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Daniela Suter – Head of Sustainability Near Non Food and Specialised Markets

The road to green and sustainable global value chains –

lessons learned!

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Agenda:

The road to green and sustainable global value chains - lessons learned!

Migros: who we are

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How we do things at Migros

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Yesterday – today – tomorrow

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Migros: who we are

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„The bigger an enterprise, the

bigger its obligation to contribute,

beyond the commercial aspects, to

solving the problems of mankind.“

Founder of Migros: Gottlieb Duttweiler

As quoted in „wir Brückenbauer“, 31st July 1959

Migros: who we are

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Migros:

Culture with strong values

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Founded 1925 by Gottlieb Duttweiler

Largest retailer in Switzerland:

24.6 billion CHF turnover in 2011

5 strategic business segments

Largest private employer in Switzerland:

86‘000 employees

Cooperative with 2.3 million members

3.5 billion CHF for the Migros Cultural

Percentage since 1957

Migros: who we are

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Migros:

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 Migros is the Swiss company that is passionately committed to the quality of life of all of its customers.

 Quality of life is something on which we take a comprehensive, long-term view.

 This «mission» from the company’s mission statement forms a basis for our commitment to sustainable development. Working with all of our

customers, our suppliers and interested social groups, we want to play an active part in shaping the future.

 We are committed to striking a balance between economic, ecological and social demands .

 This produces a model for sustainable development that Migros is firmly committed to and which is embodied in our corporate values.

Migros: who we are

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Guidelines –

vision of sustainable development

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How we do things at Migros

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Labels, Certificates, Initiatives

Identification of critical issues

 1996 Migros introduced the eco-programme to address ecological and social issues in the textile supply chain.

 2001 we started our Migros Bio Cotton programme to promote organic cotton.  1998 Migros started the Max Havelaar

Fairtrade programme for textiles.

 2009 Migros became founding member of BCI Better Cotton to address critical

ecologial and social issues in cotton production.

 As with any other certifications, initiatives, programmes, etc. also the Migros

eco/bio/Max Havelaar certification require that the respective rules and criteria are respected.

 Adherence to such requirements is carefully monitored and certified by third parties.

 Production under defined standards does not necessarily mean that goods are

labelled accordingly (BSCI, BCI)

How we do things at Migros

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• We learn about and evaluate risk and sustainability problems in supply chains in general and identify the critical issues in our Migros core business, along our supply chains.

• In the production chain for textiles, wet processes (bleaching, dyeing, printing, finishing) have the biggest effect on people and the environment. Use of chemicals, water and energy is incomparably higher than in preliminary

stages or in the manufacturing process.

• We define standards and requirements to address these critical issues. Product safety, use of resources and work safety are the deciding principles.

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How we do things at Migros

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• Eco provides a coherent approach for product and production ecology. • Eco provides due diligence (not financial) through an uninterrupted chain

of guarantees and through certification by an external agency.

• Eco is based on a preventative principle of avoidance. The goal is to produce clean clothing and textiles with maximum consideration for the environment.

• Eco avoids costly and time consuming tests of the finished products that only offer marginal safety.

• Eco offers full traceability of each article and the monitoring of ecologically critical processes form the basis for improvements.

• Eco-monitoring means monitoring and implementation of the MIGROS eco-criteria in a sustainable, systematic method.

• The three pillars of Eco are: Avoid – Reduce – Replace.

Migros eco-standard for textiles

DETAILS

What eco is all about

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Organizational Procedure

Phase 1 Phase 2 Phase 3 Phase 4

SUPPLY CHAIN Phase 5  Buyers Define Product  Buyers Select Supplier  Request eco from Supplier  Integral part of offer  Integral part of contract  Offer on all relevant aspects of product / order  Including eco-process  Quick check: supplier is requested to disclose intended supply chain  If accepted for monitoring: process starts  Supplier is to  inform his supply chain,  select his suppliers accordingly  request relevant information from supply chain  Provide full documentation  Check if

 all relevant information is available and plausible  May ask for additional

material

 Evaluates colorants, auxiliaries and chemicals  Imposes and monitors

corrections  On sight audits

 Authorization or rejection of eco

Migros eco-standard for textiles

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• Specific questionnaires exist for each and every step and actor in the supply chain.

