MMCFs and their Challenges 

MMCFs are plant-derived fibres and are the third most commonly used in the textile industry, after Polyester and Cotton. However, they have a prominent negative impact on the environment by way of deforestation and pollution. 

Several million trees are logged annually in the production of MMCFs, of which 30% are from ancient and endangered forests (Source: Canopy). Additionally, when the fibre production processes are not fully integrated, chemicals used to treat the cellulose and its by-products may pollute the surrounding air, water, and soil. 

Otto International’s Approach

At Otto International, we have taken the first steps towards ensuring that when we use MMCFs, they are procured from responsible and sustainable sources, in turn minimising our impact on global greenhouse gas emissions and biodiversity loss: the start is our new MMCFs policy which applies to all our vendors. 

The policy states that all forms of MMCFs, such as Viscose, Modal, Lyocell, Cupro, and Acetate, used by our vendors must be derived from FSC® or PEFC-certified forests to ensure the sustainable sourcing of plant cellulose. Furthermore, the chemical processes performed in treating cellulose must be conducted within a closed loop in order to prevent air and water pollution.

Additionally, our general goal is to only use MMCFs from manufacturers who have completed the CanopyStyle Audit with a low-risk result.

Otto International’s goal is to make conscientious choices that contribute towards a sustainable sourcing world. We will continue implementing measures that we know will have a positive impact on our industry and navigate the supply chain in a way that keeps our commitment to sustainability at the forefront.

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To do our part, in 2022, the Otto International CR team proudly organised our global “Water is Life” campaign, which included various activities and projects within our offices and the greater communities we are a part of. Highlights include our sponsoring projects in Cambodia and Vietnam and hosting a playthrough of the “SDGs Game” in our Hong Kong office.

Cambodia: bio-sand water filters and toilets in Preah Theat Primary School and Pong Ro village

We supported Hong Kong-based NGO A Drop of Life‘s WASH project in Preah Theat Primary School, located in Trapeang Pring Village. This project aims to tackle three interconnected core water issues: “Water,” “Sanitation,” and “Hygiene.” 

Prior to this initiative, there was no governmental water infrastructure in the area around Preah Theat. Therefore, students and teachers had to rely on rainwater, nearby rivers, and ponds to obtain drinking and cleaning water, which often contained Coliform and other pathogenic bacteria. Furthermore, the lack of proper toilets meant the existent water sources were at constant risk of contamination which inevitably had negative health implications for the children and adults. 

The WASH project addresses these problems by installing a bio-sand water filter, capable of filtering out 99.9% of bacteria in the school’s water supply. Additionally, to improve the school’s sanitation conditions, we supported the installation of a three-stall latrine equipped with a sanitary box and disinfection facilities. With respect to hygiene, information sessions were held to educate students about personal hygiene and to help them develop good hygiene habits.

Currently, the school provides clean drinking water to 377 children and teaching staff. In addition, we contributed to the construction of six bio-sand filters and two toilets for six families in Pong Ro, a village near Siem Reap.

Vietnam: water purification system in Madagui central highlands

Similar to the WASH project, we funded a modern water purifying system for a village in the Vietnamese Madagui central highlands. The water purifier provides free drinking water to villagers, who no longer worry about contamination issues and water-borne diseases. On the day of the purifier’s handover, our Vietnam colleagues visited the village, where they donated 200 packs of essential food such as rice, sugar, cooking oil, milk, and cakes for children.

By constructing these essential water facilities, we hope to give back to the communities where help is most needed, and secure for them one of humanity’s most important necessities. Providing an area with access to clean water and good hygiene conditions improves the health of those who live there, empowering them to achieve more, potentially leading to a better future.

Otto International SDGs Game

While one of our key Corporate Responsibility aims is to engage the communities we operate in, we also strive to create a positive eco-impact in our workplaces.

