APEO/ AP Investigation Summary Report December 2011

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1 APEO/ AP Investigation Summary Report December 2011

2 Introduction BACKGROU In September 2011, Greenpeace released the report Dirty Laundry II: Hung out to dry. They drew out 6 samples from different H&M stores globally and tested them for toxic substances; Nonylphenol Ethoxylates (NPE). NPEs are commonly used a detergents in textiles production. When broken down to Nonylphenol, it becomes a toxin that has persistent and hormone disrupting properties. Since 4 out of 6 samples were tested positive for NPE, we proceeded with an investigation to find the source of contamination. Case Thumbnail Information from Greenpeace Polo T Shirt Bird Shirt Purchased in China Made in China 19 ppm Purchased in Netherlands Made in Bangladesh 21 ppm It is important to note that all 4 cases comply with our current RSL. Restricted substance Limit Alkylphenol Ethoxylates / Alkylphenols (APEO/AP) Nonylphenol Ethoxylates (NPE) 100 ppm Octylphenol Ethoxylates (OPE) 100 ppm Nonylphenol (NP) Octylphenol (OP) Shirt Purchased in Switzerland Made in Bangladesh 3.1 ppm Snoopy Purchased in Russia Made in Bangladesh 5 ppm

3 Introduction WHAT ARE NPEs? NPEs/ OPEs are included in the group of non-ionic surfactants called alkylphenolethoxylates (APEOs). NPEs and OPEs can degrade to NP and OP respectively. SAMPLES TESTED BY GREENPEACE APEOs CAN BE USED IN FOR EXAMPLE: Detergents Sourcing agents Wetting agents Softeners Emulsifier/ dispersing agents Impregnating agents Degreasing agents for leather Finishing De-gumming for silk production Dyes and pigment preparations Error: Country of manufacture is Bangladesh

4 Methodology Pre-assessment Assessment Evaluation PRE-ASSESSMENT Documentation We requested the suppliers and their processing units who produced the 4 garment styles to fill out 2 documents. We also requested for them to submit their processing recipes. 1. Self Assessment 2. Chemical Inventory 3. Processing Recipes We used this information to better prepare for our next step which is to assess the production line. Test the same garment styles Greenpeace tested During pre-assessment, we also retrieved the same garments where possible, and tested them. As all garments are constructed with different parts and components, we tested different sections of the garment (e.g. body, sleeve, collar) and components to understand the concentration of APEO at different parts of the garment. ASSESSMENT We then tried to identify the possible sources of APEO. The depth of the investigation differed case by case. The difference highly depended upon how each garment was produced. However, for each case, we prioritized testing at the tier closest to us first- our suppliers. Then, depending upon the test results, we made decisions as to how to proceed further in the investigation- whether to select more samples from the same tier, or go further down the supply chain to search for the source of APEO contamination. EVALUATION After analysing all information gathered from the pre-assessment stage and the assessment stage, we made evaluations and have drawn some next steps for action. TEST LAB Bureau Veritas (BV) DETECTION LIMITS The detection limits are not the usual parameters used in current H&M testing. They were developed especially for this investigation by BV to test samples at much lower frequencies. Detection limit for fabric: OP/NP: 1ppm OPEO/ NPEO: 1ppm Detection limit for chemicals: OP/NP: 1ppm OPEO/ NPEO: 1ppm Detection limit for water: OP/NP: 1ppb OPEO/ NPEO: 10ppb

5 Methodology TESTING PRIORITY 1 st Priority 2 nd Priory LIMITATIONS WHAT ARE WE TESTING? Production Units Internal Wet Processing Incoming water Washing Unit Factory Treatment Plant Printing Unit Fabric Mill The biggest limitation foreseen for this investigation was the period difference between the time when the products were produced, and when this investigation began. Having had the products been produced approximately one year prior, we expected for some evidence to be loss, no longer traceable or containing different properties (e.g. incoming water and wastewater are unlikely going be the exact same/ near same quality as the quality used and discharged one year ago). All incoming water sources e.g. River/ Ground water Discharge & Sludge Based on recipe: Select Relevant chemicals with potential APEO content based Other chemicals onsite: Select other chemicals on site that potential of APEO content quality test Sludge Quality test

