Commitment to Environmental Excellence John Eapen VP Environmental, Health & Safety American & Efird, Inc. Chairman, AAFA Environmental Task Force April 27, 2007 AAFA SCLCC / ECC Presentation Environmental Sustainability

Commitment to Environmental Excellence Environmental Task Force (AAFA). AAFA’s Restricted Substance List (RSL). REACH. AAFA’s Environmental Seminar. AAFA’s Best Environmental Practices AAFA Environmental Sustainability Topics

Commitment to Environmental Excellence Setup as a Subcommittee of Social Responsibility Committee Three Years Ago. Currently Has 30 Members. Staff Liaison: Stephen Lamar, Executive VP, AAFA. Committee Meets Twice Each Year. Holds 1-2 Environmental Seminars Each Year. Working on Several Environmental Sustainability Issues. AAFAEnvironmental Task Force

Commitment to Environmental Excellence Environmental Task Force (ETF) of Social Responsibility Committee Has Been Meeting Since 2004 To Identify and Work on Industry Concerns. ETF Has Conducted Environmental Seminars in which RSLs Were Extensively Discussed: –June 2005 – “What’s in Your Wardrobe”; Drew More than 100 Participants. –September 2006 – Held in Conjunction with Major Retail Brands in Dongguan, China; Drew More than 400 World Wide Participants. Since 2006, ETF Has Been Exploring Feasibility of AAFA Creating Own Industry Level RSL for Textiles, Apparel, and Footwear. AAFARestricted Substances List

Commitment to Environmental Excellence Chemical Management of Substances in Products Is a Key Environmental Practice. Members Desire “Industry-Wide” Approach. Retail Customers Want Increased Requirements. National and International Regulatory Regimes: REACH & CA Prop 65. Would Reduce Liabilities and Expensive Product Recalls (Europe). Public Awareness of Issue from NGOs. Consumer Interest in “Green Clothing”. AAFA Why an AAFA RSL?

Commitment to Environmental Excellence RSL Task Force Met January 2007 at A&E to Draft RSL. –Members: A&E, Nike, Levi Strauss & Co., Hanes Brands, Kahn Lucas Lancaster, Bureau Veritas, Oeko Tex, SGS, and Intertek. RSL Covers Substances Whose Presence in Textiles, Clothing, and Footwear Are Restricted by Government Regulation or Law. RSL Identifies Key Restrictive Global Controls or Prohibitions on Substances with Respect to Textiles, Clothing, and Footwear. –Identifies Any Applicable Test Method. –Currently, Over 150 Chemicals on List. RSL Does Not Identify Substances: –Used in Manufacturing Processes or Found at Manufacturing Facilities. –Subject to Voluntary Standards. RSL Has Been Reviewed by Peer Review Committee. AAFAStatus

Commitment to Environmental Excellence June 2007: –Publication of RSL. RSL Will Be Made Available on AAFA Web Site – Free to Members and Non Members To Encourage Use and Dissemination. Supplemental Materials for RSL Will Be Made Available by Subscription. –RSL Seminar in NY City: Provide Training on RSL, Including Practical Tips on How To Comply with List and How To It. –RSL Task Force Will Begin Work on Phase 2 To Identify Chemicals and Substances Whose Restrictions Are Subject to Best Practices, Standards, or Voluntary Guidelines. Late 2007/Early 2008: RSL Task Force Will Meet To Begin First Annual Review of RSL. AAFA Next Steps

Commitment to Environmental Excellence Registration, Evaluation, and Authorization of Chemicals. Coordinated European Response to Limits of Existing Approaches. Ensure Greater Supply Chain Sharing of Information and Risk Management Measures. Pre-Registration Between June 1, 2008 and November 30, AAFAREACH

Commitment to Environmental Excellence AAFA Environmental Seminar June 27 in NY City. AAFA’s Best Environmental Practices: –Best Practices from Member Companies. –Make Available to all Members. AAFA Best Environmental Practices