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Bluesign Sustainability Journey

Vietnam Textile and Garment


Exhibition 2023

Ron Hu
© bluesign technologies ag | bluesign.com
2023.10.18
Our History

— Founded in 2000
— Developed and introduced a holistic
Input Stream Management System for
the textile industries
— More than 850 System Partners worldwide
— An SGS company since 2008
— HQ in St. Gallen/Switzerland and other
locations in USA, Central America, Germany,
Turkey, HK, China, Taiwan, Korea, Japan,
Vietnam, India, Bangladesh, Sri Lanka

© bluesign technologies ag | bluesign.com 2


Textile Supplier Tiering Tier 1 Tier 2 Tier 3 Tier 4
(a) (b)
Agents, Finished Goods Dyers, Weavers, Fibers, Feathers/
Trading Assemblers Materials Printers, Knitters & Down Processing, Raw Material
Retailers Brands Companies & “Converter” Finishers, & Spinners, Film & Suppliers
Licensees (+ subcontract) Laminators Nonwovens Tape Mfg.

Brands with Strong


Retail
mega
cut/sew

Could be any
combination of
organizations
x100s upstream in the
supply chain to
produce finished
materials

agriculture / ores / minerals (as chemistry feedstock)


mega farm to finished material (e.g., some denim)
trading factory complex from fiber to garment
company
 knitwear directly produced from yarns (in house or sourced) 

Large retailer w/
Detergents, Dyes, Auxiliaries, Masterbatches, Polymers,
private brand(s) Chemical Conditioning agents, Carriers,
Sizing agents,
Polymers, Lubricants, Fertilizers,
Supplier Printing Inks, Coatings, Inks,
Preparation
Dyes, Surfactants, Surfactants,
Tiering Treatments, etc. Repellents, etc.
agents, etc.
Auxiliaries, etc. Pesticides, etc.
CH1
Chemical
“Converter”
and/or “Trader”
Chemical
CH2 formulator/
blender/mixer

Diagram originally Chemical


created by Matt CH3 Synthesis and
Thurston, REI, with Polymerization
further modifications
from industry Raw chemical
colleagues. CH4
supplier

Rev. 5.1
fossil fuels
An Ocean of Options to Consider

bluesign® Approved

Alternatives Assessment Green Screen®


CA Prop 65 AFIRM RSL

Brand Initiatives
ZDHC MRSL SVHC List
SIN List
REACH TOSCA AAFA RSL
Oeko-Tex® STeP GOTS
Oeko-Tex ® 100 Oeko-Tex® Eco Passport 3rd Party Certifications

Cradle to Cradle®
4
03 — Services

Our Segment
Polymer

Footwear

Textile Chemistry Polymer Chemistry Leather Chemistry

Chemical Supplier

© bluesign technologies ag | bluesign.com | bluesign® SYSTEM 5


RSL
MRSL
Solution: Systemic Approach

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01 — Introduction

Customer Groups(random selection)


Chemical Supplier

• on-site assessment
(Product Stewardship
assessment)

• Chemical risk
assessment versus pure
hazard assessment

• bluesign® APPROVED
chemical products

© bluesign technologies ag | bluesign.com


01 — Introduction

Customer Groups (random selection)

Manufacturers

• on-site assessment (EHS &


OHS assessment)

• Chemicals management &


chemicals change
management

• bluesign® FINDER
• bluesign® APPROVED
fibers, yarns, membranes,
fabrics and trims

© bluesign technologies ag | bluesign.com


01 — Introduction

Customer Groups (random selection)

Brands & Retailers

• on-site assessment
(“health check” regarding
sustainability, focus on
supply chain)

• Materials management &


materials change
management

• bluesign® GUIDE
• bluesign® PRODUCT

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Building Our
Input Stream

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We’re Taking a Step-by-Step Approach

Step 1 Step 2 Step 3 Step 4

Consumer Product Chemical Safety Chemical Change Input Stream


Safety Assurance Assessment Management Management

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Road Map to Input Stream Management

Build up of positive list of approved chemistry.


Verified by Bluesign with product stewardship
implemented

Provide root cause analysis on consumer safety issues

Provide traceability of component

By implementing chemical change management and


using approved chemistry entire process approved

Decrease testing requirement lowering


cost long term

© bluesign technologies ag | bluesign.com 14


Input Stream Management

Bluesign® APPROVED Chemistry


(blue, grey & tolerated)

Non-APPROVED Chemistry
(black & banned)

© bluesign technologies ag | bluesign.com | bluesign® SYSTEM


Chemical Assessment

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Chemical Change Management

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What‘s your
footprint?

