Project Completion Report Please submit through your APEC Secretariat Program Director within 2 months of project completion. SECTION A: Project profile Project number & title: IST 0 3 20 1 2 A - L o w C arb o n In t e ll i g en t O p er at i ons f or T ex t i le In d us tr y i n AP E C Ec o n om ies Time period covered in report: Committee / WG / Fora: Project Overseer Name / Organization / Economy: July 01, 2012 ~ June 30, 2013 Date submitted: 10 July 2013 APEC ISTWG Name: Tony Yang Ping SHIH / Department of Products | Taiwan Textile Research Institute / Chinese Taipei SECTION B: Project report and reflection Briefly answer each of the questions below. Section B should be a maximum of 2-3 pages, inclusive of the questions and tables provided. 1. Project description: In 3-4 sentences, describe the project and its main objectives. In response to the carbon disclosure project (CDP) reporting encouraged and suggested by international organizations, such as OECD, this project aims to enhance the APEC textile manufacturer's ability to incorporate green operations into their manufacturing process and to reduce technical barriers to trade. This project therefore has two main objectives: (1) conduct a case study to introduce a low-carbon manufacturing process based on the publicly available specification of carbon footprint verification (PAS 2050), and (2) share the experience and lessons learned from the case study to APEC economies in a workshop. 2. Meeting your objectives: Were the proposed objectives of the project met? If so, please describe how. If not, please include any major changes to the proposed scope of the project. Please outline any problems you may have encountered that resulted in delays to the delivery of the activity. The proposed two project objectives were fully met. In terms of the first objective, the project team worked with Formosa Taffeta Company (FTC) to perform an environmental footprint evaluation (based on the concept of product life cycle) on 24 types of functional textiles. In the end of the evaluation, these products all received the verification statement issued by an independent third party. The evaluation process required that the project team first identified raw materials used in the manufacturing process and calculated the amount of carbon emissions generated from producing these materials (including emissions for shipping of each material). The team then estimated the amount of emissions generated from the energy consumed in converting raw materials to a fabric. The amount of production waste emissions released in the air, water or on land was also estimated for. Finally, the team located carbon hotspots from the calculation process and explored optimal solutions for emission reduction. And, in order to facilitate the evaluation process, the project team introduced a method named "Life Cycle Inventory Questionnaire (LCIQ)." The LCIQ tool can be used to compile a carbon footprint inventory. It can assist textile manufacturers to plan and implement a low carbon manufacturing process. For a detailed description of the LCIQ tool and the carbon footprint analysis of functional textiles, please refer to Appendix A (project midterm report). For the second objective, the project team shared the knowledge/experience on the planning and implementation of low carbon manufacturing process for functional textiles to APEC economies in a workshop. The workshop was held in Chinese Taipei during 23-24 April 2013, and attracted 74 participants. These participants included textile manufacturers, retailers, researchers and regulators. In order to build interest among the participants of how the green benefits brought from the use of low carbon production process and to encourage wider application as well as trade and investment in low carbon ideas in APEC region, the workshop covered topics ranging from the introduction of the LCIQ tool, successful marketing of low-carbon textile products, existing low-carbon policies and access to finance for low-carbon ideas (see Appendix B for workshop agenda). A total of eight contributed presentations were given throughout the two day event. Open discussion session panelists added insight to the workshop topics during lively question and answer discussions following the various presentations. Please refer to Appendix C (workshop proceedings) for the full program and presentations. 3. Evaluation: Describe how you evaluated the project upon completion? Detail the results of the evaluations conducted, if any (e.g. participant evaluation, peer review of publication, measurement of indicators, statistics demonstrating use of outputs etc.). The main indicators of the successful project implementation are: The case study performed a footprint evaluation on 24 types of functional textiles. In the end of the evaluation, these products all received the reasonable level of assurance of the carbon footprint verification, the highest level of the verification. Moreover, this evaluation result broke the worldwide record to pass the highest number of tests in one single verification procedure. The workshop attracted 74 participants from 11 APEC economies and one participant from Germany, a non-APEC economy. In addition, approximately 39% of the participants were female and 64% were male (see Appendix D: participant list). The project team took to ensure the participation and engagement of more women in the workshop. More importantly, the workshop enhanced the flow of information regarding to promote APEC as a platform source low carbon textile production. Positive feedback from workshop participants. The participant feedback survey result suggested that participants were satisfied with the presentations given throughout the two day event. As shown in the following three figures, the average rating was over 4.5 point on a 5-point scale for each day. Also, participants were very satisfied with the workshop overall. The rating was 4.6 out of 5. Please refer to Appendix E for participant feedback survey. Participant Satisfaction Participant Satisfaction APEC Economies Satisfaction APEC Economies 5.0 4.0 3.0 2.0 1.0 0.0 4.6 4.7 4.6 APEC Economies Chinese Taipei Overall Overall Satisfaction for Workshop 4. Key findings: Describe the main outputs delivered and any broader outcomes achieved as a result of this project. (For example have there been any capacity building outcomes, policy or operational changes, or changes to standards or systems as a result of this activity?) Describe how project outputs relate to fora/sub fora/working group strategic and