private sector applying corporate governance measures...
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2008/IEG/SEM1/019 Agenda Item: 6
Private Sector Applying Corporate Governance
Measures As Complement to Good Governance in Investment Promotion
Submitted by: Topitop
Seminar on Good Governance on Investment PromotionLima, Peru
19-20 May 2008
PRIVATE SECTOR APPLYING COPORATE GOVERNANCE
MEASURES AS COMPLEMENT TO GOOD GOVERNANCE IN
INVESTMENT PROMOTION
CORPORATE GOVERNANCE BECOMES MORE IMPORTAN EACH TIME FOR THE GOOD DEVELOPMENT OF COMPANIES
‐ Corporate Governance
‐ Accountability
‐ Transparency‐ Disclosure. Good disposition to provide information
‐ Create a culture of information
ESTABLISH TRUST OF INVERSTORS AS WELL ASSOCIETY
MAYBE THE MOST IMPORTANT ASPECT OF ALL IS INTEGRITY, THAT MAKES US HAVE A CORRECT AND ETHICAL BEHAVIOR
‐ Integrity
ESTABLISH A CODE OF CONDUCT THAT INVOLVES THE WHOLE COMPANY
1. Volunteer work2. No discrimination3. No child labour4. Freedom of Assembly, Unions5. Work conditions6. Hours of Work, & Equal pay7. Environment8. Business Policies
Topy Top produces and sells knit garments(apparel) through our 5 factories and outsourcingPrincipal Activity: Production and comercialization of knit garments.
Factories:
1 Textile Plant (Sur Color Star S.A.)
1 Printing and Finishing Good Plant (Star Print S.A.)
3 Cutting and Manufacturing Plants (Express Jeans, Inka Knit, Topitop)
4 Manufacturing Affiliates Plants (Outsourcing vinculados)
(Wimbledom, Factory, Farby, Powertex)
150 small manufacturers MYPE dedicated to productive activities.
Product LineProduct Line:
Garments. Full Package of Knit Tops and the derivates(cotton poly, cotton viscosa, cotton modal, cotton rayón, cotton wool)
outsourcing
owned
Topy Top bases it’s strategy on the knowledge that our business success is based on high quality, and on a complete customer satisfaction…
Mission: Our mission is to dress all of the world with relaxed fashion clothes of high quality.
Vision : To be recognized as a very important multinational retail chain of casual apparel. We operate as one of the main andean corporations that comercializes it’s own production and that of strategic affiliates.
Serve better conditions for customer satisfaction.
Offer garments with finished fabric according to our customers specifications. On due time and offering profits for the company.
Achieve a sustained growth in selling high value added goods, that meets our high quality control levels for both our local and export markets..
Develop our human resources as a fundamental piece for the success of the company.
Design and implement programas for the well being of our staff and their families.
Topy Top’s objectives are to continue with it’s growth, to develop quality products, to innovate and to develop our human resources talent…
To manage correctly and efficiently our outsourcing as a complement to the both administrative and productiveprocesses.
Innovate and develop keeoing in mind new designs and product variety with high value added.
Mantain a world class infraestructure to optimeze prodcution processes.
Add value to each process. Diferentiate!
Mantain flexibility in our processes.
Topy Top’s objectives are to continue with it’s growth, to develop quality products, to innovate and to develop our human resources talent…
TRADING FASHION LINE
Business Purpose : Garment Retailer for the whole family
Facilities :30 own retail stores in Perú (Lima & Provinces)
8 Franchises
16 own retail stores in Venezuela (Caracas y Prov.)
2 own retail stores for August 2008 Colombia (Bogota)
Product Line :Own brands identified by segment
Accesories
Trading Fashion Line is one of the main retailers in Peru and leads our regional expansion with a format specializing in giving the complete family a wide range of casual garments
Outsourcing DevelopmentMYPEs
MYPEs Development
We keep for our own production and stores the same corporate standards of quality,
quantities, and lead times.
Production to serve Trading Fashion
Line requirements.
Fashion garments, small quantities, in variety of sizes and
colours.
Monthly Output : 1´200,000 garmentsAverage per syle and brand: 2,000We produce in house 60% of the required output.
40% of production we outsource, to external manufacturers.
It is at this point that we develop a close work with more than 120 formal MYPEs.
MYPEs Development
MYPEs Development
10 years ago we began developing and working with MYPEs, given that the requirements better fit their functionality.
At the time, we are working with :100 MYPEs dedicated to sewing.10 MYPEs dedicated to printing.12 MYPEs dedicated to embroidery.8 MYPEs dedicated to manual operations.
