Amfori BEPI

Amfori BEPI is a comprehensive overview of Amfori BEPI, explaining what it is, how it works, and why it’s important for businesses.

What is Amfori BEPI?

Amfori BEPI stands for Business Environmental Performance Initiative.

  • Provider: It is a service provided by amfori, a leading global business association for open and sustainable trade.
  • Focus: Unlike many other initiatives that focus on social compliance (like amfori BSCI), BEPI is dedicated solely to improving environmental performance in global supply chains.
  • Goal: To help retailers, importers, and brand companies (referred to as “members”) to assess and improve the environmental performance of their supply chain partners (producers, factories, farms).

In simple terms, Amfori BEPI provides a framework to identify, manage, and reduce the environmental impact of production processes.


Why Was Amfori BEPI Created?

Global supply chains face increasing pressure from:

  • Consumers and NGOs: Demanding more environmentally friendly products.
  • Governments: Implementing stricter environmental regulations (e.g., carbon taxes, plastic bans).
  • Investors: Focusing on ESG (Environmental, Social, and Governance) criteria.
  • Business Risks: Environmental inefficiencies can lead to operational risks, reputational damage, and increased costs.

BEPI was created to give businesses a single, standardized, and practical tool to address these environmental challenges across diverse product categories and countries.


The Core of BEPI: The “BEPI Process”

The BEPI system is not a one-off certificate but a continuous improvement process. It is built on a collaborative approach between the amfori member (the buyer) and their suppliers.

The process is structured in 11 Environmental Performance Areas (EPAs), which cover the most critical aspects of a production site’s environmental footprint:

  1. Energy Consumption & Greenhouse Gas (GHG) Emissions
  2. Water Use
  3. Wastewater / Effluent
  4. Emissions to Air
  5. Waste Management
  6. Contamination of Land & Groundwater
  7. Use of Chemicals & Hazardous Materials
  8. Noise & Odour
  9. Biodiversity & Land Use
  10. Environmental Accidents & Spill Prevention
  11. Nuisance to Neighbourhood

The 5-Step BEPI Process in Detail

This is the practical journey a supplier goes through:

  1. Self-Assessment (SA):
    • The supplier completes a comprehensive online questionnaire in the amfori platform.
    • This helps them identify their most significant environmental impacts and risks across the 11 EPAs.
    • Outcome: The supplier gets a “BEPI Profile” with an initial performance rating.
  2. Improvement Plan:
    • Based on the Self-Assessment, the supplier, often with support from the amfori member, develops a plan to address the identified weaknesses.
    • This plan sets clear, achievable, and time-bound goals for improvement.
  3. Verification:
    • An independent, accredited third-party conducts an on-site assessment at the supplier’s facility.
    • The verifier checks the implementation of the improvement plan and the accuracy of the self-assessment.
    • Outcome: A “BEPI Performance Rating” is given (on a scale from A to D, with A being the best).
  4. Monitoring:
    • The supplier’s environmental performance is continuously monitored.
    • The amfori member tracks progress through the platform, and follow-up verifications may be scheduled to ensure sustained improvement.
  5. Capacity Building & Training:
    • Amfori provides extensive resources, training, and tools to help both members and suppliers build their internal capacity for environmental management.

Key Features & Benefits

Feature/BenefitDescription
Single FrameworkSuppliers can use one system for multiple amfori member customers, avoiding duplicate audits.
Risk-Based ApproachFocuses efforts on the most significant environmental risks, making the process efficient.
Flexibility & ScalabilityApplicable to all product sectors (textiles, electronics, food, etc.) and business sizes.
Drives Continuous ImprovementThe goal is not just to pass an audit but to foster long-term environmental management.
Platform-BasedThe amfori platform centralizes data, making it easy to manage and share performance.
Builds Supplier RelationshipsIt’s a collaborative tool for buyers to work with suppliers on improvement, not just police them.

BEPI vs. Other Standards (e.g., ISO 14001)

  • BEPI is a supply chain management tool. It is designed to help a buyer manage the environmental performance of hundreds or thousands of suppliers. It provides a common baseline and a practical path for improvement.
  • ISO 14001 is an Environmental Management System (EMS) standard that a single company can get certified against. It is a rigorous, formal management system.
  • Relationship: BEPI is often seen as a stepping stone towards achieving a formal certification like ISO 14001. A supplier going through the BEPI process builds the foundational systems that can later be formalized into an ISO 14001-compliant EMS.