To bring attention to the SDGs within our workplace, our Hong Kong Corporate Responsibility Team and A Drop of Life organised a session of the “SDGs Game” in our office. The card-based game takes place in a hypothetical world between the current day and 2030, by which point the SDGs are meant to be achieved. It gives each player a goal to accomplish by the end of the game, and they can be as diverse as enjoying leisure, environmental conservation, or acquiring wealth. The game is a tool to prompt discussion on all the SDGs and how they may be interconnected to inspire people to make more conscious decisions.

However, our work does not stop here. Our CR team will continue collaborating with our community partners on water projects, and hosting engaging informational sessions, to create a positive impact throughout the societies we are a part of.

The problem with synthetic dyes

Today, 90% of our clothing is synthetically dyed, but the production of these dyes requires potentially harmful chemicals, like acids, alkalis, and solvents, and high-temperature environments. The chemicals used and their byproducts can be toxic to humans and the environment, and the process generates large amounts of greenhouse gases.

Nowadays, many companies are trying to phase out harmful chemical processes and switch to natural and non-hazardous dyestuffs. This means using alternative dyes and pigments produced with plant material, microorganisms, algae, and recycled materials, but this is easier said than done. These dyestuffs have historically been overlooked by the fashion industry due to poor colour fastness performance, limited colour palette and higher prices than synthetic dyes.

Also, the lack of clarity on their performance and ability to scale make it difficult for the industry to switch to these environmentally friendly alternatives. So, how can we make sustainable dyes more commercially available and affordable in the industry?

“Fashion for Good”

Fashion for Good (FFG) is a global initiative for sustainable fashion innovation. FFG gives promising start-up innovators the expertise and access to funding they need in order to grow.  It aims to inspire change and drive solutions regarding sustainability and circularity in all areas of the textile supply chain to make fashion a force for good. Select start-ups get a chance to carry out pilots with member companies.

The Otto Group is an FFG partner, as are several Group companies. OI is supporting the Fashion for Good “Dyestuff Library” Project as a project partner and sponsor. It will contain a digitally accessible consolidation of sustainable alternatives from which partners can select based on competitive performance and environmental metrics.

What we do

Over the course of a year, 15 selected dyestuff innovations will undergo lab and pilot trials. Extensive due diligence including toxicity testing and performance validation will be conducted. This is to make sure the dyestuff innovations are safe to use and comply with our own and customers’ high-quality standards.

We aim to achieve the following goals:

• Goal 1: Establish a sustainable dyestuff library with key performance metrics.
• Goal 2: Create a decision framework tool that will enable partners to choose the most suitable dyestuff for their requirements,
• Goal 3: Make commercialisation feasible.

The dyestuff library will provide information so that natural dyestuffs can be created at a lower base cost and can be used on an industrial scale. By using this library, the wet process units (i.e., dyeing and printing mills) can also find information about available natural dyes that can be used for different fabric qualities. In both of these ways the dyestuff library will help to promote the use of natural dyes.

The “Dyestuff Library” initiative started in January 2023. It is to be finalised for partners to use by the end of 2023. Fashion for Good will continue developing the library with additional innovators, materials, fabric constructions, testing methods, and innovative coloration machinery to enable innovation implementation in the fashion industry.

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In this role Karsten will support the Executive Leadership team in further developing our overall corporate vision and strategy, overseeing the establishment and execution of strategic plans and initiatives across all OI locations and function areas.

This will also involve providing advice on strategic choices, initiating the formulation of a robust portfolio strategy, as well as driving decision-making that generates medium- and long-term operational and business improvement in general.

Karsten joins us with a wealth of experience from such names as PwC and Li & Fung. His most recent position was Director at PwC’s Value Chain Consulting Practice where he built and grew consultant teams that handled large-scale business transformation projects, and contributed to engagements as an expert on topics relating to sourcing and supply chain strategy, sourcing organisations and procurement operations.

This background comes from his almost ten years at various Fung Group companies, at which he had a number of roles ranging from hardline account management roles over vendor support services, to strategic project management for the executive office.

OI CEO Heidi Stevens has the following to say about Karsten’s joining:
“We are excited to have Karsten as a part of our organisation: he will add another dimension to our Leadership team with his extensive strategic experience, deep supply chain knowledge and breadth of cross functional competencies. We have an exciting strategic agenda ahead of us where Karsten’s expertise will support our acceleration…. Welcome aboard!”