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SCOPE 1/2/3 Emission

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CO2 Boundaries
Cradle to Grave (spec. Cradle to Cradle)

Cradle to Gate

Gate to Gate

Supply Chain Company (Facility) Downstream


Scope 3 Scope 3
Scope 2 Scope 1
(INDIRECT) (INDIRECT)
(INDIRECT) (DIRECT)

Raw Material Distribution

Chemicals/ Purchased
Dyestuffs Power Use

Facilities emission
Transport (gas, oil, coal, own Disposal
produced electricity)

Waste

© bluesign technologies ag | bluesign.com | bluesign® SYSTEM


Bluesign Labelling — Outlook

Chemical Manufacturers &


Meaning Brands
Suppliers Converters
Corporate
Responsible production
level

L3
Covers consumer safety,
Product Environmental, worker safety,
level resources efficiency,
Responsible production

L2
Verified
Facility Facility IMPACT Data verified BLUESIGN

Product Made with BLUESIGN- Working


label with bluesign to reduce impact
Verified Made with
Verified by BLUESIGN – BLUESIGN BLUESIGN
footprint data verified by
bluesign

© bluesign technologies ag | bluesign.com | bluesign® SYSTEM


© bluesign technologies ag | bluesign.com 23
02 — Approach & Advocacy

bluesign labelling

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03 — Services

Holistic Impact Measurement in the Footwear Industry


Supply chain Tier 2 Tier 1
Gate to Gate Gate to Gate
Upper

Lining

Insole & Midsole

Outsole
Scope 3

Assembling
Scope 3

Packing

Storage
Accessories 1 (INDIRECT) (INDIRECT))

Accessories 2

Accessories ..
Support processes,
Raw Material
Infrastructure
water
Scope 2
Process energy (3. party)
(INDIRECT)

Primary energy Scope 1


carriers (DIRECT)
Process Energy (self-
made)

Chemical supplier
Chemicals/Dyestuffs

© bluesign technologies ag | bluesign.com | bluesign® SYSTEM


Agenda

1 2

bluesign® ACADEMY Trends of sustainable


service introduction chemistry

© bluesign technologies ag | bluesign.com 26


• Sustainability Management and Reporting
1 • Product Carbon Footprint

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bluesign® ACADEMY

OUR SERVICES

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bluesign® ACADEMY – Services Overview
Chem. Manufacturer Brand
Supplier

Sustainability management
and reporting
Regular services
Elements picked as needed
Product Stewardship
Service

Product Carbon Footprint

Tailor-made consultancy and


Consultancy training upon request

Tailor- made Trainings

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1
永續發展管理和報告
bluesign® ACADEMY
SUSTAINABILITY
全新服務介紹
MANAGEMENT & REPORTING
bluesign® ACADEMY
service introduction

© bluesign technologies ag | bluesign.com 30


Sustainability

Sustainable development is defined as development that

"meets the needs of the present without compromising


the ability of future generations to meet their own needs”

https://www.un.org/en/academic-impact/sustainability

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Sustainability reporting

So How to define?

▪ non-financial reporting

▪ risk and impacts, including environmental, social and governance metrics

▪ set priorities

▪ measures to achieve goals

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Sustainability reporting

Advantages
▪ improve stakeholder relations and creditworthiness towards investors

▪ minimize business risks for financial and non-financial aspects (dependencies between economic, ecologic and
social aspects are considered)

▪ set up and implement viable sustainability strategies

▪ transparency and improvement of corporate data management

much more than impact reports, audit reports or sustainability claims!

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Sustainability reporting

Some Key facts

◼ Non-financial reporting voluntary or low-regulated in the past in


many countries

◼ Successor of environmental reporting (80’s - 90’s) and


complementation to annual financial reporting

◼ Widespread of reporting standards lead by GRI standards most


widely adopted, followed by stock exchange regulations and SASB
standards (particular in US, Canada)

◼ EU is forerunner, upcoming reporting regulations will be applicable


for more than 50.000 companies

◼ Other countries expected to follow with reporting regulations

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Sustainability reporting

Regulatory Framework EU
Non-Financial Reporting Directive Corporate Sustainability Reporting Directive
(NFRD) (CSRD)

Scope • all capital market-oriented large public-interest • all capital-market oriented large public-interest
companies* with companies* with (as of 2025)
- >500 employees - > 250 employees
- a net revenue of >34 million € or - a net revenue of >40 million € or
- a balance sheet of >17 million € - a balance sheet of >20 million €

• SMEs** were excluded • all capital market-oriented SMEs** (as of 2026),


excluding micro enterprises, with
- > 50 employees
- a net revenue of >8 million € or
- a balance sheet of >4 million €

• approximately 11.700 companies across EU • approximately 50.000 companies across EU

Approx 50,000 companies affected !