Who Uses Amfori BEPI?

  • Amfori Members: Over 2,400 retailers, importers, and brands (e.g., Aldi, Lidl, M&S, Inditex/Zara use amfori services).
  • Their Suppliers: Tens of thousands of production sites worldwide, primarily in Asia, but also in Europe, Africa, and the Americas.

Conclusion

Amfori BEPI is a critical response to the growing need for corporate environmental responsibility in global trade. It provides a practical, structured, and collaborative system for businesses to understand and reduce the environmental footprint of their supply chains. By focusing on continuous improvement and risk management, it helps companies future-proof their operations, comply with regulations, and meet the expectations of conscious consumers.

What is Required Amfori BEPI

Courtesy: amfori

The “Amfori BEPI Commitment”

When a brand joins amfori BEPI, it commits to managing the environmental performance of its supply chain. To fulfill this commitment, it requires its suppliers to actively participate in the BEPI process. The “requirement” is to engage with and progress through the BEPI system.


What is Specifically Required of a Supplier?

If a supplier receives a request from a buyer to comply with “Amfori BEPI Environmental,” they are generally required to complete the following key steps:

1. Registration on the amfori Platform

  • The supplier must register on the amfori online platform, which is the central hub for all BEPI activities.
  • This is usually initiated by an invitation from the amfori member (the buyer).

2. Completion of the Self-Assessment (SA)

  • This is a fundamental requirement. The supplier must complete a comprehensive online Self-Assessment.
  • The SA is a questionnaire that evaluates the supplier’s environmental performance across the 11 Environmental Performance Areas (EPAs).
  • The supplier must provide accurate information about its operations, including:
    • Energy consumption and GHG emissions.
    • Water usage and wastewater discharge.
    • Waste management practices.
    • Chemical management.
    • Air emissions, etc.

3. Development and Implementation of an Improvement Plan

  • Based on the results of the Self-Assessment, the supplier is required to create an action plan to address its weaknesses and environmental risks.
  • The buyer will expect to see this plan and monitor progress on it. The requirement is to show continuous improvement.

4. Undergoing a BEPI Verification (On-Site Assessment)

  • This is often a key requirement from the buyer to confirm the Self-Assessment and validate the supplier’s environmental performance.
  • An independent, amfori-approved third-party auditor conducts an on-site visit to check the facility’s practices against the 11 EPAs.
  • The outcome is a BEPI Performance Rating (A, B, C, or D). Many buyers set a minimum required rating (e.g., “You must achieve at least a BEPI Rating of C”).

5. Corrective Actions and Monitoring

  • If the verification audit finds non-conformities, the supplier is required to address them with a Corrective Action Plan (CAP).
  • The supplier must provide evidence of having fixed the issues within a given timeframe.

What Are the “Required” Environmental Topics?

The mandatory topics to be managed are defined by the 11 Environmental Performance Areas (EPAs). A supplier must be prepared to demonstrate management and performance in these areas:

  1. Energy Consumption & Greenhouse Gas (GHG) Emissions
  2. Water Use
  3. Wastewater / Effluent
  4. Emissions to Air
  5. Waste Management
  6. Contamination of Land & Groundwater
  7. Use of Chemicals & Hazardous Materials
  8. Noise & Odour
  9. Biodiversity & Land Use
  10. Environmental Accidents & Spill Prevention
  11. Nuisance to Neighbourhood

Summary: What a Buyer Means by “Required Amfori BEPI Environmental”

In practice, when a buyer says this, they mean:

“As our supplier, you are required to:

  1. Register on the amfori platform.
  2. Complete the BEPI Self-Assessment to identify your environmental risks.
  3. Undergo a BEPI verification audit conducted by an independent third party.
  4. Achieve a minimum BEPI performance rating (e.g., Level C or higher).
  5. Commit to a continuous improvement process to address any findings.”

This requirement is not about immediate perfection but about demonstrating a commitment to managing environmental impacts and engaging in a structured process of improvement, as defined by the Amfori BEPI framework.

Who is Required Amfori BEPI

Amfori BEPI

The requirement flows down a supply chain, so there are two main entities involved:

1. The “Requirer” – The Buyer (amfori Member)

  • Who they are: These are typically retailers, importers, and brand companies that have joined the amfori association. Examples include companies like Aldi, Lidl, M&S, Inditex (Zara), and many others.
  • Their Role: They use the Amfori BEPI system to manage the environmental performance of their global supply chains. To do this, they require their suppliers to participate in the BEPI process. It becomes a condition of their business relationship.

