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0ESQUEL GROUP The Making of a Green Shirt – Sustainable Manufacturing through A Vertically-Integrated Supply Chain Dr. John Cheh Vice Chairman & CEO, Esquel.

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Presentation on theme: "0ESQUEL GROUP The Making of a Green Shirt – Sustainable Manufacturing through A Vertically-Integrated Supply Chain Dr. John Cheh Vice Chairman & CEO, Esquel."— Presentation transcript:

1 0ESQUEL GROUP 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

2 1ESQUEL GROUP The Making of a Green Shirt

3 2ESQUEL GROUP Esquel’s Vertically-Integrated Set Up SpinningWeaving/KnittingGarment Manufacturing Trims & Packaging Retail and Direct Distribution Cotton Farming The Making of a Green Shirt

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

5 4ESQUEL GROUP The Making of a Green Shirt

6 5ESQUEL GROUP 5 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

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

8 7ESQUEL GROUP Sustainable farming methods and technologies result in increase in cotton yields and higher income and quality of life for farmers Growing Organic Cotton in Xinjiang, Certified by Ecocert Natural Pest Control, breeding cotton pests’ enemy to reduce pesticide consumption Handpicking Cotton, eliminates use of chemical defoliant Drip Irrigation, reduces water consumption and usage of chemical fertilizer The Making of a Green Shirt Sustainable Farming

9 8ESQUEL GROUP The Making of a Green Shirt Sustainable Farming

10 9ESQUEL GROUP 99 Water Consumption of Cotton Shirt Energy Consumption of Cotton Shirt The Making of a Green Shirt

11 10ESQUEL GROUP 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 Installation of Frequency Inverters to all Machinery reduces energy consumption by 40% Installation of Water Curtains, better ventilation and cooling save up to 80% electricity Energy Efficient Lighting: replaced light bulbs with high efficiency fluorescent light tubes and reflectors Installation of Skylights: makes use of natural light to reduce energy consumption Steam Powered Air-conditioning System: reduces heat and saves electricity The Making of a Green Shirt Energy Saving

12 11ESQUEL GROUP The Making of a Green Shirt Energy Saving

13 12ESQUEL GROUP Reduction of water consumption by 50% from 2005 to 2010, equivalent to 6.8 M tons of water Waste Water Treatment Plant neutralizes waste water from mills and factories Patented Pulse Dyeing Technology consumes less water, electricity and chemicals Cold Pad Batch Pre- treatment Technology saves water and energy Recycling Condensed and Cooling Water saves water & steam Green Washing uses ecologically biodegradable products for treatment and finishing Wet Processing Centre recycles water in garment washing process Reuses Soap Water reuses up to 300 tons of water every day Heat Exchange System saves 137 tons of steam The Making of a Green Shirt Water Conservation

14 13ESQUEL GROUP The Making of a Green Shirt Water Conservation Traditional DyeingPulse Dyeing

15 14ESQUEL GROUP Thermal Power Plant supplies own electricity and steam to enhance energy efficiency and reduces carbon dioxide emissions Desulfurization of Waste Lye reduces sulfur dioxide emissions Uses Only Clean Low Sulfur Coal which is cleaner source of power The Making of a Green Shirt Emission Control

16 15ESQUEL GROUP 15 The Making of a Green Shirt

17 16ESQUEL GROUP 16 The Making of a Green Shirt

18 17ESQUEL GROUP Suppliers need to upgrade and innovate Consolidation Cost containment (“It’s All About Productivity”) Creativity and innovation Conservation Corporate social responsibility The Making of a Green Shirt Competitiveness of Suppliers

19 18ESQUEL GROUP 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

20 19ESQUEL GROUP Source:US Office for Textile and Apparel Consolidation of Major Exporting Countries to US (by Value of Total Apparel)

21 20ESQUEL GROUP Compete through State-of-the-Art Equipment to Improve Quality & Productivity

22 21ESQUEL GROUP Compete through State-of-the-Art Equipment to Improve Quality & Productivity

23 22ESQUEL GROUP Creativity and Innovations

24 23ESQUEL GROUP Creativity and Value Adding Services

25 24ESQUEL GROUP Caring for People and Local Communities

26 25ESQUEL GROUP Caring for People and Local Communities

27 26ESQUEL GROUP Caring for People and Local Communities

28 27ESQUEL GROUP Caring for People and Local Communities

29 28ESQUEL GROUP “We Must Become The Change We Want To See”

30 29ESQUEL GROUP THANK YOU


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