* i.e., listed companies, banks, insurance companies, companies designated by national authorities as public-interest entities
** small and medium-sized Enterprises according EU Directive 2013/34

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Sustainability reporting

GRI standards

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Sustainability reporting

Materiality analysis

▪ Define topics of importance through stakeholder


analysis & internal importance
▪ Select key areas for building the sustainability
對利益相關者的重要性 Importance to stakeholder

strategy
▪ Apply relevant topic relevant GRI standards

對公司的重要性 Importance to company

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1
PRODUCT CARBON FOOTPRINT
bluesign® ACADEMY

bluesign® ACADEMY
service introduction

© bluesign technologies ag | bluesign.com 38


Sustainable Chemistry and Life Cycle Assessment
(LCA)
❖ Less hazardous chemicals with less
❖ Raw materials and extraction impurities (MRSL Approach)
❖ Focus on sustainable land use ❖ bluesign: Clean factory approach
❖ Mitigation of resource with focus on product stewardship
depletion

❖ Usage phase and End of Life


❖ Downstream application in textile
❖ Focus on longevity (durability
finishing
of effects)
下游活動 ❖ Focus on resource efficiency and
❖ Fit for circular economy
safety
❖ Mitigation of environmental releases

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Product Carbon Footprint
▪ Gather all necessary data & details for products to be
calculated
▪ Make use of state-of-the-art databases (Ecoinvent)
▪ Calculate Product Carbon Footprint with breakdown in
Scope 1, Scope 2 and Scope 3
▪ Advantage: Brings clarity where major CO2 emission
contributions come from

Standard Content

ISO 14040:44 1) ‘Eco balance’ / LCA

ISO 14067 1) PCF (based on ISO 14040:44)

GHG-Protocol PCF (independent)

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Why bluesign?

• 20 years expertise in the industry


• We know your processes and products
• Powerful system available , CUBE (impact data), FINDER (chemical), GUIDE
(textile)
• Trust from system partners

As our manufacturer system partner


• Important data collected regularly
• Yearly impact report for a glance

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2 • Sustainable chemistry - Sustainability
Attributes

© bluesign technologies ag | bluesign.com 42


2
SUSTAINABILITY ATTRIBUTES

Trends of sustainable
chemistry

© bluesign technologies ag | bluesign.com 43


永續化學 Sustainable Chemistry

Sustainable chemistry is a holistic concept.


We strive to not just remediate or minimize the negative impacts of
a chemical product, but to look at its whole lifecycle and enhance
positive impacts on environment, economy and society (including
the protection of human rights).
Sustainable chemicals are fit for circular economy, encourage the
use of sustainable feedstocks, improve the resource efficiency in
downstream applications and contribute to the longevity of
consumer products, while avoiding inherent properties that are
harmful to human health and the environment.

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Sustainable Chemistry and Life Cycle Assessment
(LCA)
❖ Less hazardous chemicals with less
❖ Raw materials and extraction impurities (MRSL Approach)
❖ Focus on sustainable land use ❖ bluesign: Clean factory approach
❖ Mitigation of resource with focus on product stewardship
depletion

❖ Usage phase and End of Life


❖ Downstream application in textile
❖ Focus on longevity (durability
finishing
of effects)
❖ Focus on resource efficiency and
❖ Fit for circular economy
safety
❖ Mitigation of environmental releases

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Sustainability Attributes– Overview

Definitions, requirements and data provisions are


laid out in bluesign® CRITERIA for Chemical
Assessment; Annex: Sustainability Attributes for
bluesign® APPROVED Chemical Products:
annex_sustainability_attributes_v1.1_2023-01.pdf
(©bluesign technologies ag )

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Sustainability Attributes

Renewable Feedstock

The sustainability attribute ‘Renewable feedstock (biomass or


bio-based)’ is intended for use with any chemical product that
contains at least 20% biomass content by weight in form of
biomass-derived carbon.
Determination of biobased content with the radiocarbon method
(C14 method) in accordance to acknowledged testing standards
such as EN 16640:2017 or ASTM D6866-21.

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Sustainability Attributes

Renewable Feedstock (Sustainable sourced)

In addition to requirements of ‘Sustainable sourced renewable


feedstock’, biomass-derived carbon originates from a
certified land use, which means that biomass or bio-based
raw materials are acquired in accordance with, and
independently certified to, an internationally recognized
certification standard or equivalent such as FSC, PEFC, ISCC
Plus, REDcert2, or RSPO.

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Sustainability Attributes

Recycled Content

The sustainability attribute ‘Recycled content’ is intended for use


with any chemical product that contains at least 20% recycled
content by weight
(dry content, excluding water)

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bluesign® FINDER 19 products on 2023.10.12
First Search Engine for Sustainable Chemical Products

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Sustainability Attributes

Criteria and application form

中文準則

中文申請表

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Sustainability Attributes

Key Takeaways
◼ available for bluesign® APPROVED chemical products registered in the bluesign® FINDER

◼ Participation is voluntary

◼ Sustainability attributes will not influence the rating (blue, grey) and are displayed in addition to the bluesign® FINDER
registry

◼ Send applications including necessary documentation to designated chemical assessors

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Why bluesign?

• Holistic chemical assessment with bluesign® TOOL


• Showing sustainability attributes of your chemical products in
bluesign® FINDER
• Beyond compliance

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Thank you!
Please contact :

Ron_Hu@bluesign.com
HsuKu_Kao@bluesign.com

bluesign technologies ag
Moevenstrasse 18
9015 St.Gallen, Switzerland
Phone: +41 71 272 29 90
info@bluesign.com

© bluesign technologies ag | bluesign.com

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