In short: The buyer imposes the requirement.

2. The “Required” – The Supplier (Production Facility)

  • Who they are: These are the factories, farms, or production facilities that manufacture goods or produce raw materials for the amfori member companies. They can be located anywhere in the world (e.g., Bangladesh, Vietnam, Turkey, India, China).
  • Their Role: They are the entities that must fulfill the requirement. When their customer (the amfori member) asks them to comply with Amfori BEPI, they have to go through the process.

In short: The supplier is the one who is required to comply.


The Flow of the Requirement

The requirement follows a clear chain:

amfori (The Organization)
provides the system to…
↓

The Brand/Retailer (e.g., “FashionCo,” an amfori Member)
requires its suppliers to use the system as a condition of business
↓

The Supplier/Factory (e.g., “Stitch-It Garments Ltd.”)
is required to complete the BEPI process

A Practical Example:

  1. FashionCo, a major clothing brand in Europe, is a member of amfori.
  2. FashionCo wants to ensure the factory it sources from in Bangladesh is managing its environmental impact properly.
  3. FashionCo sends a letter to Stitch-It Garments Ltd. in Bangladesh stating: “As our supplier, you are required to participate in the Amfori BEPI environmental program. Please register on the platform and complete the process.”
  4. Stitch-It Garments Ltd. is now required to:
    • Register on the amfori platform.
    • Complete the BEPI Self-Assessment.
    • Undergo a BEPI verification audit.
    • Work on an improvement plan.

Who is NOT Required?

  • Companies that are not suppliers to amfori members have no obligation to use BEPI.
  • The amfori members themselves are not “audited” by BEPI; instead, they use the BEPI system to manage their suppliers. Their requirement is to implement this system within their supply chain.

Summary

To put it in a single sentence:

“Amfori BEPI Environmental is required of suppliers and factories by their international buyers who are members of the amfori organization.”

When is Required Amfori BEPI

Here are the key situations and timelines when Amfori BEPI becomes a requirement:


1. Onboarding of a New Supplier (Proactively)

  • When: Before an order is placed or at the very start of a new business relationship.
  • Why: Many amfori members integrate BEPI into their supplier code of conduct or vendor agreement. Completing the BEPI process becomes a prerequisite for becoming an approved vendor. This allows the buyer to de-risk the relationship from the beginning.

2. In Response to a Specific Risk or Incident

  • When: When a buyer identifies a high environmental risk associated with a supplier.
  • Why:
    • The supplier is in a geographic region with strict new environmental regulations.
    • The supplier operates in a high-impact sector (e.g., textiles/wet processing, chemical manufacturing, metal plating) where environmental footprint is significant.
    • There has been a complaint or incident (e.g., a pollution spill, community complaint) that flags the supplier as high-risk.

3. Driven by Buyer or Brand Sustainability Goals

  • When: When a buyer publicly commits to a major sustainability target.
  • Why: If a brand pledges to have a “climate-neutral supply chain by 2030” or “zero hazardous chemical discharge,” they will require their entire supply base to engage with BEPI to collect data, set baselines, and drive the necessary improvements to meet these goals.

4. As an Escalation from Social Compliance

  • When: After a supplier has achieved a certain level of maturity in social compliance (e.g., through the amfori BSCI audit).
  • Why: Buyers often start with social audits (focusing on labor rights and safety) and then “level up” their requirements to include environmental performance. A buyer might tell a supplier: “You’ve done well on BSCI; now we need you to start on BEPI.”

5. Upon Request from a Second-Tier Customer

  • When: When a major end-client of your direct customer demands it.
  • Why: A factory might be supplying to an intermediary, but the ultimate brand (e.g., a large retailer) requires full supply chain transparency. The intermediary will then be required to have its suppliers (like your factory) comply with BEPI.

The Typical “When” in a Timeline:

For a supplier, the process usually looks like this:

  1. The “Requirement” is Communicated: You receive an official letter or email from your buyer stating that BEPI compliance is now mandatory for your business relationship. This is the official start date of the requirement.
  2. Initial Deadline (e.g., 30-60 days): You are given a deadline to register on the amfori platform and complete the Self-Assessment.
  3. Verification Deadline (e.g., 6-12 months): The buyer will often set a final deadline by which you must have undergone the independent BEPI verification audit and achieved a minimum performance rating.

