footwear, apparel & accessories industry · [email protected] offers expertise in water...

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FOOTWEAR, APPAREL &ACCESSORIES INDUSTRY

SUSTAINABILITY GUIDELINE

ANNEXCAMBODIA

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The designations employed and the presentation of the material in this publication do not imply theexpression of any opinion whatsoever on the part of PUMA concerning the legal status of any country,territory, city or area or of its authorities, or concerning delimitation of its frontiers or boundaries. Moreover,the views expressed do not necessarily represent the decision or the stated policy of PUMA, nor does citingof individual companies, trade names or commercial processes constitute endorsement. The factories andindividuals using this guideline shall ensure utmost care and diligence in implementing any suggestions,recommendations in this guideline, and PUMA shall not be held accountable.

Disclaimer

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PREPACEThis report is developed as part of a PUMA sustainability project; SAVE. “SustainableAction and Vision for a better Environment” (SAVE) is a PPP (Public Private Partnership)project jointly co-financed by DEG, co-financed and implemented by PUMA in cooperationwith H&M and ASSIST (Asia Society for Social Improvement and SustainableTransformation).This report forms a subcomponent of the International Sustainability Guideline to informfactories, project partners and stakeholders of specific issues, opportunities and contactsrelated to Energy Efficiency, Green House Gas Reduction, Water Conservation and WasteManagement for the Footwear, Apparel and Accessories industry in Cambodia. This reportis intended to be a reference resource for local companies to assist them in developingand implementing their Sustainability Action Plans.This report contains three main resource sections:List of Potential Local & Regional Vendors: including suppliers of equipment,technologies and services to meet the requirements of the opportunities identified in thefirst section. This includes local addresses, contacts, and websites. Where localCambodian vendors are not available the nearest regional/international vendor contactsare provided.Local Regulations & Practices: Provides a guide to Indonesian laws and regulationsdirectly affecting factories and their ability to implement energy, water and wastemanagement opportunities.List of Potential Local Funding Opportunities: This final section lists agencies andorganisations who are actively involved in Clean Production initiatives, providing credit,loans, grants and technical support to factories to assist them to implement energy, waterand waste management opportunities.

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About the Author

This sustainability report has been produced by the national consultant of National CleanerProduction Office-Cambodia (NCPO-C) in cooperation with ASSIST, an internationalNGO, as part of a larger programme of works including on-site energy, water and wasteassessments at the two PUMA and H&M Factories in Cambodia. National CleanerProduction Office – Cambodia (earlier known as Cambodia Cleaner Production Centre)has several years of experiences in promoting concepts and implementation of CleanerProduction (CP) and energy efficiency strategies in Cambodia. NCPO-C has successfullyexecuted cleaner production and energy efficiency projects since 2005, including biomassbased power generation, Sustainable Product Innovation (SPIN) project, and WaterAgricultural Biomass to Energy (WAB2E) project .etc. Most of the projects are funded byGlobal Environmental Facility (GEF), and executed by United Nations IndustrialDevelopment Organization (UNIDO) in cooperation with the Ministry of Industry, Minesand Energy (MIME) of Cambodia.

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Table of Contents

1 Introduction to Current Condition in the Country.....................................................62 Additional Local Opportunities ......................................Error! Bookmark not defined.

2.1 Energy Conservation ............................................................Error! Bookmark not defined.2.2 Water Saving .........................................................................Error! Bookmark not defined.2.3 Waste Reduction...................................................................Error! Bookmark not defined.

3 Potential local & regional vendors .............................................................................8

3.1 Energy Conservation .......................................................................................................8Lotus Green Team Co., Ltd. ......................................................................................................8

NEEN Cambodia Co., Ltd.........................................................................................................9Bright & Eternity Trading Co., Ltd. ............................................................................................ 9

Branch of Juki Singapore Pte., Ltd. ...............................................................................11

Cheang Long Co., Ltd. ........................................................................................................... 11

3.2 Water Saving .................................................................................................................. 153.3 Waste Reduction............................................................................................................ 16

4 Local regulations & practices...................................................................................18

4.1 Energy related Regulation............................................................................................. 18

4.1.1 Energy policy, 2013 ...................................................................................................18

4.2 Water related Regulation............................................................................................... 194.3 Waste related Regulation .............................................................................................. 19

5 Potential Local Funding Opportunities....................................................................21

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1 Introduction to Current Condition in the Country

