inditex kyoto project.pdf
TRANSCRIPT
Case Study
EuropeanCommission
www.bestlog.org
INDITEX Pro-Kyoto Project
If transport continues to grow at the same rate as the economy,this will become both an economic and an environmental problem.lncreasingly congested roads are as much a disadvantage to European business as they are to society at large. The bestlog project, initiated by the European Commission, will establish an exchangeplatform for the improvement of supply chain management practice across Europe.
THE PLATFORM
To improve logistics practice and logistics education•To raise the overall standards of practice across Europe•To set high standards for logistics education and practice•To create economic growth and job opportunities as a result•Achieve a better match between EC policy and business decisions•
OBJECTIVES
European platform for sharing logistics best practice•Online directory of logistics best practice case studies•Online directory of European logistics education opportunities•Benchmarking on line for European companies•European conferences to share logistics best practice•Web forum, award directory, media directory, and more•lndustry workshops•
SOLUTIONS & ACTIVITIES
www.bestlog.orgCASE STUDY
COMPANY FACTS
PROBLEM DESCRIPTION
INDITEX Pro-Kyoto Project
INDITEX is one of the world‘s largest fashion distributors, with eight brands -Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Kiddy‘s Class.
The Spanish government and European Commission have increased fines for excess CO2 emissions. INDITEX’s ownCO2emissionswereconsiderable.INDITEXalsorealisesthe importance of brand image to consumers, especially nowadays in terms of sustainability and environmental responsibility. Moreover the Spanish government is funding companies’effortstobecomemoresustainable.
With these factors in mind, INDITEX is developing a Strategic Environmental Plan 2007-2010, which is divided into five specific projects: the Sustainable Store Project, INDITEX Pro-Kyoto Project, Energy and Environmental Integration Project, The Carbon Footprint Project and The Terra Project.
The Pro-Kyoto Project is focused on logistics operations, whosesustainabilityisoneofINDITEX’spre-eminentbusinessvalues. TheGroup’s commitment to sustainability, climaticchangeandtheKyotoagreementisspecificallyfocusedonatargeted20%reductionofgreenhousegasesgeneratedbytransportation.
INDITEX is developing a Strategic EnvironmentalPlan2007-2010whichisdividedintofivespecificprojects:
INDITEX Pro-Kyoto Project•Sustainable Store Project •Energy and Environmental •Integration Project The Carbon Footprint Project •The Terra Project•
We will focus in the Pro-Kyoto Project later in this case study because the sustainability of logistics operations is oneofINDITEX’skeybusinessvalues. Thegroup’scommitmenttosustainability,climate change mitigation and the Kyoto Agreementisspecificallyfocusedonthereduction of greenhouse gases generated by transportation.
Company name: INDITEX, S.A. (Industria de Diseño Textil S.A.) Location: Spain, Arteixo (A Coruña) Industry/sector: RetailCompany size: LargeEmployees: 69,240Turnover: 8,196mio.€(2007)
Services/products offered: INDITEX is a fashion manufacturing and distributiongroupcomprisingover100companies involved in textile design, manufacturing and distribution.
CASE STUDY www.bestlog.org
The main goal for the Pro-Kyoto project is to reduce transportation greenhouse gas emissions. To achieve this goal, INDITEX has established four initiatives that have already been implemented, and will be developed until 2010:
A Bio-Diesel Programme: Zara’s entire fleet of •transportation vehicles will run on bio-diesel, for which a supply network will be set up at loading points and along trucking routes. The vehicles con- cerned are operated by third party logistics contractors.
Fleet driver training courses on fuel-efficient •driving form part of a plan implemented in conjunction with logistic suppliers. It also stipulates that all vehicles in the Zara fleet must comply with the EuropeanCommission’s EURO 5 NOx vehicle emissions standardtwoyearsaheadofEURO5comingintoeffectin2009.
Zero-emissions electric vehicles will be used in factories •and logistics centres to replace an older petrol–fuelled fleet.
The second project is the Sustainable Store project. It has involveddevelopingcriteriaforsustainabilityandtheefficientuseofenergyinretailoutlets,throughthreemainstrategies:
Eco-efficient store model: INDITEX, in conjunction•with the University of Vigo, is designing an ecological energy management model for retail outlets. Lighting equipment will be changed to equipment that offers high efficiency and low energy consumption.
Sustainability of packaging and wrapping materials:•Workinthisareaincludeseco-certificationforallplasticand paper bags used by the Group, (using international standards such as FSC or PEFC) and the use of biodegradable materials in all plastic bags. It also covers all store waste management, which is carried out by authorized agents, and the re-use and recycling of materials such as cardboard boxes, hangers and computer-generated waste.
Training for all store personnel to raise awareness of •environmental impacts.
The third objective is to integrate Environmental and Energy actions in the production facilities. The aim of the Energy and Environmental Integration Project is to introduce renewable energy sources, such as wind, solar and solar-photovoltaicenergyintheGroup’slogisticsfacilities.
THE SOLUTION
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INDITEX’s facilities at Arteixo (A Coruña) house the headquarters of the Group itself as well as those of the Zara, Zara Home and Kiddy’s Class brand operations, the Grouplogisticscentreand11textilefactories.