We wish Karsten every success in the new role.

We wish our customers, business partners, employees and your families a

Happy Lunar New Year!
新年快樂!
新年快乐!
Chúc Mừng Năm Mới!

May the Year of the Rabbit bring you success and good health.

In the zodiac, the Rabbit is gentle and responsible. This year is said to be one of calm and hope, where past sacrifices are generously rewarded.

We’re looking forward to a hopeful and auspicious Year of the Rabbit 2023!

We thank all our business partners for your continued trust and close cooperation.
It was crucial to our success this year

Another thank you to our staff who contribute so much to make OI special.
This was another challenging year: we want to thank every one of you for your constant support for one another, but most of all for your effort.

Here’s to a new chapter in 2023.

Season’s Greetings and Happy Holidays!

In last month’s It Starts With Me spotlight, we focused on Kathy Liang and her ability to bring people together to find win-win solutions.

This month, we are highlighting Sam Kwok, Global Technical Manager, Environment and Sustainable Production, from our Hong Kong office.

Sam is truly a lifelong learner, and a problem-solver with an insatiable curiosity that helps him grow. He represents the spirit of It Starts With Me by constantly providing support and guidance to others. Whether through answering colleagues’ questions or leading initiatives during his time as the Corporate Responsibility Ambassador for China, Sam has worked tirelessly to honour others’ trust.

Sam can still recall the day he joined OI as a Senior Fabric Technician 17 years ago. Through his dedication, he was promoted to Senior Fabric Manager, responsible for the China region before switching tracks to his current position. Having gained expertise in Quality, Sam now ventures into exploring the environmental impact of the textile industry.

Continuing Education

While working at OI, Sam took evening classes to complete first his higher diploma, then his bachelor’s degree, and finally two separate master’s degrees. This second master’s degree in environmental engineering management is what motivated Sam to switch to his current position.

“In the beginning, it wasn’t easy. I didn’t understand anything during my first lecture! As my professor explained waste decomposition and the complex chemical interactions, I felt completely lost. But I knew I won’t give up” he recalls.

This resilient spirit allows Sam to find answers. “You must be humble enough to ask questions. I know when we work for a long time, it feels as though we know everything. But you must get out of your comfort zone and ask questions if you want to learn.”

Throughout this process, Sam collaborated with others by aligning his vision with his manager and working on projects with his colleagues. “Before starting my second master’s degree, I asked for my then manager’s advice. He really supported me and helped me get sponsorship from OI to cover part of the tuition fees. I am so grateful to have this recognition and support.”

He also gives credit to his team: “If you want to succeed, you cannot do it alone. My success as a Senior Fabric Manager was in large part due to the constant collaboration with my team members.”

Expanding and Sharing Knowledge

Now, as the scope of Sam’s responsibilities have expanded globally, he shifts his optimistic problem-solving attitude to making the textile industry more sustainable. In this pursuit, he believes sharing knowledge is a key persuasive strategy. After work, he can be found reading books on sustainability and environmental protection, always working hard to understand the complexities of changing the current systems.

Understanding that this knowledge is a crucial perquisite for creating lasting change, Sam works on creating trainings for factories, educating them on how to measure and reduce their carbon emissions and water consumption and improve their waste management. Taking insights from the factories who are leading this change, he believes, “sharing best practices can help us grow together.”

Similarly, he is often the person people turn to for guidance. Walking by his seat, one can sometimes notice a queue forming up of colleagues waiting to ask him questions. For this Sam expresses his gratitude, “I thank them for this opportunity because it allows me to learn. I believe that if someone comes to you to ask questions, they have faith in your ability to help them. Therefore, it is my responsibility to honour their trust and do my best to analyse or problem-solve for them.”