medium-term priorities and strategic priorities. Please provide examples of important findings or lessons learned arising from the project. The carbon footprint analysis of functional textiles identified carbon hotspots and helped FTC to implement carbon reduction operations. FTC has initiated the following four operational changes. (a) FTC installed a condensed steam water recycling system in order to reduce water consumption in both weaving and dyeing processes. (b) FTC installed more energy efficient lighting and air-conditioning systems in facilities. Also, FTC has adjusted product production combinations so that machines can be used to produce more the same products for a longer time, and hence, FTC is better in the control of electricity consumption in the manufacturing process. (c) FTC has implemented a focus production strategy (i.e., a low pressure steam saving plan) so that fewer machines are turned on and waited for the equipment to reach a certain temperature. FTC has also recycled water heat from dyeing machines, forming machines, and desizing wastewater. These recycled heat can be used and recycled over and over again in the manufacturing process. (d) FTC has implemented a focus production strategy in order to improve overall equipment/machine effectiveness and reduce fuel consumption of all running machines in the manufacturing process. This project conducted a case study by assisting a Chinese Taipei textile manufacturer (i.e., FTC) to perform an environmental footprint on its 24 types of functional textiles. And, in the project, an evaluation method (the LCIQ tool) was introduced to perform the footprint. The project then held a workshop to present the case study result to academicians, manufacturers, investors and regulators. Accordingly, this project was conducted based on the strategic aim of PPSTI: “….to engage actors involved in joint scientific research and in the technology inception, dissemination and commercialization cycle, with both its competitive commercial sectors and non-profit elements.” More importantly, the project enabled the PPSTI to align with international frameworks by complementing the CDP reporting which has been encouraged and suggested by international organizations. 5. Next steps: Describe any follow-up steps or projects that are planned following the completion of the activity, such as post-activity evaluations or tracer studies planned to assess the impact of this activity. Have the results of the activity been disseminated to participants and other stakeholders and how? What are (if any) any flow-on effects from this activity? How will this activity inform any future APEC activities? The case study result was disseminated to APEC economies in a workshop. In addition, the workshop called for an open discussion of promoting environmental footprint in the APEC textile industry and the following topics are noted. Please see Open Discussion Minutes (Appendix F) for a detailed summary of the discussions and debates. 1. How can investment companies provide financial support to new low-carbon ideas or technologies? 2. Low-carbon economy, green growth, and sustainable development are global trends. Under these trends, what will the real innovative business scope that can bridge among environmental, economic, and social goals? 3. In this workshop, we discuss the following six topics: (1) The publicly available carbon footprint verification specification (PAS 2050), (2) How brand companies can lead to produce products with less environmental impacts and still making profits, (3) A new methodology for compiling a carbon footprint inventory (the LCIQ tool), (4) The provide trial of the LCIQ tool applying to FTC's supply chain, (5) Current low carbon policies and regulations (Japan and Chinese Taipei), and (6) Access to low carbon finance through the capital market. With these information, how can governments (or companies themselves) help traditional industries, such as textile, to re-develop or find new business innovation models? 4. Both the APEC and Chinese Taipei have taken the initiative to fund this workshop so as to promote a low-carbon textile production. But this initiative should not be ended with the closure of this workshop. How can we establish a platform that brings us (academicians, business, government) together and promotes effectively the development of low-carbon textile production after the workshop? The active discussions among workshop participants informed the following future APEC activities: To facilitate a cooperative project at the APEC level (or at least among the following four APEC economies: Chinese Taipei, Japan, Thailand, and the United States) for the textile industry to identify the gap over local low-carbon policies in order to encourage textile manufacturers to adopt green operations before the implementation of worldwide CDP reporting. To harmonize different kind of calculation methods for environmental footprint in the textile industry in APEC region (particularly, for the small- and medium-sized textile manufacturers). The exploration of the possibility of incorporating the variable "time" into the calculation process as well as the continuously update of emission factor database should also be included in the effort to go green. To have more forums to elaborate the CDP reporting in terms of political and technical side of implementation. Forums should (1) identify successful cases that are done by APEC members in order to promote learning by sharing; and (2) to link the APEC effort to global retailers and international communities, such as OECD or WBCSD. 6. Feedback for the Secretariat: Do you have any suggestions for more effective management of projects in the future? Any assessment of consultants, experts or participants that you would like to share? (The Secretariat collates and examines feedback to identify trends for ongoing evaluation of our project management and/or communications systems.) We did not encounter any project management issue because the personnel at the APEC Secretariat were helpful and efficient. 