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Traceability in the Leather Production Supply Chain Nicole Lambert, Leather Production Committee Lead, Textile Exchange Anne Gillespie, Director of Impact Acceleration, Textile Exchange Tuesday, March 31 st , 2020

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Page 1: Traceability in the Leather Production Supply Chain › ... › 2018 › 05 › 2020.03.31_Traceabilit… · 2. General overview of traceability strategies, systems and tools - examples

Traceability in the Leather Production Supply Chain

Nicole Lambert, Leather Production Committee Lead, Textile Exchange

Anne Gillespie, Director of Impact Acceleration, Textile Exchange

Tuesday, March 31st, 2020

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Anti-Trust Statement

Textile Exchange convenes the textile community and

values diversity of views, expertise, opinions,

backgrounds, and experiences. It is expected that

members of this community will collaborate by sharing

ideas, information, and resources of publicly available

information only and avoid discussions on price, strategic

plans or other private and sensitive information.

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Chatham House Rule

“When a meeting, or part thereof, is held under the

Chatham House Rule, participants are free to use the

information received, but neither the identity not the

affiliation of the speaker(s), nor that of any other

participant, may be revealed.”

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1. Introduction to the Leather Impact Accelerator and traceability expectations (Nicole Lambert/

Textile Exchange)

2. General overview of traceability strategies, systems and tools - examples used in other

supply chains (Evonne Tan/ Textile Exchange)

3. How DNA tracers can be used in the leather production supply chain (Tony Benson/ ADNAS)

4. How laser marking can be used in the leather production supply chain (Cedric Vigier and

Thierry Poncet/CTC)

5. How laser marking is being implemented in the Pali Group Supply chain (Twan de Bie/ PALI

Group)

6. Moderated open discussion with webinar participants (Anne Gillespie/ Textile Exchange)

Agenda

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Leather Impact AcceleratorIntroduction to

Nicole Lambert, Textile Exchange

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Founded in 2002, Textile Exchange is a

global non-profit with more than 300

members that represent leading brands,

retailers and suppliers in the textile

industry. The organization works to create

leaders in the sustainable fiber and

materials sector by providing learning

opportunities, tools, insight, standards,

data, measurement and benchmarking—

and by building a community that can

collectively accomplish what no individual

or company can do alone.

About Textile Exchange

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The primary goal of Leather Impact Accelerator is to accelerate

positive impacts in the leather industry through widescale

adoption of minimum level of best practices.

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LIA outcomes

The Leather Impact Accelerator program will identify and give recognition to

existing industry standards and programs, determined through the

Deforestation/Conversion-Free (DCF) protocol, Animal Welfare benchmark and

Leather Production benchmarks.

The program will include the Impact Incentive trading scheme, traceability

guidelines, and a framework for making claims about Responsible Leather.

The Leather Impact Accelerator program will give brands a tool to communicate

their expectations and support best practices in their supply chains, and to

talk about their actions to their consumers and stakeholders.

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There are 6 components to LIA:

Leather

Production

benchmarks

DCF protocol

Animal

Welfare

benchmark

Impact

Incentives

“Leather Impact Accelerator program”

Claims

framework

Traceability

guidelines

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Birthing

farmsSlaughter Tanning Finishing Assembly Brand/retail

Backgrounder

farm

Direct

farmBeamhouse

Feedlot

Post-Tanning

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Birthing

farmsSlaughter Tanning Finishing Assembly Brand/retail

Backgrounder

farm

Direct

farmBeamhouse

Feedlot

Post-Tanning

Animal

Welfare

benchmarkDCF protocol

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Birthing

farmsSlaughter Tanning Finishing Assembly Brand/retail

Backgrounder

farm

Direct

farmBeamhouse

Feedlot

Post-Tanning

Leather Production

benchmarks

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Birthing

farmsSlaughter Tanning Finishing Assembly Brand/retail

Backgrounder

farm

Direct

farmBeamhouse

Feedlot

Post-Tanning

Traceability guidelines

Traceability guidelines

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Birthing

farmsSlaughter Tanning Finishing Assembly Brand/retail

Backgrounder

farm

Direct

farmBeamhouse

Feedlot

Post-Tanning

Impact Incentives

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Birthing

farmsSlaughter Tanning Finishing Assembly Brand/retail

Backgrounder

farm

Direct

farmBeamhouse

Feedlot

Post-Tanning

Claims

framework

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Birthing

farmsSlaughter Tanning Finishing Assembly Brand/retail

Backgrounder

farm

Direct

farmBeamhouse

Feedlot

Post-Tanning

Animal

Welfare

benchmarkDCF protocol

Leather Production

benchmark

Claims

frameworkTraceability guidelines

Traceability guidelines

Impact Incentives

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Why traceability?

