SGMA & Bureau Veritas Product Integrity Program August 18, 2011 1
Confidentiality BUREAU VERITAS PROPRIETARY Copyright Bureau Veritas 2011 DO NOT DISCLOSE OUTSIDE YOUR ORGANIZATION WITHOUT BUREAU VERITAS PRIOR WRITTEN CONSENT 2 2
Presenters Tom Cove SGMA President & CEO Presenters: David Simonson Bureau Veritas Senior Manager, Business Development Meg g Hughes Bureau Veritas Senior Global Consulting Specialist, Analytical Technical Services Lisa Clerici Bureau Veritas Global Consulting Specialist, Analytical Technical Services Ellen Roaldi Bureau Veritas Global Consulting Specialist, Softlines Technical Services Moderator V.J. Mayor SGMA Business Operations Manager 3 3
Agenda Introduction: SGMA Tom Cove Presenters: Updates on hot topics facing the industry: Bureau Veritas The Consumer Product Safety Improvement Act (CPSIA) Meg Hughes California Proposition 65 Meg Hughes Green Chemistry Lisa Clerici Restricted Substances Lists (RSL) Lisa Clerici Case studies: Solutions for your quality assurance challenges Ellen Roaldi, Bureau Veritas The SGMA Product Integrity Program: Using it to your best advantage David Simonson, Bureau Veritas Conclusion & wrap up V.J. Mayor, SGMA Q&A s VMayor@sgma.com 4 4
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CPSIA Meg Hughes Senior Global l Consulting Specialist, Analytical l Technical Services Meg has been with Bureau Veritas for over 20 years in various roles including supervision, testing, consulting, and protocol development. Currently she is in the Analytical Technical Services department focusing on the Americas region. She is intimately involved with CPSIA since its enactment. She is also involved in educating clients and creating company recommendations for testing for both CPSIA and CA Prop 65. 6
CPSIA Overview Enacted Aug. 14, 2008 Certifications and Third Party Testing Adult products: General Conformity Certificates (GCC) based on reasonable testing programs Children s products: Children s Products Certificates (CPC) based on third party testing Third party testing by a CPSC approved lab 7 7
CPSIA Overview Lead Requirements Surface coatings Substrates 90 ppm total lead Coatings on furniture and children s products, wet paints 100 ppm total lead Children s products (12 years and younger) Certain low risk materials exempt from testing and certification Bikes (higher limits), off-highway vehicles exempt 8 8
CPSIA Overview Phthalates 1000 ppm DEHP, DBP, BBP, DINP, DIDP, DnOP Toys and child care articles Tracking Labels for Children s Products Catalog and Internet Labeling for Toys and Games ASTM F963 Mandatory Toy Standard 9 9
CPSIA Overview Public Database Prohibited Acts and Increased Penalties Shall not sell any consumer product subject to voluntary corrective action Shall not issue a false certificate or fail to issue one at all Shall not export non-conforming product, or product subject to voluntary corrective action Shall not sell any consumer product that is not in conformity with an applicable consumer product safety rule 10 10
California i Proposition 65 Meg Hughes 14
California Proposition 65 Overview Requires notification to a consumer if there is exposure to any of the 850+ chemicals Label or warn with appropriate Prop 65 warning statement: Product Package Store sign WARNING: This product contains lead, a chemical known to the State of California to cause birth defects, cancer, and other reproductive e harm. WARNING: The solder in this product contains a chemical known to the State of California to cause birth defects or other reproductive harm. Wash hands after handling. 15 15
CA Prop 65: Responsibilities s Enforcer Prove contact with the chemical Easy to prove Defendant Prove no significant risk Quantify exposure Difficult to prove Many chemicals have no exposure levels set by the state Exposure levels are often extremely low Exposure level must be translated to chemical content of product 16
CA Prop 65 Overview Settlements Clothing Weights Lead and Phthalates Lead Bags, backpacks, etc. Footwear Lead and Phthalates Lead and Phthalates Bicycle components and accessories Lead and Cadmium Fishing tackle Lead 17 17
Green Chemistry 18 Lisa Clerici Global l Consulting Specialist, Analytical l Technical Services Lisa has been with Bureau Veritas for over 20 years and involved with many aspects of the company including testing, quality, consulting, and technical governance. Currently she is in the Analytical Technical Services department focusing on the Americas region. She is a member of several ASTM committees and is the secretary of F40 (Declarable Substances). She is also a member of the AAFA RSL Task Force in charge of updating the AAFA Restricted Substance List every 6 months.
