ESG in the Leather Industry: How we are Aligned with the Sustainable Goals
Applying ESG principles in the leather industry means aligning with the latest national and international trends, according to which economic development must go hand in hand with social well-being, while also reducing negative impacts on the environment.
In essence, leather production was born with the aim of taking something whose inappropriate disposal would be harmful to nature and transforming it into products that are beneficial to society.
At the other end, the leather is recycled and returned to nature, completing a virtuous circle.
Today, consumers are much more aware not only of their rights, but also of their collective responsibility for preserving life on the planet, and they demand effective action from companies, not just evasive statements. The leather industry, with its specific characteristics, must seek out the technological resources needed to transform itself and respond to these demands.
Fortunately, there is a global effort, led by the United Nations - UN - itself, with clear principles and objectives to guide the actions of governments, private initiative and civil society organizations in building a possible future for all.
This is the general background to the subject of this article - ESG principles in the leather industry, how entrepreneurs in the sector seek to align themselves with the Sustainable Development Goals (SDGs) and how certification takes place. Leather Working Group - LWG Leather Manufacturer Audit Standard - the most highly regarded certification in the sector worldwide.
The Leather Industry, ESG, SDGs and LWG certification
In summary, we could say that a sustainable tannery aims to achieve economic results while offering better working conditions for its employees, reducing the negative environmental impact of its activities and, in relation to the surrounding community, seeking not only to respect it, but also to contribute to its development.
This is undoubtedly an ideal description, but not an impossible one. In order to achieve this, companies are generally guided by the SDGs and ESG principles.
ESG in the leather industry is yet another example of the efforts made by a productive sector to preserve the environment, while also encompassing sustainable social relations.
The ESG (Environmental, Social, Governance) principles cover the Environmental, Social and Governance sectors. They were first established in 2006 to give the financial market new guidelines, more in line with the needs of the new millennium.
For its part, the UN has been working since 2000 to involve all countries in the search for a truly sustainable future. In September of that year, the Millennium Development Goals (MDGs) were approved.
Understandably, such a huge undertaking requires constant monitoring and adjustments. In 2015, the UN itself set 17 goals to be achieved by 2030. This is yet another global effort to meet the targets set at the beginning of the millennium. These are known as the SDGs - Sustainable Development Goals - included in the 2030 Agenda for Sustainable Development.
Today, the ESG principles and the SDGs have the same purpose and, to promote and guide their necessary implementation, there are certifications. This is the case with the LWG - Leather Working Group - whose certification for leather manufacturers follows international standards. It thus contributes to building strategies related to protecting the environment, improving health and education, reducing inequalities and essential economic growth.
In other words, it's about ESG in the leather industry guiding the sector's plans, actions and strategies.
LWG certification for the leather industry according to the Sustainable Development Goals
As well as basing its entire industrial structure on ESG principles, Durli Leathers is also committed to the global effort to meet the Sustainable Development Goals, consistent with the 2030 Agenda.
To ensure that it complies with the international premises of the leather market, Durli Leathers has obtained DNV ISO 9001 and Gold Rate certification from the LWG - LWG Leather Manufacturer Audit Standard and is implementing IATF 16949.
Adapting Durli Leathers to the requirements of LWG certification: ESG principles for the leather industry
In summary, LWG certification ensures that the leather industry complies with the SDGs, as follows:
Goal 3 - Good health and well-being
Ensure that leather manufacturers are implementing chemical management systems, that their lists of restricted chemicals are complied with, and that chemicals are disposed of properly to reduce pollution and contamination of air, water and soil.
Goal 6 - Drinking water and sanitation
To assess whether leather manufacturers are complying with measures on water consumption and treatment, with the proper disposal of wastewater, in order to increase the efficiency of water use and reduce pollution.
Goal 8 - Decent work and economic growth
Observing the promotion of safe working environments and ensuring the protection of all workers in the leather supply chain.
Goal 12 - Responsible consumption and production
Encourage efficient management of the use of chemicals, water and energy to reduce environmental impact by reducing pollution or contamination of air, water and soil.
