Brandix Environmental Strategy
Iresha Somarathna
Head of Energy and Environmental Management
We are Brandix
“To be THE inspired solution for branded clothing”
• 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
Contents
• Motive for Brandix Climate Change Strategy
• Brandix initiatives towards Climate Change
Brandix Risk Assessment
Is climate
change
significant to
Brandix
customers?
Physical
assets, and
production
processes
Utilities and
Raw
Turnover
materials
sustenance logistics
and supplies
Y
N
Level 3 Risk
N
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?
N
Y
Climate is not
a high
priority
Y
N
Is a high value at stake if a wrong decision is
made?
Level 2
Risk
Y
Level 1
Risk
Take action to
assess risk in
detail and
respond
Build long
term strategy
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
Brand
Alliances
Compliance
Requirements
Operational Efficiencies
Where we are now
2008 carbon footprint at Brandix 85, 252 MTC
Where we are now
• Greenhouse gas emissions for 1 USD of Revenue
-
202 g
CO2e
Textile Processing
1.68
kg CO2e /m
0.643
kg CO2e / m
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
Textile Printing
Thread Processing
Co2 Equivalent MT
Brandix Target on Carbon Reduction
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
30% reduction from
Green Initiatives
70% reduction from
Renewable Energy
Generation Source
2007
2008
2012
2017
We have pledged to reduce our Group-wide Carbon Footprint by 30% by 2012
Brandix Green factory Concept
• “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
Climate change impact
400,000
19,000
350,000
Electricity
300,000
Furnace Oil
17,000
250,000
150,000
13,000
50%
11,000
100,000
9,000
50,000
7,000
January
February
March
April
May
June
July
August
September
October
November
December
Jan-08
Feb-08
Mar-08
Apr-08
May-08
Jun-08
Jul-08
Aug-08
0
2500
CO2 emissions \ (Metric Tons)
• Impact on global warming
• Impact on acid rains
• Reduction of particulate
matter
• Optimal use of Energy
Annual emissions
50
45
2076
2000
40
32
Carbon Footprint
1500
SO2
500
30
25
CO2
1000
35
15
80%
20
15
8.4
NOx
0
Before the Project
422
NOx
SO2 CO2 0.5
After the project
10
5
0
SO2 & NOx \ (Metric Tons)
200,000
15,000
Furnace oil / (Liters)
Electricity \ (kWh)
Energy consumption
Waste
Zero Land filling
Rational use of water
Food waste for bio gas generation
Rational use of water
Rain water
Harvesting
tank
•Zero wastewater discharge
• Reduced water pollution
• In house water treatment facility
Anaerobic
tertiary
filtration
treatment
• Ensuring quality of drinking
water
plant
• Rainwater Harvesting
Ground water
Purificatio
n Plant
Impact from waste
Annual water consumption
Water consumption / (m3)
25,000
21,573
20,000
Total water
saving = 58 .3%
15,000
8,996
10,000
5,000
0
LEED Baseline
Current Consumption
Landfill waste tons/ann
Land fill waste divertion
Divert from
140 landfill 20%
160
Divert from
Landfill 99%
• Zero landfill waste
120
• Reduced land & water contamination
100
80
60
Total
Recycled
40
• Reduced hazardous emissions
• Reduced visual pollution
20
0
Non-green factory Green Factory
Health & Comfort
Security and
safety
Comfort and
convenience
Condition of
health
Value for new
work place
Improving the working environment
Minimizing environment impact
Global Warming
Resources
Chemicals
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
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
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
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
Financial Sustainability
WHAT DOES IT DELIVER?
Roof insulation
COST OF
INVESTMENT
US$
US$ SAVING PER ANNUM
PAYBACK PERIOD
YEARS/MONTHS
$
$
$
3,300
24,500
48,300
N/A
N/A
N/A
See below
See below
See below
$
$
780,300
856,400
N/A
$
See below
5 years 3 months
$
20,000
N/A
See below
$
49,400
N/A
See below
Windows
Low energy factory lighting system
$
$
19,900
89,300
N/A
$
41,000
See below
2 years 2 months
Boiler & steam distribution system
$
42,000
$
46,000
10 months
$
60,000
N/A
Roof painting
Paving Blocks
Super efficient Central air conditioning system
Total on AC
LED lights at sewing points
160,000
Prismatic (or high transmission) sky lights
BMS (Building Management System)
Total On Energy
$
1,047,700
$
See below
247,000
4 years 2 months
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 years
$
6,000
$
1,300
5 years
$
9,000
N/A
N/A
$
$
9,800
16,000
N/A
$
1,200
N/A
13years 6 months
$
$
7,000
700
$
$
2,000
300
4years
2 years 10 months
Waste Recycling schemes
$
2,900
$
1,200
2 years 3 months
Bio gas system
$
5,000
$
6,000
9 months
Waste Stream Audit
Composting
$
5,200
N/A
N/A
Low mercury bulbs at QC and in Finishing
$
500
N/A
N/A
Overall Total
$ 1,195,700
Water efficient fixtures
Indirect rainwater harvesting
Greenery area
Alternative fuel vehicles
Bicycles
On site renewable electricity generation - Wind mill
WASTE
$
263,900
4 years 6 months
Thank You…