• Brands are facing pressure from investor groups and NGOs

• Brands are setting strong CSR targets that are linked to global goals and targets

• Traceability is seen as a tool in risk management

• Consumers are demanding more transparency

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LIA supports the development of a more traceable value chain.

Traceability guidelines are being developed specifically for the farm level and the

leather production level.

Traceability expectations of LIA

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Building traceability into the system at farm level

Increase supply of responsible, traceable cattle

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Building traceability into the system through brands

LIA - Year 1LIA - Year 2LIA - Year 3LIA - Year 4LIA - Year 5

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Building traceability into the system

LIA - Year 1LIA - Year 2LIA - Year 3LIA - Year 4

Increase supply of responsible, traceable cattle

Development of traceability technology and systems

LIA - Year 5

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year

Amount of LIA Impact Incentives

purchased = 100% of leather use

2025

50% of leather sourced from fully

traceable LIA supply chains

Amount of LIA Impact Incentives

purchased = 50% of leather use

100% of leather sourced from

fully traceable LIA supply chains

Brands will have a path towards full traceability

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Thank you!

Email us at

[email protected]

Or visit ResponsibleLeather.org for more

information

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The ability to verify the history, location, or application of an item by

means of documented recorded identification.

Traceability

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The ability to verify the history, location, or application of an item by

means of documented recorded identification.

Traceability

‘The custodial sequence that occurs as ownership or control of the material supply

is transferred from one custodian to another in the supply chain’.

Chain of Custody

Source: ISEAL “Chain of custody models and definitions”

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Types of Tracers

In Product

The identifier is

embedded into the

product at its place of

origin, and the unification

with the product can

typically only be dissolved

by physically destroying

the product.

E.g. DNA, dyes, particle

markers.

On Product

The identifier is supplied

‘onto the product’ at its

place of origin, and going

forward forms a unit with

the product. It can

however be removed

through physical force or

chemical process.

E.g. RFID, barcodes,

NFC

Off Product

The identifier is supplied

on a medium that is

provided alongside the

product at its place of

origin, and accompanies

it going forward.

E.g. Certificates, digital

trace

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In Product

Tracer type Examples Brands

Fluorescent IntegriTex, In-Code, Stardust, FiberTrace

DNA molecule Haelixa, AppliedDNA, Identigen

Isotopes Oritain

Microbiome CoreBiome, Phylagen

Ink Stardust, DigiMarc

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On Product

Tracer type Examples Brands

NFC SMART Textiles, In-Code,

RFID Arfidex, UBSolutions,

Barcodes GS1

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Off Product – Digital Solutions

Tracer type Examples Brands

Distributed

(Blockchain)

Bext360, TrusTrace, InfiniChain, Astratum, MonoChain,

Lukso Blockchain, Consensys, Convergence,

Provenance, Textile Genesis,

Centralized SupplyShift, ChainPoint, SourceTrace,

Visualization SourceMap, Open Apparel Registry

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Off Product – Chain of Custody

Identify Preservation

Segregation

Mass Balance

X%

Y%

X% + Y%

Credit Trading

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Off Product – Chain of Custody

Identify Preservation Fairtrade FloCert (Centralized)

Segregation Textile Exchange trackit (Centralized)

Mass Balance BCI BCI (Centralized)

Credit Trading RSPO RSPO (Centralized)

Examples Tracer Type

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TextileExchange.org

© Copyright Notice

This presentation is protected by U.S. and International copyright laws.

Textile Exchange welcomes you to use slides from this collection for your presentations on the condition that:

• The slides are not altered from the way it is presented in its original format, this includes changing colors and style.

• The Textile Exchange logo should not be removed.

• Adding logos and/or content is not permitted without written permission from Textile Exchange.• Any presentation using this content or any form of this content should acknowledge Textile Exchange as the author.

Thank you

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31st March 2020

Providing CertainT® in the Leather Supply Chain Using DNA Technology

Tony Benson, Managing

Director, EMEA

© Copyright. 2020. All Rights Reserved. Applied DNA Sciences, Inc.

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• NASDAQ-listed as APDN

• Corporate HQ in Stony Brook, NY; LineaRx subsidiary

• 50+ staff in US, UK, India; Distributors in US, EMEA,– Central Testing Laboratory in Ahmedabad, India

• Over 80 Worldwide issued patents and over 50 pending patent applications

• Regulatory and Accreditations– ISO 9001:2008 Certified/Registered (ANAB) – quality management– ISO/IEC 17025:2005 Accredited (A2LA) – testing and calibration– Following 2011 FDA Guidance on Physical Chemical Identifier (PCID)– Drug Master File submitted to FDA; cGMP work environment

• World’s largest PCR-based mass producer of DNA

Applied DNA Sciences

3© Copyright. 2020. All Rights Reserved. Applied DNA Sciences, Inc.

