SIMONA TANNING

1. SIMONA TANNING Environmental Footprint From blueprint to footprint - When it comes to our environmental impact the giant tortoise, over its 100 year life span, has seen most than more of us. At Simona Tanning we are doing our best to think of the planet and by doing so ensure these and every other creature can continue to make their own footprints on the earth unhindered for years to come. Rather than marketing chrome free, green or organic leathers, we believe it makes sense to focus on our total environmental footprint, throughout the whole of our business. After all, what better plan is there to follow than nature’s original blueprint for a sustainable world.

3. Results A spider spins its web in one continuous process, starting first with the framework and then working with its sticky tread into the centre. Likewise Simona have continuously strived to build on a sound structure of good environmental practices. We perform to a gold standard minimum in every issue from effluent treatment to energy consumption. “NATURE’S BLUEPRINT IS OUR ENVIRONMENTAL FOOTPRINT” The spider web graph shows Simona Tanning’s ‘critical sections’ scores in comparison with the gold target set by the Leather Working Group’s environmental certification protocol. OUR PHILOSOPHY • Nature’s Blueprint is our Environmental Footprint • Corporate philosophy to lessen Environmental Footprint • Processes, Finishes and Attitude…

4. WE’VE COME A LONG WAY… Where we WERE in MAY 2007:LWG AUDIT COMPLIANT – 75% ETP could not treat waste to an acceptable level & discharge volumes were often higher than acceptable level Energy & Water use was not well controlled Solid waste volume was too high, & we were not recycling enough No concentrated environmental focus within the tannery

5. WE’VE COME A LONG WAY… Where we ARE in JANUARY 2009:LWG AUDIT GOLD – 90% • ETP treatment effective and within standard. Discharge volumes very low as we recycle more within tannery. • Energy & Water well controlled with many successful reduction programmes in place. • Solid waste volume reduced significantly & recycling levels increased • Focused, well managed environmental programme within the tannery

6. ENVIRONMENT POLICY 環境方針 Simona Tanning will ensure that its operational activities comply fully with relevant environmental legislation, and perceived best practice. 興昂制革將確保其營運活動都完全遵守相關的環境法律法規，並且盡可能達到最高標準之要求。Simona Tanning strives by the setting of objectives and the measurement and analysis of data, for continual improvement of its environmental management procedures.興昂制革通過設定一系列的目標，檢測以及數據分析以達到持續改善環境管理程序的目的。Simona Tanning will focus on the management of resources and aims to reduce and / or recycle wherever possible.興昂制革將關注資源管理，並致力於減少資源的使用或盡可能地循環利用資源。 COO： 總經理：

7. Changes We MadeETP Design and construction of new ETP to process up to 2400m3/day. New ETP designed to recycle 40% of treated water back to retan process. Use of the most up-to-date technology to treat tannery effluent including Membrane Bio-Reactor, Ultra-filtration, Reverse Osmosis Hiring of overseas consultant to maximise ETP performance

8. Changes We MadeETP Ultra-Filtration (UF) Reverse Osmosis (RO)

9. Changes We MadeENERGY Change shift arrangement to utilize city power, so no need to run oil fired generator Installation of wood-fired boiler operating on scrap wood to replace oil fired boiler Utilize the low cost evening power to run the most energy consuming equipment (RO membranes, Roller Coaters) Use more natural air drying Reduce temperature settings in toggle driers, Paste driers, tunnel driers Reduce steam pressure in to the tannery Increase chilled water temperature Reduce lighting (light tubes in offices reduced from 3 to 2) Remove air hoses off most machines to save energy used to run compressors Installed converter unit to control air compressors – minimize energy use. In ETP run air mixers in balancing tank intermittently for 30 mins, stop 30 mins, rather than all the time. Installation of sensors on hand spray machines and other machines to automatically turn off if not in use. General education of all staff to turn off lights, fans, a/c etc when not in use Continued investigation in to alternative energy sources (solar power for some hot water production, street lighting options – solar?, LED?).

10. Changes We MadeENERGY Installation of Scrap Wood Fired Boiler to generate steam Operational November 2008

11. 2009 Target

12. Changes We MadeWATER Use RO water (Reverse Osmosis treated water from Effluent treatment plant) to supplement town supply (aiming for minimum of 40%) Use ETP discharge water for non-critical processes, i.e. garden, toilets, cleaning, soaking tanks on sam/set machines, spray booth water scrubbers, ETP use this water to dissolve chemicals The above 2 programmes are on-going and have been fully operational since November 2008 Samming machine – collect water from felt spraying and recycle it to Feltre wash off drum. Feltre wash off drum – recycle this float Hand Spray booths – change water weekly (before changed daily) Reduce wet back and wash floats by 50% (from 200% to 150%) Currently trialing reducing all float offers by 10% in retanning General education of all staff to use less water, turn off taps, get dripping pipes / taps fixed etc.

13. Changes We MadeWATER Re-circulate wet back drum water Samming Water reused to wet back drum

14. Changes We MadeWATER Discharge Water use for non-critical processes RO Water to supplement town supply for processing

15. 2009 Target

16. Changes We MadeSOLID WASTE Change from Belt Filter Press (Moisture rate approx 80%) to Plate filter press (Moisture rate approx 60%) to treat effluent treatment plant sludge Install Sludge drier. Sludge moisture rate after drying approx 25% Sludge volume in 2007 = 0.98Kg/m2, Sludge volume in 2008 = 0.31Kg/m2 Wet Blue Shavings – able to be sold and recycled Change shaving substance to reduce shaving volume – 2007 Average shaving waste = 0.32Kg/m2, 2008 Average shaving waste = 0.21Kg/m2 Reduce trimming at crust and final sort to reduce trimming volume Implement departmental solid waste reduction programme

17. Changes We MadeSOLID WASTE To Plate filter Press (60% moisture) ETP Sludge - Change from Belt Press (80% moisture)

18. Changes We MadeSOLID WASTE 60% moisture Sludge from 60% moisture to 25% moisture A 60% reduction in sludge waste generated/,m2 leather made 25% moisture ETP Sludge – Install dryer (25% moisture)

19. 2009 Target No sludge or shavings disposed 2007 – ETP sludge 0.98Kg/m2 2008 – ETP sludge 0.31Kg/m2

20. 2009 Target

21. Changes We MadeOTHER INITIATIVES More thorough and complete reporting of environmental performance: Monthly environment report, Monthly publishing of Environmental Control Board Data – since May 07 Implementation of an Environmental Committee, with monthly Environmental Audit of the tannery – since July 08. Environmental training courses held for staff introducing the concepts of environmental management and why it is important – on-going. Implementation of Environmental KPI’s for Leading Hands and Supervisors – since July 08 Investigation of alternative energy sources to supplement our existing options. Covering of anaerobic tanks and installation of air scrubber to ensure there are no odors from ETP.

22. 2009 AND BEYOND… Focus on 0% water discharge, while reducing overall water use within the tannery to sustain Gold medal level. Focus of continued energy reductions to sustain Gold medal level. Continued reduction in solid waste generation. Continued investigation & then implementation of alternative energy sources (solar power for some hot water production) Capturing and use of rain water Reed bed pilot plant for treatment of RO Concentrate Implement system to measure the environmental footprint of individual leather types Continued focus to REDUCE, REUSE, RECYCLE in all areas of our operation

23. MORE INFORMATION For more information on Simona Tanning’s Environmental System visit Simona Tanning’s Website www.simonatanning.com For more information on the LWG protocol: www.blcleathertech.com/blc_leather_working_group.aspx