Summary: Key Trigger Points

You can expect the Amfori BEPI requirement to be triggered when:

  • Starting a new business relationship with an amfori member.
  • Renewing a contract or framework agreement.
  • A buyer is implementing a new sustainability strategy.
  • Your facility is identified as high-risk.
  • There is a need to comply with new environmental laws that affect your buyer’s due diligence obligations (like the EU CSRD).
  • Your buyer is being pressured by their own customers or investors to show better environmental supply chain management.

In essence, Amfori BEPI is required when a buyer decides that managing environmental risk is no longer optional but a core part of their responsible sourcing strategy, and they choose the Amfori BEPI framework as their tool to do it.

Where is Required Amfori BEPI

1. Geographical Location: Where in the World is BEPI Required?

Amfori BEPI is a global initiative, but its application is not uniform. The “where” is defined by the structure of global supply chains.

  • Primarily in Production and Manufacturing Hubs: The requirement is most heavily concentrated in countries that are major sourcing destinations for amfori’s members (mostly European retailers and brands). These include:
    • Asia: China, Bangladesh, Vietnam, India, Cambodia, Pakistan, Turkey, Myanmar, Indonesia, Sri Lanka.
    • Europe: Production countries for items like food, textiles, and machinery (e.g., Turkey, Poland, Italy, Spain).
    • Africa & South America: Growing application in sourcing countries for agricultural products, textiles, and minerals.
  • Not Dependent on Local Law: A key point is that BEPI can be required even if local environmental laws are weak. It is a private standard driven by buyer requirements, often going beyond local compliance. A factory in a country with lax regulations can still be required to meet the high BEPI standards by its international buyer.

In short: Geographically, BEPI is required wherever an amfori member’s suppliers are located, which is predominantly in manufacturing hubs across Asia, Europe, Africa, and the Americas.


2. Position in the Supply Chain: Where does the requirement apply?

This is about the type of business that is required to comply. The requirement flows down the supply chain.

  • The Focus is on Production Facilities (Tier 1 & Beyond):
    • Tier 1 Suppliers: These are the direct suppliers—the factories that produce the final finished goods for the amfori member. For example, the garment factory that sews the shirts for a European brand. This is the most common point where BEPI is required.
    • Tier 2 & 3 Suppliers: Increasingly, amfori members are also requiring indirect suppliers to participate. These are the facilities that provide raw materials, components, or sub-assemblies. Examples include:
      • Fabric mills that sell cloth to a garment factory (Tier 1).
      • Dye houses and laundries that process fabrics.
      • Farms that produce raw cotton or food items.
      • Component manufacturers for electronics or automobiles.
  • Who is NOT directly required?
    • The amfori members themselves (the brands/retailers) are not the direct subjects of BEPI assessments for their own headquarters (unless they are also manufacturers). They use the system to manage their suppliers.
    • Logistics companies, wholesalers, or retail stores are generally not in scope, unless their specific operations have a significant environmental footprint that the buyer wants to manage.

Visualizing the “Where” in the Supply Chain

Imagine a German brand (an amfori member) selling a cotton t-shirt:

Supply Chain TierExample BusinessAmfori BEPI Required?
Brand / RetailerGerman Fashion Brand (amfori Member)No. They require it from others.
↓
Tier 1 SupplierGarment Factory in BangladeshYES. This is the primary location.
↓
Tier 2 SupplierFabric Mill in ChinaIncreasingly YES.
↓
Tier 3 SupplierCotton Farm in IndiaPotentially YES, especially for large brands.

Summary

To put it simply, Amfori BEPI Environmental is required:

  • Geographically: In any country where an amfori member sources products, with a heavy concentration in global manufacturing hubs.
  • In the Supply Chain: At the production facility level, starting with direct (Tier 1) suppliers and increasingly extending to indirect (Tier 2 & 3) suppliers like raw material producers.

The requirement follows the product from its raw material origin to the final manufacturing stage, wherever that may be in the world.

How is Required Amfori BEPI

The Mechanism of Requirement and Implementation

The requirement is not a single event but a managed process facilitated by the amfori platform and driven by the buyer-supplier relationship.

Step 1: The Formal Request & Onboarding

  • How it’s Communicated: The buyer (amfori member) sends an official notification to the supplier. This is typically done via:
    • A formal letter or email.
    • A clause in a new or renewed supply contract.
    • An update to the supplier’s code of conduct.
    • A direct task assigned within the amfori platform.
  • The “Requirement” Statement: The communication will state something like: “As a condition of our continued business relationship, you are required to complete the Amfori BEPI process and achieve a minimum performance rating within [specific timeframe].”