7. Participant information: (including invited speakers). APEC Economy # male # female 0 1 3 0 Hong Kong, China 1 1 Indonesia 0 2 Ministry of Industry Japan 1 0 Kogakuin University Malaysia 0 2 Ministry of Science Technology and Innovation SIRIM Berhad Republic of Philippines 0 2 Philippine Textile Research Institute Russia 1 1 Thailand 0 2 USA 0 1 Patagonia Inc. 0 2 Vietnam Textile Research Institute 15 Formosa Taffeta Co., Ltd. National Taipei University of Science and Technology AVIVA Investors BCSD-Taiwan Far Eastern New Century Corp. National Taipei University Dept. of Industrial Tech., Ministry of Economic Affairs Industrial Development Bureau, Ministry of Economic Affairs Ministry of Foreign Affairs Industrial Technology Research Institute National Science Council The British Standards Institution-Taiwan ACE Geosynthetics Enterprise co, Ltd. Canada Chile Viet Nam Chinese Taipei 38 Details (organization) Canadian Trade Office in Taipei National Council For Cleaner Production (x2) Chilean Trade Office in Taipei Hong Kong Productivity Council Innovation and Technology Commission Kazan National Research Technological University Thailand Textile Institute Thailand Greenhouse Gas Management Organization (Public Organization; TGO) Non-APEC Economy: Germany 1 SHEICO Group Everlight Chemical Industrial Corp. Web-Pro Corporation Jack Wolfskin (Taiwan) Sports & Leisure Goods Co., Ltd. KNH Enterprise Co., Ltd. Everest Textile Co., Ltd. G-Fun Industrial Corp. Shih Chien University Da. Ai Technology Co., Ltd. Singtex Industrial Co., Ltd. Taiwan Textile Research Institute BSI Group Deutschland GmbH 0 8. Outputs: Please provide details, where applicable. Change headings or insert rows as needed. # planned # actual # of workshops/events 1 1 # of CDs distributed 30 30 # of websites created 1 1 Details See workshop proceedings for full program Each CD contains the midterm report (case study results), workshop proceedings, and the project completion report http://www.ttri.org.tw/econtent/news/news04_ 02.aspx?sid=54&PageID=1 SECTION C: Budget Attach a detailed breakdown of the APEC- provided project budget, including: Planned costs (using most recently approved budget figures) Actual expenditures Variance notes: An explanation of any budget line under- or over-spent by 20% or more. All Figures in USD # of Units Unit Rate APEC Funding Self Funding Actual expenditures Actual expenditures (APEC Funding) (Self Funding) Direct Labour Speaker’s honorarium (government officials ineligible) 6 speakers Translator’s fees (# of pages) Short-term clerical fees (# of hours) Contractor (including Researcher) fees 480 hours $25 per (2 researchers* 4 months* 60 hour $1,500 $9,000 $9,000 per speaker $12,000 $12,000 Variance Notes ()Actual expenditures ()Actual All Figures in USD # of Units Unit Rate APEC Funding Self Funding Actual expenditures Actual expenditures (APEC Funding) (Self Funding) hours) Administrati on assistant fees 792 hours $18 per (1 person* 11 months* 72 hours) hour $14,256 Not appraised Travel (Speaker, Experts, Researchers) Per Diem (incl. accommoda tion and “75% additional payment”) 11.25 person-day (3 persons on 2 days + 75% additional payment + 1 day of arrival=3.7 5) $290 $3,262 2972.5 Airfare 3 persons $5,000 $11,000 2516.34+ (2-North America 1339.6+7 00=4555. $1,000 1-Asia) 94 Travel for Participants (from Travel-eligible economies only. Active participants only) Per diem (incl. accommoda tions and “75% additional payment”) 82.5 person-day (22 persons on 2 days + 75% additional payment + 1 day of arrival=3.7 5) Airfare (restricted economy class) 22 persons Other items $290 $23,925 14,877 (51.3x29 0 for 14 persons) $29,000 (6-America $2,000 2-Russian $1,500 14-Asia) $1,000 unknown Variance Notes ()Actual expenditures ()Actual All Figures in USD # of Units Unit Rate APEC Funding Self Funding Actual expenditures Actual expenditures (APEC Funding) (Self Funding) Publication/ distribution of report 100 copies Specialized equipment or materials (please describe) Projection facility, microphon es, screens, recording facility for 2 days ($5,000 Photocopyin g (# of copies) $500 $441.93 $500 $185.58 $4500 per ($9,000 $10,698. day (50 + 2,000) 84 persons, 11,000 website $25 $2,500 $2,989.85 $3,000 $3,000 Undo $0 2 days Notes $2146.81 – 2,000) 3,000 Communications (telephone, fax, mail, courrier) Hosting (provide breakdown, e.g., room rental, stationery) Variance 1 large conferenc e room, 1 small conferenc e room, 1 office) Total ($122,943) : $105,443 $17,500 SECTION D: Appendices or additions Please attach any of the following. This information will help us better understand your project, support overseers of similar projects and plan for future projects. Appendix A: Project Midterm Report. Appendix B: Workshop Agenda. Appendix C: Workshop Proceedings. Appendix D: Participant List. Appendix E: Participant Feedback Survey. Appendix F: Open Discussion Minutes ()Actual expenditures ()Actual FOR APEC SECRETARIAT USE ONLY APEC comments: Were APEC project guidelines followed? Could the project have been managed more effectively or easily by the PO? Appendix B: Workshop Agenda Day 1 Date/Venue Time April 23(Tue.)/ Regent Taipei Hotel 08:30~09:00 Speakers Activity Registration 09:00~09:15 Opening Dr. Chi Chung Bai, President of Taiwan Textile Research Institute 09:15~10:25 Benefits and Challenges of PAS 2050 as Implemented in European Organization Dr. Rainer FELD (Managing Director BSI Group Deutschland GmbH) 10:25~10:50 10:50~12:00 Group Photo & Break Carbon Measuring and Reporting by a Brand. The Successes and Challenges 12:00~13:30 13:30~14:40 Lunch Carbon Footprint in Japan 14:40~15:00 Ms. Jill DUMAIN (Director of Environmental Strategy, Patagonia Inc.) Prof. Atsushi INABA, Kogakuin University Break 15:00~15:45 Tool for Compiling a Carbon Footprint Inventory Dr. Joyce CHEN, Taiwan Textile Research Institute 15:45~16:30 Carbon Footprint Certificate and Sustainable Textile Manufacturing Mr. John M.C. LIANG, Senior Administrator, Formosa Taffeta Co., Ltd. 17:30~18:15 Cocktail Party 18:15~20:30 Banquet Day 2 Date/Venue Time Activity 08:30~09:00 April 24(Wed.)