1. ………Warren Buffett
It's only when theIt's only when the
tide goes outtide goes out
that you learnthat you learn
who's beingwho's being
swimming naked.swimming naked.

2. http://www.mckinseyquarterly.com/Strategy/Strategic_Thinking/Enduring_Ideas_The_business_system_2379
GlobalizationGlobalization
Customer Proximity - pipe line inventoryCustomer Proximity - pipe line inventory
Trade embargoTrade embargo
Environmental Goods liberalizationEnvironmental Goods liberalization
GHG mitigation / adaptationGHG mitigation / adaptation
EMSEMSproduct carbon footprintproduct carbon footprint
Just in TimeJust in Time ManufacturingManufacturing
WTO –Doha roundWTO –Doha round
ProtectionismProtectionism
Competition or partnershipCompetition or partnership
CSRCSR
Banking reformBanking reform LiquidityLiquidity
Technology transfer / IPRTechnology transfer / IPR
Human Right / Labor protectionHuman Right / Labor protection
Multi- LateralismMulti- Lateralism
ProtectionismProtectionism
Bi-LateralBi-Lateral
Climate change: Hot , Humid & Crowded
Life CycleLife Cycle AnalysisAnalysis
Poverty alleviationPoverty alleviation
Risk aversionRisk aversion
Consumerism

3. Figure 10.2 Current policy versus transition management

4. LITE: Low Impact To Environment
Retrospect and Future Prospect

5. 5
( Label your product honestly )
Source: Mckinsey Quarterly
Internalize external social cost before everything else
Companies should:
Maximize Innovation by customization & SPSS

6. Kris SchneiderKris Schneider
executive directorexecutive director
China Industry-University-Research Insitute Collaboration AssociationChina Industry-University-Research Insitute Collaboration Association
Secretary general –Secretary general – www.ecological-development.comwww.ecological-development.com
Founding Partner –Founding Partner –www.Liteleather.comwww.Liteleather.com
1.1. Heshan Tan Tec leather product LtdHeshan Tan Tec leather product Ltd
2.2. Saigon Tan Tec leather ltdSaigon Tan Tec leather ltd
3.3. Mississippi TanTec Inc.Mississippi TanTec Inc.
TMTM
TMTM

7. Raw materialsRaw materials semi finishedsemi finished componentscomponents commoditiescommodities retailretail

8. LITE=Low Impact to Environment
A branded sustainable technology
- to produce -
• energy efficient products
- to outreach -
• its combined formula technologies
• and applied energy conservation service
- to co-partner –
- with customers on environmental protection

9. On site view of our production facilities

10. Commitment to economic
sustainability
 Environmental production is not a cost center, it’s a profit center
 Continuous investment in latest machinery and technology
 Long-term relationship with suppliers guarantees a sustainable growth for
both sides in terms of quantity, quality…
 In depth cost monitoring (Cost centers) and benchmarking systems
 Centralized purchase gives buying power

11. • Energy and resources : Continuous Improvement
phase one spending USD 1.5 mio
Phase two USD 3.0 mio
Phase three USD 5 mio
and the plan goes on …
• Amotization average in 24 month
in energy efficiency
• PP&E Rationalization
• New Retanning vessels
• New Direct application equipment
• New lighting system
• Heat exchangers
• many more items on Retro fits
• Amortized by savings
TMTM

12. Winning during uncertainties
sustainability analysis :
 Quadruple bottom line
 Corporate Mission
 Value Creation
market leadership :
 At the market –be the vocal point
 Niche, sometimes Small is Beautiful
strategic road mapping:
 Measure what matters & Walk the talk
Value delivery Process:
 Branding – customer cognitive recognition, brand awareness , PSS Design
& implementation
 Innovation – Differentiation
 Design in – ODM instead of OEM, supply chain review & integrity,
 Outside in –customer orientation , customer centered process control,
 Inside out – EMS at your finger tips, Quality & reliability is given ,
 What else makes a happier customer and their end consumers
That’s what they teach outside, what do we do ?

