UK

BEIRHOLM & SUSTAINABILITY

TABLE OF CONTENTS UK Beirholm & Sustainability in a business perspective

4

Beirholm – a responsible supplier

6

Contemporary challenges in the textile industry

7

Labels and their contents

10

Guide to labels used in the industry

14

Our choice

17

BEIRHOLM & SUSTAINABILITY IN A BUSINESS PERSPECTIVE Beirholms Væverier has since the very beginning, based its business strategy on sustainability. The company’s product development and sales promotion have progressed from the leasing concept, started in the 1960’s, and have maintained focus on the operating economy of commercial laundries. We have achieved product longevity combined with optimal wash operating costs where water, soap, chemical and energy use, as well as, man hours, have been reduced to a minimum. This has ensued in a healthy operating economy which is vital for commercial laundries’ competitive advantage. Also, environmentally laundries have been propelled forward due to the significantly lower resource consumption attributed to the high product quality, which ensures more economical wash and ironing processes. Through the 80’s and 90’s, we made sure that our customers and their customers were protected against chemical residue in textiles. This resulted in 95% of our products are today Oeko-Tex Certified. We also addressed sustainable production combined with high product requirements for textiles, thereby, ensuring the EU Ecolabel certification on our strategic products. This certification is renowned for high standards, in among others, minimizing emissions and discharges, as well as limited use of dangerous substances. During the first years of 2000, we have furthermore, focused on making our products under ethical, work and environmentally responsible conditions. This is based on our CSR strategy and our Code of Conduct, which our suppliers commit to follow. Our Code of Conduct is based on the internationally renowned conventions, i.e. UN Global Compact, UN Children’s Convention, Human Rights and ILO. Our main focus has been to ensure that our products are not manufactured with the involvement of child labor, slavery, etc. as well as, making sure that workers do not risk life, limbs or health by going to work. To further strengthen our Code of Conduct efforts, we have chosen to work with BSCI (Business Social Compliance Initiative). Our newest initiative under sustainability is cooperating with our manufacturer’s subcontractors. The main focus has been the production of cotton, since cotton is the world’s most contaminant crop. The growing of cotton has had catastrophic effects for the environment and the existence base for populations in the production areas. To contribute to a sustainable cultivation of cotton, we have chosen to join the work of the Better Cotton Initiative (BCI). The purpose of BCI is to ensure the minimization of use of pesticides and water, as well as, to increase farmer yield, whereby increasing the standard of living of the farmer. Our newest collection of linens is based primarily on BCI cotton.

We have chosen to use BCI cotton in our new ranges of BeirTex® products. With BeirTex® the “feel-good” sensation of cotton preferred by end-users is as convincing as in cotton products. At the same time, the laundry saves on overheads, as the new product is less susceptible to pilling and retains a superb, attractive finish throughout the product’s life cycle – just as it has the potential to significantly reduce laundry costs. BeirTex® products enable you to meet your customers’ needs for 80/20%, 60/40% and 50/50% P/C in one and the same fabric. In terms of the end user market, BeirTex® fabric satisfies the desire for a higher proportion of cotton against the body, as more than 80% of the cotton is on the surface of the product. BeirTex® 50/50% P/C qualities are the ideal choice of material for the laundry, thanks to the longer service life of the products and their potential to significantly reduce consumption of resources in the production processes. We have chosen to produce all our BeirTex® products with BCI cotton, the EU Ecolabel and OEKO-TEX® 100, Confidence in Textiles, Class 1, which enables us to deliver the same price level as for conventional manufacturing. Throughout the years, our focus has been on the creation of beautiful and functional textiles and textile concepts catered to specific uses. Our textiles are easily integrated into all interior settings, thereby upgrading the overall impression. As our customer, you can be sure that the product in your hands is complete, commercial and future-proof: »» P  roducts which are produced under ethical, work and environmental sustainable conditions »» Products with a long economic life cycle in laundry production, and with potential to significantly reduce consumption of re- sources in the production processes, which results in a good operating economy and excellent environmental results »» P  roducts which are not only enticing to your customers’ individual image promotion through attractive design concepts and colours, but also due to functionality in each setting, which has a positive influence on your customers’ operating costs as well as work environment »» BeirTex® products with BCI cotton, EU Ecolabel and Oeko-Tex® 100 "Confidence in Textiles", Class 1, are at the same price level as conventional production All in all, a win-win solution!

