Handling of chemicals
Chemicals play an important role in the various stages of the textile value chain to ensure properties such as color, elasticity and quality. The Otto Group is committed to the safe and environmentally friendly handling of chemicals, particularly in factories for wet processes (dyeing, washing, printing).
We have the greatest leverage for improvements when we raise awareness among our business partners about the risks associated with handling chemicals in the deeper supply chains. It is equally important to gain more transparency about the chemicals used in the factories for wet processes.
Transparency
Transparency plays a decisive role in the chemical management of the Otto Group. As a retail company, we do not operate our own factories. And in most cases, the highest chemical usage also does not occur in the factories of our business partners. Therefore, we rely on information from our direct business partners to understand which players they collaborate with in the deeper supply chains. Factories involved in wet processes (dyeing, washing, printing) are particularly relevant in this context, as this is where the greatest leverage for improvements in chemical management lies.
Guidelines and requirements
With the following guidelines and information, we provide our business partners and factories for wet processes with orientation for improved handling of chemicals:
- As a member of the German Partnership for Sustainable Textiles, the Otto Group uses the Manufacturing Restricted Substances List (MRSL) from the ZDHC Foundation as an industry standard. The MRSL defines limits for selected chemicals in textile production and provides guidance on which substances should be avoided and replaced in production. The ZDHC Foundation is a foundation where major companies have joined forces to improve chemical management worldwide.
- Internal guidelines of the Otto Group specify which chemicals are either completely banned or restricted above a certain threshold in the final product.
- We ensure that our water-repellent products are manufactured without the use of fluorinated coatings. The selection of PFAS-free alternatives is made in collaboration with our suppliers.
Monitoring
At the Otto Group, we aim to gain an overview of the chemicals used and to replace hazardous substances. Some Group companies use The BHive™ app, which digitizes chemical management at factory level and enables a more conscious and environmentally friendly handling of chemicals.
Following a pilot phase with around 35 factories in 2021, we have continuously expanded the application. By 2024, we have already collaborated with at least 126 factories using the app.
Partnerships
Complex tasks along global supply chains can be most effectively addressed through partnerships. Based on this belief, the Otto Group is engaged in numerous initiatives and has been a member of the Partnership for Sustainable Textiles, which was initiated by the German government, since June 2015. By joining forces, we can enhance our reach in the supply chain and collaboratively improve processes in a targeted manner. The cooperation of representatives from business, politics, and civil society makes the cross-sectoral approach of the Textile Partnership particularly effective. One focus of the Partnership has been to standardize chemical management through a specific alliance initiative, jointly reduce negative environmental impacts from textile production, and develop relevant measures for this purpose. More information can be found here (in German only).
Change of processes
The focus of chemical management is on raising awareness among our business partners and their factories. We achieve long-term changes by gradually and consistently phasing out particularly harmful chemicals from production processes. Although chemicals are essential for the industrial production of textiles and clothing, we are committed to replacing harmful substances with safer alternatives. To reduce environmental impacts, proper storage and appropriate disposal must also be ensured.
Achievements
We have already achieved improvements in wet process factories in China, Bangladesh, and Turkey. Through multi-day training sessions and visits from experts on-site, we have seen successes in the areas of chemical management, storage, handling, waste management, and wastewater treatment.
Over 180 wet process facilities, as well as representatives from local industry associations and institutions, participated in the training to further disseminate knowledge. In total, more than 400 people have been reached, and more than 200 on-site training sessions have been conducted as part of all training programs to provide individual support to the factories.