Cambodia is a country located in the portion of the Indochina Peninsula in Southeast Asiawith total land area of 181035 square kilometers. It is bordered with Thailand, Lao andVietnam. Cambodia economy depends on four sectors including agriculture sector,tourism sector, industrial sector dominated by garment and footwear industry, and servicesector. Industrial sector occupies 32% of the total economy; the agriculture is the mainindustry of Cambodia. Major agricultural products are rice, rubber, maize, cassava, etc.The secondary industry and tertiary industry respectively account for 22% and 38% of thetotal economy. The major industry of the manufacturing sector is apparel products, whichare directed to exports. Among the tertiary industry, the tourism-related industries areimportant to the Cambodian economy.The Cambodia garment industry started in 1993 when foreign investors started to ventureinto Cambodia. With the granting of MFN/GSP trade privileges to Cambodia in 1996 byboth USA and EU, the garment industry has maintained its pre-eminent position in theindustrial landscape of Cambodia.The quota imposition on Cambodia was dropped due to its accession into the World TradeOrganization (WTO). The success and development of the industies can hardly beoveremphasized. The number of garment factories has grown from 48 in 1996 to 426 byJune 2013 (GMAC, 2013) with total export value of over $4 billion.The footwear industry has grown significantly over the last 5 year. The number of factorieshas nearly doubled since 2008 and these factories have produced over 300% growth inexports. In 2012, the number of functioning factories grew to 45 with total exports of $268.66 million. EU is the top export destination for footwaer from Cambodia as the EUCouncil Regulation 732/2008, everything but ARMs, which became effective as of January1 2009, give Cambodia duty free and quota free exports. Japan is second largest marketwith similar advantage of duty free shipping from the Free Trade Agreement that Japanhas entered into ASEAN countries.The growing industries in Cambodia leads to more resource and energy demand. In 2009,industrial sector accounts for 249.2 GWh about 20% of total electricity consumption inCambodia. The overall consumption is expected to increase 2.3 % every year till 2035. Astudy done by GERES in 2012 shows that 69 of garment industries in Cambodia consumearound 273, 000 ton of wood per year to meet thermal energy demand mostly for steamgeneration.

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2 Potential local & regional vendors2.1 Energy Conservation

Type

Vendor

NameWebsite/ Contact Number /

Email

Scope ofSupply(Services/Products)

2.1.1MaintenanceandHousekeeping

Sok EnterpriseCo.,Ltd.

Tel: + (855) 12 66 20 20 Fax: + (855) 24 667 57 47 Email: sok.vannak@sokenterpri

se.com

Biomass Boiler,Insulation, andBoilerMaintenance

Lotus Green TeamCo., Ltd.

No. 34Eo, Ung Pokun (St. 109),12251 Phnom PenhTel: (+855) 12 978 296

Maintenance -General,Building,Electrical,Plumbing,Cleaning, etc.

TEM Trading Co.,Ltd

No 99, St. 143, Boeung KengKang III, Chamkar Morn, PhnomPenhH/P(+855) 12 407 507 /095 829 993/ 095 829 994Tel(+855) 23 6363 030

2.1.2 Lighting ESS - EnergySaving Supply Co.,Ltd.

# 458A, Krakpeuha Village, PrekRussei Commune, TakhmaoDistrict, Kandal Province,CambodiaTel: (+855) 23 308 820E-mail: [email protected]: www.ess.com.kh

LED, T5

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Type

Vendor


Email


Solar GreenEnergy(Cambodia) Co.,Ltd.

No. 1, Confederation de laRussie Blvd (110), 12406Phnom Penh, CambodiaTel: (+855) 12 619 715Email: [email protected]: www.solarcambodia.com

LED, T5

Solar EnergyCambodia

No. 7A, Sorla (St. 371), BoreySorla, 12102 Phnom Penh,CambodiaTel: (+855) 99 911 922Email: [email protected]: www.solarenergy-sec.com

LED, T5

NEEN CambodiaCo., Ltd.

No. 22DEo, Confederation de laRussie Blvd (110), 12155Phnom Penh

Mobile Phone077 604 902 Tel: (+855) 23 4516 688 E-Mail [email protected] Website www.neen.com.tw

LED LIGHT

Bright & EternityTrading Co.,Ltd.