6 Results Number of positive results across all 4 investigations (in Bangladesh and China): Incoming water Chemical Products Discharge Sludge Number of positive results 2 out of 10 (20%) 12 out of 35 (34%) 1 out of 14 (0.07%) 2 out of 7 (30%) Result range for positive results 1.4ppb to 65 ppb 1 ppm to 3470 ppm See below table ppb 1.51 ppb 28.7 ppb Number of positive results across all 4 investigations (in Bangladesh and China): # Tested positive Result 1 Softener NPE 3470 ppm; NP 14.3 ppm 2 Softener NPEO: 4.0 ppm OPEO: 2.0 ppm 3 Softener NPEO: 4.0 ppm OPEO: 3.2 ppm 4 Binder NPEO: 12.5 ppm 5 Binder NPEO: 4 ppm OPEO: 4 ppm 6 Formulated Pigment NPEO: 322 ppm OPEO: 2780 ppm 7 Formulated Pigment NPEO: 1.8 ppm OPEO: 1.05 ppm 8 Formulated Pigment NPEO: 5.05ppm 9 Wetting Agent NPEO: 4.6 ppm OPEO: 2.6 ppm 10 Sequestering agent NPEO: 4.8 ppm OPEO: 2.6 ppm 11 Soaping agent NPEO: 4.6 ppm OPEO: 2.0 ppm 12 Anti-Back staining OPEO 1ppm All chemicals tested except 1 (#1) comply with EU regulations (EC No. 1907/2006)

7 Results- Polo Shirt, Produced in China Greenpeace Result: 19 ppm MATERIAL TESTS WATER & CHEMICAL TESTS AT PROCESSING UNITS Result Finished Product Body NPE 3.57ppm; OPE 1.62ppm; NP 2.02 ppm White part of collar Blue stripe on collar NPE 3.24ppm NPE 16.69ppm; NP 1.74 ppm Greige Yarn Yarn NPE 1.34 ppm; NP 1.88 ppm External Washing Finishing Incoming Water NP: 1.4μg/l Chemical Products used Discharge Silicon Oil: NPE 3470 ppm 1 ; NP 14.3 ppm Yarn Dyeing NPE 69.9 μg/l Sludge NP: 28.7 μg/l NPE 14.9 μg/l; NP 1.51 μg/l 1. Silicon oil was found onsite, however, it was not being used, nor was there evidence showing that it was in use.

8 Results- Shirt, produced in Bangladesh Greenpeace Result: 3.1 ppm MATERIAL TESTS WATER & CHEMICAL TESTS AT PROCESSING UNITS Result Washing Dyeing Finished Product NPEO: 4.0ppm OPEO: 2.0 ppm Incoming Water Chemical Products used Anti-back staining: OPEO 1ppm Wetting Agent Sequestering Agent NPEO: 4.6 ppm OPEO: 2.6 ppm NPEO: 4.8 ppm OPEO: 2.6 ppm Soaping Agent NPEO: 4.6 ppm OPEO: 2.0 ppm Softener NPEO: 4.0 ppm OPEO: 2.0 ppm Softener NPEO: 4.0 ppm OPEO: 3.2 ppm Discharge Sludge

