Sustainable & Responsible

Manufacturing

ESPRIT
Environmental Sustainability Audit Guidelines
for Wet Process units/mills
(Washing, Pre-treatment, Dyeing, Printing, Finishing,
Wet & finishing Tanneries)
OVERVIEW
Esprit strives to be responsible stewards of the environment, seek to reduce the
environmental impacts in our supply chain and want our partners to practice minimum
standards of ethical and responsible behavior firmly based on the respect for human
and labor rights.

Our expectation is that our suppliers will share our commitment to sustainability and to
respecting the rights of their employees. Achieving this requires innovation and closer
partnership with mills, suppliers, vendors, and the facilities that manufacture our
branded products. We are committed to partnering with suppliers for them to take
increased ownership of the improvement process, make smart investments in their
sustainability efforts, and attain continual and sustainable progress against their own
sustainability goals.

To facilitate the process, we engage to assess wet process units/mills to evaluate them
in terms of their ethical & safe working standards and sustainability performance. Our
focus is on assessing performances across various sections and helping to identify areas
for improvement. We believe that transparency is crucial for the assessments and
expect each supplier partner to provide access to facility’s plant, records and workers.

In order to support you for better understanding and organize for the assessments,
we hereby give guidelines which would provide tips on how to provide specific
information related to different areas of worker’s rights, water &energy sources
and consumptions, waste and chemical management, quality control and best
production practices.
PART 1 GENERAL RISK ASSESSMENT

Esprit wants it manufacturers and suppliers to practice minimum standards of ethical and responsible
behavior in the course of its business, in line with the corporate culture of Esprit group, firmly based on
the respect for human and labor rights.

Minimum legal requirements for establishment

Scope of Assessment:

− Legal factory registration & Permissions.

− Employees profiling.
− Ethical standards, Working hours.
− Wages and benefits, payment mode and frequency.
− Building integrity, fire& Electrical safety, Housekeeping.

Checklist of documents to review-

− Valid Factory license.

− Valid Building stability certificate.
− Approval of Building plan.
− Registration under contract act for engaging contract labors, if any.
− License of contractors.
− Working hours records.
− Payment records (wages, overtime payment, social security benefits).
− Fire NOC, Records of fire drills.
− Emergency evacuation plan.
− System and list of fire extinguishing measures / equipment’s.
− Boiler & DG set permissions and maintenance records.
− Lifts, if any, permissions and maintenance records.
− Any other documents related with worker safety / rights.

Method of Verifications are:

Visual observation
Records Review
Factory management Interview
Gathering Info from workers
PART A ENVIRONMENTAL MANAGEMENT SYSTEM

Facilities should have Environmental Management System & Strategy (EMS ) providing broader
guidelines of company’s policies towards managing their impact on environment associated with current
operations, complying with all applicable environmental laws and regulations, effect on air emissions,
water & energy consumptions.

Scope of Assessment:

‒ Facility has EMS designated team having one or more employees responsible for coordinating their
environmental management activities.
‒ EMS is implemented and operates in full compliance.
‒ Facility conducts environmental awareness trainings for employees.
‒ Maintain environmental management records.

Checklist of documents to review:

− Environmental Management team organizational chart and job description records.

− Environmental Management strategy.
− Environmental impact analyses evaluation report.
− List of required environmental permits needed to operate.
− Documentation of your system to identify, monitor, verify all laws, regulations, standards, and
regulatory requirements for your environmental impacts.
− Internal communication plan and records showing training schedule for employees.

Method of Verifications are:

Records Review
Factory management Interview
PART B ENERGY MANAGEMENT

Energy consumption leads to some of the most significant environmental impacts associated with any
business operations. Good energy management can result in energy-related cost savings and a more
reliable energy supply. By tracking and monitoring energy usage on a regular basis, a factory can
identify areas for improvement and set targets for reducing energy consumption.

Scope of Assessment:

− Facility’s energy management policy identifying sources of energy used, processes using most
energy.
− Department & process wise yearly consumption of all forms of energy: measuring consumption with
meters that track water, steam, and electricity consumption in total and at process and equipment
levels.
− Energy conservation procedures development and implementation.
− Documented Improvement targets for reducing energy.
− Goals and plans for energy efficiency, and including provisions for comparing actual performance
against goals.
− Educating employees on behavior changes to conserve energy.
− Installing onsite renewable energy plan.

Checklist of documents to review-

− Copies of utility bills (meter readings) for all energy sources listed covering full calendar year.
− Full year total energy consumption data –process wise for all energy sources - GHG emissions
tracking of all departments and data :
Quantity of energy consumed, per energy type ( Electricity, Natural Gas, Diesel fuel, Solar, Wind ) -
Total Consumption in Each Department: -
# Pretreatment, Dyeing, Printing, Finishing, Laboratory & Packing, Other Departments
− Energy conservation plan and documented quantified data to substantiate savings.
− Renewable energy, if any, consumption data and comparative saving records.
− List of equipment’s installed, if any, to reduce energy consumption and quantified saving data.

