Dr. YEN Gordon The Manufacturer’s PerspectiveFountain Set (Holdings) Limited

• Founded in 1969, listed on HKEX in 1988

• One of the world's largest manufacturers of circular knitted fabrics

• 2009 annual worldwide sales reached approx US$700 million

• Staff force over 14,000 worldwide

Fabric Producer (FSHL)

China, Sri Lanka

Cotton SpinnersChina, India, Indonesia, Pakistan,

Taiwan, Others

Garments ProducersLatin America, China, Middle East, SE Asia,

W Asia, Others

Buyers / RetailersUnited States,

European Union, Asia

Sustainable Fashion Business Alliance

FSHL’s Holistic View on Sustainability

• US, EU and Asia customers including China become more conscious on sustainability, whether on products or production practices

• We believe sustainability includes– Environmental protection

– Social responsibility

– Stakeholder relationship

– Long term competitiveness of business

WWF LCMP Certified Label Award 2010for Dongguan Shatin Lake Side

Hang Seng Pearl River Delta Environmental Category Award - Water Management

Certificate of Appreciation of Cleaner Production by HKProd Council

Recognition

China Great Wall Quality Assurance Centre Certificate of Conformity of Environment Management System

Certification

Oeko-Rex® Standard 100 Certificate

ISO14001:2004 Certificate ISO14001:2004

Fairtrade Certificate

Sustainable Fashion Business Alliance

Impact of Sustainable Practices

1 No change in Product + Same or Lower Cost

2 No change in Product + Higher Cost

3 Product Change + Same or Lower Cost

4 Product Change + Higher Cost

Sustainable Fashion Business Alliance

REACHRegistration, Evaluation, Authorisation and Restriction of Chemical substances

• One of the first to fully implement• An example of level 2 effort – no change in

products and increase in cost• EC Regulation

– For chemicals and their safe use in producing consumer products

– Protection of human health and the environment – Identification of the intrinsic properties of chemical

substances– Both upstream raw materials and production process related

Sustainable Fashion Business Alliance

Challenges in Measuring Environmental Sustainability

• Lack of standard • Complexity in carbon footprint• Scope of what should be included and methods

of measurement