Inditex has implanted a new integrated energy system at Arteixo that includes a 5,000kW cogeneration plant, a 1,500sqftsolarinstallationanda850kWwindturbine.Thissystemcoversmore than50%of theArteixo site’s energyrequirements. The Group aims to install similar energy systems in its other main facilities. The plan involves implementing the following actions:
Solar photovoltaic installations in the logistics •centres located at Meco (Madrid), Zaragoza and León, and in the Group’s headquartersin Tordera (Barcelona) and Elche (Alicante).
Minimise carbon monoxide emissions by replacing oil with •natural gas for heating and for the production of steam for ironing equipment at Arteixo and Sallent (Barcelona).
A new cogeneration plant in Tordera.•
The Carbon Footprint Project objective is the fourth element of the plan; Inditex will measure the carbon footprint of each of their manufacturing processes and adopt strategies to reduce it.
The Terra Project is the final element in the StrategicEnvironmentalPlan2007-2010.INDITEXconsiderstreeplantingas one effective way of closing the energy/CO2 loop. The objectiveistocreatetheforestmassneededtoabsorb100%of the emissions generated by the consumption of electricity at the central office inArteixo. (A site for this forestationproject has yet to be selected).
INDITEX will achieve a reduction in greenhouse gas emissions and increase the proportion of its energy demand supplied byrenewableenergysources. Itwillmaximizetheefficientuse of energy in manufacturing, train staff in environmental management issues and raise their awareness of sustainability.
INDITEX considers it should integrate a set of sustain- able development criteria in its working practices, to ensure effective, responsible resource management and the protection oftheenvironmenttosatisfysociety’srequirements.
CHALLENGES
Challenge1:Toachievea20%reductionofCO2emissions.Thisis an important objective, because to achieve this the Group had to initiate change in several activities, including some of its logistic strategies.
Challenge2:Nocommercialavailability of biofuels in Spain.
Challenge3:Scepticismofpersonnel and fear of technology change (vehicles running on biofuels and electrical vehicles).
CASE STUDY www.bestlog.org
Lesson 1: Logistics and environmental effi- •ciency go together hand in hand. Thus if they are both managed in an integrated way, economic, social and environmental benefits will result simultaneously.
Lesson 2: Sustainable corporate investment decisions•on technological and productivity improvements must value and account for environmental variables.
Lesson 3: When staff are fully involved in •projects of this type, success is more easily won.
Success factor 1: INDITEX has aligned its logistics•strategy with sustainability criteria to realize environmental improvements which can enhance the image of the company communicated by media.
Success factor 2: Truck drivers have been trained in •efficient driving techniques and other employees havetaken part in training to make them aware of the new strategy and to encourage their participation.
LESSONS LEARNED AND SUCCESS FACTORS
“The development of the INDITEX
business model with a focus on
sustainable issues has to consider
the whole value chain.
A sustainable logistics function is a
strategic factor in moving forward”
Project Manager at Inditex
www.bestlog.orgCASE STUDY
CHALLENGES
Transferables Limitations
Country Company SizeSector
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TRANSFERABILITY
Large companies such as INDITEX can afford to invest in this kind of project to protect the environment and yield profits. The renewable energy chosen dependson the geography (if there is profitable wind, sun,water, etc.) but if it is chosen carefully, at least one renewable energy source can be used.
AprojectsuchasINDITEX’sStrategicEnvironmentalPlan 2007-2010 can be implemented inany country and in any sector, taking into account the appropriate source of renewable energy in each case.
o ++ o
T H E B E N E F I T S
PerceptionsoftheGroup’sserviceanditsbrandswillbeenhancedbythecompany’senvironmental good practice. This practice prioritises energy efficiency in plants,warehouses and trucks but without negative implications for production volume, productivity;reducedenergyconsumptionproducesincreasedeconomicefficiency
Group-wideCO2emissionswillbereducedby850tonnesperyearduetotheuseofbiofuels (accountingfor80%ofthereduction),andtotheuseof renewableenergysources and tree planting. Emissions of CO, sulphur and nitrous oxides are also reduced by switching trucks from diesel to biofuels. Moreover, more crops are needed to produce biofuels and to plant trees for the Terra project; this has impact on land use. With the Ateixocogenerationplant,morethan80%oftheenergyintheplant’sfuelisconvertedintousableenergy.Cardboardproductionandofficewastehasbeenreducedpackagingpolicies will give preference to the use of recycled and biodegradable products.
The Group’s truck drivers will improve their driving techniques to enhance safety, reduceemissions,whilestaffintheGroup’sofficesandretailoutletshavelearnedtowork in more sustainable ways. These staff development measures have an impact on employment, since it has become necessary to hire new personnel to develop this ambitious project.
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Economic
Environmental
Social
SUST
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CASE STUDY www.bestlog.org
Contact
PROJECT SECRETARIATBerlin Institute of Technology
H90-bestLogStrassedes17.Juni13510623Berlin-Germany
Phone:+49-30-31429980Fax:+49-30-31478794
E-Mail:[email protected]:www.bestlog.org
EuropeanCommission
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This document, including but not limited to text and photographs, is protected under copyright. The copyright owners admit the use for informatory and training purposes. Any commercial use of the document or parts thereof is prohibited.
Author:GuerolaPérez,Sonia.ITENEPackaging,TransportandLogisticsResearchCenter(2009):BestLogGoodPracticeCases.INDITEXPro-Kyoto Project. Published by BestLog Project. www.bestlog.org.