4

5

Bedlinen: 7207 Capella ∙ Q-635 ∙ Col.: 100 White Hotel: Elite Plaza

BEIRHOLM – A RESPONSIBLE SUPPLIER

CONTEMPORARY CHALLENGES IN THE TEXTILE INDUSTRY

Beirholm is ISO 9001, ISO 14001, OHSAS 18001 and DS 49001 (ISO 26000) certified. We have formalized our CSR strategy, and we have since 2002 worked according to our Code of Conduct, which is based on internationally renowned conventions.

Challenges in the growth of cotton

The Beirholm Code of Conduct is implemented with our key manufacturers. These are regularly audited by external auditors from international certification bureaus according to a fixed auditing sequence. A continuous dialogue regarding improvements, documented after each audit, is to ensure that the manufacturer and Beirholm are aware of how far along the manufacturer is in the process. 95% of our products are Oeko-Tex® 100 certified. Oeko-Tex® 100 is

We regard our commitment to CSR, under which our manufacturers work according to our Code of Conduct goals, as a continuous process which furthers advancements in the processes to ensure optimal work and eco-friendly conditions as possible.

Beirholms Væverier has formalized our: »» CSR Strategy »» Code of Conduct We are certified after the following standarts:

a health care label that guarantees the end-user against harmful chemicals in textiles, i.e. formaldehyde or other residual chemicals which are potentially detrimental.

»» ISO 9001

We are EU Ecolabel certified on an array of our most important products. The EU Ecolabel certification is an environmental label which ensures high standards to the production of textiles, as well as the quality of the end product. They are rigid requirements which safeguard local production environment, including the level of emissions as well as discharges, and rigid restrictions to waste chemicals and toxic fumes from the end-product.

»» DS 49001 (equivalent to ISO 26000)

Beirholm has chosen to join BCI (Better Cotton Initiative) and support their principles. We want to have influence on the process where the purpose is to ensure that the cotton of the future will be grown in a way which improves conditions and future advantages economically, environmentally and socially. For the people whose living conditions are dependent on the growing of cotton and for the environment where cotton is grown. Our newest collection of bed linens is, therefore, based on BCI cotton. We have implemented DS 49001 which is the equivalent of the international ISO 2600. This certification dictates what principles; subjects and processes an organization works under. The result is to document that the company acts socially responsible. We have joined CDP (Carbon Disclosure Project) whose purpose is to decrease carbon emissions. The process takes place over three stages: Phase 1 is the uncovering and measurement of our own emissions; Phase 2 is the evaluation of improvement possibilities, as well as, action to these; Phase 3 is the involvement of the closest stakeholders. We started this process in 2013.

»» ISO 14001 »» OHSAS 18001

We are in progress with: »» CDP

We have joined UN Global Compact

We recommend products with: »» Oeko-Tex® 100 »» EU Ecolabel »» BCI Cotton »» M  aterial Composition of 50/50% P/C both as intimate P/C yarns and as BeirTex® yarns

We also offer products with:

Cotton grows on 2–2.5% of global farmland and more than two thirds of world cotton production occurs in developing countries and the former Soviet Union. The global cotton production represents an annual value of more than $30 billion, thus it should improve the human standard of living.

BCI cotton is produced by farmers who:

On a global level, cotton is the most water intensive crop. The global cotton production is estimated to account for 3% of the global water consumption. A major impact of this is not felt in the countries where cotton is consumed but rather in the countries where cotton is produced. In other words, water is a critical factor in connection with cotton production.

»» Care for and preserve the quality of the fiber

Cotton is an environmentally detrimental crop and the global cotton production accounts for 16-25% of the global use of insecticides. This is extensively more than what is used in any other crop in the world. Pesticides are by nature harmful, and almost half of the pesticides used in cotton production, are deemed so detrimental that WHO has classified them as “dangerous”. Beirholm has chosen to join BCI, whose purpose is to make global cotton production better for the people who produce it, better for the environment it grows in and better for the sector’s future. The BCI has a clear mainstream focus; aiming that Better Cotton should be available at market price with no fixed premium in place and no end product label. This sets Better Cotton apart from other cotton initiatives, like Fair Trade and Organic, which are so far geared toward specialty markets, primarily because of the high integrated costs associated to their systems BCI’s principles are built on the implementation of changes by the single farmer, so that the cotton farmers are able to grow cotton in a more economically, environmentally and socially responsible way.