Method of Verifications are:

Visual observation
Records Review
Factory management Interview
PART C WATER USAGE

Water is critical to apparel industry using huge amount at various stages of garment making process.
However, although water is in finite supply, it is under significant stress and scares in certain zones
across globe. Reducing consumption of water by operational efficiency, implementing new technologies,
and redesigning processes can help in conservation of this very precious natural resource.

Scope of Assessment:

− Facility’s water management policy identifying sources of water, processes using most water
consumption, communicating and training employees on water savings.
− Water consumption in accordance with prescribed regulations, permits.
− Recording and regularly maintaining data regarding water consumption (process wise).
− Setting targets for reducing water use including initiatives of rain water harvesting.
− Documented quantified data to substantiate water savings by implementing water reducing
technologies.
− Implementation of a water balance or another analysis to evaluate the traceability of water intake
vs. usage.

Checklist of documents to review-

− Water management policy and all permits required as per regulations.

− Copies of utility bills (meter readings ) for all water intake sources listed covering full calendar year.
− List covering ranking of processes or services that consume the most water.
− Water use reduction plan showing specific actions designed to achieve targeted reductions.
− Quantified data showing water savings in different processes.

Method of Verifications are:

Visual observation
Records Review
Factory management Interview
PART D WASTE WATER

Facilities must have and ensure that they are managing their waste water discharge in accordance with
prescribed regulations, regular practices, appropriate permits and strictly complying with waste water
discharge limits. By reducing the volume of waste water discharge, treating water onsite so that it can
be reused, facilities can improve their environmental impact and their bottom line.

Scope of Assessment:

− Appropriate permits for running effluent treatment plant with layout plan.
− Details of Central effluent plant (CETP ), in case wastewater is discharged to offsite treatment center.
− Methods used to track domestic and industrial wastewater volumes and frequency of measurement.
− Details of domestic waste water treatment onsite or via discharge to an offsite treatment center.
− Plan to follow ZDHC wastewater guidelines.
− Documented Back up plan if there is an emergency situation related to wastewater.
− Safe sludge storage and disposal system.
− Permits and contracts with authorized agencies involved in sludge disposals.

Checklist of documents to review-

− Documented ETP layout plan and system on which it runs.

− All required permits for wastewater discharge and running ETP as per local regulations.
− Annual wastewater (both domestic and industrial waste water) production monitoring records.
− Copies of bills if wastewater discharged is metered.
− Signed Contract/Agreement with CETP , in case wastewater is treated in offsite center.
− Internal or external analysis of the ETP inlet and outlet for at least 4 parameters: COD, BOD, pH and
TSS reports.
− Documented backup processes in case of emergency, to treat the average daily amount of waste
water discharged by the site.
− Permits, manifests and invoices, if any for proper disposal of sludge.
− Annual sludge disposal &inventory records.

Method of Verifications are:

Visual observation
Records Review
Factory management Interview
Gathering Info from workers
PART E WASTE MANAGEMENT

Facilities must ensure all solid non-hazardous and hazardous waste is appropriately disposed of in
accordance with local and national guidance. This includes, but may not be limited to, obtaining permits,
providing workers with appropriate and properly labeled waste disposal containers, ensuring that solid
waste is free from hazardous contamination, handling and storing of hazardous waste properly to
ensure the safety of workers and environment, securing and protecting waste collection area, safe and
timely removal of solid waste by licensed.

Scope of Assessment:

− Waste management policy including details of designated employees responsible for waste
management.
− Hazardous and Non-hazardous waste identification and management.
− Waste inventory and disposal records to obtain facility’s baseline impact.
− Adequate waste storage yard with proper demarcation &markings of type of waste stored.
− Good condition of storage containers, appropriate for their contents and clearly labeled with their
contents.
− Proper storage of flammable substances kept away from sources of heat or ignition.
− Trainings to all employees whose work involves hazardous waste handling for safety precautions.
− Implementation plan to reduce waste quantity or improve type of treatment.
− Measure impacts to compare current performance to baseline.

Checklist of documents to review:

− Documented waste management policy.

− Waste inventory data grids with details of all types of solid waste generated in facility.
− Hazardous and Non-hazardous Waste disposal manifest and invoices/challans.
− Documented Policy and SOP for showing specific actions designed to achieve targeted waste
reductions.
− Quantified data to substantiate reductions as compared to baseline year.
− Written Training records with details of all participants.
− Agreements & contracts with third party contractors taking hazardous and Non-hazardous wastes.

Method of Verifications are:

Visual observation
Records Review
Factory management Interview
Gathering Info from workers
PART F AIR EMISSION

Air emissions from different processes directly affect environment and facilities should work towards
improving air quality.