Caring for the Community

Because Sam goes the extra mile, he has made a substantial impact in the community around him. For a period of time, when he was CR Ambassador for China, he was also the CR Chairman for the Hong Kong office. In this time, he organised several events, including five during the COVID pandemic. From Charity runs and bake sales to nature walks, Sam has worked in his own time to reach out to local NGOs and charities, plan activities with them, and inspire colleagues to volunteer with him.

Sam Kwok at some of the various CR initiatives he helped to organise.

He fondly remembers one such event when colleagues visited the elderly who are living alone in Hong Kong during the Mid-Autumn Festival. “Traditionally we eat mooncakes that represent sharing happiness and coming together as a family. Unfortunately, the senior citizens who live alone end up feeling more isolated during this celebration. We wanted to share mooncakes and other everyday necessities with them, so they too can feel loved and appreciated.”

During the five years that he was China CR Ambassador, this event has a special place in Sam’s heart. “When the elders opened the door, you can see how lonely they are. But seeing us and our gifts, they break out into the warmest smiles that melts my heart. It is so touching to be able to make someone happy like that. This memory has motivated me to continue volunteering since.” Overall, Sam attributes his successes to two reasons: his passion, and the welcoming people in OI. “Without passion, you cannot continue… Since my first day at OI, I could recognise that this friendly and kind atmosphere is hard to find elsewhere. This is also why I have been able to stay here all these years because we value people as the most important.”

Follow us on LinkedIn for more spotlights on OI employees who truly know what it means when we say “It Starts With Me”.  

Building on the success of the first Vendor Day, OI and KLiNGEL Group management once again virtually presented on and discussed various topics with over 100 of our partnered vendors from Europe and Asia, joined by relevant OI teams situated across the globe. The day began with Marcel Turhan, OI’s Key Account Manager for KLiNGEL, and Christian Hellmund, KLiNGEL Groups’s Senior Vice President for Sourcing and Procurement, welcoming the over 130 participants to the event.

The introductions were followed by a business update from Roland van Os, OI’s Chief Commercial Officer. Roland reviewed the impact of the high inflation rate in Europe on both consumer confidence as well as pricing in the supply chain. For Roland, the solution is to continue collaborating: “We are expecting a challenging time ahead and strong partnership between [KLiNGEL], Otto International and our vendors is very important to retain and maintain successful business operations. Even with these challenges we must still focus on developing tomorrow’s supply chain solutions.”

After a business update from KLiNGEL, the key topic, CR, was introduced by OI’s Chief Quality & Compliance Officer Thea Hoffmann. Katja Hezter, KLiNGEL Group’s Head of Corporate Responsibility then shared their holistic CR Strategy. It is comprised of specific goals and timelines that consider all aspects of the supply chain, from who is making the products, to how they are being made and with what materials. It also considers the process’ overall impact on climate change. Most importantly, the strategy aligns with OI’s own, underscoring our mutual commitment to working together with our vendors and each other to make a positive impact.

Katja had the following to say about the day: “I very much appreciated this specific Vendor Day for its opportunity to share our vision with all parties that are needed to turn it into a reality. We all pursue similar objectives – we want to continue being transparent and have a constant exchange on our way forward to ensure close alignment with all our partners along the supply chain.”

CR is part of OI’s DNA, and “this last Vendor Day demonstrated well how crucial Corporate Responsibility is to Otto International,” adds Thea. “Despite supply chain issues, sustainable solutions remain a priority for us. I am also proud that we can collaborate so well with our customers and suppliers and that we aim to achieve the same common goals in sustainability. I was very glad to take part in this event.”

According to its two facilitators, OI’s second KLiNGEL Group Vendor Day was a success because, like the first event, it provided a space for all stakeholders to discuss updates, ideas and opinions. Marcel believes that “such events are essential to share strategies with partners, have discussions at an eye level and work together on solutions for existing and upcoming challenges.” He is confident that “the trusting and partner-like collaboration between [KLiNGEL], OI, and our vendors will continue to be one of the keys to success.”

Marcel and Christian presenting

Christian agrees, appreciating this Vendor Day, and actively anticipating the next: “This Vendor Day was again a great event. The many valuable questions and comments from so many participants in both Europe and Asia in such an open atmosphere showed that our mutual understanding continues to grow. I am already looking forward to our next get together to share and maybe celebrate the progress that everyone has hopefully made!”