»» Minimize the use of pesticides and insecticides »» Use water efficiently and care for the availability of water »» Care for the health of the soil »» Conserve natural habitats »» Promote decent work »» BCI cotton is in the same price category as conventional cotton An explosive growth of BCI cotton supply has occurred since the first harvest in 2010. Today, Better Cotton accounts for more than 10% of global cotton production. Furthermore, BCI's goal is that 30% of global cotton production will follow their principles by 2020. This is a very ambitious development strategy.In comparison, the production of organic and Fair Trade cotton consisted of less than 3% of global production in 2013. The single farmer’s experience through training of BCI principles is higher yield on the same field, achieved through optimized forms of production, lower costs due to the decrease in use of pesticides and fertilizers which results in an increased profit margin. This positive margin can, for example, be used to send children to school and/or purchase better production equipment. Instead of operating a traditional certification scheme, the BCI takes an approach of self-assessment combined with third party verification. This verification model is designed to try to reduce some of the formality, complexity and cost of certification schemes, and to tailor the inspection and monitoring process to both the business intricacies of cotton and the need to adopt a more enabling approach to auditing, that seeks to build capacity rather than police.

»» GOTS »» Fairtrade »» Nordic Swan »» OE100

Furthermore, we have made the decision to sign the UN Global Compact. As our customer, you will be able to follow our development in the public reports which are released annually on the UN Global Compact website.

6

7

Challenges in textile manufacturing It is important to us that our products are produced ethically, work and environmentally, under safe conditions. We base our strategy on CSR, as well as, on our Code of Conduct, which our manufacturers commit to work according to. Our initial main focus has been to ensure that our products are not manufactured using child labor, slavery or similar involvement, as well as, that workers do not risk life, limbs or health by going to work. At the same time, we make sure to also follow the other points in our Code of Conduct, which is based on internationally acknowledged conventions. In choosing of labeling options for our products, it has been essential for us to look at the entire life cycle of the product, thereby the product’s total environmental impact. We have, thereby, taken into consideration both the product’s total environmental impact during its life cycle and at the same time focused on the elimination of harmful substances from our products to the end users and our customers. Furthermore, it has been important to secure the best possible environmental conditions at the factories. A minimum requirement to Beirholm’s products is Oeko-Tex 100, Confidence in Textiles, Class 1, a health care label which predominantly ensures the end-user against toxic fumes. Oeko-Tex® 100 currently exists in 95% of all our textiles. ®

We have also chosen to produce as many of our products as possible, under the EU Ecolabel criteria. The EU Ecolabel ensures that only the most eco-friendly fibers may be used. There are strict restrictions to the full range of chemicals used in the manufacturing process. There are restrictions on discharge from, among others, dye works, as well as, restrictions on the quality of the finished product.

It has been crucial in our choice of labels that textiles with the EU Ecolabel do not need to be 100% cotton products, because 100% cotton textiles necessitate unusually higher amounts of water, chemicals and energy in the laundries. This works directly against the sustainable choices of our industry, from a complete environmental and economic consideration. We have chosen to produce all our BeirTex® products with BCI cotton, the EU Ecolabel and Oeko-Tex® 100, Confidence in Textiles, Class 1, which enables us to deliver the same price level as for conventional manufacturing. At present, we have obtained the EU Ecolabel certification on a range of our most important products and continue to work with the objective that the majority of our products, over time, will live up to these conditions. EU Ecolabel »» Minimized use of environmentally damaging substances »» Strict requirements which prevent the use of health hazardous chemicals »» Strict requirements which prevent harmful emissions and waste water discharge »» Strict requirements to the work environment in the production process »» High quality requirements to textile fibres and to the characteristics of the finished product

Independent experts control the compliance of requirements to the EU Ecolabelled products and services. It is not a label created by the industry for the industry. The label exists in order to protect the environment. The EU Ecolabel products produce less waste and thereby pollute less compared to similar products on the market.

LABELS AND THEIR CONTENTS An overview On a world level, there are many different forms of labels and it can be difficult to sort out their specific significance, since there are: environmental labels, organic labels and health care labels. Overall, an environmental label ensures that there is no pollution of the local environment, or more specifically, where production takes place. An organic label, on the other hand only ensures that the end product contains a partial amount of organic cotton fibers. A health care label is solely directed to the end-user’s health. The health care label ensures the end-user against health hazardous substances in the final product. Labeling in the different stages of the product’s creation As a rule, the labeling takes place during different stages of the product’s creation. In order to clarify, we have given some examples, below:

Cotton production

Textile production

Laundry

Hotel

End user

BCI FAIRTRADE GOTS EU ECOLABEL OEKO-TEX® 100 “CONFIDENCE IN TEXTILES”, CLASS 1

10

11

Description of textile industry’s most used labels

FAIRTRADE

Some labels have over time become trendsetting and internationally renowned, also within the textile service industry. Below, you will find a short description of the labels we most commonly come across in our industry:

The Fairtrade organization started up in Holland during the 60’es – Founder of Max Havelaar 1988 – Certifies Fairtrade in different supply chains; banana, coffee, and chocolate. For these products the entire supply chain is in compliance with Fairtrade regulations, whereas for cotton it only relates to a fair trade between farmer and trader.