13. LITE manufacturing system targets
the optimization of applied energy
through the production process
= energy efficiency + energy saving

14. Resource Efficiency :Resource Efficiency :
•Closed loop Manufacturing - by sections
•Reduce – Water , Electricity Conservation
•Regenerate –transform shaving waste (collagen)
into auxiliaries / fillers
•Recycle -Floor water & solid waste into cement
Resource Productivity ( 2 patents )Resource Productivity ( 2 patents )
•Yield , yield & yield
•technology: Chemistry , Formula , Mass Balance
•by Quality Function Deployment & design-in activities
•appearance ,Cost, Performance & Reliability checks
TMTM
Patented technologyPatented technology

15. Continuous improvement
Energies:
Electricity , diesel, gas,
renewable energies
Production
Formula ,
process
control
measure
CO2-Emission
cold waterEnvironmental
friendly
chemicals
affluent
Reedbed
bio treatment
Wet-Blue
<CO2
LITE-Leather
<CO2
Water
Chemicals
waste
LITE-Process
Benchmarking
Recycle
Laufende, nachhaltige Verbesserungen
in der Produktion
TMTM
TMTM
Abfall

16. design
Investment
Management & Support
Continuous Improvement
direct savings by avoidance
energy transportation
facilities buildings
components, pumps , motors , drivers
JIT production planning
energy sources & re-usage
customer
Logistics
Energy Management
Information Management
Sustainability
Check
Market

17.  The bamboo wall provides natural
air circulation
 The sun-reflecting roof lowers
the temperature of the building
 The transparent roof panels
provides natural lighting during
the daytime
 LED Lighting system for night shift
Energy-efficient Production Plan

18. Modern Drum-Technology in Retanning:
Energy reduction
drums: 56,217 kWh/year
Waste water: 88,145 kWh/year
CO2-Reduction:
drums: 136,689 kg CO2/Jahr
Waste water: 76,469 kg CO2/Jahr
Slow motion, special inner-technolgy:
water: 65 % of old technology
Energy: 24 % of old technology
Chemicals: 75 % of old technology

19. Setting out machine with Recycling of coolingwater

20. Lights switched by motion control
自动控制开关的照明

21. Hotwaterboiler instead of Steamboiler to heat 46 m³/d water up to 70°C
Measurment in China:
Efficiency-steam boiler: 34%
Efficiency-hot water boiler: 62%
Reduce heavy oil
In hot water boiler: 55 t/year
Reduce CO2: 166,876 kg/year

22. Energy savingsEnergy savings
in Water recyclingin Water recycling

23. Engineered Constructed Wetlands
 Reduction of 245 kwh / year / sqm (or 1.1 Mio
kwh / year)
 Reduction of 232 kgs CO2 / year / sqm (or 1.0
Mio kgs CO2 / year)
 No CO2 emission but creation of Biomass for
later usage to generate energy

24. Final Cleaning of Wastewater using a Reedbed
Energy saving: waste water: 23,929 kWh/ Year
CO2-Reduction: waste water : 20,808 kg CO2/ Year

25. Effluent after 1st
Cleaning
Using pre-cleaned wastewater for Waste water treatment operation
Energy saving 能源节约 : 21,935 kWh/Year
CO2-Reduction 减排 CO2 : 19,074 kgCO2/Year

26. Process integrated Recyling in wet blue re-wetting
Energy saving: waste water: 23,929 kWh/ Year
CO2-Reduction: waste water : 20,808 kg CO2/ Year

27. Result
Producing 87% of leather
by using direct application
= reduction of Air emission
Reduction of:
-VOC-emission
-Chemical consumption
-Electrical power
Energyreduction (75% instead of 50% rollercoat
1 rollercoater instead of spray machine
rollercoater: 19,250 kWh/year
Waste water: 16,740 kWh/year
CO2-Reduction:
roller-coater 16,844 kg CO2/Jahr
Waste water: 14,694 kg CO2/Jahr

