summary and Phase 1

9. OIA Eco Index • EWG Background • Index Overview – Purpose, Definition, Scope and Components • Active Subgroups and Participation Needs • Phase 1 Scope • Draft to Industry at Summer OR 2010 • Formal rollout at Winter OR 2011 • Scoring • Development and Rollout Process 9

10. OIA Eco Working Group Background • Nov. 2006 – Idea of industry effort hatched • Jan. 2007 – Formation of OIA EWG • Mid 2007 – Vision and mission established • Fall 2008 – ZWA on board to facilitate process • Spring 2009 – EWG becomes a strategic initiative of OIA & Advisory Council forms • August 2010 - Draft Phase 1 Index (Summer OR 2010) • Jan. 2011 – Phase 1 Index Formal Rollout (Winter OR 2011)

11. Eco Index Purpose • The Eco Index will be used by companies to incorporate environmental considerations into product design and to manage their supply chains in a way that supports their environmental goals. • The EWG also intends for the index to enhance transparency within the supply chain and facilitate communication with suppliers. • The current focus of the index is to be an internal/supply chain facing tool and not a consumer-facing label. This focus could be revisited in future years. 11

12. Selected Desired Characteristics of the Eco Index • Be accessible and easy to use for companies of all sizes • Harmonize with existing standards/tools by referencing and/or building upon them • Start small and built ‘deeper and broader’ over time • Provide sufficient value in the marketplace to sustain itself 12

13. Eco Index Definition and Scope Definition: The Eco Index is an Outdoor Industry environmental assessment tool containing: • Environmental guidelines • Environmental performance indicators • Environmental footprint metrics • Comparative scoring system (currently for indicators only) Scope: The EWG intends for index to apply across outdoor industry product categories including apparel, equipment and footwear. 13

14. Eco Index Components - Guidelines Index components can be used together or separately, depending on the needs/desires of the company • Guidelines: • Qualitative principles and/or management practices • To be used as an educational tool, promoting continuous improvement for companies and suppliers 14

15. Materials Guidelines (excerpt) Understand Your Footprint/Minimize Your Waste Reduce • Minimize or reduce material usage where possible • Select materials that require less energy and have a low carbon footprint throughout their lifetime, including raw material acquisition, material production, product manufacturing, product use and end-of-life • Select materials that minimize the amount of fresh water used and wastewater created throughout their lifetime, including raw material acquisition, material production, product manufacturing, product use and end-of-life • Select materials that impose less overall potential environmental impacts throughout the products lifetime, such as acidification, eutrophication, photochemical oxidant creation (smog), human and eco toxicity, and land use Use of Resources • Select synthetic, metal and alloy material options that result in reduced consumption of non-renewable resources; for example consider high recycled content rather than virgin content to reduce the need for mining and drilling • Select natural fibers and biopolymers from low water usage and rapidly renewable crops or from agricultural waste • Consider natural fiber and biopolymer agricultural inputs that are free from Genetically Modified Organisms (GMOs) or be transparent of the use of GMOs and the resulting environmental footprint • Select natural fibers and biopolymers that are organically grown, transitional organically grown, use sustainable farming practices, or at least use low pesticide

16. Eco Index Components - Indicators • Indicators: • Parameters or attributes that demonstrate environmental impact or improvement • Can be either qualitative of quantitative • Scoring: • An element of indicators; not a separate set of criteria 16

17. Indicators • Parameters or attributes that demonstrate environmental impact or improvement • Can be either qualitative of quantitative • Types: • Binary (yes/no) • Percent declaration • Tiered • Qualitative 17

18. Indicator Guidance & Template • Indicator - Brief statement of environmental attribute • Rational - Explanation of why this environmental attribute is important • References - List of supporting references, as appropriate • Details - Explanation of any information needed to explain/support attribute, e.g. explanation of percentage calculation • Scoring - Assignment of score • Guidance for Conformity Assessment - Guidance on how a company would demonstrate (to itself) that sufficient and adequate information/data had been collected to conform to the declared attribute 18

19. Indicator Example (not developed or approved by the Packaging Subgroup) Indicator: Percentage of packaging by mass that is readily recyclable using commonly available recycling infrastructure. Rational: Recycling packaging and other materials conserves natural resources and can save energy. Recycling diverts waste from landfills and incinerators. References: • European Standard EN 13430: Recoverable by Recycling FTC Guide for the Use of Environmental Marketing Claims Section 260.7(d) for a definition of “recyclable” as applied to packaging. www.ftc.gov/bcp/grnrule/guides980427.htm • U.S. EPA 2007 Estimates of U.S. Generation and Recovery of Materials http://epa.gov/osw/nonhaz/municipal/pubs/msw07-fs.pdf 19

20. Indicator Example (cont.)(not developed or approved by the Packaging Subgroup) Details: • The calculation of recyclable percentage is the weight of materials that is recyclable, divided by the total weight of the product, multiplied by 100. • Energy recovery is not considered recycling. Scoring: 4 points - Over 95% By Weight Recyclable 3 points - Between 75-95% By Weight Recyclable 2 points - Between 50-75% By Weight Recyclable 1 point - Between 25-50% By Weight Recyclable 0 points - Below 25% By Weight Recyclable Guidance for Conformity Assessment: • Listing of and description of packaging material used (including weight of each material type) and packaging design (including any means to join materials) • Detail of how/which types of recycling technologies will be used in calculating the percentage of packaging that is recyclable • Spreadsheet showing method used to calculate recyclable percentage 20

