ESG practices advance in the Brazilian footwear sector

2024-07-29 | By Brazilian Footwear

In accordance with an international market trend, of searching for more sustainable companies and products, the Brazilian footwear industry has been advancing in the area. In other words, as cliché as it may be, sustainability is a path with no return for players who want to stay competitive in an increasingly crowded scenario.

To monitor the progress of these practices in the footwear sector, Abicalçados conducts an annual survey with companies in the activity. In 2023, according to the study in the Sector Report - Footwear Industry, advances and bottlenecks were found that still need improvement with regard to ESG - Environmental, Social and Governance - practices.

It was seeking to certify and encourage the adoption of these practices that Abicalçados, in partnership with the Brazilian Association of Companies of Components for Leather, Footwear and Artifacts (Assintecal), created the Sustainable Origin program, the only initiative in the world to certify companies in the area of sustainability. “In an increasingly competitive market, especially with Asian manufacturers, the disclosure of actions in accordance with human rights and environmental preservation have become a competitiveness tool”, highlights the CEO of Abicalçados, Haroldo Ferreira, stressing that the Asian industry is still little advanced in ESG practices. "The three largest Asian players, China, Vietnam and Indonesia, for example, have not ratified important conventions related to working hours, wages or social policies,” he adds.

In the social area, the difference between Asian producers and the Brazilian footwear industry is illustrated by the ratification of the conventions of the International Labor Organization (ILO), UN agency that aims to promote decent work worldwide. Of the organization's 191 conventions, Brazil has ratified 98, while China has ratified 28, Vietnam 25 and Indonesia only 20. “Among the main footwear producers in the world, we have the industry most concerned about the environment and best social practices,” concludes Ferreira. In a ranking of 192 ILO countries, Brazil occupies the 11th position among the countries with the most ratifications of conventions. China ranks only 125th, Vietnam 143rd and Indonesia 152nd.

TESS: communicating sustainability

Founded in 1967, as a clothing store of the Cantão brand, TESS, which manufactures about 30 thousand daily pairs of the brands Kenner - 27 thousand - and Redley - 3 thousand - in Campina Grande/PB, is one of the companies that bet on ESG practices. Certified at the maximum level of Sustainable Origin, Diamond (more than 80% of the 104 indicators achieved), the TESS group sees, in its practices, a way not only to help preserve the environment and give dignity to communities, but also to increase its competitiveness. Last year, the company began its international expansion using sustainability as a marketing tool. Currently exporting about 5% of its production to countries in Asia, Europe and the Americas, the group has been using the Sustainable Origin brand to communicate the company's concern with the theme, which is increasingly valued in international markets. The mark is applied even on the boxes of exported products. For 2024, the group plans to grow 10% in production, supported by an increase in the share shipped abroad.

Marcos Gross

"But before Sustainable Origin, we didn't have our initiatives organized and tabulated. The seal helped us in the governance of the business and has also been supporting the growth of sustainability actions”

Marcos Gross

The sustainability manager of the TESS group, Marcos Gross, says that the company has an origin concerned with ESG. "But before Sustainable Origin, we didn't have our initiatives organized and tabulated. The seal helped us in the governance of the business and has also been supporting the growth of sustainability actions”, he says. One of the company's highlights in the area is the Projeto Redefinir, which graduated the first class of 80 young people in vulnerable situations in Campina Grande, who added to its approximately 2.4 thousand employees. Through the project, young people are sought on the spot in the needy neighborhoods of the city, in partnership with neighborhood associations. After selection, they undergo 2 thousand hours of training in the productive, cultural, social and environmental areas. According to Gross, after undergoing training, most young people are absorbed into the company's staff, providing a better future for them and their families. The second class, which is starting its training, will have more than 120 students. "Thus, we will help and also create a talent bank that will be absorbed by the company”, highlights the manager.

In the environmental area, Gross highlights the use of 100% clean energy via the free market and the reuse of the raw materials used-which return to production or undergo a blending process and are directed to the cement industry. According to the manager, today the reuse of raw materials in production is between 50% and 60%, the rest being sent to construction. By 2026, the goal is to reuse 100% of raw materials internally. “For this, we are constantly investing in technologies. We recently received five injectors that are already operating and will reduce the volume of waste by at least 50%,” says Gross. Another point of attention is with suppliers, because according to Gross it is no use for the company to be aligned with ESG practices if the other links in the chain are not. "We prefer sustainable suppliers. By 2030, our goal is to have 100% of them acting in accordance with ESG practices,” he projects.

