Greening China’s Supply ChainsOptimizing energy efficiency in textile factories                                1st Year Pr...
Rising cost of energy             Global brands and                                                             Increasing...
Project at a glance                      Steam loss at a participating               textile dying facility at program sta...
Same factory after the program:  2 million RMB savings per year through 2000 RMB investment insemi-automatic control syste...
Through Energy Audits in 10 factories we found         87 types of energy efficiency projects withtotal energy cost saving...
Energy Management TrainingSuppliers participated in 5 trainings on:1. Energy management systems2. Data management and anal...
Interactive energy audit training   Expert facilitated walk-through audit with suppliers   First hand experience of good...
Training lessons and audit results werequickly turned into action:Beijing Huayang Garment Factory invested120,000 RMB in a...
LASTING IMPACT“Through the trainings of the project, the biggest improvement is theawareness and attention given to energy...
Project at a GlanceProject outline 2011-2012:• 13 factories participating in Beijing, Hebei, Jiangsu, Shangdong and Zhejia...
Recognizing 2012 suppliers’achievements              Confidential & Proprietary                  11                       ...
Azure International                                                            Oriental Kenzo                             ...
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Greening China's Supply Chains

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Major achievements and key activities of a supply chain energy efficiency program in China that Azure International initiated together with major global clothing brands during 2011 and 2012.

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Greening China's Supply Chains

  1. Greening China’s Supply ChainsOptimizing energy efficiency in textile factories 1st Year Program Results and Activities © Azure International
  2. Rising cost of energy Global brands and Increasing global retailers setting government pressure energy and on greenhouse gas greenhouse gas emission regulation emission targets for and pricing supply chains China 2015 government textile Textile supply Competition withindustry target of 17% chain energy other textile energy efficiency efficiency producing countries in improvement Asia compared to 2010 drivers © Azure International
  3. Project at a glance Steam loss at a participating textile dying facility at program start 3 © Azure International
  4. Same factory after the program: 2 million RMB savings per year through 2000 RMB investment insemi-automatic control systems on dyeing/washing machines. 10% Energy costs saved! 4 © Azure International
  5. Through Energy Audits in 10 factories we found 87 types of energy efficiency projects withtotal energy cost savings of 46 million RMB/year, 9 months average pay-back time, cutting factory energy bills by 25% and saving 60 ktCO2/year © Azure International
  6. Energy Management TrainingSuppliers participated in 5 trainings on:1. Energy management systems2. Data management and analysis3. Textile industry energy efficiency best-practices4. On-site interactive energy auditing training5. Action planning Confidential & Proprietary 6 © Azure International
  7. Interactive energy audit training Expert facilitated walk-through audit with suppliers First hand experience of good and bad practices Fostering peer-to-peer learning Practicing working with customized tools to identify energy losses Confidential & Proprietary 7 © Azure International
  8. Training lessons and audit results werequickly turned into action:Beijing Huayang Garment Factory invested120,000 RMB in a steam pipe retrofit andinsulation project, saving 800,000 RMB/yearor 12% of total energy costs 8 © Azure International
  9. LASTING IMPACT“Through the trainings of the project, the biggest improvement is theawareness and attention given to energy management from companyexecutives who now view energy use more strategically.”-- Manyin Jian, VP of Beijing Huayang Garment Factory “This project has provided a good platform for dialogue and sharing of best practices among relevant stakeholders. Specifically, it has offered factories the tools and capacity to attract financing options for energy savings projects as well as improve their ability to measure progress and collect relevant data.” -- Felix Ockborn, Environmental Sustainability Program Developer, H&M“The most important improvement after joining this project is that energyconservation awareness has been strengthened from top managers toeach worker in our factory. Energy conservation is now a part of ourcompany culture.” -- YunXiao Li, VP of Hebei Ningfang Group © Azure International
  10. Project at a GlanceProject outline 2011-2012:• 13 factories participating in Beijing, Hebei, Jiangsu, Shangdong and Zhejiang• Covering spinning, weaving, dying and garment manufacturing• Levi’s, GAP, H&M and adidas actively participating• Funding by Renewable Energy and Energy Efficiency Partnership• Implementation in partnership with the China National Textile and Apparel Council• Sector specific tools for energy management system analysis and energy auditing developed• Detailed training program implemented• Energy audits conducted by Azure experts at 10 factories• All participating factories developed action plans for implementing energy saving measures• Partnership with International Finance Corporation to explore financing optionsGoals for 2013:• Scale up to 40 factories in China• New brands joining the platform• Develop partnerships with financing institutions Confidential & Proprietary 10 © Azure International
  11. Recognizing 2012 suppliers’achievements Confidential & Proprietary 11 © Azure International
  12. Azure International Oriental Kenzo Suite H, 6th Floor, Office Tower No 48, Dongzhimenwai Street 100027 Dong Cheng District, Beijing PR China Tel: +86 10 8447 7053 Fax: +86 10 8447 7058 www.azure-international.comFor more information, please contactMs. Jenny Chujenny.chu@azure-international.com © Azure International

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