We celebrate diversity at OI, and foster inclusivity in our workplace through our monthly D&I initiatives, covering topics as varied as gender stereotypes and heteronormativity, mental health awareness, and elimination of racial discrimination. Additionally, colleagues across our offices also collaborate with local charities and independently organise events to commit to their communities.

One such great initiative was organised by Aurelie Rob and Titly Ferdous from our Dhaka office, to mark our D&I theme for July, “inclusion”. They invited facilitators from the ZE Project to conduct transgender awareness workshops with our colleagues, educating us about the gender spectrum and sharing lived experiences of persons of diverse genders.  

How inclusive are we?

Aurelie and Titly began planning this event by discussing the harsh realities faced by communities that have been historically marginalised in society, such as people living with disabilities and the non-binary, transgender and other folk who struggle against gender norms. This is when Aurelie came across a LinkedIn post by the ZE Project that sparked a paradigm shift for her; written across the portrait of a trans woman were the words, “Would you hire me?”

Aurelie and Titly then became motivated to learn more about the Transgender and Hijra community of Bangladesh. The term “Hijra” is only one of many names used in South Asia to describe a community of intersex and transgender people, who are typically isolated from wider society. Most lack a formal education because of this isolation, and so often face difficulties finding financial security by means of stable employment. Moreover, there are many myths and taboos associated with the community, reinforcing social barriers between the community and the general population.

(Image from ZE Project’s LinkedIn)

What can be done?

“As I learned about the biology of diverse genders, I started to wonder why this is not taught in our classes?” Aurelie recalls. She then contacted the ZE Project, a non-profit based in Dhaka, that aims to empower people of diverse genders to find work. Their two-fold approach consists of first raising awareness and encouraging acceptance for the Hijra and transgender community, and then eventually helping them integrate into society.

OI Dhaka’s Transgender Awareness Sessions

Facilitated by ZE Project Manager Mohammad Rofiqul Islam (who is lovingly known as Royal), these sessions are three hours of learning, interacting, and community-building. Royal is accompanied by three  transgender people and a scholar whose area of research is the trans community.

They begin these sessions with the scholar giving a detailed presentation, explaining the concept of a gender spectrum while encouraging participation and reflection from our colleagues. After a short break, the transgender presenters share their life stories and open the floor for discussion.

For some in the Dhaka office, this is the first time they have become aware of the problems faced by the community. This is why, Aurelie explains, “the sessions are conducted in Bangla, so our colleagues can intimately relate to their different experiences. After all, our facilitators might well be our neighbours or relatives. Speaking in Bangla allows for this sense of familiarity to break social barriers.”

Why is creating awareness important?

“After talking to Royal, I realised why we shouldn’t just recruit transgender people but first cultivate open-mindedness to diverse genders,” elaborates Aurelie. “Although our goal is to help the transgender people integrate into the community by empowering them to find jobs, this is impossible unless we take the time to break down the existing social barriers in a workplace setting”. Based on the popularity and high praise from our colleagues who attended, these sessions seem to have successfully created such mindset shifts in our Dhaka office. In fact, due to high demand, Aurelie and Titly have had to organise five such sessions so a total of 125 colleagues could attend.

Moreover, amid a lot of positive feedback after the sessions, many participants also expressed welcomeness and acceptance for having transgender colleagues in our office.

“Other than social norms, one of the main barriers that transgender people face when trying to integrate into society on a practical level is a lack of relevant skills. Even if a company employs them, they are unable to perform well, furthering the distrust between them and mainstream society. Therefore, for us to create awareness is crucial as a first step” Aurelie summarises.

Pleased by the success of these events, Aurelie and Titly hope to continue working on encouraging open-mindedness and respect for the transgender community at OI. “Eventually, I hope we collaborate with experts like the ZE Project to help us assess what further steps can create acceptance for the diverse gender community of Bangladesh.”

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