29. Waste Management
 We have a recycling centre where all incoming waste is
registered and more than 70% can be recycled on site
 Examples for LITE®
Waste solutions:
 Shavings sold to leather board manufacturers
 5,45 t per day of condensed water from the vacuum dryer
is used for cleaning the floor

30. Because of the transparency we create in
our production system, we give clear
numbers relating to product’s
environmental impact targets
expressed as:
Kgs CO2/1,000 sqft
each of our products
and start corrective actions

31. Electricity consumption Kamban

32. 0
10
20
30
40
50
CLIA (China no
Standard)
BLC (Inter.
Standard)
ISA-TanTec
average energy consumption (MJ) to produce
1 m2 of finished leather out of Wet-Blue
51.9 33.0
Convert total energy consumed (electricity, diesel oil, heavy oil and gas) into MJ

33. 0
5
10
15
20
25
30
35
40
45
50
CLIA (China
Standard)
BLC (Inter.
Standard)
ISA-TanTec Saigon
TanTec (goal)
Energyconsumption (MJ) for production of 1 m²
finished Leather from Wet-Blue

34. LITE
A branded sustainable technology
- to produce -
• energy efficient products
- to outreach -
• its combined formula technologies
• and applied energy conservation service
- to co-partner –
- with customers on environmental protection

35. Commitment to technical
innovation
 LITE : low CO2 emission, less water consumption and overall monitoring of
energy sources
 Cutting department helps to utilize all selections  labels & shoes
 In- process water recycling at WB soaking, retanning, drying, hydraulic
cooling
 Centralized R&D

36. • OptimizationOptimization of the production in respect toof the production in respect to
• Energy , Water, Chemical consumption andEnergy , Water, Chemical consumption and
• waste water output ;waste water output ;
• Monitoring, Calculation and Evaluation ofMonitoring, Calculation and Evaluation of tt
• hese relevant environmental impactshese relevant environmental impacts
• of the manufacturing processof the manufacturing process
in form of CO2-Emissionin form of CO2-Emission (kg CO(kg CO22););
• Clear Carbon footprintClear Carbon footprint for each Leather productfor each Leather product
(unit: kg CO(unit: kg CO22 / m² leather);/ m² leather);
• Global BenchmarkGlobal Benchmark possiblepossible for all Leather products ,for all Leather products ,
tanners & brands ;tanners & brands ;
• Customer can adjust his/herCustomer can adjust his/her purchasepurchase according toaccording to
Environmental ClassificationEnvironmental Classification (kg CO2 / m2 leather);(kg CO2 / m2 leather);
• All Leathers produced at ISA Tan Tec usingAll Leathers produced at ISA Tan Tec using
lowest Energy and water consumption.lowest Energy and water consumption.

37. Access the UCMS Reporting System Website
Eco Efficiency ICT designEco Efficiency ICT design
-Need inputs from CSO, CFO, COO, VP Marketing
-Focus: tacit, user friendly, fool proof & Real Time
-Strategy: Life cycle ( Gate to Gate first ),
TPM, Smart-meter, ODM, boundary-less
-applied : Emission management
EMS ( environmental management system)
Demand-Pull material management ,
JIT, Quality management, kambam , t
KPI, Labour productivity & incentive system,
Security / SHE (safety health environment)
-Value communication : outside-in & inside –out
-Benefits: training our customers to use & grow into it
- Dissemination & Capacity Building
- Value Chains Carbon Profiling
- Product Carbon Footprint labeling
The VISIONs ---from LAB to MARKETSThe VISIONs ---from LAB to MARKETS

38. Operator
Selects
Time
Period
by Start
& End
Dates

39. Utility Consumption ReportUtility Consumption Report
By Area and per work station / MachineBy Area and per work station / Machine

40. After Pressing the
Trend

42. LITE
A branded sustainable technology
- to produce -
• energy efficient products
- to outreach -
• its combined formula technologies
• and applied energy conservation service
- to co-partner –
- with customers on environmental protection