Marluvas: social impact and awareness

With a production of 52 thousand pairs of safety shoes per day, Marluvas is one of the largest employers in the small town of Dores de Campos/MG, a municipality that has just over 10 thousand inhabitants and where the manufacturer employs 1.3 thousand people from the city and region. In addition to its relevance to the economic and social development of the city, Marluvas is proud to be fully integrated with the community in which it operates, a fundamental pillar of sustainability. In this area, the producer of safety shoes makes frequent donations to soccer schools, libraries and equine therapy for autistic children.

Another important point of the company's social performance is the awareness of the local community. "Aware that we need to raise awareness among the base of society, we have a project that takes environmental professionals to municipal schools to deal with issues related to the environment and also takes teenagers to get to know the production plant and everything that is carried out in favor of sustainability”, says the sustainability manager of Marluvas Emerson Leão.

Emerson Leão

"Aware that we need to raise awareness among the base of society, we have a project that takes environmental professionals to municipal schools to deal with issues related to the environment and also takes teenagers to get to know the production plant and everything that is carried out in favor of sustainability”

Emerson Leão

According to Leão, awareness is a tool also used internally, with its team. “Our internal communication carries a lot of the message about the importance of sustainability. We have messages on murals, sent through email marketing groups and Whatsapp groups, and even in an app that we created and is accessed by our employees,” he says.

In the environmental area, the company highlights the reuse of industrial waste. According to the manager, per month, more than 20 thousand tons of leather shavings return to the production process. Regarding the other raw materials used, Marluvas reports a reuse of almost 100% of the polyurethane (PU) and 100% of the PVC used in the production of the sole. Foam cutouts, on the other hand, go on to make upholstery and cardboard boxes that would be discarded are collected by recycling companies.

Currently certified at the Silver level of Sustainable Origin (more than 40% of the indicators achieved), Marluvas understands that sustainability is a constant journey and, therefore, will seek certification at the Gold level in 2025. “We also have a strong working relationship with our suppliers so that we have a sustainable chain. After our certification in Sustainable Origin, this policy became even stronger in the company's culture”, concludes Leão.

Tip Toey Joey: sustainability for children

Tip Toey Joey, a manufacturer of children's shoes from Franca/SP, is another highlight when it comes to ESG practices. Founded in 2004, the company produces about 1.5 thousand pairs of shoes daily by the hands of 250 employees. Exports account for about 20% of the total produced and are destined for markets in the United States and countries in Europe and Asia.

The manufacturer's founder and co-CEO, Ana Claudia McInerney, points out that the concept of ESG is fundamental to ensure that sustainability is incorporated in a systemic and integral way as a guide for the company in the present and in the long term. “For us, these efforts not only improve the environmental and social performance of the company, but strengthen the brand and are a differential of it in the market,” she says.

Among the highlights of the company, in the environmental area, are the use of clean energy in all areas, the prioritization of sustainable materials in the production of its footwear and accessories, the realization of tow recycling programs within its production and waste management. In the social sphere, the company has a constant care for its employees and the Francana community. ”We recently renovated our factory, expanding ventilation and lighting in the work environment and creating a green space where employees can enjoy the fresh air, " says Ana, adding that Tip Toey Joey also has a hired physiotherapist who performs work gymnastics with employees.

Ana Claudia McInerney

“For us, these efforts not only improve the environmental and social performance of the company, but strengthen the brand and are a differential of it in the market”

Ana Claudia McInerney

Uniting the environmental and social pillars, the footwear company maintains an internal vegetable garden that provides, daily, salads for the lunches of all its employees. “With regard to integration with the community, we have frequently developed philanthropic activities, through the support of local cultural projects, promotion of events with local actors, conversation circles and shoe donation program,” she adds.

Certified at the Silver level of Sustainable Origin, Tip Toey Joey lists sustainability goals for the short, medium and long term. According to Ana, an internal sustainability committee composed of representatives from different departments of the company was created. The agency listed the following goals: reduction of waste generation by 1.6 tons per year; greenhouse gas emission inventory and development of a strategic plan for reducing/offsetting emissions; planting and maintenance of 300 trees; support to suppliers so they seek certifications in the ESG area; training of at least 80 employees per year in courses and trainings; donation of 1,000 pairs of shoes, 850 children's books and 300 kilos of food per year; promotion of at least 50% of leadership positions held by women; among others. “Our goal is to reach the Gold Level of Sustainable Origin in two years”, projects the businesswoman.