MYPEs Development
The work developed with the MYPEs has been developed as a relationship that must be:
‐Beneficial to both parties
‐Long term
‐Cordial and close
‐ An agent that generates formal companies.
ECOEFFICIENCY AND CO2 EMISSIONS NEUTRALIZATION
Corporate Governance & Eco Efficiency
The environment has been considered in the past as “unnecessary expenses”.Today, through cleaner production we can achieve a goal to be an ecoefficient industry utilizing cleaner technologies as well as considering the adecuate use of the natural resources, thus avoiding excesive costs, and/or legal problems.
What you do not see…Covered Costs
Market access
Water Treatment Plant
Company Image
Social Responsability
Use of Resources (Primary goods, water,
etc)
Not compliant with environmental issues
Human Resources
Energy Use
Unnessary CO2 Emisions
Eco Efficiency: Towards CO2 Neutralization
We can achieve a climate neutrality with the reduction of CO2 Emmisions in the controlled process by Topy Top. The rest is compensated with Carbon Bonds and MDL proyects
Fuente: BID
CO2 Neutralization: Carbon Free Garments
Our objective is to give our customers products that do not generate a “carbon footprint”.
With implementations of cleaner production in Topy Top S.A. and MDL proeyects that are registered at the United Nations (UNFCCC).
Benefits
Carbon Free Garments helps us to:Prevent and Mitigate Climate Change.Promote a solid environmental culture in society.Improve the companies social and enviromental performance. Access to New markets.Contribute to the developement of reforestation proyects and the green house effect gases. Generate sustainable work for the population in range of the MDL proyects.Guarantee a sustainable future for the next generations.
Program Description
The program utilizes the methods described in the Green House Gas Protocol (GHG Protocol) www.ghgprotocol.comTopy Top S.A. has developed their emissions inventory with the Non Profit Organization GEA, the Center for Social Responsability and Ecoefficiencies (CER), CO2MPENSATE, y EMPA –Suiza, using methods and factors of high credibility from Swiss and Europe.
Neutrailization Limits
Emision Factors
Concept Results
inKgCO2eq/kg
US Cotton Fiber No transport 3.37
Trims No Transport 0.2
Total Transport 2.72
Topy Top Transport 0.28
Chemicals (total) 1.23
Sodium carbonates 0.04
Sodium sulfates 0.01
Other chemicals 1.18
Colorants No transport 0.03
Water Use 0.07
Fuel 2.42
Electric Energy 1.61.6
Water treatment 0.09
Source: EMPA y CO2MPENSATE, Suiza
Results
2.42
1.6
0.280.09 0.07
3.37
2.44
1.23
0.20.03
0
0.5
1
1.5
2
2.5
3
3.5
4
Combustibles Energia Electrica
Transporte local
Tratamiento de Aguas
residuales
Uso de Agua Fibras de Algodón de los
EEUU (Sin Transporte)
Transportes Quimicos Avíos (sin Transporte)
Colorantes (sinTrasporte)
Directas Indirectas
Kg(
Co2
equ
ival
ente
)/Kg
(Pre
nda)
Emisiones de CO2 de Topy Top S.A.
Direct Emmisions4.46 (38%)
Indirect Emisions7.27 (62%)
• Company Neutralization 4.46 kg de CO2eq / kg prenda
• Product Neitralization 11.73 kg de CO2eq / kg prenda
Short Term
Medium Term
Optimize internal industrial processes (in-fence)
Reduction of Air Freight (in-fence)
Creation of Topy Top Neutral Climate Foundation
Implement a pilot proyect of selling Carbon Free garments in Topy Top retail stores.
Reforest degraded woodsMDL proyect (out-fence)
Water treatment and reutilization of residual (in-fence)
Capture Bio Gas for Sanitary Filling and Domestic Residual Waters –MDL proyect(out-fence)
Implemente co generation of electricity..
Neutralization Strategys
TermsGEI = gases de efecto invernaderoCO2 = Dióxido de Carbono (principal GEI)GHG = green house gas (GEI en inglés)MDL = Mecanismo de Desarrollo Limpio (CDM, cleaner development mechanism)UNFCCC = United Nations Framework Convention on Climate ChangeIPCC = Intergovernmental Panel on Climate ChangePML = Producción Más LimpiaCO2eq = Medida de las emisiones de CO2 (p.e. el petróleo tiene emisiones equivalente de CO2, igual con la energía eléctrica)