Step 2: Registration and Self-Assessment

  • How the Supplier Starts: The supplier receives an invitation link to register on the amfori platform.
  • How the Assessment is Done: The supplier completes the BEPI Self-Assessment (SA) online. This is a comprehensive questionnaire covering the 11 Environmental Performance Areas (EPAs). The platform guides them through identifying their most significant environmental risks.

Step 3: Improvement Planning

  • How Improvement is Mandated: Based on the Self-Assessment results, the supplier is required to create an Improvement Plan directly within the amfori platform.
  • How it’s Monitored: The buyer can see this plan and track progress. The requirement is to show active engagement in addressing weaknesses, not just to have a plan.

Step 4: Independent Verification (The Audit)

  • How Compliance is Verified: This is a critical step. The supplier is required to undergo an on-site assessment conducted by an independent, amfori-approved third-party auditing firm.
    • The supplier must schedule the audit.
    • They must provide access to their facility and records.
    • They must cooperate fully with the auditors.
  • How Performance is Rated: The outcome is a BEPI Performance Rating (A, B, C, or D). The buyer’s requirement often includes achieving a minimum rating (e.g., “Level C or higher”).

Step 5: Corrective Actions and Continuous Monitoring

  • How Gaps are Addressed: If the verification finds non-conformities, the supplier is required to submit a Corrective Action Plan (CAP).
  • How it’s Enforced: The buyer will monitor the closure of these corrective actions. Failure to address major issues can lead to a suspension of business.

How the Requirement is Enforced: The “Carrot and Stick”

The “how” also involves the consequences and incentives that make the requirement real.

Enforcement MechanismHow It Works
The “Stick” (Consequences for Non-Compliance)
Business SuspensionNew purchase orders are put on hold until the BEPI requirement is met.
Contract Non-RenewalThe buyer may choose not to renew contracts with non-compliant suppliers.
Reduced Order VolumeThe buyer may shift business to more compliant suppliers.
The “Carrot” (Incentives for Compliance)
Preferred Supplier StatusCompliant suppliers are often prioritized for new and larger orders.
Longer-Term PartnershipsDemonstrating strong environmental performance builds trust and secures business.
Brand ReputationSuppliers can use their good BEPI rating as a marketing tool to attract other buyers.
Internal EfficiencyThe process often reveals opportunities to save money (e.g., reducing energy/water waste).

How the amfori Platform Facilitates This

The entire “how” is enabled by technology:

  • Centralized Dashboard: The buyer can see the status of all their suppliers (e.g., who has registered, completed SA, passed verification).
  • Data-Driven Risk Management: The platform helps the buyer identify high-risk suppliers based on the data collected.
  • Transparency and Documentation: All reports, improvement plans, and corrective actions are stored in one place, creating a transparent audit trail.

Summary: The “How” in a Nutshell

Amfori BEPI is required through a structured, platform-driven process that involves:

  1. Formal Notification: The buyer mandates it as a condition of business.
  2. Structured Process: The supplier must complete a Self-Assessment, create an Improvement Plan, and undergo an independent Verification.
  3. Performance Benchmarking: Compliance is measured by achieving a minimum BEPI Performance Rating.
  4. Continuous Monitoring: The requirement is for ongoing improvement, not a one-time certificate.
  5. Enforcement via Business Leverage: The buyer uses its commercial relationship (orders and contracts) to ensure the supplier completes the process.

In essence, it’s required through a combination of contractual obligation, a standardized management system, and the economic leverage that buyers hold over their suppliers.

Case Study on Amfori BEPI

Amfori BEPI

1. The Trigger: The Requirement from the Buyer

EuroStyle Retail launched a new sustainability strategy with a public commitment to reduce the environmental footprint of its supply chain by 2025. As part of this, they mandated that all their Tier 1 suppliers must complete the Amfori BEPI process and achieve at least a Performance Level C within 12 months.

Stitch-It Garments received a formal letter from EuroStyle, requiring them to register on the amfori platform and begin the process. The implication was clear: compliance was essential for future orders.

2. Phase 1: Self-Assessment & Initial Shock

The factory manager, Mr. Hassan, registered on the amfori platform and began the BEPI Self-Assessment. He had to answer detailed questions across the 11 Environmental Performance Areas (EPAs).

