Why Are We Here?

Why Are We Here?
Angora Fur
Detox Campaign
Dirty Laundry
Goose Down
Uzbek Cotton
Subcontracting
CPSIA
Prop 65
Brazil Leather
Kony 2012
REACH
Wool Mulesing
Human Trafficking
Washington State
California Safer Chemicals
Uzbek Cotton – Lessons Learned:
Cross Industry Perspectives Panel
Ethical Sourcing Forum
Nate Herman
Vice President, International Trade
American Apparel & Footwear Association (AAFA)
March 27, 2014
AAFA Snapshot
The American Apparel & Footwear Association
(AAFA) is the national trade association
representing apparel, footwear and other sewn
products companies, and their suppliers which
compete in the global market. AAFA's mission is
to promote and enhance its members'
competitiveness, productivity and profitability in
the global market by minimizing regulatory, legal,
commercial, political, and trade restraints.
Learn more about how AAFA wears our mission at
wewear.org >
Why Uzbekistan?
Why Uzbekistan?
• Bright Line on Uzbek Cotton Production
• Forced Labor / Forced Child Labor
• Government:
– Sanctioned
– Controlled
• Over ½ of Uzbek Cotton from 2013
Harvest Sold to China and Bangladesh
• China and Bangladesh #1 and #2
Manufacturers of Apparel
What’s the Problem?
• Cotton is Fungible Commodity
– Cotton Traders Mix Cotton from Various
Sources
– No Effective Way to Tag or Track
• Lack of Visibility Up the Supply Chain to
the Cotton Fields
• No Easy “Choke Point”
– Yarn-Spinners?
• Thousands of Yarn-Spinners Worldwide
Tackling the Problem
•
•
•
•
Unprecedented Stakeholder Coalition
RSN Cotton Pledge
Learn from Other Industries / Issues
Annual AAFA Traceability Conference
– Address Traceability Up the Supply Chain
– Next Conference – July 9, 2014, Portland, OR
• Share/Support RSN/Cotton Campaign
Research
– Users of Uzbek Cotton Farther Up the Supply
Chain
• Daewoo/Indorama
• RSN Bangladesh Mills Project
MONIQUE OXENDER
Senior Director, Sustainability
March 27, 2014
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9
10
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Ethical Sourcing Forum
March 27th,2014
Conflict-Free
Sourcing Overview
Mike Loch,
Director Supply Chain Corporate Responsibility
Motorola Solutions, Inc.
The Conflict-Free Sourcing Initiative
www.conflictfreesourcinginitiative.org | @EICCoalition | @GeSIConnect
CFSI Approach to Conflict-Free Sourcing
Finished
Product
MINE
SMELTER/REFINERY
OEMS
(pinch point)
In-Region Schemes
Conflict-Free Smelter Program (CFSP)
Company Assurance
Conflict Free Sourcing Initiative (CFSI)
14
Conflict Minerals Reporting Template Flow
1. Sends request to
direct suppliers
Template
User
2. Sends request to subsuppliers
Direct
Direct
Suppliers
Direct
Suppliers
Suppliers
SubSubSuppliers
SubSuppliers
Suppliers
4. Direct suppliers return
aggregated roll up template
Original
User
Direct
Direct
Suppliers
Direct
Suppliers
Suppliers
5. User returns final
aggregated roll up template
Customer
3. Cascades through supply
chain until smelters
identified. Sub-suppliers
return template to suppliers.
Smelter
Smelter
Smelters
15
Solutions for Hope Platform
Typical Artisanal Mining
Supply Chain
Creuseur
preneurs
Creuseur
NEGOTIANT
Creuseur
Creuseur
NEGOTIANT
Creuseur
preneurs
Creuseur
OEM
COMPTOIR
MAUNFACTURES
NEGOTIANT
SMELTERS
preneurs
INT TRADERS
Creuseur
COMPTOIR
Solutions for Hope Platform
The Solutions For Hope “Closed Pipe model in the DRC
provides a Secure Chain of Custody that Meets OECD DD Guidance
MINE*
MMR**
MINING IS CONDUCTED UNDER
CONCESSION FROM MMR.
AVX/SMELTER
AVX TAKE OWNERSHIP OF MATERIAL
DIRECTLY FROM MMR
* The diggers sell through their cooperative CDMC
AVX
Motorola
Solutions
CUSTOMER HAS A TRANSPARENT
TRACEABLE SUPPLY CHAIN
** Mining Mineral Resources
AVX buys the ore at world market prices –
• Secure chain of custody, traceability, monitoring, independent audit
• More value remaining in region, governmental taxes paid
• Reinvestment – safety, mining equipment & technology, facilities
• Social benefits program built in by partner contract
• Building technical capacity on the ground
• Engagement by the end consumers from the start
Ethical Sourcing Forum
New York | March 27-28, 2014
Didier BERGERET
Benefits of cross-industry cooperation | Traceability?
Social / Environmental compliance
= Define what’s « Core »
for production sites
+
Focus on what’s « Core »
Focus on what’s « Core » applied to compliance systems
Environmental
Reference Code
Implementation
Guidelines
› For 11 performance areas
Environmental
Commitment
› 3 levels:
› Awareness & compliance
› Proactive Management
› Leading Practice
Environmental
Stewardship
› Complement the
requirements
› Support improvement
› Guidance on how to
reach the required level
› Site-specific requirements
verification
Auditing
Competence
≠ Sectors
Audit Process &
Methodology
› Full environmental
audit protocol
› Mirroring social tools
Benefits of the « core-sectorality »
Ready-made
tools to take,
tailor and use
Benefits of cross-industry cooperation | Traceability?
Showcase business commitment to global sustainability
Conduct change with partners & suppliers
Framework for Environmental Stewardship
Capacity Building
toolkit for Suppliers
Full Environmental
System + Pilots
Toy Industry
Environmental
scheme
South African
Environmental
compliance scheme
›
22 member companies
›
9 sectors covered
›
global turnover/sales:
+675 bn. € | 870 bn. USD
Sectoral framework
for sustainable
management of
chemicals
Benefits of cross-industry cooperation
+ independent
experts
Benefits of cross-industry cooperation
GSCP members
Advisory
Board
PON
suppliers
Special
consultees
[SLMS]
project partners
…