#351 E0, Corner Street 163 &478, Sangkat Toul Tumpong,Khan Chamkarmon, PhnomPenh, CambodiaTel: (+855) 66 376666

LED, T5, T8Lighting

2.1.3 Heating,Ventilation,and AirConditioning

Comin KhmereCo., Ltd.

No. 8b, Down Town Road No 7,12405 Phnom Penh, CambodiaTel: (+855) 23 885 640, 023 885641E-mail: [email protected]: www.cominasia.com

HVAC,Pumpingsystems

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Type

Vendor


Email


AdvancedTechnical SuppliesCo., Ltd.

No. 19, St. 209, 12306 PhnomPenh, CambodiaTel: (+855) 23 222 411Fax: (+855) 23 222 412E-mail: [email protected]: www.ats.com.kh

-Motor-Pump, Fancontrol system

2.1.4 Insulation

CFC - CompagnieFrançaise deCommerce

178 RN 5 Sangkat Russey KEOBP 84,Phnom Penh Kingdom ofCambodiaTel ( +855 ) 23.427.026 / (+855)23.426.076Fax ( +855 ) 23.426.076E-mail:[email protected]: www.cfc-cambodia.com

INSULATION


Tel: + (855) 12 66 20 20 Fax: + (855) 24 667 57 47

Email: [email protected]


2.1.5CompressedAir System

FlowQuip Pte., Ltd.

Tel: (855-23) 881 925Fax : (855-23) 881 926Email:[email protected]: www.flowquip.com.sg

ScrewCompressors

Noyakong GroupCo., Ltd.

No. 249-251, Mao Tse ToungBlvd (245), 12308 Phnom Penh,CambodiaTel: (+855) 23 6666 618, 012977 888E-mail: [email protected]: www.noyakong.com

Air compressor

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Type

Vendor


Email


2.1.6 MotorOptimization(includingsewing)

Branch of JukiSingapore Pte.,Ltd.

No. 254, Preah Monivong Blvd(93), IOC Building, 12211Phnom Penh

H/P (+855) 12 890 399 Tel & Fax (+855) 23 223 707 EMail

[email protected]

Sell andService

Cheang Long Co.,Ltd.

No. 1076E, Sorla (St. 371), TreaVillage, Sangkat SteungMeanchey, Khan Meanchey,12352 Phnom PenhTel: (+855) 12 933 866

SewingMachine repairand Sell

2.1.7 SteamBoiler System

Noyakong GroupCo., Ltd.

No. 249-251, Mao Tse ToungBlvd (245), 12308 Phnom Penh,CambodiaTel: (+855) 23 6666 618, 012977 888E-mail: [email protected]: www.noyakong.com

Boiler


Khum Krasang, Phum CheungKeb,Srok Kandal Stueng,Kandal Province, Cambodia

Tel: + (855) 12 66 20 20 Fax: + (855) 24 667 57 47

Email: [email protected]


Spirax Sarco(Cambodia) Office

Phnom Penh Center, 135, Floor1, Building A Crn. Sihanouk &Sotheros Blvds, Phnom Penh,

Cambodia

Boiler andSteam System

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Type

Vendor


Email


2.1.8WastewaterTreatment

K - Water BiotechCo., Ltd

No. 29, St. 199, 12309 PhnomPenhTel: (+855) 23 993 771Fax (+855) 23 993 778E-mail:[email protected]:www.kwaterbiotech.com.kh

WaterPurification &FiltrationEquipment &Services

2.1.9Water andwaste watertreatment andchemical

Thermax Group

388, Exchange Tower, 42ndFloor Sukhumvit RoadKlongtoeySub- district,Klongtoey DistrictBangkok 10330Tel: +66-2320 1475Fax: +66- 2262 1400Email:[email protected]

Offers expertisein watermanagementrecycling. Itswater andwaste watertreatmentsystems.

2.1.10 CuttingProcessOptimization

PT OMRONElectronics

Tel: +6221 29497500

Substitutemotors athydrauliccuttingmachines withservo type

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Type

Vendor


Email


Freeman Schwabe-Company

4064 Clough Woods Drive,Cincinnati, Ohio 45103 USA

http://www.freemanschwabe.com/

FreemanSchwabe is aglobal OEM ofthe highestquality diecutting pressesandcompressionmoldingmachines,including theworld-renownedbrand ofSCHWABEpresses.

