Li & Fung s Involvement In Higg Index Adoption
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1 Li & Fung s Involvement In Higg Index Adoption Barry Tang 25 September 2015
2 Who is Li & Fung (LF)?
3 The Fung Group Fung Holdings (1937) Ltd. A privately held entity and major shareholder of the Fung Group Trading Logistics Distribution Retailing Li & Fung Limited Listed on SEHK Global Brands Group Listed on SEHK Fung Retailing Limited Privately Held Entity Convenience Retail Asia Limited Listed on SEHK Trinity Limited Listed on SEHK Branded Lifestyle Holdings Limited LiFung Kids (Holdings) Limited Toys R Us (Asia) Suhyang Networks UCCAL Fashion Group Privately Held Entities
4 Our business today Trading Logistics LF Sourcing LF Asia LF Beauty LF Fashion LF Private Label LF Products LF Logistics Agency Principal
5 Li & Fung today 109 years of history & evolution US$19.28B turnover 25,000+ employees 100+ acquisitions 300+ offices in 40+ countries 8,000 customers in 100 countries 15,000 vendors in 60 countries
6 Key customer base Specialty retail Home furnishing / craft Brands Kids Beauty Department stores & mass
7 LF Vendor Compliance and Sustainability (VCS)
8 VCS Service Evolution Value- added services to Assessment, Remediation & from Capacity Building Auditing Our competitive advantage to customers is that we deliver value-added services at every step of their supply chains that we manage.
9 Environmental Sustainability
10 Overview Environmental Sustainability Program Phase 1 Foundation and Low-Hanging Fruit Goal: Establish environmental sustainability management team, identify quick-win opportunities, build the business case, and prepare to make use of audit results and technical resources Establish the baseline measurement for energy & water usage and wastes streams at the facilities, which includes product output data Identify quick-win opportunities for factory and provide coaching support on their implementation Facility visits by the LF Team, Facilities management and/or external technical expert Actively engage in different industrial sustainability programme, such as SAC Help some of customers to monitor their environmental programme Track progresses and report
11 Environmental Sustainability Improvement Examples Energy Efficiency & Carbon Reduction Increase energy efficiency of manufacturing process & equipment Increase energy efficiency of steam boilers Improve piping insulation Retrofit lighting system Upgrade air-conditioning system Renewable energy
12 Environmental Sustainability Improvement Examples Water Resource Management Wastewater recycling Wastewater reuse Collection of rainwater Proper treatment
13 Environmental Sustainability - Food Waste Management Food waste from factory cafeteria is an opportunity for sustainability improvement. Such waste is a burden to landfill and may cause hygiene problems. On the other hand, if properly handled, this could be a valuable resource. Compost from food waste
14 Collaboration with SAC & LF Customers Actively involve and support the development of Higg Index (the FW working group ). Participated in the pilot testing of facility modules Share our training resource with SAC as leader membership Support some of the translations Cascade customers requirements to relative suppliers Exchange information on supplier performance Collect feedback to SAC and customers
15 Involve with Suppliers Arrange training session for suppliers on Designate responsible and learn basic knowledge on Facility Module (Environmental and Social/Labor-if needed) and set up their goals Use Higg Index Web Tool to complete and post their Module and connect with Li Fung and customers. Provide environmental improvement suggestion in Li Fung website - Sustainability Resource Center (SRC) Monitor and ensure module completion of each supplier Collaborate to make their Higg Index better score
16 Next Steps In order provide more value added services to our customers Work with SAC on internal verification Support Customer with Higg Index data analysis
17 Higg Index Data Analysis 17
18 Country Analysis Dashboard Property of Schneider Electric
19 Country Analysis Dashboard Property of Schneider Electric
20 Q & A
21 Thank you
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