Esquel Group Subject Heading Wastewater treatment plants in Gaoming, Southern China (Environmental protection) Background The Esquel Group is the world’s leading cotton shirt manufacturer with total revenues reaching US$500 million last year. The Company has a diversified workforce of more than 43,000 located in 8 countries. Our manufacturing hub consists of textile spinning mills, dyeing facilities, design labs and sewing lines in the southern Chinese riverside town of Gaoming. Esquel also grows cotton in China’s remote northwestern region. Reason for action Despite building a manufacturing hub in a small southern town in China, there was no proper water treatment facility nearby. In 1999, Esquel made a serious corporate commitment to environmental protection including plans to build modern, highcapacity wastewater treatment plants in this area. Previously factories had small wastewater treatment plants on their factory grounds. The objective was to reduce the overall environmental impact and meet national water treatment requirements. Process Dyeing and post-processing facilities produce over 19,500 metric tons of wastewater per day with high COD and pH in the water being major concerns. The Esquel Group has cooperated with local environmental protection bodies to develop modern wastewater treatment plants. In the middle of 2000, two such plants were constructed at a total investment cost of US$4.06 million. The total capacity of the treatment plants reaches 29,000 tons of wastewater each day. Since high pH is one of the byproducts of dyeing wastewater, 10 tons of sulfuric acid is also added everyday to help neutralize the toxins. Consequently to help lower the total amount of acid, from the boilers we pump exhaust gas, which is already highly acidic, into the wastewater before discharging it into the atmosphere. Result By using UASB technology, the process produces nearly zero solid waste. In addition, by using acidic waste gas from factory boilers, we can effectively reduce daily Sulfuric acid input from 10 tons to 5 tons. The result is that soot and acidic gas from the boilers are effectively removed. Action Result Properly treated effluent Clean environment and improved water quality Which meets national standards Smart use of waste gas Lowers dependence on sulfuric acid and thus reduces air pollution Employ local experts in wastewater treatment & plant development. Provides local institutions with valuable know-how in wastewater treatment development for various industries Pump waste gas in to wastewater Reduces the amount of soot formation, reducing contamination during the spinning process. Lesson Learnt To be a good corporate citizen is very important. Any activities of the manufacturing process should be well maintained and monitored. The investment in wastewater treatment plants is only a small portion of the total investment in this area. However, this investment will protect the area where we invested. In other words, we are protecting our investment. Moreover, all the factories of Esquel Group will have ISO 14000 certification at the end of this year. Each factory will start their own initiative in reducing the use of resources afterward. Global Compact Submission Form Esquel Enterprises Ltd. 1 Name of Company/Organization 2 Date of Submission 3 Prepared by: May 31, 2001 Name Mr. Robin Li Organizational Unit/Position Chief Human Resources Officer E-Mail LiRo@esquel.com Telephone (852) 2960 6288 Fax (852) 2960 2289 4 Contact Details Name Mr. Leo Jar Organizational Unit/Position Manager, Sustainable Development E-Mail JarL@esquel.com Telephone (852) 2960 6840 Fax (852) 2960 2185