35% of top brands’ toxic childrenswear made in China

35% of top brands’ toxic childrenswear made in China

Staff Reporter

2014-01-25

A report released recently by Greenpeace claiming that the childrenswear lines of renowned international brands contain toxic chemical residues has caused a stir among Chinese consumers.

The clothes of twelve brands, including Burberry, Adidas, Nike, H&M, Primark, Puma, Li Ning, Disney, American Apparel, C&A, GAP, and Uniqlo, were found to have contained toxic ingredients, such as nonylphenol ethoxylates (NPEs) and phthalates, according to the report. The finding is based on samples of 82 items of childrens’ clothing purchased by the organization in 25 countries and areas during May-June of 2013, with production sites including China, Bangladesh, India, Indonesia, Italy, Mexico, the Philippines, Thailand, Tunisia, Turkey, Vietnam, and the US. “The problem may lie in the lining and the dyeing process,” remarked Xiao Danlai, vice secretary general of the Hubei Textile Industry Association.

Twenty nine, 35%, of the toxic samples came from China, which is the world’s largest textile producer, consuming 42% of textile chemicals worldwide.

The report points out that 50 of the 82 samples contain NPE ranging from 1.1-17,000 micrograms per 1.000 grams, higher than the allowed maximum of 1 microgram per 1,000 grams. Three samples had NPE residues exceeding 1,000 micrograms per 1,000 grams, including a Disney skirt, with 3,900 micrograms per 1,000 grams, C&A footwear, with 2,000 micrograms per 1,000 grams, and an American Apparel babywear garment, with 2,000 micrograms per 1,000 grams. A Burberry T shirt also contains 780 micrograms per 1,000 grams.

NPE is a chemical widely used in the textile production. When NPE is discharged into the environment, it can turn into nonylphenol (NP), an even more toxic environmental pollutant, which can disrupt the endocrine system of animals.

The report urges governments and enterprises to manage chemical ingredients throughout their life cycle, starting from the sources, by formulating complete policies and regulations.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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