Scope of Assessment:

− Sources of air emissions that result from production processes.

− Systems of control devices or abatement processes for on-site & indoor emissions to air.
− Implemented plan for modernized equipment to reduce or eliminate air emissions and indoor
quality issues.
− Planned implemented efficiency measures and leading practices to improve GHG emission
performance.
− Planned reduction targets to decrease emissions footprint.

Checklist of documents to review-

− Current list (inventory) of emissions to air and their sources at the site.
− Boiler, Generators, Engines and other equipment running permits as per regulations.
− Valid latest Inspection certificates for all equipments.
− Handling & safety training schedules for all operators.
− Medical test reports of boiler operators.
− Air quality testing records of different areas in the facility.
− Documented plans/process for equipment upgrades to reduce air emissions.
− Quantified data to substantiate reduction target.
− Listed evidence or reducing the quality of emissions to air for the site beyond reductions resulting
from reducing energy use.

Method of Verifications are:

Visual observation
Records Review
Factory management Interview
Gathering Info from workers
PART 2 CHEMICAL MANAGEMENT

Chemical Management is VERY important part of textile manufacturing as it has direct bearing on the
environment through all the mediums – air, water and land. It is significant for units to thoroughly
research the properties of chemicals before any procurement, and prohibits the use of banned
chemicals in manufacturing processes, as described in ZDHC MRSL and Esprit RSL/MRSL lists.

Scope & Checklist for Assessment:

‒ Facility’s Chemical inventory and usage log with all required details.
‒ Documented process to systematically identify, monitor and verify compliance with all Esprit RSL/
MRSL & ZDHC MRSL requirements.
‒ Documented procedure on how to select and purchase chemicals.
‒ Details of designated team responsible for chemical management.
‒ Chemical and hazardous substances storage areas maintained in safe manner.
‒ Safe chemical handling procedures and training of workers in these procedures and hazards of
chemical exposure, hazard signage.
‒ Procedures for reporting and responding to spills in production areas and stores.
‒ Spill kits availability and completely equipped.
‒ Training workers in SDS/MSDS of chemicals for safe work practices to be followed for respective
chemicals and make all relevant latest editions of MSDS available at production site.
‒ SOP and availability of PPE for workers that allow them to manually dispense chemicals in the
manner that reduces the possibility of spillage and unnecessary exposure.
‒ Designated emergency wash station areas in or near work and chemical mixing/transfer areas.
‒ Procedures to handle empty chemical containers and hazardous waste.
‒ Environmental and Occupational health and safety program.
‒ Plan to date chemicals to assure that expired chemicals or no longer used chemicals are disposed off
properly.
‒ System of tracking changes in laws and regulations governing environmental management and
reporting to management team.
‒ SOPs for secondary containment at all locations where chemicals are stored and an emergency
response plan in place for those critical areas.
‒ Review of storage area for well ventilated space only for storing chemicals.
‒ First aid facilities availability in all production and chemical usage areas.

Method of Verifications are:

Visual observation/Records Review/Factory management Interview

Gathering Info from workers
PART 3- PROCESS & QUALIY CONTROL MANGEMENT

Best practices followed in production directly facilitates in reducing use of water, energy and chemicals
which consequently helps in improving environmental objectives. Process optimization not only aids in
resource savings but also benefits in getting quality merchandise. It is essential for any facility to follow
best practices in all production areas to achieve targeted goals.

Scope & Checklist for Assessment:

Processes controls in :

• Spinning Section – Opening & Cleaning/Carding/Drawing/Roving/Spinning/Winding

• Weaving Section – Warping & Sizing, Weaving,
• Knitting Section
• Pretreatment Section – Desizing/Sourcing & Bleaching/Singeing/ Mercerizing etc.
• Dyeing and printing Section – Chemical preparation & Storage, Dyeing, Printing & processing.
• Finishing Section – Pre-shrink/Skew Control/Heat Setting etc.

Quality Control Management :

• Laboratory, Testing’s.
• Inspection system

Color Control Management (devices and equipment)

• Color Matching system

• Equipment’s for color matching
• Shade grouping
• Recording and storage system.
PART 3- PROCESS & QUALIY CONTROL MANGEMENT

For Tanneries:

Assessment of Process controls in all the areas of tanning and finishing :

• Starting with raw material traceability.

• Pre-tanning operations – covering:
Storage of Raw hides/skins
Curing and Preservation of raw hides/skins
Soaking
Liming
Fleshing
Deliming
Bating
Pickling and Degreasing
Splitting
• Tanning Processes
Chrome or Chrome free ( FOC ) Tanning
Samming
Shaving
Dyeing
Drying
• Finishing Processes
Staking
Buffing
Fulling
Toggling
Fat liquoring and Softening
Dry milling
Ironing
Other finishing methods

Quality Control Management :

• Laboratory, Testing’s.
• Inspection system