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Proven Technology – Use Case Examples

Dept of Defense Textiles Leather Fertilizer Cash-in-Transit

Pharmaceuticals Cannabis Automotive Recycled Plastics

138 criminals convicted; 670 sentence years to date

Feathers / Down

© Copyright. 2020. All Rights Reserved. Applied DNA Sciences, Inc.

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The Essence of CertainT®

© Copyright. 2020. All Rights Reserved. Applied DNA Sciences, Inc.

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CertainT® for Leather – How Does it Work?

1. Unique DNA tag(s) designed and allocated to tannery / brands

2. Tag added at final rinse of wet white/blue

3. Another tag added during finish – e.g. PU finish

4. Shoe manufactured using the tagged leather

5. Shoe can be tested at any point in the supply chain using portable test equipment or Applied DNA labs

6. Data from portable / lab tests is uploaded to provide data for tracking

7. Clients can be provided information via QR codes building Trust in the product

© Copyright. 2020. All Rights Reserved. Applied DNA Sciences, Inc.

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Tag at the TannerySigNature® T molecular tags are applied to wet blue or wet white leather after tanning

Tanneries may opt to use a single molecular tag to identify all hides that were processed at a particular facility

T A G

© Copyright. 2020. All Rights Reserved. Applied DNA Sciences, Inc.

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Test at the TanneryA QC inspection using SigNify® equipment can be performed on the tagged hides prior to storage, ensuring authenticity and establishing point of origin

T E S T

© Copyright. 2020. All Rights Reserved. Applied DNA Sciences, Inc.

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Test at Split TraderTagged hides can be authenticated upon receipt by split traders in order to verify the tannery of origin

After successful authentication, the hides are sent to the finishing tannery for further processing

Not sure that this image is relevant? Hides would be traded as wet white / wet blue or could use something generic for “trading” or verification / traceability?

T E S T

© Copyright. 2020. All Rights Reserved. Applied DNA Sciences, Inc.

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Test at Finishing TanneryTagged hides can be authenticated upon receipt by the finishing tannery, ensuring proof of origin and retaining upstream accreditations

After successful authentication, leather may be re-tanned and finished

T E S T

© Copyright. 2020. All Rights Reserved. Applied DNA Sciences, Inc.

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Tag Finished LeatherAfter re-tanning at the finishing tannery, a new SigNature® T molecular tag may be applied to wet crust or finished leather coatings. This new tag can be used to identify the finishing tannery or brand.

T A G

© Copyright. 2020. All Rights Reserved. Applied DNA Sciences, Inc.

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Testing by BrandsBrands can perform on-site testing of tagged finished leather using SigNify® portable DNA authentication equipment to separate genuine items from fakes and provide enhanced traceability.

T E S T

© Copyright. 2020. All Rights Reserved. Applied DNA Sciences, Inc.

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Track key points in the Supply Chain

All data captured during the tests taken along the supply chain are uploaded to the CertainT® portal, allowing for traceability from source all the way to finished products

T R A C K

© Copyright. 2020. All Rights Reserved. Applied DNA Sciences, Inc.

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Application-specific In-Field or In Lab Browser-based desktop or mobile

T A G T E S T T R A C K

4

How it’s Tracked

© Copyright. 2020. All Rights Reserved. Applied DNA Sciences, Inc.

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Are we already DNA tagging leather?

✓ YES

✓ Currently DNA Tagging leather in commercial pilots in one of the Worlds largest tanneries in ASIA for several top brands

✓ If you want to be included in future commercial pilots we can easily arrange it

© Copyright. 2020. All Rights Reserved. Applied DNA Sciences, Inc.

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Contact Us:Applied DNA Sciences50 Health Sciences Drive, Stony Brook, NY 11790 USAMain Tel: (631) 240 8800 | Fax: (631) 240 8900

www. adnas.com

Tony Benson, Managing Director, [email protected]+44 7552 429341

© Copyright. 2020. All Rights Reserved. Applied DNA Sciences, Inc.

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CTC GLOBAL LEATHER TRACEABILITY, FROM FIELD TO FINISH LEATHER

Thierry PONCET – [email protected]

Cédric VIGIER – [email protected]

4, rue Hermann FRENKEL

69367 LYON cedex 07

FRANCE

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MA

KE IT E

ASY

WIT

H C

TC

A UNIQUE INNOVATION HUB DEDICATED TO THE LEATHER,

LEATHER GOODS, FOOTWEAR, APPAREL & TEXTILE INDUSTRIES

Research & Development

Training

Consultancy

Audits

Chemical and physical testing laboratory

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PURPOSE OF TRACEABILITY FOR LEATHER

Secure the supply chain

- Deforestation / illegal logging …

- Animal welfare

- Working conditions

- Environmental protection

SUSTAINABILITY

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PURPOSE OF TRACEABILITY FOR LEATHERQUALITY

- Map the origin of the defects

- Improvement of all upstream defects and upgrading of all hides and skins before tanning