Key Findings from the Self-Assessment:

  • EPA 1 (Energy & GHG): High energy consumption from old, inefficient diesel generators used during frequent power outages. No tracking of carbon emissions.
  • EPA 3 (Wastewater): The wastewater from the dyeing and washing units was treated by a local Effluent Treatment Plant (ETP), but discharge quality was not consistently monitored.
  • EPA 5 (Waste Management): Fabric scraps and general waste were indiscriminately mixed and sent to landfill. Hazardous waste (like chemical containers) was not properly segregated or disposed of.
  • EPA 7 (Chemical Management): Chemicals were stored improperly, and Safety Data Sheets (SDS) were not readily available for all substances.

The Self-Assessment gave Stitch-It Garments a preliminary rating of Level D, highlighting significant risks.

3. Phase 2: Improvement Plan & Capacity Building

Alarmed by the ‘D’ rating, Mr. Hassan worked with a local environmental consultant and used resources from the amfori Academy to create a targeted Improvement Plan.

Key Actions in the Plan:

  1. Energy: Invest in a capacitor bank to improve power factor and reduce grid energy consumption. Explore solar panel installation for the rooftop.
  2. Wastewater: Contract a certified lab to perform monthly tests on the ETP’s output to ensure it met international standards.
  3. Waste: Implement a strict waste segregation system on the factory floor. Find a certified vendor to recycle fabric scraps and properly manage hazardous waste.
  4. Chemicals: Reorganize the chemical storage area, ensure all containers are properly labeled, and create a digital database of all SDS.

4. Phase 3: Independent Verification

After six months of implementing the plan, Stitch-It Garments scheduled a BEPI verification audit with an amfori-approved service provider.

The Audit Findings:

  • Strengths: The new waste segregation system was fully implemented and effective. The chemical storage area was now compliant.
  • Minor Non-Conformities: The solar panel project was still in the planning phase. Some energy consumption data logging was inconsistent.
  • Major Success: The monthly wastewater testing reports showed consistent compliance with standards, a significant improvement.

The auditor verified the improvements and acknowledged the strong commitment from management. The initial ‘D’ rating was no longer reflective of the factory’s status.

5. The Outcome: New Performance Rating and Business Benefits

Based on the verification, Stitch-It Garments Ltd. was awarded a final BEPI Performance Level B.

Tangible Results for Stitch-It Garments:

  • Financial Savings: The energy efficiency measures reduced their electricity bill by 15%.
  • Risk Mitigation: They eliminated the risk of fines or shutdowns for improper waste and chemical handling.
  • Enhanced Reputation: They became a “preferred supplier” for EuroStyle Retail, who increased their order volume.
  • New Business: They used their BEPI Level B rating in marketing materials and successfully attracted two new international clients who were also amfori members.

Benefits for EuroStyle Retail:

  • Supply Chain De-risking: They could confidently report that a key supplier was proactively managing its environmental impact.
  • Meeting Sustainability Goals: The improved performance of Stitch-It Garments directly contributed to EuroStyle’s 2025 footprint reduction target.
  • Brand Protection: Reduced the risk of a negative environmental scandal linked to their supply chain.

Conclusion of the Case Study

The Amfori BEPI process transformed Stitch-It Garments from a factory with significant, unmanaged environmental risks into a professionally managed, efficient, and compliant operation. The requirement, while initially daunting, provided a clear framework for improvement that yielded both ethical and commercial benefits for both the supplier and the buyer.

This case demonstrates that Amfori BEPI is not just an audit, but a continuous improvement journey that builds resilience, saves costs, and secures business relationships in an increasingly environmentally-conscious global market.

White paper on Amfori BEPI

The environmental footprint of global supply chains is under unprecedented scrutiny from regulators, investors, and consumers. The Amfori Business Environmental Performance Initiative (BEPI) provides a robust, practical, and scalable framework for companies to assess, manage, and improve the environmental performance of their supply chains. This white paper outlines the core components of the BEPI system, its strategic value in de-risking operations and enhancing brand reputation, and a practical pathway for implementation. By adopting a collaborative, improvement-oriented approach, BEPI enables businesses to transition from mere compliance to a leadership position in sustainable trade.


1. Introduction: The Imperative for Environmental Management in Supply Chains

Global trade is a driver of economic growth, but it is also a significant source of environmental impact, including greenhouse gas emissions, water pollution, and resource depletion. Pressures are mounting from multiple fronts:

  • Regulatory: Emerging due diligence legislation (e.g., EU CSRD) mandates environmental transparency.
  • Financial: Investors are increasingly applying ESG (Environmental, Social, and Governance) criteria.
  • Market: Consumers demand products with verified sustainable credentials.
  • Operational: Climate change and resource scarcity pose direct risks to business continuity.

