| Hong Kong-based Lever Style Inc has become one of the first companies which joined a new campaign to reduce carbon emissions in the manufacturing sector, Michelle Phong reports |
Established in 1956, Lever Style Inc has been known for its manufacture of middle- to high-end shirts for overseas markets. After adding in more product lines such as suits, jackets and pants two years ago, the total capacity of its plants has reached about 10 million units a year.
Stanley Szeto |
Last year, Lever Style was invited to take part in the pilot Low-Carbon Manufacturing Program (LCMP) organised by the World Wide Fund For Nature Hong Kong (WWF Hong Kong).
The program aims to help Hong Kong manufacturers producing in the Chinese region of Pearl River Delta to reduce carbon emissions from their plants.
Under LCMP, which is sponsored by Bowen Capital Asia Green Dragon Fund and in partnership with software solutions provider Ecofys and the Hong Kong Productivity Council, participating manufacturers are provided with a carbon accounting and labelling system to measure and analyse carbon emissions from their factories, making use of WWF Hong Kong’s exclusive software and checklists.
Lever Style is to spend six to nine months to implement 15 measures under the low-carbon emissions program, LCMP, initiated by the WWF Hong Kong (Source: Lever Style) |
“We pride ourselves for being a model ‘corporate citizen’ in the program. We aim to reduce carbon emissions while enhancing our cost competitiveness at the same time,” said Stanley Szeto, Chairman and CEO of Lever Style.
The company expects to save RMB2 million a year in cost through the implementation of 15 measures in its five factories. It is estimated that the initial investments would be paid back within 1.5 years.
“Another benefit, albeit less tangible, is our clients’ appreciation for us being a socially-responsible business partner,” he added.
Experienced in environmental protection
Despite being one of the first participants in the latest low-carbon emissions program, it is not the first time for Lever Style to introduce environmental friendly initiatives into its factory operations.
Inside its three existing plants located in Guanlan town and Yantian district in Shenzhen, there was the use of solar thermal panels for heating water, as well as energy efficient lighting tubes.
Joe Yuen, Executive Vice President of Lever Style, said the energy management system brought about by the LCMP has helped the company to measure how much they have achieved in their efforts to eliminate pollution to the environment.
In Huizhou city, Guangdong province, the company is building a “green factory”, which is expected to be in operation by the end of next year.
Solar panels at the factory roof help reduce the use of fossil fuels and thus carbon dioxide emission |
The 40,000-square-meter factory site will have greenery made up of different types of bushes, accounting for about 30% of total floor area. The factory will feature a green rooftop planted with orchid, Japanese weeds and other vegetation.
Mr Yuen explained that the green rooftop would help lower carbon dioxide level and improve air quality. The insulated buildings help to reduce the cost of heating and cooling while absorbing sound for a quieter environment.
Moreover, an advanced geothermal cooling system, which makes use of the naturally cooler environment deep underground to minimize energy consumption (and hence carbon emissions) is being considered.
Building trust with corporate ethics
Aside of environmental protection, social compliance is also essential for a sustainable business. It is an important element that helps make a manufacturer an entrusted partner of international garment brands and retailers, said Mr Yuen.
Illustration of Lever Style’s new plant in Huizhou |
With about 6,000 employees in five locations in Southern China and Hong Kong, Lever Style is a supplier to international brands such as Banana Republic, Calvin Klein, Cerruti 1881, Armani Collezioni, Hugo Boss and Paul Smith.
“We are among some 100 enterprises in China to obtain the SA8000 certification, which adopts the principles of international labor rights conventions into practical work-life situations,” said Mr Yuen.
Joe Yuen |
Some of the terms in this international certification are more stringent than those being required in China. As a consequence, Lever Style was well prepared when the new Labor Contract Law was introduced last year in the country.
Mr Yuen said: “At Lever Style, the consideration of environment and social compliance is constantly placed on our management agenda. We find this a strengthener of trust with our clients. Instead of holding dialogues of labor issues, we concentrate on product offerings and improvements in our business discussions.”
WWF calls for regional effort
Emissions of CO2, a key greenhouse gas, in the Pearl River Delta (PRD) region could be reduced by 74 million tonnes a year if factories across the region join the new low-carbon manufacturing program (LCMP), according to WWF Hong Kong.
WWF Hong Kong’s preliminary analysis of garments, plastics and electronics companies that joined the LCMP pilot phase last year shows that 12%-24% cuts in annual emissions are possible at low cost and with quick returns.
The PRD constitutes about 30% of the total value of China’s exports and represents the world’s highest concentration of manufacturing infrastructure, said Karen Ho, Business Engagement Leader at WWF Hong Kong.
“The new WWF standard helps factories in the region unlock huge potential to increase energy efficiency and reduce emissions whilst bringing significant cost savings and a competitive edge to their business in a carbon constrained world,” she said.
More than 10 manufacturing enterprises in textile and other sectors have agreed to join LCMP, Ms Ho told ATA Journal. Besides, a number of international garment retailers, brands and sourcing firms are considering joining the program, and at the same time, encouraging their suppliers in Asia to minimize CO2 emissions.
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