/ Regent Taipei Hotel Speakers Registration 09:00~09:05 Opening 09:00~09:40 Policy Options for Low-Carbon Economy in the 21st Century Professor Young KU, National Taiwan University of Science and Technology 09:40~10:20 From an Investor Perspective Encourage Companies to Engage more Proactively on Corporate Sustainability and Low Carbon Product Development Ms. Vina CHENG, General Manager, AVIVA Investors Dr. CHEN, Liang-Tung, Deputy Director, Industrial Development Bureau, Ministry of Economic Affairs, Chinese Taipei 10:20~10:40 10:40~12:00 12:00~13:10 13:10~16:30 Break Host: Dr. Niven HUANG, BCSD-Taiwan* Open Discussion Lunch Field Visit: Fullon Hotel Danshuei Fishermen’s Wharf * The Business Council for Sustainable Development of Taiwan Appendix D: Participant List (distinguished guests & speakers) Representing Economy 1 Germany(non APEC member) 2 USA 3 Japan 4 Chinese Taipei 5 Chinese Taipei 6 Chinese Taipei 7 Chinese Taipei Gender Title First Name Last Name Male Mr. Rainer FELD Female Ms. Jill DUMAIN Male Male Female Male Female Mr. Mr. Ms. Mr. Ms. Atsushi Young Vina Cheng Chung Joyce INABA KU CHENG Position Managing Director Director, Environmental Strategy Professor, Faculty of Engineering Professor, Department of Chemical Engineering General Manager Organization Address Secretary General Senior Research Fellow +49-6181- GmbH Hanau, Germany 993711 Address: 259 W. Santa Clara +1-805-667- +1-805- jill_dumain@p St., Ventura, CA 93001 USA 4553 atagonia.com Patagonia, Inc. 1-24-1, Nishi-Shinjuku, Kogakunin University Sinjuku-ku, Tokyou 163-8677 JAPAN National Taiwan No.43, Sec. 4, Keelung Rd., University of Science and Da’an Dist., Taipei City 106, Technology Taiwan, ROC Male Mr. John M.C. LIANG Senior Administrator +886-2- 27376621 23785535 t.edu.tw Ltd. ext. 2001 Taiwan Textile Research Institute u508@mail.ntus vina.cheng@avi 81015116 vainvestors.com +886-2- 27058859 27060788 .tw Dist., New Taipei City 236, 22670321 Taiwan, ROC ext. 3218 ROC +886-2- akuin.ac.jp +886-2- No. 6, Chengtian Rd., Tucheng +886-2- Formosa Taffeta Co., Ltd. Yunlin County 640, TAIWAN, inaba@cc.kog +886-2- 81015518 Fushin South Road, Taipei 106, a- 3340-147 Investment Consulting Co. Xin Yi Road, Taipei City 110, BCSD-Taiwan 653-6355 2679 +886-2- Taiwan, ROC +49-6181- rainer.feld@bsi 993799 group.com +81-3-3340- +81-3- Aviva Investors Securities Room D-1, 24F, No.7, Sec. 5, 317, Shiliu Rd., Douliu City, 8 Chinese Taipei Email Dörnigheimer Str. 2a, 63452 Taiwan, ROC CHEN Fax BSI Group Deutschland 10F-6, No. 390, Section 1, HUANG Phone +886-2- niven@bcsd.org ccchen.0392@tt 22675109 ri.org.tw +886 557 +886 557 u018780@ftc.co 7328 0437 m.tw Appendix D: Participant List Representing Economy Gender Title First Name Last Name Position Organization Address Phone Fax Email jorge.ale@cp 1 Chile Male Mr. Jorge Ale Executive Director National council for Almirante Gotuzzo 124, cleaner production 2nd floor, Chile +56-2-688- +56-2-591- l.cl, 4500 6331 jorgeale.cl@ gmail.com james.robiso 2 Chile Male Mr. James Robinson Studies and Project National council for Almirante Gotuzzo 124, 2nd +56-2-688- +56-2-591- Manager cleaner production 6331 floor, Chile 4500 n@cpl.cl, jamesrobinso nm@gmail.c om 3 Chile Male Mr. Fernando Schmidt Economic Assistant General Manager of 4 Hong Kong Male Mr. Kam-lam Tsang Environmental Mangement 5 Hong Kong Female Dr. 6 Indonesia Female Ms. 7 Indonesia Female Mrs. Sui Mei Shinta Damerys TSUI SIRAIT Aisha PRAMUDA Miladia WARDANI Technologist (Textiles & Clothing) Deputy Director on Energy Assessment Chilean Trade +886- Office in Taipei 976137327 Hong Kong Productivity Council Innovation and Technology Commission Ministry of Industry Staff Expert for SubDirectorate of Textile Industry Ministry of Industry 3/F, EMD, HKPC Building, service@chil etrade.com.tw +852- +852- kltsang@hkp 27885628 27885608 c.org Government Offices, 2 Tim +852- +852- smtsui@itc.g Mei Avenue, Tamar, Hong 36555462 23770730 ov.hk 78 Tat Chee Ave., Kowloon, Hong Kong 21/F, West Wing, Central Kong Perumahan Cikaret Hijan +62-(0)- +62-(0)- siraitshinta@ No. A-51, Cikaret, Bogor 817404892 215252746 gmail.com Jalan Gatot Subroto Kav. +62- +62-21- aisha.miladia 52-53 Jakarta, Indonesia 811116013 5253794 @gmail.com Representing Economy Gender Title First Name Last Name Position Organization Address Phone Fax Email Industy Division Ministry of 8 Malaysia Female Mrs. Amutham SUBRAMA Principle Assistant NIAM Secretary Ministry of Science Technology and Innovation Science Technology and Innovation, Level 2, Block +603- +603- amutham@ C4, Complex C, Federal 88858253 88892996 mosti.gov.my Government Administrative Centre, Putrajaya, 62662 No.1, Persiaran Dato' Menteri,Section 2, P.O.Box 9 Malaysia Female Ms. Isnazunita ISMAIL General Manager Sirim Berhad 7035,40700 Shah Alam, Selangor Darul Ehsan, zunita@sirim +603- +603- .my, 55446559 55446590 isno2unita@ gmail.com Malaysia 10 Philippines Female Ms. Marites De Leon Senior Science Philippine Textile Research Specialist Research Institute Gen. Santos Ave., Bicutan, Taguig City, Metro Manila, +632-8371349 Philippines +632- delmar14@y 8371349 ahoo.com +632- rmrevidor@d 8371338 ost.gov.ph Unit 201, Bldg. MC 13, 11 Philippines Female Mrs. Rowena Marianne Evidor Planning Officer Philippine Textile Diego Silang Vill, C5 Research Institute Rd.,Taguig City, Metro +632-8371338 Manila, Philippines sugonjako@ Kazan National 12 Russia Male Prof. Denis SUGONYA KO Lecturer Research K.Marx str., 68, Kazan, +7-843-231- +7-843-231- Technological Tatarstan, Russia 43-32 43-32 Research K.Marx str., 68, Kazan, +7-843-231- +7-843-236- Technological Tatarstan, Russia 43-32 57-68 University Kazan National 13 Russia Female Prof. Liudmila ABUTALIP OVA Vice Rector University pochta.ru , 2314332@m ail.ru inter@kstu.ru ,t.fedorova50 @mail.ru Representing Economy 14 Thailand 15 Thailand First Gender Title Female Ms. Female Ms. Name Peeraporn Phakamo n Last Name Position Organization Palapleeval Director of Textile Thailand Texile ya Institute Testing Center Senior official of Supappunt Carbon Business Office Address Phone Fax Soi Trimit, Rama 4 Rd., +66-2- +66-2- Phrakanong, Klong-toey, 71354929 71354329 Bangkok, Thailand ext.541 ext.550 Email peeraporn@t haitextile.org Thailand 120 Building B, 9th floor, Greenhouse Gas The Government Complex Management Commemorating His +66-2- +66-2- go.or.th, Organization Majesty, Chaengwattana 1419829 1438403 phakamon.s (Public Rd., Laksi, Bankok 10210, phakamon@t @gmail.com Organization; TGO) Thailand 16 Vietnam 17 Vietnam Female Mrs. Truc Female Mrs. Nam Bui Thi Thanh Bui Thi Thai Vice director of Vietnam Textile 478 Minh Khai St., Ha Ba +84-4- +84-4- trucbt@viend Research Institute Trung, Hanoi, Vietnam 38622889 38622867 etmay.org.vn Vice director of Textile Vietnam Textile 479 Minh Khai St., Ha Ba +84-4- +84-4- Testing Center Trung, Hanoi, Vietnam 22156167 38622867 6F, No. 1, Song Zhi Rd., +886-2-8723- XinYi District, Taipei, 3553, Taiwan 0963385069 Product Certification Center Research Institute Trade Commissioner, 18 Canada Female Ms. Vanessa Chen Life Sciences, Energy Canadian Trade and Environment Sectors Representing Economy Gender Title First Name Last Name Wu Position Organization Executive Director, R&D Far Eastern New center Century Corp (FENC) 1 Chinese Taipei Male Dr. Roy 2 Chinese Taipei Male Dr. Yuh-Ming Lee Professor 3 Chinese Taipei Male Mr. Jet P.H. Advisor, Science&Technology Shu Office in Taipei Phone +88634552133 National Taipei +886-2-26721784 University Dep. of Industrial Tech., Ministry of Economic +886-2-23946000 #2551 Affairs nambt@vien detmay.org.v n +886-2-87233595 Fax Email +886 3 4552134 rywu@fenc.com +886-226721784 yml@mail.ntpu.e du.tw +886-223569547 jphshu@moea.g ov.tw Representing Economy Gender Title First Name Last Name Position Organization Phone Fax Email 4 Chinese Taipei Female Ms. Chia-Jing Chen Researcher Dep. of Industrial Tech., Ministry of Economic +886-2-23212200 #154 Affairs +886-223514850 cjchen@moea.g ov.tw 5 Chinese Taipei Male LiangTung Deputy Director IDB, MOEA +886-2-23252377 +886-227043753 ldchen@moeaid b.gov.tw Ministry of Foreign Affairs +886-2-23482540 +886-223821174 Ministry of Foreign Affairs +886-2-23482540 +886-223821174 Industrial Technology Research Institute +886-3-5917522 +886-35820464 Dr. Chen Officer, APEC Task Force, Dept. of International Organizations Officer, APEC Task Force, Dept. of International Organizations 6 Chinese Taipei Male Mr. Jiun-Shen Hwang 7 Chinese Taipei Male Mr. KuangWei Hsiao 8 Chinese Taipei Male Dr. Frank L. Chen General Director, International Center 9 Chinese Taipei Female Ms. Virginia Lee International Center 10 Chinese Taipei Male Mr. Shen-Da Fuh Program Director 11 Chinese Taipei Male Mrs. ShuSheng Pu Manager Director BSI +886-2-26560333 #105 12 Chinese Taipei Female Mrs. HsuehChuan Huang Assistant Director/ Operation Departmentsustainability BSI +886-2-26560333 #106 13 Chinese Taipei Female Mrs. Hui-Ling Chien Marketing Director BSI +886-2-26560333 #115 14 Chinese Taipei Female Mrs. Amie Wang Director 15 Chinese Taipei Male Tsai 16 Chinese Taipei Female Mrs. Yu-Ling Huang Vice General Manager SHEICO Group +886-3-9656699 17 Chinese Taipei Male Mr. Jeff Shiue Executive Assistant SHEICO Group +886-3-9656699 18 Chinese Taipei Male Dr. Der-Gun Chou Deputy General Manager Everlight Chemical Industrial Corp. +886-3-4838088 Mr. Bruce Industrial Technology Research Institute National Science Council ACE Geosynthetics Enterprise co, Ltd. ACE Geosynthetics Enterprise co, Ltd. +886-3-5916104 +886-2-27377810 +886-4-26595926 +886-4-26595926 +886-35820059 +886-227377607 +886-226560222 franklchen@itri. org.tw slee@itri.org.tw sdfuh@nsc.gov.t w peter.pu@bsigro up.com +886-226560222 jane.huang@bsi group.com +886-226560222 +886-426595935 +886-426595935 +886-39658899 +886-39658899 Julia.chien@bsi group.com sales@geoace.c om bruce.tsai@goldj oint.com.tw yuling@sheico.c om.tw jeff_shiue@shei co.com.tw dergun@ecic.co m.tw Representing Economy Gender Title First Name Last Name Position Organization Phone Email 19 Chinese Taipei Male Mr. ChangHuei Hsi Technical Development Web-Pro Corporation Chief 20 Chinese Taipei Male Mr. HungHuan Hsu President Jack Wolfskin (Taiwan) Sports & Leisure Goods +886-910033422 Co., Ltd. 21 Chinese Taipei Male Dr. Alvin Hu Vice President KNH Enterprise Co., Ltd. +886-937008576 22 Chinese Taipei Male Mr. HsingNan Chung Assistant Senior Administrator Formosa Taffeta Co., Ltd. +886-5-5577532 +886-55576490 T8015@ftc.com. tw 23 Chinese Taipei Male Mr. MengHung Lin Senior Administrator Formosa Taffeta Co., Ltd +886-2-88701628 +886-227174316 u031701@ftc.co m.tw 24 Chinese Taipei Male Mr. Jeffrey Hsu Scientist, Strategic Planning Division Far Eastern New Century Corporation +886-3-4555136 #828 +886-34552134 xujyafu@fenc.co m 25 Chinese Taipei Male Mr. Ching-Hai Liang Vice President Everest Textile Co., Ltd. +886-6-5786223 26 Chinese Taipei Male Dr. Chia-Jun Wu Researcher Everest Textile Co., Ltd. +886-6-5782561 #6399 27 Chinese Taipei Male Mr. Tony Manager G-Fun Industrial Corp. +886-65783651 +886-65784347 +886-34833768 henrylian@ever est.com.tw Chiajun.wu@ev erest.com.tw tony@gtex.com. tw Ho +886-3-4389538 The Business Council for Sustainable +886-975517882 Development of Taiwan The Business Council for Sustainable +886-2-27058859 #103 Development of Taiwan 28 Chinese Taipei Male Mr. Kenny Chang Specialist 29 Chinese Taipei Male Mr. Ryan Chen Specialist 30 Chinese Taipei Male Mr. HsienChieh Huang Project Manager Foundation of Taiwan Industry Services 31 Chinese Taipei Female Prof. Yi-Ching Chang Professor, Dean of design school Shih Chien University 32 Chinese Taipei Male Ting Hung Assistant General Manager 33 Chinese Taipei Female Ms. Teresa Chuang Dr. +886-911655414/886910123743 Fax Da. Ai Technology Co.,Ltd. Singtex Industrial Co., Ltd. +886-76229200 hunter.hsi@web -pro.com.tw +886-225435334 robin@bueno.co m.tw alvinhu@knh.co m.tw kenny@bcsd.or g.tw +886-227060788 ryan@bcsd.org.t w +886-981295318 +886-223253922 jack.huang@ftis. org.tw +886-2-25381111 #7000 +886-225330778 yiching@mail.us c.edu.tw +886-287513450 +886-222999695 ting_hung@daai t.com teresa@singtex. com +886-2-26575245 #1900 +886-2-85127895 Representing Economy Gender Title First Name Last Name Position 34 Chinese Taipei Female Dr. Hsin-Ling Cheng Project Manager 35 Chinese Taipei Male Mr. Jason Chang Senior Researcher 36 Chinese Taipei Male Dr. ChiChung Bai President 37 Chinese Taipei Male Dr. Kun-Lin Cheng Executive Vice President 38 Chinese Taipei Male Dr. Jyh-Ming Tzou Vice President 39 Chinese Taipei Male Dr. GwoTsuen Director 40 Chinese Taipei Male Dr. Po-Hsiung Huang Director 41 Chinese Taipei Male Dr. Sheng-Fu Chiu Director 42 Chinese Taipei Male Dr. Nian-Hau Wang Director 43 Chinese Taipei Male Dr. Yang-Ping Shih Deputy Director 44 Chinese Taipei Female Ms. Shu-Yin Lee Deputy Director 45 Chinese Taipei Male Dr. RueyLoung Chen Senior Researcher 46 Chinese Taipei Female Ms. Li-Chu Wang Researcher 47 Chinese Taipei Female Ms. Wei-Chia Chu Chief 48 Chinese Taipei Female Ms. Su-Hui Researcher Jou Chen Organization Far Eastern New Century Corporation Industrial Technology Research Institute Taiwan Textile Research Institute Taiwan Textile Research Institute Taiwan Textile Research Institute Taiwan Textile Research Institute Taiwan Textile Research Institute Taiwan Textile Research Institute Taiwan Textile Research Institute Taiwan Textile Research Institute Taiwan Textile Research Institute Taiwan Textile Research Institute Taiwan Textile Research Institute Taiwan Textile Research Institute Taiwan Textile Research Institute Phone +886-3-4555136 #871 +886-3-5914982 +886-2-22670321 +886-2-22670321 +886-2-22670321 +886-2-22670321 +886-2-22670321 +886-2-22670321 +886-2-22670321 +886-2-22670321 +886-2-22670321 +886-2-22670321 +886-2-22670321 +886-2-22670321 +886-2-22670321 Fax +886-34552134 +886-35820322 +88622675110 +88622675110 +88622675110 +88622675110 +88622675110 +88622675110 +88622675110 +88622675110 +88622675110 +88622675110 +88622675110 +88622675110 +88622675110 Email hscheng@fenc.c om jasonchang@itri. org.tw Appendix E: Participant Feedback Survey