In this context, managing environmental performance is no longer a niche concern but a core business imperative. Amfori BEPI offers a standardized solution to this complex challenge.

2. Understanding the Amfori BEPI Framework

Amfori BEPI is not a certification but a comprehensive management system designed for practical implementation across diverse product categories and geographies.

2.1 Core Principles:

  • Risk-Based Approach: Focuses efforts on the most significant environmental impacts.
  • Continuous Improvement: Drives long-term progress over one-off compliance.
  • Collaboration: Fosters partnership between buyers and suppliers.
  • Scalability: Applicable to businesses of all sizes and sectors.

2.2 The 11 Environmental Performance Areas (EPAs):

The framework is structured around 11 key areas of environmental impact, providing a holistic view of a production site’s footprint:
1. Energy Consumption & Greenhouse Gas Emissions
2. Water Use
3. Wastewater/Effluent
4. Emissions to Air
5. Waste Management
6. Contamination of Land & Groundwater
7. Use of Chemicals & Hazardous Materials
8. Noise & Odour
9. Biodiversity & Land Use
10. Environmental Accidents & Spill Prevention
11. Nuisance to Neighbourhood

3. The BEPI Process: A Phased Implementation Model

The BEPI system is implemented through a clear, five-phase cycle:

Phase 1: Self-Assessment

  • Suppliers conduct a guided self-evaluation via the amfori platform.
  • Output: A baseline “BEPI Profile” identifying high-risk EPAs.

Phase 2: Improvement Plan

  • Based on the assessment, suppliers develop a targeted action plan.
  • Output: A structured roadmap for addressing weaknesses and leveraging opportunities.

Phase 3: Verification

  • An independent third-party conducts an on-site audit to verify the self-assessment and improvement efforts.
  • Output: A definitive BEPI Performance Rating (A-D), providing a transparent benchmark.

Phase 4: Monitoring

  • Buyers and suppliers track progress against the Improvement Plan.
  • Output: Ongoing management of environmental performance.

Phase 5: Capacity Building

  • amfori provides training, tools, and resources to build long-term internal competence.
  • Output: A more resilient and knowledgeable supply chain.

4. The Strategic Business Value of BEPI

Implementing BEPI delivers tangible value across multiple business functions:

Value DriverDescription
Risk MitigationProactively identifies and manages environmental risks, reducing exposure to regulatory fines, operational shutdowns, and reputational damage.
Supply Chain ResilienceBuilds more efficient, transparent, and sustainable supplier relationships, securing production capacity.
Cost SavingsIdentifies inefficiencies in energy, water, and waste management, leading to significant operational cost reductions.
Market Access & ReputationA strong BEPI rating serves as a passport to work with sustainability-focused brands and enhances brand equity.
ESG ReportingProvides the data and evidence required to meet stringent environmental reporting obligations under frameworks like CSRD and GRI.

5. BEPI in the Broader ESG Landscape

BEPI is strategically positioned within the wider sustainability ecosystem:

  • A Supply Chain Tool, Not a Certification: It complements rather than replaces standards like ISO 14001. BEPI is often the first step for suppliers toward achieving formal certification.
  • Focus on “E” in ESG: While amfori also offers the BSCI social compliance system, BEPI provides a dedicated and deep focus on the environmental pillar.
  • Alignment with Global Frameworks: The EPA structure aligns with the core environmental topics of major reporting standards, making data collection for compliance more efficient.

6. Challenges and Considerations

  • Supplier Engagement: Motivating and supporting suppliers, especially SMEs, requires resources and a collaborative mindset from buyers.
  • Data Consistency: Ensuring accurate and comparable data across diverse global suppliers is an ongoing challenge.
  • Beyond Tier 1: The greatest environmental impacts often lie in raw material production (Tier 2+), requiring brands to extend the BEPI framework deeper into the supply chain.

7. Conclusion and Future Outlook

The Amfori BEPI framework represents a critical evolution in corporate environmental responsibility. It moves the needle from passive auditing to active supply chain management. For businesses committed to long-term viability, BEPI is not an optional add-on but a strategic necessity.