Goal 14 - Life in the water
Assess whether leather manufacturers have complied with the List of Manufacturing Restricted Substances for leather. Monitor the volume, composition and final location of wastewater disposal, reducing the discharge of pollutants or contaminants into marine environments.
Objective 15 - Terrestrial life
The LWG has introduced additional requirements to better track the leather supply chain specifically in regions at risk of deforestation.
Objective 17 - Partnerships and means of implementation
The Leather Working Group is, in its formation, a collaboration of different global sectors of the leather industry - manufacturers, chemical and equipment suppliers, retailers, traders and associations. To this end, it collaborates with other organizations on issues relevant to the group's objectives and the needs of its members.
ESG principles in the leather industry and the Durli Leathers
A benchmark in leather production in Brazil and in several countries around the world, Durli Leathers combines pioneering spirit, tradition and constant technological development. It adheres to ESG principles at every stage of its production chain, with the SDGs as a parameter of its global commitment.
Environmental
In order to reduce the environmental impact of its industrial processes, Durli Leathers bases its goals on three pillars, in which it has already achieved important results.
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- Efficient and responsible use of water and energy
80% reduction in the volume of water used in industrial processes, 35% through recycling and 45% with the introduction of more modern processes and equipment;
Increase in the energy efficiency of equipment by 25%;
25% increase in the production of leather with multi-action drums with shovels ;
30% reduction in energy consumption in the effluent treatment process.
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- Reducing Gas Emissions
In order to reduce CO2 emissions, a new track system has minimized diesel consumption;
Constant monitoring and analysis of gas emissions to make reductions whenever necessary.
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- Waste Reduction and Effluent Treatment
Treatment and disposal of 100% of waste and effluents;
Management, auditing and monitoring of processes with auditing and certification of results;
95% of chrome effluents are reused in processes and operations;
5% is only sent to the ARIP - Hazardous Industrial Waste Landfill - which is licensed and inspected by the environmental agencies.
Social
- With 1,500 employees, Durli Leathers invests heavily in training, research and innovation;
- It complies with all the rules laid down by labor legislation;
- Respects the rights of its employees;
- Take care of your health.
At the same time, Durli Leathers promotes a close relationship with the population of the places where it has units, seeking ways to improve their living conditions;
It encourages children's right to education and donates school kits;
It supports the Pequeno Príncipe Hospital, a benchmark as the only exclusively pediatric hospital in Latin America, especially in the treatment of childhood cancer.
Governance
Finally, to complete the three ESG principles, Durli Leathers practices responsible governance, based on four points:
1 - Transparency
Certainly, the entire management of Durli Leathers is accompanied by audits that verify and certify its processes;
At the same time, the company is committed to taking responsibility for the origin of its raw materials by means of geomonitoring and complete and individual traceability from indirect suppliers;
2 - Equity
All sectors involved internally and externally with the activities of Durli Leathers have their rights and duties guaranteed.
3 - Accountability
Following the same principle of transparency, Durli Leathers takes its decisions considering their impacts and seeks to meet the strictest global auditing standards in the segment.
4 - Corporate responsibility
The managers of Durli Leathers adopt a proactive stance involving the company as a whole, respecting the principle of responsible corporate governance, aware of their role in the community and their respect for the environment.
ESG, SDGs at Durli Leathers: sustainability in action and a continuous development process
Undeniably, the solidity of the Durli Leathers brand is the result of a commitment to traditional craftsmanship in leather production and an openness to the ever-accelerating development of new technologies.
Thus, incorporating ESG principles and the SDGs into its industrial and commercial dynamics is consistent with its own history of producing the highest quality leathers. Its wet blue, crust and finished products serve the automotive, furniture, footwear and artifact industries with excellence and creativity, whether in Brazil, the USA, Europe or Asia.
Those looking for quality and exclusivity in leather will find that Durli Leathers meets their most refined requirements.
See more on our Sustainability page.
Sources and references used
1 - https://www.leatherworkinggroup.com/our-impact/unsdgs/
3 - https://www.one4leather.com/article/5-reasons-why-leather-car-interiors-are-the-sustainable-choice