Intentionally left blank for this page. Appendix F: Open Discussion Minutes Minutes of the Open Discussion of 2013 Workshop on Low Carbon Intelligent Operations for Textile Industry April 24, 2013 - 12:00 p.m. Regent Taipei Hotel - Fourth Floor No 3, Lane 39, Section 2, ZhongShan N. Rd, Chinese Taipei Attendees: Mr Niven Huang Ms Sui Mei Tsui (Chairperson) (Hong Kong) Mr Jorge Ale Ms Shinta Damerys Sirait (Chile) (Indonesia) Mr James Robinson (Chile) Ms Aisha Miladia Pramudawardani (Indonesia) Mr Chi-Chung Bai (Chinese Taipei) Mr John M.C. Liang (Chinese Taipei) Ms Vina M.C. Cheng (Chinese Taipei) Mr. Rainer Feld (Germany) Mr Stsushi Inaba (Japan) Ms Amutham Subramaniam (Malaysia) Ms Isnazunita Ismail (Malaysia) Mr Denis Sugonyako (Russia) Mr Kam-lam Tsang (Hong Kong) Ms Peeraporn Palapleevalya (Thailand) Ms Phakamon Supappunt (Thailand) Ms Marites Deleon (Republic of Philippines) Ms Rowena Marianne Evidor (Republic of Philippines) Ms Truc Bui Thi Thanh (Vietnam) Ms Nam Bui Thi Thai (Vietnam) Ms Jill Dumain (United States) Mr Liudmila Abutalipova (Russia) Recorded by Miss. Kitty Wu (ENG-edit Consulting Service) 1 Introduction by the Chairperson 1.1 Mr. Huang opened the discussion at 10:40 am and welcomed attendees. 1.2 Mr. Huang called for an open discussion of promoting environmental footprint in the textile industry in APEC region and the following subjects are noted: Subject 1: How can investment companies provide financial support to new low-carbon ideas or technologies? Subject 2: Low-carbon economy, green growth, and sustainable development are global trends. Under these trends, what will the real innovative business scope that can bridge among environmental, economic, and social goals? Subject 3: In this workshop, we discuss the following six topics: (1) The publicly available carbon footprint verification specification (PAS 2050) (2) How brand companies can lead to produce products with less environmental impacts and still making profits (3) A new methodology for compiling a carbon footprint inventory (the LCIQ tool) (4) The proved trial of the LCIQ tool -- applying to FTC's supply chain (5) Current low carbon policies and regulations (Japan and Chinese Taipei) (6) Access to low carbon finance through the venture capital market With these information, how can governments (or companies themselves) help traditional industries, such as textile, to re-develop or find new business innovation models? Subject 4: Both the APEC and Chinese Taipei have taken the initiative to fund this workshop so as to promote a low-carbon textile production. But this initiative should not be ended with the closure of this workshop. How can we establish a platform that brings us (i.e., academicians, business, government) together and promotes effectively the development of low-carbon textile production after the workshop? 2 Subject 1. How can investment companies in the financial sector provide financial support to new low-carbon ideas or technologies? 2.1 Mr. Inaba commented that the Carbon Disclosure Project (CDP) reports Scope 1, 2 and 3. In order to meet both the carbon disclosure requirement and the Japanese regulations, many Japanese companies provide the information related to carbon emissions from shipping of their products. But, the Toshiba Company refuses to do so. The company also refuses to report the type of purchased goods and services that produced emissions within its supply chain. For example, if Toshiba purchases clothing from UNIQLO Company, Toshiba needs to report the amount of carbon emissions from producing that goods. In my opinion, UNIQLO already completed their mandatory greenhouse emission reporting, and it is possible that Toshiba will not purchase any goods or service from UNIQLO in the future. So, CDP may give pressure to companies (or encounter barriers like this) in the future. 2.2 Mr. Inaba commented that the Scope 3 of CDP includes 15 items: transportation, investment, etc. For example, if the company A invests (e.g., buying stocks) in the company B, and the company A is a lowcarbon company. Then, in the future, the company A will need to account for the carbon emissions produced by the company B. Thus, the issue becomes how to carry out the GHG protocol in the financial sector. 2.3 Ms. Dumain to inquire with Ms. Vina Cheng's presentation regarding PUMA's report of Environmental Profit and Loss Account. Ms. Dumain asked that what impact do you think those numbers that are coming up with will have? (as I remembered correctly that about 45 million euros were valued?) The report was impressive and their research was great, but what do PUMA do now? What do you think the impact of their research will be? 2.4 Ms. Cheng responded Ms. Dumain's inquiry by stating that the PUMA's report is newly released in 2011. There are several stages in the report. The first stage is to disclose, and there are still a number of stages to go. In my opinion, the impact of the report is more on the company's spirit and initiative. Due to this report, PUMA is now very well recognized in Europe -- PUMA is seen as a socially responsible company. This is definitely a plus to attract investments. 2.5 Mr. Huang commented that there are about 18 multinational companies from 15 industries that will leverage their outcomes and model methodologies of PUMA's report. Those companies will release the final result of their ecosystem impacts after 18 months. But you are right, the number disclosed by PUMA was quite large. So, there is a debate about it. 2.6 Mr. Robinson commented that the impact of PUMA's report may be uncertain and we are not going to know for a couple of months or a year but that will be a really good thing came out of PUMA. Regarding the subject #1, I think that as long as the link between operational risk and climate change reveals, the more money is going to come in. And, for new low carbon ideas or technologies that are happening, we must push for that happen even more. As long as you are a company that consumes a lot of nature resources and has a lot of impacts. That is eventually going to affect you operationally. I think the speech has to go that way. So, I think that it is a positive thing to push for more low-carbon technologies and investment opportunities. The other important thing is that eco-efficiency and low carbon ideas have to go hand in hand. It is not only a noble energy or energy efficiency but also a whole diversity of portfolio that Mr. Inaba has explained. It is not only one solution--there is no one single solution for all the problems we have. In sum, I think that, as long as the linkage between operational risk and climate change reveals, the financially sector (especially long-term investors) will invest in developing lowcarbon technologies. 