BETTER COTTON INITIATIVE BCI is a multi-stakeholder organization with brand members like: IKEA, H&M, GAP, ADIDAS, Nike, Wal-Mart and WWF. The organization aims to make conventional cotton producers better by enabling the farmer to make better decisions. These decisions should be based on knowledge of what is best for his production, profitability and health in the long run. BCI has programs for training school, on field training and consultancy.

BCI’s goal is that 30% of global cotton production will be produced according to their principles, as well as, their message will reach out to 5 million farmers by 2020. BCI principles are inclusive in nature – the more farmers you reach out to, the better. More information at: http://www.bettercotton.org/

Which part of the supply chain?

Fiber mix

Scope of Label

Be aware of:

Cotton fields

Can be mixed with polyester fibers or conventional cotton in the final textile product

»» M  inimize use and impact of pesticides

»» N  ot working with organic cotton production

»» Responsible water management

»» Non label organization

»» S  ustainable soil management (rotation of crops to improve soil fertility)

»» W  e have chosen to produce all our BeirTex® products with the EU Ecolabel and with BCI cotton, enabling us to provide the same price level as for conventional production.

»» R  equirements for social rights (profitability, health and labor)

More information at : http://www.fairtrade.net/

Which part of the supply chain?

Fiber mix

Scope of Label

Be aware of:

Cotton fields

At least 50% of the product must be based on cotton fibres

»» Fair price to cotton farmers

»» W  orking conditions in weaving, spinning, finishing, stitching units are not covered by the standard

»» Salary paid directly to the female cotton pickers »» W  orking conditions in the plants and harvesting stage of the supply chain »» E  ach farmer has to be a member of a Fairtrade co-operative

EU ECOLABEL

GOTS

The aim of the standard is to define globally recognized requirements that ensure the organic status of textiles, from harvesting of the raw materials through environmentally and socially responsible manufacturing all the way to labeling in order to provide credible assurance to the end consumer.

FairTrade has a marketing organization in Europe which is funded by the importing companies via a license fee of 2% of their turnover.

»» R  egistration needed throughout the entire supply chain

»» T  he definition of better cotton is based on regional improvements what is better cotton production in the US might not be what is better cotton production in Pakistan. The main principle is that each farmer should improve performance year by year

Global Organic Textile Standard – the working group behind GOTS is comprised of four member organizations, namely OTA (USA), IVN (Germany), Soil Association (UK) and JOCA (Japan).

There are no requirements to the quality of the FairTrade labeled cotton. The difference between conventional cotton and Fairtrade cotton is that the person at the very start of the textile supply chain – the farmer – has been paid a fair price for his crop. It is not the finished fabric or item of clothing but cotton itself which is Fairtrade certified.

They also receive an additional amount which can be used to invest in community projects, such as building schools, health centers and improving water supply. Fairtrade standards have specific environmental requirements, and can act as a great bridge for farmers who are switching to organic farming practices.

Textile processors and manufacturers should be able to export their organic fabrics and garments with one certification accepted in all major markets. The certificate has criteria for fiber production and processing, manufacturing and social criteria. More information at: http://www.global-standard.org/

The European Ecolabel is a voluntary scheme, established in 1992 to encourage businesses to market products and services that are kinder to the environment. The EU Ecolabel helps you identify products and services that have a reduced environmental impact throughout their life cycle, from the extraction of raw material through to production, use and disposal.

Recognized throughout Europe, EU Ecolabel is a voluntary label promoting environmental excellence which can be trusted. More information at: http://ec.europa.eu/environment/ecolabel

Which part of the supply chain?

Fiber mix

Scope of Label

Be aware of:

Manufacturing from fibers to textiles

Can be mixed with polyester or other fibers in the final textile product

»» T  he product is among the least environmentally detrimental of its kind

»» No requirements for organic cotton

»» Q  uality and function is at least as good as for other products

Which part of the supply chain?