9 Results- Bird Shirt, produced in Bangladesh MATERIAL TESTS Result Greenpeace Result: 21 ppm Finished Product from Factory 1 Lt Green print with NPEO: 10 ppm OPEO: 1.6 ppm Green print with NPEO: 8.0 ppm OPEO: 6.0 ppm WATER & CHEMICAL TESTS AT PROCESSING UNITS Finished Product from Factory 2 Black print with Yellow print with Gold foil print with Pink print with White shell fabric Lt Green print with Green print with Black print with Yellow print with Gold foil print with Pink print with White shell fabric NPEO: 8.0 ppm OPEO: 4.2 ppm NPEO: 6.0 ppm NPEO: 4.0 ppm OPEO: 2.0 ppm NPEO: 6.0 ppm NPEO: 2.0 ppm NPEO: 4.0 ppm OPEO: 4.0 ppm NPEO: 4.0 ppm OPEO: 4.0 ppm NPEO: 2.0 ppm OPEO: 2.0 ppm NPEO: 1.8 ppm OPEO: 1.2 ppm NPEO: 3.0 ppm OPEO: 1.0 ppm NPEO: 16 ppm OPEO: 8.0 ppm NPEO: 3.0 ppm OPEO: 1.6 ppm Incoming Water Chemical Products used Discharge Printing Unit 1 Printing Unit 2 Sapamine Binder WST Optical Brightener agent Binder NPEO: 4 ppm OPEO: 4 ppm Optical Brightener agent Softener Pink pigment NPEO: 5.05ppm Detergent Binder NPEO: 12.5 ppm Foil glue Fixing agent Green Pigment NPEO: 322 ppm OPEO: 2780 ppm Black Pigment

10 Results- Snoopy T- Shirt, produced in Bangladesh Greenpeace Result: 5 ppm MATERIAL TESTS WATER & CHEMICAL TESTS AT PROCESSING UNITS Result Dyeing Printing Finished Product Black print with grey fabric NPEO: 8.0 ppm OPEO 1.2 ppm Incoming Water NPEO: 65 ppb White print with grey fabric Grey fabric (body) NPEO: 4.0 ppm OPEO 1.2 ppm NPEO: 10 ppm OPEO 2.0 ppm Chemical Products used Stabilizer Clear effect Wetting White Paste agent Stabilizer Orient Paste Black Pigment NPEO: 1.8 ppm OPEO: 1.05 ppm Discharge Sludge

11 Results- Source of APEO overview Greenpeace Results Sample 19ppm 21ppm 3.1ppm 5ppm H&M Results - Highest content NPE from collar strip (blue) - Incoming water at 1.4ppb - High possibility of contamination from Silicon oil found in washing unit at NPE 3470 ppm (but no evidence or indication that it is in use) - Highest APEO concentrations found in areas of print - 2 out of 3 formulated pigments were tested positive - We believe the main APEO source is from the binders (also found in formulated pigments) - APEO found in a mix range of auxiliaries used, ranging in concentrations from 4.0 ppm to 4.6 ppm ppm was found in the black pigment - Assumption is that the body fabric is already contaminated before entering production (as there was no washing or dyeing in our production scope therefore could not add contamination) - APEO was found in shell fabric when tested as a finished garment - APEO found in incoming ground water at 65 ppb Key Findings: 1. APEO has been detected across the production chain at different tiers by different sources. 2. Main sources: Softeners, Binders and formulated pigments.

12 Next Step This APEO investigation has provided us a snapshot towards the sources of APEO contaminations. Results have indicated that there is no intentional of APEO in our products, and that in most cases, the detected levels are at background levels. BARRIERS The definition of Zero. Right now, background concentrations of hazardous chemicals can be detected, for example, in the incoming water of factories. Currently, our chemical supplier's ability to ensure of APEO free means not intentionally used. Coverage beyond Tier 1 and 2 suppliers. Right now, our direct business partners are what we call Tier 1 suppliers. We need to configure how we deal with suppliers beyond our direct influence. NEXT STEPS As all contamination sources comes primarily from chemicals, we will work and communicate with some major chemical suppliers to see what is possible in terms their ability to supply Zero APEO products. Overall, the industry needs to work in a collaborative way; Cover efforts with our business partners no matter direct or indirect. This includes the involvement of our suppliers (1 st and 2 nd tier suppliers), chemical suppliers, service providers (e.g. BV), and the government. BEYO APEO In line with our zero discharge of hazardous chemicals by 2020 commitment, we will in the next 18 months expand beyond this study, and make investigations on the presence of other hazardous chemicals in our supply chain. Until then, we are able to grasp a better picture towards how to plan and scale up, and reduce negative environmental impact across our supply chain.

13 Publication details Contact Details Media Relations

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