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Crystal's Journey to Sustainability


          Corporate Quality and Sustainability Department
                                                May, 2012


                                                      1
About Crystal




                                        Crystal Sweater   Elegance Industrial   Crystal Apparel
Crystal Martin UK   Crystal Martin FE
                                              Ltd.             Co. Ltd.             Co. Ltd.
     (2005)              (2005)
                                            (1982)              (1974)              (1982)




                                                                                            2
Year of Establishment:   1970
Employee:                40,000
Production base:         PRC, Vietnam, Bangladesh, Sri Lanka
Market base:             US, EU, Japan
Annual production:       230M pieces                           3
Start from oneself
              and go beyond……
• It all started from one film……
  “An Inconvenient Truth - Al Gore”

• More “ passionate ” about the
  commitment we need to make


        Top-down

                   Passion
                                      4
Being Responsible
                      – Makes Perfect Business Sense


                                             Triple Bottom Line
                             Profit

                            Sustainable


                  People                  Planet

Sustainability:
While sustaining our business growth,
we make better use of resources without compromising our future.
                                                                   5
Sustainability in Crystal

The Environment
Innovation
Product Integrity
Employee Care
Community Engagement

                            6
Eco Approach




               7
Global 5-Year Environmental Targets
         Base Year: 2008   Progress in 2011

                              ↓ 10.0%




                             1,045,408




                                         8
For a Sustainable Business




                             9
Sustainable Products




                       10
Yida Denim Factory
     • The 2nd biggest bottom
       exporter in PRC – 2011
     •   Established in 2005

     •   Employees : 3,500

     •   Main Product: Jeans


     •   Specialty: Eco wet processing

     •   Annual production: 12.5 millions pairs

     •   Machines: 1,374


                                                  11
Environmental Efficiency
6

               5.23
5

4
                                3.59
3
                                          2.73
2
               1.26
                                0.92
1
                                          0.83
               0.09             0.07      0.06
0
            2007             2010      2011
    Water      Electricity   Steam



                                                 12
Energy Saving & Carbon Reduction




           ↓ Energy Cost
        ↓ Carbon Footprint
                               13
Lighting System

– Environmental-friendly lighting: T5

– Individual switches in workshops

– Occupancy sensors for corridor




                                 Started from:   Jun 2008
                                   Payback:      14 months

                                                         14
Lighting System


                         LED application
                         • Selected sewing
                           floors
                         • Recycle cotton
                           workshop




         Started from:         May 2010
         Payback:              46 months

                                       15
Variable Frequency Devices




                    Servo-motor in
                       sewing m/c



                 Started from:   Aug 2008
                  Payback:       8.8 months
Air Compressor
                                            16
Water Curtain Cooling
• Low energy consumption compared to air-con system




                              Started from:   Nov 2009
                               Payback:       9.3 months


                                                      17
High Efficiency Dryers

•   Exhaust heat recovered to
    reduce steam consumption

•   Shortened drying time




Save 17% steam
                                Started from:    Oct 2010
                                 Payback:       90.5 months

                                                            18
Steam Condensation Recovery




                      Started from:      Jun 2010
• For Laundry use      Payback:         4.3 months
                     Steam saving:      3,685 ton/yr
                    Hot water supply:   130 m3/day

                                                  19
Boiler – Biomass Fuel




Started from:         2011
 Payback:            8 months




                                        20
Solar Hot Water Supply




                   Save 70%
Dormitory                               Production

            Started from:   May 2009
             Payback:       17 months



                                                21
Renewable Energy – Road Lamps
             Solar Power


Wind Power




                     Started from:   Sep 2010
                      Payback:       42 months

                                                22
Green Logistics

•   Cost Saving
     •   HK$ 4 million in 1 year
•   Quicker response in factory
•   ↓ 52 km of travel


    67% CO2 saved



                                   23
Water Conservation




 Less fresh water use
   Zero discharge
                        24
Wastewater Treatment
Parameter                              BSR                       PRC            Denim Factory
                              Water Quality Guidelines   DB44/26-2001 Grade 1     (Actual)
Temperature (˚C)                        ≤ 37                       -                31.6
pH                                     6.0-9.0                  6.0-9.0              7.5
TSS (mg/l)                             ≤ 30.0                     20                None
(Total Suspended Solids)

BOD (mg/l)                             ≤ 30.0                     20                  8
(Biological Oxygen Demand)

COD (mg/l)                             ≤ 200.0                    90                 25
(Chemical Oxygen Demand)

Color                                  ≤ 150                      40                 1.5
(ADMI units or Pt-Co units)




                                                                                           25
Wastewater Treatment System




 Advanced
Technology
             • To ensure stability for reuse of treated wastewater

             • Less chemical needed, less sludge, high quality & low
 Benefits
               treatment cost
                                                                       26
Water Recycling




 >80% Reuse
                  27
Sustainable Washing
G2 Technology
                                  Front Loading


                       ↓ Cost
                      ↓ Water
    Eco-softener
                    ↓ Manpower
                                        Laser
                    ↓ Chemical



                                                28
Waste Elimination
Target:




                          29
Recycled Cotton



                                       2011 Solid Waste:   ↓774 ton




                                                    ↓968 ton


Made with recycled cotton – x% pre-consumer                    30
Turn Food Waste into Treasure




Handling Food   Composting to           Fertilizing
   Waste        Organic Fertilizer   Organic Garden




         Canteen waste +
                                                 31
Paper-less

Production e-Ticket: ETS + RFID
ERP System – SAP
e-Documentation Management
e-Form
e-Banking

Saved 90% paper

                                   32
Waste Recycling

Ease & encourage recycling:
  • Proper segregation
  • Collection
  • Education




                              33
Environmental Contributions



                              34
Eco Achievements
                                  ↓ 17%
                                 Carbon




                                        ISO 14001 EMS Certification




                   Cleaner Production Enterprise
                         of Guangdong
ISO 50001: Energy Management System (EnMS) in Progress            35
Culture Building
2010 Global Sustainability Forum




                                   36
Tree Planting
2007-2012: 1,045,408 trees




                             37
Sustainable through Sharing




                              38
Factory Visits for Customers




              For:
              • Customer teams
              • Their Suppliers (Far East)


                                         39
Working with Local Government
To drive environmental culture in the public




                                         40
Sharing with Media




                     41
Global Next 5-Year Targets
      ↓Water by 10%
      Zero Landfill
      ↓Carbon Footprint by 6%
      ↓Energy by 5%
      The Use of Renewable Energy 5-10%
      Plant 1,000,000 Trees more
      Supply Chain Traceability
                                           42
“Being Responsible – A perfect business sense”




                                            43

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