Fiber mix

Scope of Label

Be aware of:

»» Y  our health has been taken into consideration

Cotton field (Organic cotton) + manufacturing from fiber to textiles

Can be mixed with max 5% polyester or other fibers in the final textile product

»» C  ertification of organic products from farm level to finished product

»» Has no certification for farmers

»» R  equirements are made to the following 4 main areas: Fibers, processes, chemicals and end-use

»» H  as requirements for social standards

12

»» GOTS has a higher price level than conventional cotton

13

»» W  e have chosen to produce all our BeirTex® products with the EU Ecolabel and with BCI cotton, enabling us to provide the same price level as for conventional production.

GUIDE TO LABELS USED IN THE INDUSTRY We have listed the labels used in our industry using three different approaches, in order to make it faster to obtain an overview: »» Which categories are covered by which labels? »» What does each label include?

Label category: Environment

Organic

Ethical - Social Welfare

Consumer safety

Management

ISO 14000 DS 49001 BCI EU ECOLABEL NORDIC SWAN GOTS

NORDIC SWAN GOTS OE100 KRAV

FN Global Compact SA8000 FAIRTRADE GOTS KRAV NORDIC SWAN BCI OHSAS 18001 DS 49001

OEKO-TEX® 100 GOTS KRAV EU ECOLABEL NORDIC SWAN DS 49001

ISO 9001 OHSAS 18001 SA 8000 DS 49001

Each label include: Brand

ISO 9001 ISO 14001 OHSAS 18001 DS 49001 BCI EU ECOLABEL NORDIC SWAN GOTS OE100 KRAV FN Global Compact SA8000 FAIRTRADE OEKO-TEX® 100

Environment

Organic

Ethical - Social Welfare

X X X X X X

X X X X X X X X

X X

Consumer safety

X

Management

X X X X

X X X X

X X X X

X X

15

Tablecloth: 6109 Dijon ∙ Q-625 ∙ Col.: 1256 Mahogany Napkins: 6001 Copenhagen ∙ Q-502 ∙ Col.: 100 White Napkins: 6001 Copenhagen ∙ Q-502 ∙ Col.: 349 Plum Hotel: Altes Stählwerk

OUR CHOICE Beirholm has chosen to work primarily with: »» Oeko-Tex® 100 »» EU Ecolabel »» BCI Cotton A minimum requirement for Beirholm products is the health label Oeko-Tex® 100, which at present covers 95% of all Beirholm products. We have chosen the environmental label EU Ecolabel, because it has strict requirements to the manufacturing process which ensures against toxic fumes and discharge, as well as, against the use of detrimental chemicals at the manufacturing sites. It also has strict requirements to the textile fibers and to the characteristics and quality of the finished product.

We have, with this brochure, attempted to simplify and give an overview of the array of different labels and the possibilities within the environment and ethics. We believe that this is an area that concerns all of us, and is an area where we should all share in the responsibility. If you have any questions or positive input to this project, please feel free to contact us!

Crucial to the decision was also that the EU Ecolabel supports sustainability in the products entire life cycle, since the EU Ecolabel allows for the use of polyester fibers in products. This ensures a longer life cycle of the products as well as a considerably lesser use of water and energy in the laundries. A crucial factor, that ensures the sustainable choice seen from an environmental economic perspective. Finally, we have chosen BCI cotton, due to that fact that since cotton is one of the most polluting crops grown on a world level, and since BCI cotton ensures a more sustainable form of cultivation of cotton. Bedlinen: 7134 Piccolo ∙ Q-631A ∙ Col.: 451 Multi Pillow: 7132 Mandolin ∙ Q-631A ∙ Col.: 924 Riviera Blue

We have chosen to produce all our BeirTex® products with BCI cotton, the EU Ecolabel and Oeko-Tex® 100, Confidence in Textiles, Class 1, which enables us to deliver the same price level as for conventional manufacturing. We recommend products with: »» Oeko-Tex® 100 »» EU Ecolabel »» BCI Cotton »» M  aterial Composition of 50/50% P/C both as intimate P/C yarns and as BeirTex® yarns

We also offer products with: »» GOTS »» Fairtrade »» Nordic Swan »» OE100

Towel: 8168 Elba ∙ Q-731C ∙ Col.: 986 Seaweed

Beirholms Væverier A/S · Nordager 20 · 6000 Kolding · Denmark · Phone +45 7552 4555 · Fax +45 7633 9097 · [email protected] · www.beirholm.dk Printed April 2016 - Copyright 2016 Beirholms Væverier A/S, All rights reserved. The content of this material is owned by Beirholms Væverier A/S, any use or reproduction of this material is only permitted with written consent. Beirholm and the BV logo are trademarks of Beirholms Væverier A/S