2.1.11CondensateRecoveryManagementand WasteHeat Recovery



Heat recoverysystems

2.1.12RenewableEnergy

Solar GreenEnergy(Cambodia) Co.,Ltd.

No. 1, Confederation de laRussie Blvd (110), 12406Phnom Penh, CambodiaTel: (+855) 12 619 715Email: [email protected]: www.solarcambodia.com

Solar Panels,

ESS - EnergySaving Supply Co.,Ltd.

# 458A, Krakpeuha Village, PrekRussei Commune, TakhmaoDistrict, Kandal Province,CambodiaTel: (+855) 23 308 820E-mail: [email protected]: www.ess.com.kh

Solar Panels,Solar WaterHeater

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Type

Vendor


Email




RenewableEnergy

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2.2 Water Saving

Type

Vendor

Name ContactScope of Supply

(Services/Products)

2.2.1 WaterEfficiency

NationalCleaner

ProductionOffice-

Cambodia

National Cleaner Production Office-CambodiaRoom 04, Fifth floor, IOC Building, #254, Monivong Blvd.12209, Phnom Penh, CambodiaTel: (+855) 23 222 076Fax: (+855) 23 222 076Email: [email protected]

Consultancy

GreenMove

Consulting

K6, Borei Villa Toul Sangke, PhnomPenh, CambodiaEmail:[email protected]

Water and EnergySaving ConsultingFirm

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2.3 Waste Reduction

Type

Vendor


(Services/ Products)

2.3.1 Nonhazadouswaste

CINTRI(CAMBODIA)

LTD.

#442D, Monivong Blvd,Tonle Basac,Chamkamorn, PhnomPenh, CambodiaTel: (855) 23 726 162 /(855) 23 726 163/Fax:(855) 23 726 167E-mail:[email protected]:http://www.cintri.com.kh

Waste collection

2.3.2 Nonhazardouswastemanagement

DEVENCO

No. 254 (Intelligent OfficeCenter - "IOC", 4th floor),Monivong Blvd, SangkatBoeung Rang, KhanDaun Penh, PhnomPenh, CambodiaTel: +855(0) 23 218 580

Waste collection

2.3.3Hazardouswaste

Sa RomTrading Co.,

Ltd.

#122 Aeo, Street 430,Sangkat toul Tumpong,Khan Chamkarmon,Phnom Penh Cambodia

Hazardous waste dump site

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Type

Vendor


(Services/ Products)

2.3.4 Wastemanagement

TEAMConsulting andManagement(Cambodia)

Co., Ltd.

Tel: (662) 509 9000ext. 2020-2Fax: (662) 509 9077Web:WWW.TEAM-CAMBODIA.COM

Email:[email protected]

Wastewater- collection systems- wastewater treatmentplants- biogasWater supply- water treatment plants- distribution systems- plumbingSolid waste- sanitary landfill- composting system- anaerobic digestion- incinerationHazardous waste- collection systems- secure landfills- hazardous wastemanagement

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3 Local regulations & practices3.1 Energy related Regulation

3.1.1 Energy policy, 2013

Prakas No. 470 (establishment of general requirement of electric powertechnical standard of kingdom of Cambodia), 2004

To establish the General Requirement of Electric Power Technical Standards of theKingdom of Cambodia, for implementation, in 5 main parts as below:

1- Fuel Oil Generation Plant and Steam Power Plant2- Hydro Power Plant3- Transmission and Distribution System4- Renewable Energy System5- House and General Building Wiring System

For details:http://eac.gov.kh/wp-content/uploads/2014/08/Electric-Power-Technical-Standards.en_.pdf

Sub-decree No. 42/00 (Air Pollution and Noise Pollution), 2000This sub-degree has a purpose to protect the environment quality and public health fromair pollution and noise pollution through monitoring curb and mitigation activities. Fordetails:http://www.gmac-cambodia.org/legal/data/Sub_Degree_on_Air_Pollution_Control.pdf

Prakas No 139/03 (Ventilation)If employees have to work in places with limited ventilation (such as caves, basements, orlarge cylinders), the employer must ensure that the employees have access to at least30m3 of fresh air per person per hour. (Link is not available).

Prakas No. 484/03 (Lighting Levels in the Workplace)Employers must ensure that there is enough natural and artificial light in the workplace sothat employees can see clearly without straining their eyes. Prakas 484/03 sets lightinglevels (in LUX) for different sorts of workplaces. (Link is not available).

