Textile Exchange Building Integrity a case study prAna at a glance prAna, an ancient Sanskrit word for breath, life and vitality of the spirit, is born from climbing and yoga and creates mindfullydesigned, purposeful and stylish apparel for unconventional individuals to pursue their passions – from the rock to the studio to the trail to the street and with the launch of its swimwear collection, to the water. From the beginning, prAna has been committed to looking for new ways to fold the intention of sustainability into their materials and practices. They have been committed to a variety of preferred materials including organic cotton, Fair Trade Certified (one of the few in the US) and recycled polyester. prAna is sold at retailers across the United States and Canada and online at prAna.com. prAna employee on a cotton field day born from the experience Key success factors prAna: an Integrity Champion • Broad corporate commitment to responsible material sourcing • Building long term relationships with suppliers • Continuous improvement instead of pass or fail model • Providing education to suppliers and supporting them to make it happen • Effective Traceability program in place since September 2010 • Scope Certificates verified before placing orders • Transaction Certificates collected to garment level in most cases • A strong internal information management system 2 Building Integrity, prAna © 2013 Textile Exchange prAna’s fiber strategy prAna has been committed to using more sustainable materials since they first learned of organic cotton in 2001; prAna refers to them as Environmentally Conscious Materials. After integrating organic cotton, they gradually began looking into other materials that would lower the impact of their products. Hemp and recycled polyester, both pre- and post-consumer, are now additional focus materials for prAna. prAna employee on a cotton field day prAna has also made one of the first commitments to Fair Trade Certified apparel in the industry. Fair Trade Certified is based around the following principles: fair prices to farmers for their goods, fair labor conditions and wages for farm and factory workers, direct market access eliminating unnecessary middlemen, democratic and transparent organizations, community development, and environmental sustainability. Why choose certification? Materials with recycled or organic content can be up to 20% more expensive than their conventional counterpart. However, prAna had no system in place to ensure they were getting what they were paying for, a system which certification could offer. prAna acknowledged that when customers bought clothing labeled with a claim such as organic or recycled, there was the expectation that this had been verified and checked. Certification provided this verification from an independent third-party. Finally, prAna realized that without verifying the claims on products from suppliers, the brand could potentially be held responsible for unknowingly violating “truth in advertising.” Certification offered brand protection and upheld company values; everyone saw the risk of doing nothing. This came to light when one of their customers asked for the certification of their order and it took prAna a couple of weeks of emailing suppliers, gathering certificates and follow up. Not having this information at hand was a risk to the brand’s relationship with its customers. Today prAna has set up a system to verify each season’s materials with certifications including OE 100 and OE Blended, now replaced by the Organic Content Standard (OCS), as well as GOTS, GRS, and Fair Trade. This gives prAna the confidence to tell their consumers they are getting what they are paying for. 3 Building Integrity, prAna © 2013 Textile Exchange Setting up the certification system The beginning prAna first began to work with their suppliers of organic and recycled products to confirm the source of the raw material. This was complicated because many suppliers were garment factories buying recycled and organic yarns or fabrics, with no tracking system to link back to the raw material sources. Continuing their research, prAna investigated different standards that could help support the goal to verify preferred raw material content claims. This is where the certification journey really started for prAna, but it would take more time to get it fully embedded in the organization’s operations. Support for certification within prAna grew when the team realized it would increase efficiency in managing the information about their products. Step 1. Establish company policy prAna assigned the Director of Sustainability and the production department to be responsible for implementing and managing the system of certification. The company adopted a Traceability Policy, centered on certification to specific standards. The standards were chosen based on the information prAna wanted about their products: the main goal was to verify the content of the products. Processing requirements were secondary. For organic cotton, the OE standards and GOTS were selected. Both of these standards were built on the same method of maintaining the chain of custody for certified organically grown cotton. The GRS was selected for products with recycled material because it uses the same chain of custody model. While GRS is the preferred standard for recycled materials, only a low percentage of prAna suppliers are currently certified to the standard. Because of this, prAna also accepts SCS, Repreve, and other standards. prAna Traceability Policy: prAna commits that all of the products containing organic and recycled contents will be certified to the appropriate standards: • Organic – certified to the NOP standard using either the OE 100, OE Blended or GOTS standard for content claims verification. • Recycled – the Global Recycle Standard, UNIFI Repreve tracer or Scientific Certifications Services recycled standard. Products are tracked each season – Fall or Spring and certification documents are maintained. Step 2. Communicate policy to suppliers prAna sent letters to their suppliers explaining the Traceability Policy and the new requirements of documentation to verify the certification of products. The letter included an explanation of the Traceability Policy, a description of their focus materials, a list of requested documents to verify certification or the source of the fabric, an illustration of the flow of documents, and examples of Transaction Certificates (TC’s) and affidavits. 4 Building Integrity, prAna © 2013 Textile Exchange Setting up the certification system Step 3. Establish a baseline of available information In their follow up on the initial letter to suppliers, prAna sought to understand what information their suppliers were already able to provide. Successfully gathering adequate data required that prAna continued to communicate with suppliers, often more than once. In most cases, prAna worked with direct suppliers to gather information from further back in the supply chain, involving back-and-forth communication to make it happen. In the first year, 2010, prAna sent letters to 16 garment makers: 14 could provide some kind of verification of the organic products and 6 garment makers could provide organic certification TC’s. Of the styles containing organic cotton, 3% had garment TC’s to the garment level and 52% had fabric TC’s. In 2011, prAna requested information on styles containing organic cotton and styles containing recycled materials. Of styles containing either organic cotton or recycled materials, 8% had garment TC’s, 14% had fabric TC’s, and 45% had yarn TC’s. This meant that 33% did not have any certification. Step 4. Train the supply base Establishing the baseline was critical for prAna to determine how to focus next steps – the priority was training the supply chain to ask for and provide the correct documentation. prAna prAna employee on a cotton field day communicated which standards they preferred; they also provided training to Tier 1 suppliers in how to create their own traceability management. Training has not been necessary for the certified facilities, but prAna has worked with the suppliers not yet certified to make sure they knew what information to collect and pass on to prAna. In many cases, prAna has been the first buyer asking for the certification from their suppliers. 