21. Indicator Scoring • Each Subgroup has 50 points to assign to indicators. • The 50 points are to be divided as evenly as possible among the indicators. If the number of indicators does not evenly divide into 50, the remaining points are assigned to emphasize or de-emphasize an indicator. • Examples: • A subgroup develops 10 indicators; each indicator = 5 points max • A subgroup develops 8 indicators; each indicator = 6 points max (48 points allocated). The remaining 2 points are assigned to 2 indicators of the subgroups choosing. • A subgroup develops 13 indicators; each indicator = 4 points max (52 points allocated). The subgroup selects 2 indicators that will have 3 points, instead of 4 points. 21

22. Indicator Scoring (cont.) • Indicators may be assigned a minimum score = 0 or -1 • -1 can be used to emphasize the severity of not meeting the baseline on a specific indicator • The highest score should be inspirational targets that may currently be unachievable; provides aspirational goals and promotes continuous improvement • The 50 points total from each life cycle stage will be converted to a weighted score and rolled up into a total indicator score, with a maximum of 100 points • The Advisory Council is developing the weighting system for each product category (apparel, footwear, soft goods and hard goods) 22

23. Eco Index Components - Metrics • Metrics: • Units of measure of environmental footprint • Where appropriate, includes an industry wide common methodology of calculating the metric and/or references existing tools • To be used to assess environmental impact and measure improvement • Measurements for the full product life cycle, where appropriate 23

24. Environmental Footprint Metric Example • GHG Emissions (Environmental Lenses) • Metric: Kg of CO2e • Applies to all of the life cycle stages • Methodology (recommended): PAS 2050 • Tools to support data collection and calculation; under development 24

25. EWG Index Framework 2.6

26. Phase 1 Index Subgroups • Life Cycle Areas – Guidelines and Indicators • Materials Subgroup • Packaging Subgroup • Product Manufacturing Subgroup • Facility Level • Product Design and Assembly • Environmental Footprint Metrics • Lenses Subgroup • Data Collection and Calculation Task Force 26

27. Phase 1 Index Scope Life Cycle Areas • Materials Guidelines and Indicators • Packaging Guidelines and Indicators • Product Manufacturing Guidelines and Indicators • Facility Level • Product Design and Assembly • Looking for additional subgroup members 27

28. Summary of Life Cycle Area Guidelines and Indicators • EWG Approved components can be found on the SharePoint site under “EWG Eco Index Approved Tools” - http://www.oia-eco.org/EWG%20Eco%20Index%20Approved%20Tools/Forms/AllItems.aspx • 28

29. Phase 1 Index Scope Environmental Footprint Metrics • Metrics and Methodologies for: • Energy Use and GHG Emissions • Water • Waste (looking for additional participation) • Data Collection and Calculation Tool for Energy/GHG, Water and Waste (dependent on identification of partner, if needed) 29

30. Summary of Environmental Footprint Metrics

31. Phase 1 Metrics

32. Development & Rollout Process • Subgroups develop draft index components • Called “Working Drafts” during development • Can include input/review from technical experts (within the EWG or external experts) • Testing and piloting and refining of index components • Guidelines: No formal testing or piloting needed • Indicators: Informal trials by subgroup members • Metrics: Piloting of data collection/calculation system by selected EWG members • EWG review of index components (all components must be circulated by April 1, 2010) 32

33. Development & Rollout Process (cont.) • Subgroups will then • Consider and respond to all EWG comments received • Create a “Final Draft for EWG Approval” • The Final Draft for EWG Approval will be circulated for approval amongst EWG voting members (by component) • AC Recommends Phase 1 ready for OIA Board review and Peer Review Process (July 1, 2010) • OIA Board Review of Phase 1 Index (Summer OR 2010) 33

34. Development & Rollout Process (cont.) • Draft PHASE 1 INDEX shared with industry (Summer OR 2010) • Targeted Peer Review • Revise/refine the Phase 1 Index based on Peer Review • AC recommends OIA Board Approval of Phase 1 Index (By Jan.1 2011) • OIA Board Approval (Winter OR 2011) • Formal Rollout of Phase 1 Index (Winter OR 2011) 34

35. During Implementation • Ongoing input process • Index website would include a “comments for next revision” to capture input from users • Annual review by the AC • Assess the need for, and timing of, the next revision 35

36. Summary of Phase 1 Scope • Guidelines and Indicators (and scoring for Indicators) for: • Materials • Packaging • Product Manufacturing • Metrics and Methodologies for: • Energy Use and GHG Emissions • Water • Waste • Data Collection and Calculation Tool for Energy/GHG, Water and Waste (dependent on identification of partner, if needed) 36

37. Summary (cont.) • Phase 1 Timeline: • Draft to Industry at Summer OR 2010 • Formal rollout at Winter OR 2011 • Eco Index Implementation: • Index (Guidelines, Indicators and Metrics) will be open source • Supporting tools may be fee-based 37

38. Questions?

39. Thank You Webinar will be posted at www.oia-eco.org To contact: Amy Roberts akroberts@outdoorindustry.org Pamela Brody-Heine pamela@brodyheine.com