brandix environmental strategy iresha somarathna head of energy and environmental management
TRANSCRIPT
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Brandix Environmental Strategy
Iresha SomarathnaHead of Energy and Environmental Management
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We are Brandix
• Sri Lanka’s largest apparel exporter
• Employing over 25,000 Associates and generating indirect
employment to an equivalent number
• Supported by 27 manufacturing facilities in Sri Lanka and
strategically positioned international Sourcing Offices
• Providing over 50% of value addition locally through our
backward-linked operations in textiles, thread, buttons, and
hangers
“To be THE inspired solution for branded clothing”
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• Motive for Brandix Climate Change Strategy
• Brandix initiatives towards Climate Change
Contents
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Brandix Risk Assessment
Is climate changesignificant to Brandix customers?
Physical assets, and production processes
Turnover sustenance
Utilities and logistics
Level 3 Risk
Climate is not a high priority
Immediate threat based on current climate conditions?
Does the threat involve a long term investment or contract, a lengthy implementation period or substantial financial outlays involved in decision making to respond to the threat?
Level 2Risk
Build long term strategy
Is a high value at stake if a wrong decision is made?
Level 1Risk
Take action to assess risk in detail and respond
Y
Y
Y
Y
N
N
N
NRaw materials and supplies
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Rationale for Environmental Strategy
• Brand Alliances: Align with Brands that will build brand leverage on Climate Change Strategy and differentiate against Competitive Landscape
• Compliance Requirements: Build a more prepared framework to address Carbon footprint disclosure requirements in the near future against Competitive Landscape
• Operational Efficiencies: Build a more competitive cost model against Competitive Landscape
Valu
e Cre
atio
n
Brand Alliances
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2008 carbon footprint at Brandix 85, 252 MTC
Where we are now
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• Greenhouse gas emissions for 1 USD of Revenue - 202 g
CO2e
Textile Processing 1.68 kg CO2e /m
Textile Printing 0.643 kg CO2e / m
Thread Processing 2.18 kg CO2e /kg
Textile Cutting 0.037 kg CO2e/m
Hangers 0.691 kg CO2e/kg
Button Manufacturing 0.002 kg CO2e/button
Garment Washing 0.326 kg CO2e/pcs
Garment Sewing 1.57 kg CO2e/SAH
Where we are now
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We have pledged to reduce our Group-wide Carbon Footprint by 30% by 2012
2007 2012 20170
10000
20000
30000
40000
50000
60000
70000
80000
9000030% reduction from Green Initiatives
70% reduction from Renewable Energy Generation Source
Co2 E
quiv
alen
t MT
Brandix Target on Carbon Reduction
2008
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• “A ‘green’ building places a high priority on health, environmental and resource conservation performance over its life-cycle.”
• Sustainability • Financial• Environmental
• Optimal use of resources• Energy• Land• Water & material
• The healthiest Work Place• Physical health• Psychological health • Improved safety
Brandix Green factory Concept
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Janu
ary
Mar
chM
ay July
Septe
mbe
r
Novem
ber
Jan-
08
Mar
-08
May
-08
Jul-0
80
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
7,000
9,000
11,000
13,000
15,000
17,000
19,000Energy consumption
Electricity
Furnace Oil
Ele
ctri
city
\ (
kWh
)
Fu
rnac
e o
il /
(L
iter
s)
Before the Project After the project0
500
1000
1500
2000
2500
0
5
10
15
20
25
30
35
40
45
50
2076
422
32
8.4
15
0.5
Annual emissionsC
O2
emis
sio
ns
\ (
Met
ric
To
ns)
SO
2 &
NO
x \
(Met
ric
To
ns)
CO2
CO2
SO2
SO2
NOxNOx
Carbon Footprint 80%
Climate change impact
50%
• Impact on global warming
• Impact on acid rains• Reduction of particulate
matter• Optimal use of Energy
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Waste
Zero Land filling
Rational use of water
Food waste for bio gas generation
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Harvesting tank
Anaerobic
treatment
plant
tertiary filtration
Purification Plant
Rain water
Ground water
• Zero wastewater discharge
• Reduced water pollution
• In house water treatment
facility
• Ensuring quality of drinking
water
• Rainwater Harvesting
Rational use of water
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LEED Baseline Current Consumption 0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
21,572,897
8,995,545
Annual water consumption
Wat
er c
on
sum
pti
on
/ (
m3)
Total water saving = 58 .3%
Non-green fac-tory
Green Factory0
20
40
60
80
100
120
140
160Land fill waste divertion
Total
Recycled
La
nd
fill
wa
ste
to
ns
/an
n
Divert from Landfill 99%
Divert from landfill 20%
• Zero landfill waste
• Reduced land & water
contamination
• Reduced hazardous emissions
• Reduced visual pollution
Impact from waste
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Health & Comfort
Improving the working environment
Minimizing environment impact
Global Warming
Resources Chemicals
Security and safety
Comfort and convenience
Condition of health
Value for new work place
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How it Improves Health Conditions ?