Prakas No. 125/01, 147/02 (Temperature)Employers must ensure that the temperature in the workplace is reasonable foremployees. There must be at least 10m3 of airspace in a factory or workshop for everyemployee. Employers must have thermometers in the workplace to monitor thetemperature. (Link is not available).

Prakas No. 176 K.B/Br.K (Education on Hygiene and Technicality for

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Occupational Safety to Workers, Shop Stewards and Unions ), 2013This Prakas has the objective to urge the employers of enterprises/establishments of alloccupations to pay attention to help provide education on health and occupational safetyfor workers before asking them to work. For details:http://www.gmac-cambodia.org/doccument/data/2013/prakas/MOL/176/176-eng.doc

3.2 Water related Regulation

Sub-degree on water pollution control , 1999, Ministry of Environment

The purpose of this sub-degree is to regulate the water pollution control in order to preventand reduce the water pollution of public water areas so that the protection of human healthand the conversation of bio-diversity should be ensured. For details:http://www.gmac-cambodia.org/legal/data/Sub_Degree_on_Water_Pollution_Control.pdf

Law on environmental Protection and Natural resource management

The purposes of this law are:

to protect [and] promote environmental quality and public health through theprevention, reduction, and control of pollution

to assess the environmental impact of all proposed projects prior to the issuanceof a decision by the Royal Government

to ensure the rational and sustainable conservation, development, management,and use of the natural resources of the kingdom of Cambodia

to encourage and enable the pubic to participate in environmental protectionand natural resource management

to suppress any acts that cause harm to the environment

For details:http://www.gmac-cambodia.org/doc/law/Law_on_Environmental_Protection_and_Natural_Resource_Management.pdf

3.3 Waste related Regulation

SUB-DECREE on SOLID WASTE MANAGEMENT, 1999

The purpose of this sub-decree is to regulate the solid waste management with propertechnical manner and safe way in order to ensure the protection of human health and the

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conservation of bio-diversity. This sub-decree applies to all activities related to disposal,storage, collection, transport, recycling, dumping of garbage and hazardous waste.For details:http://www.cambodiainvestment.gov.kh/content/uploads/2011/09/Sub-Degree-36-on-Solid-Waste-Management_990427.pdf

Environmental Guidelines on Solid Waste Management in Kingdom ofCambodia, 2006

This environmental guideline has been showed the technical mark of solid wastemanagement as:

Establishing Solid Waste Management Plan for province-city authorities andprivate sectors with short, medium and long term.

Preparing, operating, maintenance and closing landfill. Methodology and condition of composting. Medical Waste Management which is hazardous waste. Showing the characteristic and method for educating public people.

For details:http://comped-cam.org/Documents/lawandreguletion/06_03_25_environmental%20gl%20on%20swm_end_guidline.pdf

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4 Potential Local Funding Opportunities

Since there is no policy and supporting schemes in energy efficiency or resource efficiencyin Cambodia at this moment of time, there is no incentive and fund available to support thecompany to implement resource and energy efficiency in the industries from thegovernment. However, since energy is very expensive in Cambodia, energy efficiencyrelated investment always pays back in short period. There is opportunities for directsupport from international non-government organizations through project implementationin Cambodia or through carbon trading scheme.The following is list of organizations that support the effort of energy reduction andresource conservation through incentive and technical support.

No Organization Address Supporting Area1. National Cleaner

Production office-Cambodia

Roon 04, 5th Floor of IOCBuilding, No. 254, St. 93,Phnom Penh, CambodiaTel: (+855) 23 222 076Email: [email protected]

Technical and (somefinancial) support forenergy and resourceefficiency project

2. Mainstreaming EnergyEfficiency throughBusiness InnovationSupport – Cambodia

Head Office:#10 St 179, TomnoupTeok,Chamkarmon, Phnom PenhPhone (+855) 23 966 150Fax (855) 23 966 153E-mail [email protected]

Technical and (somefinancial) support forenergy and resourceefficiency project

3. Clean DevelopmentMechanism (CDM)

Ministry of Environment (2ndfloor, Room 303B) #48,Samdech Preah Sihanouk Blvd,Phnom Penh, CambodiaTel/Fax:(855-23) 218370Email: [email protected] [email protected]:www.camclimate.org.kh

Carbon trading activity