Through a 1-year program, 10 Chinese textile factories improved energy efficiency. Audits found projects with total annual savings of $7.3 million and quick paybacks. Factories invested in improvements like steam pipe insulation. Training raised awareness of best practices. One factory saved $128,000 annually from a $19,000 steam system upgrade. The program aims to expand to more factories and brands to help China meet energy reduction targets and lower supply chain emissions and costs.

1. Greening China’s Supply Chains
Optimizing energy efficiency in textile factories
1st Year Program
Results and Activities
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2. Rising cost of energy
Global brands and
Increasing global
retailers setting
government pressure
energy and
on greenhouse gas
greenhouse gas
emission regulation
emission targets for
and pricing
supply chains
China 2015
government textile Textile supply Competition with
industry target of 17% chain energy other textile
energy efficiency efficiency producing countries in
improvement Asia
compared to 2010 drivers
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3. Project at a glance
Steam loss at a participating
textile dying facility at program start
3
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4. Same factory after the program:
2 million RMB savings per year
through 2000 RMB investment in
semi-automatic control systems on
dyeing/washing machines.
10% Energy costs saved! 4
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5. Through Energy Audits in 10 factories we found
87 types of energy efficiency projects with
total energy cost savings of 46 million RMB/year,
9 months average pay-back time,
cutting factory energy bills by 25%
and saving 60 ktCO2/year
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6. Energy Management Training
Suppliers participated in 5 trainings on:
1. Energy management systems
2. Data management and analysis
3. Textile industry energy efficiency best-practices
4. On-site interactive energy auditing training
5. Action planning
Confidential & Proprietary 6
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7. Interactive energy audit training
 Expert facilitated walk-through audit with suppliers
 First hand experience of good and bad practices
 Fostering peer-to-peer learning
 Practicing working with customized tools to identify
energy losses
Confidential & Proprietary 7
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8. Training lessons and audit results were
quickly turned into action:
Beijing Huayang Garment Factory invested
120,000 RMB in a steam pipe retrofit and
insulation project, saving 800,000 RMB/year
or 12% of total energy costs
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9. LASTING IMPACT
“Through the trainings of the project, the biggest improvement is the
awareness and attention given to energy management from company
executives who now view energy use more strategically.”
-- Manyin Jian, VP of Beijing Huayang Garment Factory
“This project has provided a good platform for dialogue and sharing of best
practices among relevant stakeholders. Specifically, it has offered factories the
tools and capacity to attract financing options for energy savings projects as well
as improve their ability to measure progress and collect relevant data.”
-- Felix Ockborn, Environmental Sustainability Program Developer, H&M
“The most important improvement after joining this project is that energy
conservation awareness has been strengthened from top managers to
each worker in our factory. Energy conservation is now a part of our
company culture.” -- YunXiao Li, VP of Hebei Ningfang Group
© Azure International

10. Project at a Glance
Project outline 2011-2012:
• 13 factories participating in Beijing, Hebei, Jiangsu, Shangdong and Zhejiang
• Covering spinning, weaving, dying and garment manufacturing
• Levi’s, GAP, H&M and adidas actively participating
• Funding by Renewable Energy and Energy Efficiency Partnership
• Implementation in partnership with the China National Textile and Apparel Council
• Sector specific tools for energy management system analysis and energy
auditing developed
• Detailed training program implemented
• Energy audits conducted by Azure experts at 10 factories
• All participating factories developed action plans for implementing energy saving
measures
• Partnership with International Finance Corporation to explore financing options
Goals for 2013:
• Scale up to 40 factories in China
• New brands joining the platform
• Develop partnerships with financing institutions
Confidential & Proprietary 10
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11. Recognizing 2012 suppliers’
achievements
Confidential & Proprietary 11
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12. Azure International
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100027 Dong Cheng District, Beijing
PR China
Tel: +86 10 8447 7053
Fax: +86 10 8447 7058
www.azure-international.com
For more information, please contact
Ms. Jenny Chu
jenny.chu@azure-international.com
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