• Utilization of natural light
– Reduce eye stress
– Improved green views
• Asbestos, PCB (Poly Chlorinated Biphenyl) and Smoking free environment
– Prevent carcinogenic material– Lower incidence of asthma
• Isolated copying/printing room
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How it Improves Comfort Level ?
• Improved indoor air quality– Controlling CO2, Temperature,
Humidity to set levels
• Improved ergonomics
• Extended pathways
• Indoor courtyards
• Improved sanitation
facilities
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How it improves Security and Safety
• Access control system• High grade safety clothing & equipment• Isolated chemical mixing and storage area• Isolated waste collection area• Automated building management systems• Advance fire protection system
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Our Green Achievements
The world’s first LEED Platinum rated Apparel Factory
• One of three nominees for the Energy Globe World Award in the ‘Air’ category
• Rated Platinum for Corporate Accountability
• National Cleaner Production Awards 2008, in recognition of environment friendly production practices – Gold & Silver awards
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WHAT DOES IT DELIVER? COST OF INVESTMENT US$
US$ SAVING PER ANNUM
PAYBACK PERIOD YEARS/MONTHS
Roof insulation
$ 3,300 N/A See belowRoof painting $ 24,500 N/A See belowPaving Blocks $ 48,300 N/A See belowSuper efficient Central air conditioning system
$ 780,300 N/A See belowTotal on AC $
856,400 $ 160,000
5 years 3 months
LED lights at sewing points
$ 20,000 N/A See belowPrismatic (or high transmission) sky lights
$ 49,400 N/A See below
Windows $ 19,900 N/A See belowLow energy factory lighting system $
89,300 $ 41,000 2 years 2 months
Boiler & steam distribution system $ 42,000 $ 46,000 10 months BMS (Building Management System)
$ 60,000 N/A See below
Total On Energy $ 1,047,700
$ 247,000 4 years 2 months
Financial Sustainability
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WHAT DOES IT DELIVER? COST OF INVESTMENT US$
US$ SAVING PER ANNUM
PAYBACK PERIOD YEARS/MONTHS
Water recycled system (including rainwater harvesting) $ 64,600 $ 4,900 13 yearsWater efficient fixtures
$ 6,000 $ 1,300 5 yearsIndirect rainwater harvesting
$ 9,000 N/A N/A Greenery area
$ 9,800 N/A N/AAlternative fuel vehicles $ 16,000 $ 1,200 13years 6 monthsBicycles
$ 7,000 $ 2,000 4yearsOn site renewable electricity generation - Wind mill $ 700 $ 300 2 years 10 months
WASTE
Waste Recycling schemes $ 2,900 $ 1,200 2 years 3 months
Bio gas system $ 5,000 $ 6,000 9 months
Waste Stream Audit $ 5,200 N/A N/AComposting
Low mercury bulbs at QC and in Finishing $ 500 N/A N/A
Overall Total $ 1,195,700 $ 263,900 4 years 6 months
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Thank You…