5 Building Integrity, prAna © 2013 Textile Exchange Tracking certified products through certificates Scope Certificates Certified garment suppliers provide their Scope Certificates to prAna, and they are verified and stored by the production team. At this time, not all garment suppliers are certified to prAna’s preferred standards. Transaction Certificates The goal is to have TC’s collected up to the garment level where possible for all organic and recycled materials. In cases where all parts of the supply chain are not yet certified, collecting TC’s from the garment level is not possible. In this case, suppliers are encouraged to provide affidavits or tracking documents, which provides a link between prAna and the last available TC. This information is not third-party verified, but it is a good interim step towards complete certification. These affidavits link fabric TC’s with specific garments to provide some level of verification for prAna. Accepting affidavits from these factories is a short-term solution until all garment suppliers are certified. Managing certification information After beginning to collect certificates throughout the supply chain, prAna developed a new, central information management system to provide the current certification status of suppliers as well as increase efficiency and avoid one-off requests to suppliers for certification information. Organic and recycled products are identified in preparation for the season ahead. The design and development team orders organic materials and those suppliers are informed that they will have to provide the Scope Certificates and TC’s; the production team sends a reminder email, and then the certificates are tracked in an excel file as they are received. They pull a list of certificates at the beginning of the season, put it in a folder, and then have a link to the certificate itself. The production team checks every invoice for each shipment and scans the TC at the same time; they are typically both available by the time the production team checks it, and so checking the TC at the same time goes quickly. The information management system also allows prAna to collect and track certification data from suppliers over time. Suppliers are evaluated through a lens of continuous improvement, rather than simply pass or fail, certified or not certified. Tracking Fair Trade For Fair Trade pieces, prAna collects the certification ID numbers from suppliers before ordering. prAna reports to Fair Trade USA how many products are purchased, the cost, and from whom. Fair Trade USA uses this information to make sure the Fair Trade premium is paid to workers. The chain of custody is maintained by Fair Trade USA. TC’s are also sent because the Fair Trade garment suppliers are also certified organic. Product Information prAna lists organic content percentages on products based on the information received from garment TC’s where available, and from affidavits in the other cases. Products with recycled materials are labeled with the content percentages, with no reference to the standard. Because the Fair Trade certified products have certification up to the garment level, each product is labeled as Fair Trade Certified, and identified with the logo. 6 Building Integrity, prAna © 2013 Textile Exchange Learning through the journey Challenges along the way Because chain of custody standards require involvement from the entire supply chain, getting everyone started can be a huge struggle in the beginning. Located both domestically and in Asia, prAna’s suppliers were allies in the process of collecting and managing product certification information. But because prAna is only one of their many buyers, their orders are not always enough to incentivize compliance to standards. This understanding has fueled prAna’s active participation in promoting certification among other similar companies. prAna’s Veeda fabric includes recycled polyester Exchange and OIA’s Materials Traceability Working Group. The RCS would establish the standard, global definition of “recycled.” Those suppliers already certified to the OE standards (now the Organic Content Standard or OCS) can quickly transition to the RCS as well. Goals for the future In the future, prAna plans to implement the Content Claim Standard (CCS) with other materials, in order to provide verification of all preferred, or environmentally conscious fibers, not only organic and recycled. They hope for the tools and resources they have developed to be used by other companies, to leverage growth across the industry. prAna’s Traceability Policy is an evermoving finish line. As prAna continuously improves communication with suppliers, and the management of information they receive, suppliers are better equipped to supply the required documentation. prAna has targeted key garments suppliers to whom they will introduce the concept of becoming certified. prAna also uses certification as a screening tool for new supplier sourcing. Further Information • http://www.prana.com/ The lack of one global standard for recycled raw materials has been another issue for prAna. In the absence of one worldwide accepted standard, prAna receives multiple types of raw material verification from recycled polyester suppliers, such as affidavits, governmental statements, and other various methods of verification. prAna plans to use the raw material standard to be named the Recycled Content Standard (RCS), currently in works with Textile • http://www.prana.com/life/sustainability/ products/ • http://www.fairtradeusa.org/productspartners/apparel-linens 7 Building Integrity, prAna © 2013 Textile Exchange Textile Exchange is a non-profit organization. We envision a global textile industry that restores the environment and enhances lives. We inspire and equip people to accelerate sustainable practices in the textile value chain. Our work is unique in that we focus on the entire value chain, from production, through manufacturing, to retail. The Industry Integrity platform at Textile Exchange aims to ensure that all of the work that is done towards sustainability in the textile industry is genuine and leads to real and meaningful change. We work through tool development, education, information sharing and collaboration. Building Integrity is a series of case studies intended to provide practical examples of certification systems. By highlighting the work of companies with strong systems in place, we hope to encourage wider use of standards to support product claims. For more information, visit: http://textileexchange.org/content/integrity-library. © 2013 Textile Exchange. textileexchange.org
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