Green Chemistry California Green Chemistry Initiative Department t of Substance Control (DTSC) has been tasked to develop regulations for this law. A Green Ribbon Science Panel has been created to act as an advisory panel to the DTSC. Sub-committees have been formed to address the following: Chemical Identification and Prioritization Product Identification and Prioritization De Minimus and Unintentionally Added Chemicals Alternatives Assessments are also being discussed 19 19
Green Chemistry Washington Children s Safe Products Act (CHPA) Department of Ecology adopted final rule on July 22, 2011 66 chemicals of concern identified to date Manufacturers must report if any of these chemicals are present whether intentionally added or as a contaminant Reporting dates are based on company sales as well as product tiers Companies classified into six classes which range from 1 billion in sales to less than $100,000 Four product tiers identified Tier 1: products intended to be placed in the mouth or applied to the skin Tier 2: Products intended to be in prolonged contact with the skin Tier 3: Products intended to be in short contact with the skin Tier 4: Products with no skin contact (case by case) 20 20
Restricted Substances List Lisa Clerici 21
More Regulation = More Complexity Green Chemistry Co omplexity TSCA REACH CA Prop 65 CPSIA Washington Chapter 288 Korea RoHS EUP Japan RoHS RRR WEEE California RoHS IL PPA CA Phthalates 16 CFR 1303 EU RoHS Japan RoHS EN 71 Number of Regulations 22 22
Restricted Substances List Restricted Substance List (RSL) The heart of a Restricted Substance Program Simply various chemicals that can present health hazards Carcinogens formaldehyde, heavy metals Toxins PVC Sensitizers nickel (allergenic) Purpose of RSL Hazards to the Environment During production chemical waste Airborne, water, and solid waste Impact to end-of-life (EoL) properties Recycling Proper disposal Chemical impact on ground and drinking water Hazards to the Health of Users During production exposure of employees to chemicals in process Chemicals in products exposure of consumers 23 23
How do they yget into my yproducts? RAW MATERIAL Constituent Materials: Leather Synthetic PU Textiles Latex Rubber EVA Foam Plastics Ink/Paints Adhesives Metals Others RS Additives Dyestuffs Pigments Coating Printing SEMI FINISHED PRODUCT Upper Materials: Insoles Decorations Labels Laces Zippers Velcro-closures Outsole: Outsole Heel RS Stamping Cementing Sewing Process Chemicals Finished Plans FINISHED PRODUCT Material Problem Production Problem 24 24
Elements of a Successful Program Policy Setting Train Supply Chain Chemical Compliance Register Monitor & Control Validate CHEMICAL Compliance Process Policy Setting Train Supply Chain Chemical Compliance Register Monitor & Control Validate It s NOT about test reports 25
Case Study Ellen Roaldi Global l Consulting Specialist, Softlines Technical Services Ellen has been with Bureau Veritas for 20 years in various roles, including Softlines technical governance for testing and quality, regulatory review for internal operations and external consulting. She is currently in the Softlines Technical Services department focusing on the Americas region. She is a member of several committees, including AAFA Steering Committee, CAF, ASTM, AATCC, IABFLO and serves on the advisory board for Buffalo State College. 26
Bureau Veritas Case Study 27 PERFORMANCE PADDED APPAREL Performance padded apparel is a close fitted shirt and / or shorts providing a base layer of protection which is to be worn under sports specific pads. This apparel contains integrated pads stitched or applied to the fabric and moves naturally with the complex body structure t while providing for ultimate comfort; impact and shock absorption protection in critical areas exposed by the limitations of the sports specific pads. Assessing Athletic Sporting Goods BUSINESS CHALLENGE In an environment where no specific regulations or Industry standards exist, how can companies best assess the performance and safety of their products for market success? For manufacturers and retailers this growth area comes with new challenges as they strive to evaluate these products, which use new materials and technologies, for both protective and apparel wearing concerns. SOLUTION Bureau Veritas offers physical, durability, performance, analytical testing to ensure that these types of products meet the current regulatory requirements for softlines. In addition, Bureau Veritas can identify ways to develop, adapt and integrate further testing specific to a particular product offering based on industry best practices. BENEFITS Customized Testing: Involvement of all parties provides for greater unity in establishing a product specific testing program to meet the growing consumer market for innovative athletic protection apparel. Benchmarking: Bureau Veritas leverages its knowledge by adapting industry standards and methods to provide data for the client for comparison purposes to help compensate where formal requirements are non-existent. COMPANY PROFILE A sporting goods manufacturer wanted dto bring a new innovative product to market to better protect the athlete in a contact sport. This is a new growing market segment with limited regulatory and performance standards. Client came to Bureau Veritas looking for best in class industry recommendations for their risk management program. 27
SGMA Product Integrity Program David Simonson Senior Manager, Business Development David has been with Bureau Veritas for over 14 years. Through a variety of positions he s gained an in-depth understanding of the quality assurance process for the retail and consumer products industry. Currently his responsibilities include global account management and business development in addition to technical and regulatory services associated with risk management, consultation, and client training. David is the Account Manager representing the SGMA Product Integrity Program. 28
The SGMA Product Integrity Program Using SGMA solutions to your best advantage Product Integrity Program offers solutions and tools for success in today s challenging marketplace: Knowledge Products Seminars, Webinars, Bulletins, BVOneSource, Research Reports, & White Papers Technical Consultation Design Evaluations, Defect Analysis & Evaluations, Product Innovation Collaboration Supply Chain Services Factory Inspections, Factory Audits, & Product Testing Incentives Program Dedicated Administrative Resources, Dedicated Technical Resources, & Discount Structure 29
The SGMA Product Integrity Program The Big Picture SGMA RISK MANAGEMENT RED CARPET SOLUTION SET EDUCATION & GLOBAL PROGRAM EXECUTED SERVICES REQUESTED & EXPEDITED DELIVERABLES DISTRIBUTED & POSTED TO BVONESOURCE QUARTERLY BUSINESS REVIEW & CONTINUOUS IMPROVEMENT 30
Thank You for Attending! For more information about the SGMA Product Integrity Program, contact: t V.J. Mayor - SGMA vmayor@sgma.com or 301.495.6321 or www.sgma.com/about/affinity/bv David Simonson Bureau Veritas david.simonson@us.bureauveritas.com or 716.505.3509 or www.bureauveritas.com/sgma 31 31