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The Making of a Green Shirt

The Making of a Green Shirt – Sustainable Manufacturing through A Vertically-Integrated Supply Chain. Dr. John Cheh Vice Chairman & CEO, Esquel Group Oct 19, 2011. The Making of a Green Shirt. Esquel’s Vertically-Integrated Set Up. The Making of a Green Shirt. Cotton Farming. Spinning.

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The Making of a Green Shirt

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  1. The Making of a Green Shirt – Sustainable Manufacturing through A Vertically-Integrated Supply Chain Dr. John Cheh Vice Chairman & CEO, Esquel Group Oct 19, 2011 ESQUEL GROUP

  2. The Making of a Green Shirt ESQUEL GROUP

  3. Esquel’s Vertically-Integrated Set Up The Making of a Green Shirt Cotton Farming Spinning Weaving/Knitting Garment Manufacturing Trims & Packaging Retail and Direct Distribution ESQUEL GROUP

  4. The Making of a Green Shirt Sustainability is at the Heart of Our Corporate Culture 3 ESQUEL GROUP

  5. The Making of aGreen Shirt ESQUEL GROUP

  6. Common misconceptions about sustainable production: • Add to the costs • For public relations reasons • Needs to be forced upon (by media, customer or government) • For large companies only The Making of a Green Shirt Successful companies are successful because they practise sustainable production 5 ESQUEL GROUP

  7. The Making of a Green Shirt • Embrace Technology & Modern management 6 ESQUEL GROUP

  8. The Making of a Green Shirt • Sustainable Farming Sustainable farming methods andtechnologiesresult inincrease in cotton yields and higher income and quality oflife for farmers Natural Pest Control, breeding cotton pests’ enemy to reduce pesticide consumption Growing Organic Cotton in Xinjiang, Certified by Ecocert Handpicking Cotton, eliminates use of chemical defoliant Drip Irrigation, reduces water consumption and usage of chemical fertilizer ESQUEL GROUP

  9. The Making of a Green Shirt • Sustainable Farming ESQUEL GROUP

  10. The Making of a Green Shirt Water Consumption of Cotton Shirt Energy Consumption of Cotton Shirt 9 9 ESQUEL GROUP

  11. Annual energy consumption fell by 40% from 2005 to 2010, equivalent to 160 M kwh of electricity and 242,000 tons of greenhouse gas emission The Making of a Green Shirt • Energy Saving Installation of Frequency Invertersto all Machinery reduces energy consumption by 40% Installation of Water Curtains, better ventilation and cooling saveup to 80% electricity Energy Efficient Lighting: replacedlight bulbs with high efficiencyfluorescent light tubes and reflectors Installation of Skylights: makesuse of naturallight to reduceenergy consumption Steam Powered Air-conditioning System: reducesheat and saves electricity ESQUEL GROUP

  12. The Making of a Green Shirt • Energy Saving ESQUEL GROUP

  13. Reduction of water consumption by 50% from 2005 to 2010, equivalent to 6.8 M tons of water The Making of a Green Shirt • Water Conservation Waste WaterTreatment Plant neutralizes waste water frommills and factories Patented PulseDyeing Technology consumes lesswater, electricityand chemicals Cold Pad Batch Pre- treatment Technology saves water andenergy Recycling Condensed and Cooling Water saves water & steam Green Washing uses ecologically biodegradable products for treatment and finishing Wet Processing Centre recycles waterin garment washing process Reuses SoapWater reuses up to300 tons ofwater every day Heat Exchange System saves137 tons ofsteam ESQUEL GROUP

  14. The Making of a Green Shirt • Water Conservation Traditional Dyeing Pulse Dyeing ESQUEL GROUP

  15. The Making of a Green Shirt • Emission Control Desulfurization ofWaste Lye reduces sulfur dioxide emissions Uses Only CleanLow Sulfur Coal which is cleanersource of power Thermal Power Plant supplies own electricity and steamto enhance energyefficiency andreduces carbondioxide emissions ESQUEL GROUP

  16. The Making of aGreen Shirt 15 ESQUEL GROUP

  17. The Making of aGreen Shirt 16 ESQUEL GROUP

  18. Suppliers need to upgrade and innovate The Making of aGreen Shirt Competitiveness of Suppliers • Consolidation • Cost containment (“It’s All About Productivity”) • Creativity and innovation • Conservation • Corporate social responsibility ESQUEL GROUP

  19. Winning As The Industry Consolidates • Drivers of industry consolidation • Abolishment of quota • Stretched material & labor supply with surging costs • Buyers’ desire to simplify and optimize their sourcing operations • Flight to quality and stability ESQUEL GROUP

  20. Consolidation of Major Exporting Countries to US (by Value of Total Apparel) Source: US Office for Textile and Apparel ESQUEL GROUP

  21. Compete through State-of-the-Art Equipment to Improve Quality & Productivity ESQUEL GROUP

  22. Compete through State-of-the-Art Equipment to Improve Quality & Productivity ESQUEL GROUP

  23. Creativity and Innovations ESQUEL GROUP

  24. Creativity and Value Adding Services ESQUEL GROUP

  25. Caring for People and Local Communities ESQUEL GROUP

  26. Caring for People and Local Communities ESQUEL GROUP

  27. Caring for People and Local Communities ESQUEL GROUP

  28. Caring for People and Local Communities ESQUEL GROUP

  29. “We Must Become The Change We Want To See” ESQUEL GROUP

  30. THANK YOU ESQUEL GROUP

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