2.7 Mr. Bai commented that, at this workshop, we have learnt that ESG issues--Environment, Social Equity, and Corporate Governance--are the investment objectives and investment criteria listed in the evaluation system of venture capital companies. Those who are in accordance with the ESG companies or in the good operation and financial transparency can effectively reduce investment risks and gain steady profits. This shows that transparent corporate sustainability reporting is extremely important. Moreover, the completion of CDP is regarded by many companies as a license to trade in the future. Companies should not only pay more attention to foreseeing the regulation and the system risk from climate change but also acquire more operating expenses from the capital market, moving towards sustainable development. 2.8 Mr. Huang added that publicly traded companies in the textile industry needs to pay more attention on the development of global trends (i.e., how the brand companies, retailers, investors choose their investment targets based on CDPs). I think that the companies in the financial sector need to know whether a company is ready to take on the challenge of developing low-carbon technologies. 2.9 Ms. Palapleevalya questioned that whether investment companies have the capacity to evaluate corporate sustainability reports. She also questioned whether there is a link between liquidation and the GHG protocol. 2.10 Ms. Cheng responded Ms. Palapleevalya's inquiry by stating that it depends on countries. Ms. Cheng was surprised to learn that Japan is implementing the GHG protocol. And, Chinese Taipei is also started to promote the CDP disclosure. In Europe, there are more large publicly traded companies that follow the GHG protocol. This is because they see the CDP disclosure as the license to trade. So, it is more critical in Europe. And, we are talking to the European regulators to promote the GHG protocol to all publicly traded companies. As of now, there is only about 25% of publicly traded companies that meet the disclosure requirement; but, these companies reported their sustainability, not merely carbon emissions. In terms of evaluating corporate sustainability reports, for example, the AVIVA Investors Company uses an internal Environmental, Social, and Ethical matrix (ESE matrix) to evaluate companies before we invest. If a company produces a lot of carbon emissions, we request the CDP disclosure. On the other hand, if a company is in the financial sector, we request the sustainability disclosure. We then use the matrix to evaluate them from the perspectives of the impact on the environment, the society, and the ethics. 2.11 Mr. Tsang commented that the Hong Kong Exchanges and Clearing company has worked with the Hong Kong government to request publicly traded companies to disclose carbon emissions. These companies are large and possess many resources to implement CDPs. But the small and medium-sized companies (SMEs) are not traded stocks, and they do not enough resources to disclose their carbon emissions. Then, what kind of assistance can be provided to SMEs for implementing CDPs? Moreover, knowing the number (e.g., the amount of carbon emissions) does not mean that companies are doing well or badly. How can investment companies know which companies are doing better? In my opinion, the number is meaningless, and the evaluation needs to include company operations. 2.12 Ms. Cheng responded Mr. Tsang's inquiry by stating that the evaluation includes not only every scenario on absolute basis but also include the fundamental of companies. W evaluate companies based on their operational risks, profitabilities (especially, when we evaluate the long-term profitability, we will incorporate factors such as ESG issue and CDP disclosure), and the numbers. For example, when we evaluated the BP Company using the ESE matrix, we looked at both financial and non-financial numbers. In terms of financial performance, we saw the company had many risks (e.g., interest rates were too high). And, non-financial numbers are more related to operational risks. If risks are too high, we will compare that with the other companies in the industry. If a company's operational risks are lower than its profitabilities, we are more likely to invest in that company. 2.13 Ms. Dumain suggested that the APEC should focus on what are the tools that make it accessibility for SMEs to access the knowledge and to access the help to do when the result comes out. SMEs are the majority in the textile industry. They have the biggest amount of production, but they do not have the resources to do this kind of expensive research. Issue 1: the CDP may give pressure to companies in the future. Issue 2: how the companies in the financial sector conduct the CDPs? Issue 3: what kind of assistance can the APEC give SMEs to implement CDPs? 3 Subject 2. Low-carbon economy, green growth, and sustainable development are global trends. Under these trends, what will the real innovative business scope that can bridge among environmental, economic, and social goals? Subject 3. In this workshop, we discuss the following six topics, (1) The publicly available carbon footprint verification specification (PAS 2050), (2) How brand companies can lead to produce products with less environmental impacts and still making profits, (3) A new methodology for compiling a carbon footprint inventory (the LCIQ tool), (4) The provide trial of the LCIQ tool - applying to FTC's supply chain, (5) Current low carbon policies and regulations (Japan and Chinese Taipei), and (6) Access to low carbon finance through the venture capital market. With these information, how can governments (or companies themselves) help traditional industries, such as textile, to re-develop or find new business innovation models? 3.1 Ms. Tsui commented that there are many SMEs in the textile industry in APEC economies. These manufacturers are required to comply with environmental regulations. It is expensive to conduct the ISO procedure in order to meet the regulation. And, if brand companies are not willing to increase their purchase prices, how can textile manufacturers survive? Moreover, carbon emission is a focused issue raised globally. It is therefore necessary to make the footprint calculation as an index to identify its impacts on the environment. In my opinion, the calculation simply adds up the emission numbers from transportation, raw materials, disposal, and so on. I did not see that the calculation accounts for the variable "time." (We need to think "time" versus "carbon emission" from the perspective of their impacts on the environment.) 