Retail

Hong Kong's SML reduced energy use by 30%, CO2 emissions by 20%

18 May '21

3 min read

Pic: SML Group

In 2020, SML Group, a trusted and agile partner for comprehensive item-level RFID and brand identification solutions in the new era of retailing, reduced its overall energy consumption by 30 per cent and CO2 greenhouse gas emissions by 20 per cent, surpassing its goal of 3 per cent accumulative reductions annually, according to its sustainability report.

The SML 2021 Annual Sustainability report details the company’s five-year sustainability goals and summarises key environmental and social impact milestones achieved since 2018. In 2020, SML reduced its overall energy consumption by 30 per cent and CO2 greenhouse gas emissions by 20 per cent, surpassing its goal of 3 per cent accumulative reductions annually.

“Despite the widespread challenges from the COVID-19 pandemic, it was imperative that we continue our work to drive improvements in sustainability and social good in 2020,” said Ignatius K C Lau, vice chairman and CEO, SML Group. “From new developments in renewable energy, the introduction of non-solvent-based inks, sourcing recycled or compostable materials for production, to our leading item-level RFID solutions, we have and will keep pushing ourselves – and our global brand customers – to go above and beyond to minimise environmental impact and strengthen social performance.”

In 2020, SML achieved 180 per cent increase in recycled yarn and 180 per cent increase in recycled tape use in comparison to the baseline year 2018. There was 150 per cent increase in Forest Stewardship Council -certified paper use, the equivalent to saving 52,000 mature trees, 57,000 m3 of water, and 9,000 MWh of electricity

It also achieved and maintained 91.9 per cent of landfill-free waste as well as 91.6 per cent of recycled waste for use, 92.6 per cent of chemicals were procured to conform to SML’s environmental and social values, and there was 16 per cent reduction in global water consumption.

SML’s RFID solutions are a significant aid in driving industry-wide sustainability. Compared to conventional Polyethylene Terephthalate (PET) RFID labels, the company’s EcoInspire RFID labels drove a 10-16 per cent decrease in product carbon footprint. In addition, SML’s item-level RFID solution, Clarity, empowers retailers with greater inventory visibility and stock accuracies of up to 98 per cent that enable them to make more informed decisions around manufacturing. By understanding appropriate and accurate inventory levels, retailers and manufacturers can significantly reduce levels of unnecessary material resources, transport emissions, and landfill waste.

In addition to its five-year sustainability goals, the report also details SML’s progress on broader corporate social programmes, including its COVID-19 response strategy, occupational health and safety initiatives, diversity benchmarks and ethical business practices. In 2020, SML recorded an outstanding Total Recordable Incident Rate of 0.52 as part of initiatives to maintain the highest standards of safe working conditions and compliance towards ethical trading policies.

Lau added, “We believe that the future of a more eco-forward industry lies firmly in our hands. In releasing this report, SML is committed to being an accountable and transparent partner to global brands as they begin or accelerate their own sustainable journeys. We’re proud of the strides we’ve made to date and will continue to evaluate new solutions, materials and processes that will drive a better future for the industry at large.”

While the fashion industry contributes up to 1.5 per cent of global GDP and plays a critical role in economy, it also produces an estimated 8 per cent of global greenhouse gas emissions, a number that, according to the UN Environment Programme, will rise almost 50 per cent by 2030 without proper intervention.

Fibre2Fashion News Desk (SV)