- Process Control in the tannery

Upstream defects

- Defects due to living conditions including scars, disease, hide weaknesses, …

- Slaughter and flaying conditions (knife cuts)

- Preservation defects

- Defects due to the tanning process

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Paper labelFlaying

Salting workshop Laser

marking of

each hide

Beamhouse

Tri Wet Blue

Leather

Automatic

reading

Slaughterhouse

Hide / skin

trader

Tannery

Manufacturer Control

Breeding

Automatic

reading

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1: PAPER LABELING

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2 : LASER MARKING SYSTEM OF CTC

Ajouter la vidéo

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2: FROM PAPER LABEL TO « IN THE FLESH MARKING »

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2 : MARKING EVOLUTION DURING THE TANNERY PROCESS

Salted hides and skins Unhaired Wet Blue Semi finished Leather Finished Leather

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3 : AUTOMATIC INDUSTRIAL CODE READER DURING WETBLUE SORTING

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3. AUTOMATIC CODE READER ON A LEATHER’S STACK On a stack of leather on a pallet : Acquisition module by a

matricial camera

More folders due to the stack

Several marks by image

Height of the stack is variable (no constant)

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4: DATABASEFARMER SLAUGHTERHOUSE TANNER

Ear tag Paper label Laser marker Auto reader

Defects sorting

Database

Passport

Where

When

Who

Id skin

Where

When

Who

Id skin

Where

When

Who

Id skin

Where

When

Who

Id skin

Meal data

Defects

List

MANUFACTURER HIDE / SKIN TRADER

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Ear tag Paper label Laser marking

system

Automatic reader

Animal husbandry Depends on the

country

Slaughterhouses A lot 5 0

Hide and skin traders A lot 1 0

Tanners 0 3 4

Manufacturers 0 0 Close contacts

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THANK YOU FOR YOUR ATTENTION

www.ctcgroupe.com

Cédric VIGIER

[email protected]

Thierry PONCET

[email protected]

Leather Traceability, from field to finish Leather

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Wat

Wie

Datum

Aan wie

Traceability

Twan de Bie, Vitelco leather

March 31st, 2020

Traceability Webinar

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Introduction

Ing. T.L.A. de Bie MBA

Managing Director

[email protected]

+31 620 536 481

nl.linkedin.com/in/twandebie

TRACEABILITY

Mar

ch31

—Sl

ide

2

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Member of

Founded 1959

From livestock trader to veal producer

Family business, 2nd generation

650 employees

€ 485 mio. turnover

2nd largest veal producer in Europe

TRACEABILITY

Mar

ch31

—Sl

ide

3

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Veal production

• Fully integrated chain

• Slaughter 350.000 calves / year

• 7.000 calf skins / week

TRACEABILITY

Mar

ch31

—Sl

ide

4

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Controlledintegrated chain

• Every at Vitelco slaughtered calf is controlled and certified by SKV

• Concepts with extra welfare conditions like ‘Beter Leven’, ‘Vitel Oké’, etc.

• Fully integrated chain at PALI Group

TRACEABILITY

www.skv.info

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Traceability

2 reasons for full traceability of calf leather

1. Full transparency for our customer

Sustainability and durability

2. Feedback to our farms

Improve quality

TRACEABILITY

The NEED toknowwhereyourproduct camefromandwhereithas been

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Traceability in leather

Goal:

Every individual skin (WB, WW, Crust or Finishedleather) is traceable back to the calf!

If you know the calf→ you know everything!

Electronically readable

Testing: laser technology

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Traceability in leather

System:

Laser marking

Applied after selection

Today -> RFID label

Later -> In line

Applied in fresh hide

Electronically readable

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Traceability in leather

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If you know the calf, you know everything

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Planning

System ready within 2 months

Start marking hides

Supply traceable hides

Finetune technique

Implement reading

Supply laser traceability system

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Thank you

Ing. T.L.A. de Bie MBAManaging Director

[email protected]+31 620 536 481nl.linkedin.com/in/twandebie

Tel: +31 544 39 26 00

Fax: +31 544 39 26 26

[email protected]

Aaltenseweg 4

7131 ND Lichtenvoorde

Nederland

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Moderated Open Discussion

• What are the minimum realistic traceability expectations that we should set for LIA? Is a

manual system acceptable? What would that look like?

• Should we ask for hide traceability or batch-level traceability?

• How long does it take to implement a traceability system?

• How likely is it that all stages of leather processing will agree to invest in traceability?

• Does the 5-year timeframe sound feasible?

• How do we communicate the expectations to the earlier stages, so that they can be ready

within the timeframe that applies to them?

• What do leather producers need from brands?

• How would leather producers like to be recognized for their efforts?

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