3.2 Mr. Huang added that the manufacturers in the supply chain need to take on the social responsibility together as well as share the profit created by the low carbon products. 3.3 Mr. Inaba commented that, in Japan, there are two product categories: BCR which uses energy and BCR which uses no energy. Then the issue becomes which carbon footprint system we should adopt? In addition, we need to decide which database we need to use. 3.4 Mr. Huang added that it is important to harmonize different kind of calculation methods for environmental footprint in the APEC region. 3.5 Mr. Bai commented that, in the face of today’s global supply chain, worldwide business integration can no longer ignore the arrival of a low-carbon economy era. In this workshop, we have seen innovative business examples of how international product brands such as Patagonia and PUMA have successfully developed green products and their related product resume disclosure in supply chain. In these cases, it has not only grossed profits for companies, but has also contributed to environmental friendliness. We believe that green economic growth will stimulate the emergence of new innovative green business models significantly in the future. In addition, by joining economic entities in low carbon and green growth areas and carrying out intensive innovative personnel training, it will not only save time and resource in the personnel training process, but will also boost the economic growth of all participants in APEC members. 3.6 Mr. Feld commented that we had a 300-year sustainability celebration in Germany last year. The concept of sustainability was first introduced by an old family back in Rome. It is to make sure no one can take away resources, and I think that this is why low carbon production is so important for the textile industry. Philosophically speaking, I do not think that the textile industry is going to be carbonless. The industry will always emit carbon dioxide. Yet, it is a large source of carbon dioxide emissions. So, the textile manufacturers should secure its resources in that manner. Issue 4: Can we make the footprint calculation as an index? Issue 5: In the footprint calculation, we need to think "time" versus "carbon emission" from the perspective of their impacts on the environment. Can we incorporate the variable "time" into the calculation process? Issue 6: Can we harmonize different kind of calculation methods for environmental footprint in the APEC region? 4 Subject 4. Both the APEC and Chinese Taipei have taken the initiative to fund this workshop so as to promote a low-carbon textile production. But this initiative should not be ended with the closure of this workshop. How can we establish a platform that brings us (i.e., governments, companies, and academia) together and promotes effectively the development of low-carbon textile production after the workshop? 4.1 Mr. Liang concerned about manufacturers use a lot of time and resources to calculate carbon emissions because the calculation methodologies (and even the form format) are not harmonized globally. So, it is important to have a standardized calculation methodology and form format in the APEC region. 4.2 Ms. Palapleevalya commented that the Thailand government has initiated a carbon footprint project for the textile industry since 2005. Right now, we have about 76 emission factors that are developed under this project. We also have certified 35 products from 24 companies. But we developed a national Product Category Rule (PCR) (based on the Japanese experience). Right now, we have 3 national PCRs for our industry. My point is that, after we have promoted the carbon footprint project, we found that there seems no link with the retailers that can attract manufacturers to continue their licenses. In addition, Gabi is neither standardized nor updated. I therefore would like to suggest having a national PCR and an updated emission factor database for each country in the APEC region. We also need to have more forums to elaborate my suggestion in terms of political and technical side of implementation. 4.3. Mr. Huang suggested to have a specific project at the APEC level for the textile industry regarding the carbon footprint. The project should be aimed to (1) identify successful cases that are done by APEC members in order to promote learning by sharing; (2) to identify the gap over local policies in order to help building manufacturer's capacities for CDP reporting; (3) to create an updated database for the APEC economies; (4) to link the APEC effort to global retailers and international communities. 4.4 Ms. Pramudawardani supported the suggestion made by Ms. Palapleevalya regarding to develop a national PCR and an updated emission factor database for each country in the APEC region. Also, Ms. Pramudawardani expressed a need to have access to the knowledge about capacity building and footprint calculation for the textile industry in Thailand. Ms. Pramudawardani mentioned that, before she came, her supervisor asked her to explore the possibility of cooperation with Chinese Taipei or with a regional approach (i.e., at APEC level) in the future carbon footprint project. 4.5 Mr. Huang suggested to consider a kind of bilateral cooperation between Thailand and Chinese Taipei or with a multilateral cooperation among APEC economies. Issue 7: Can we have a national PCR and an updated emission factor database for each country in the APEC region? Issue 8: In the future, can we have more forums to elaborate the CDP reporting in terms of political and technical side of implementation? Issue 9: Can we have a specific project at the APEC level for the textile industry regarding the carbon footprint? The project should be aimed to (1) identify successful cases that are done by APEC members in order to promote learning by sharing; (2) to identify the gap over local policies in order to help building manufacturer's capacities for CDP reporting; (3) to create an updated database for the APEC economies; (4) to link the APEC effort to global retailers and international communities. Issue 10: Can we explore the possibility of cooperation with the Chinese Taipei or with a regional approach (i.e., at APEC level) in the future carbon footprint project? 5 Discussion Close 5.1 Mr. Huang closed the open discussion at 12:00 pm.