• All producers along the supply chain are requested to fully complete and sign these forms and give us full data on the chemical substances used.

• This allows us to identify and to avoid, reduce or replace any harmful and ecologically critical substances in the process.

• Upon request Material Safety Data Sheets

must be provided, covering all the Substances used.

• Further technical data or Warranty Statements from chemical producers / products or existing Cerificates may be requested to evidence adherance to Migros eco-criteria.

Tools: Attestation of conformity / Questionnaires

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• To the professional user Material Safety Data Sheets

provide important information on the following features:

• Product Identification

• Occuring hazards

• Safe handling

• Prevention measures and measures in case of danger

• Material Safety Data Sheets are legal documents,

regulated under

• EU: VO (EG) Nr. 1907/2006, part. Art.31 in connection with addendum II

• China: GB/T 16483 -2008

• Producers of chemical substances are responsible for Safety Data Sheets to be technically correct and complete.

• It is of utmost importance to update these documents regularly to meet the actual Legal Status

• Data not provided in MSDS, need to be gathered from chemical manufacturers with specially designed

questionnaires for textile auxiliaries, dyes, coatings

Tools: Attestation of conformity / Material Safety Data Sheets

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Migros: yesterday – today - tomorrow

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Continuous improvement of the eco criteria towards a sustainable

textile production

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2006: Adding to the eco-criteria a list of allergenic dyes, adding CAS numbers

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2007: Prepare revised inspection specifications for nickel in accessories

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2007: Inclusion of regulated phthalates in the criteria as a separate category

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2007: Inclusion of the antimicrobial finishes in the criteria as a separate category. 2012: exclusion of antimicrobial finishes

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2005:

Supplementary Agreement for detachable accessories

Migros eco – a sustainable process

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10.04.2013

Migros-Genossenschafts-Bund | Sustainability Near/NonFood |Prime Source Forum Hongkong March 2013 | Seite 16

Migros eco – milestones

1997 Elimination of printing on the basis of heavy gasoline/kerosene/turpentine

1998 Ban on PVC Prints for eco articles

1998 First eco-products in denim

1999 Elimination of chlorine bleach for cotton products

2000 Elimination of after chromium/mordant dyes

2000 Migros Accessories Project: Selected Manufacturers of accessories (YKK, Amann, Coats) complete the eco-audit. Their whole range of products is

checked on conformity with eco-criteria. All Migros eco- suppliers have access to eco-compatible products.

2005 Extension of questionnaire on natural fibres GM (genetically modified cotton) for organic cotton

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10.04.2013

Migros-Genossenschafts-Bund | Sustainability Near/NonFood |Prime Source Forum Hongkong March 2013 | Seite 17

Migros eco – milestones

2005 Migros workwear is produced according to eco-criteria

2006 First eco-articles with PVC-free sequins

2007 Zipper-Project: Auditing of seven leading manufacturers of zippers in India and China (including their production facilities). SBS Zippers China decided to

implement the learning of the audit results in their purchasing guidelines

2009/2010 process oriented eco assessment for selected suppliers with good eco performance (full screening of all chemical products on-site and their environmental impact)

2010 Avoidance of pigment combinations in printing recipes which may release forbidden aromatic amines

2011 Instructions for printers to help printers to establish process safety measures

2012: Excluding antimicrobial finishes from eco-qualification

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Migros eco – where we stand today and our goals for the future

2012 65% Migros Private Label Apparel and 45 % Home Textiles covered by eco

2012 where we fail: stock market fabrics, small orders, special finishes

2017 Our goal is to have 100% of our Migros Private Labels to be covered by eco:

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Thank you

Gottlieb Duttweiler

– The Visionary

“In the modern world,

success comes to

those who are able to

build their companies

around a world of

ideas.”

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