43. Commitment to strong
relationships with clients
 All hierarchy-level customer relationship management
 Exchange trainings and organize workshops with brands and shoe
factories & offering shoe making expertise
 Production facility and support organization close to shoe factories
(Vietnam, China and soon USA)
Core customer 1 Core customer 2 Developing customer

45. Commitment to economic
sustainability
 Environmental production is not a cost center, it’s a profit center
 Continuous investment in latest machinery and technology
 Long-term relationship with suppliers guarantees a sustainable growth for
both sides in terms of quantity, quality…
 In depth cost monitoring (Cost centers) and benchmarking systems
 Centralized purchase gives buying power

46. Early Adopters/
Pioneers
Mass Market/
Followers
End of Life
Number
of
customers
CustomerCustomer
segmentsegment
MaterialMaterial
StrategyStrategy
MarketMarket
focusfocus
ValueValue
positioningpositioning
ProductProduct
DesignDesign
procurementprocurement
QualityQuality
systemsystem
SalesSales
Service &Service &
MarketingMarketing
End userEnd user
approachapproach
SystemSystem
integerinteger
AchieveAchieve
CustomerCustomer valuevalue
It is people who make it happen !
Game changerGame changer

47. 47
MIGRATION AND SPATIAL DEVELOPMENT : Cases from the Coastal and Interior Regions in
Contemporary China-Yongning Li , Guangzhou, China -Kassel, 2007

48. People - The agent of Change : Invest in our Human Capital to sustain growthPeople - The agent of Change : Invest in our Human Capital to sustain growth
In the natural , ISA abides in full conformity to the laws and regulations , all employees
are 100% labor contract protected
We also do:
SecuritiesSecurities : Pension Fund , Health Insurance, Housing reserve fund, and Housing Loans
work time management (i.e., flexible work time, overtime control and KPI reward
system)
Health / Leisure: In-house doctor / nurse, first aide care room , training centers, training
programs , libraries
Karaoke Leisure hall , soccer place
Voluntary high temperature subsidy, workers well-fare fund,
Yearly free physical examination
Safety / Environment
Daily audit team (SHE department) on hygiene, worker’s safety, security and
environmental protection execution
PPE use management, security & environmental protection investment check system
LITE: Low – Impact – To – Environment Procurements
48

49. 49
Phase I
Implementing
Top down
Down Top
Select Key
bridges
Phase II
Learning
training
Phase III
Growing
with guide by
brands
Phase IV
Maturing
Robust , autonomous
audit tooling,
‘bridge’ between the
management/workers
Phase V
Partner
continuous
improvement

50. Commitment to employees
 Training for employees: English classes, on-job and third party training
 Health insurance with 24-hour service from day one and comprehensive
health clinic in house
 Helmets and raincoats offered to workers
 Ergonomic workspace design
 Paid trip home for national holidays

51. Commitment to the community
 Organize the yearly earth day in Vietnam in cooperation with Timberland
 World vision: support 50 Vietnamese children in need for their studies
 Operation Smile:
• Organize fund raising events
• Sponsor documentary movies

52. Commitment to the community

53. Commitment to employees

54. 54

55. (funded by the German Federal Ministry for Economy
and Technology)
German Energy Agency

56. ISO 14001:2004 & LWG Gold Rated
-> 42% Reduction on conventional electricity
-> 56% Less water Consumption
-> 35% Reduction on total CO2 Emissions
* LWG benchmark

57. New achievement 2014
The Best Tannery of The year 2014

58. And finally……..
We strive to achieve a
Competitive
Profitable
Environmental friendly
Growth together with our stakeholders

59. Our Company vision 2018
ECONOMIC
GROWTH
SOCIAL
PROGRESS
ENVIRONMENTAL
STEWARDSHIP
The 4th buttom line :The 4th buttom line :
Shared ValueShared Value
Green Affordable HousingGreen Affordable Housing
For ourFor our employeesemployees