The future of BEPI will likely involve:

  • Deeper Integration: Closer linkage with carbon accounting and circular economy principles.
  • Enhanced Digitalization: Greater use of AI and IoT for real-time environmental data collection.
  • Regulatory Convergence: Becoming a de facto standard for demonstrating due diligence compliance.

Companies that adopt BEPI today are not just mitigating risk; they are future-proofing their operations, building resilient supplier partnerships, and positioning themselves as leaders in the transition to a sustainable global economy.

Industrial Application of Amfori BEPI

Courtesy: 5-Minute Eco Idea

The industrial application refers to how factories and production facilities in specific sectors practically implement the BEPI framework to manage their unique environmental impacts, reduce risks, and improve efficiency.

It’s not a one-size-fits-all checklist; it’s a management system applied to the particular context of an industry.


Core Application Across All Industries: The BEPI Process

Regardless of the sector, all industrial applicants follow the same core process:

  1. Self-Assess against the 11 Environmental Performance Areas (EPAs).
  2. Identify their most significant environmental risks (e.g., a textile mill will focus on water, while a metal workshop focuses on energy).
  3. Create an Improvement Plan targeting those high-priority areas.
  4. Undergo Verification to confirm their performance.
  5. Monitor and Improve continuously.

Sector-Specific Industrial Applications

Here is how BEPI is applied in some of the most common and high-impact industrial sectors.

1. Textile & Apparel Industry

This is one of the most common applicants for BEPI due to the sector’s significant environmental footprint.

  • Primary EPAs in Focus:
    • EPA 3 (Wastewater/Effluent): Managing and treating chemical-laden water from dyeing, printing, and finishing processes. Ensuring pH, temperature, and chemical oxygen demand (COD) levels meet standards before discharge.
    • EPA 2 (Water Use): Implementing water recycling and reduction technologies in wet processes.
    • EPA 7 (Use of Chemicals): Proper storage, handling, and substitution of hazardous chemicals (e.g., azo dyes, heavy metals) in accordance with standards like ZDHC.
    • EPA 1 (Energy & GHG): High energy consumption from spinning, weaving, and steam generation.
  • Practical Application Example:
    A denim factory in Bangladesh uses its BEPI Self-Assessment to find its dyeing unit is its biggest risk. Its Improvement Plan includes:
    • Installing a flow meter to monitor water intake (EPA 2).
    • Partnering with a certified lab for monthly wastewater testing (EPA 3).
    • Switching to more environmentally friendly dyes and creating a centralized chemical inventory (EPA 7).
    • Installing a waste-heat recovery system on its boilers (EPA 1).

2. Electronics & Electrical Manufacturing

This sector deals with complex supply chains and hazardous materials.

  • Primary EPAs in Focus:
    • EPA 7 (Use of Chemicals): Managing solvents, acids, and heavy metals (e.g., lead, mercury) used in plating, soldering, and cleaning. Ensuring proper ventilation and worker safety.
    • EPA 5 (Waste Management): Segregating and disposing of hazardous e-waste (printed circuit boards, batteries) through certified recyclers.
    • EPA 6 (Land Contamination): Preventing leaks and spills of hazardous substances that could contaminate soil and groundwater.
    • EPA 10 (Accident Prevention): Having spill containment systems and emergency response plans for chemical accidents.
  • Practical Application Example:
    A circuit board assembler in Vietnam focuses its BEPI efforts on:
    • Replacing a chlorinated solvent with a bio-based cleaner for degreasing (EPA 7).
    • Installing secondary containment bunds around all chemical storage tanks (EPA 6 & 10).
    • Contracting a licensed vendor for the collection and recycling of solder dross and defective boards (EPA 5).

3. Agriculture & Food Processing

This sector’s impact is on natural resources and land use.

  • Primary EPAs in Focus:
    • EPA 9 (Biodiversity & Land Use): Sustainable sourcing to avoid deforestation and habitat loss.
    • EPA 2 (Water Use): Efficient irrigation systems to reduce water consumption.
    • EPA 3 (Wastewater): Treating organic effluent from processing plants (e.g., sugar mills, dairy) which has high Biological Oxygen Demand (BOD).
    • EPA 5 (Waste Management): Composting organic waste instead of sending it to landfill.
    • EPA 7 (Use of Chemicals): Responsible application of pesticides and fertilizers.
  • Practical Application Example:
    A coffee plantation in Brazil uses BEPI to:
    • Map its water sources and implement drip irrigation to reduce usage (EPA 2).
    • Construct wetlands to naturally treat processing wastewater (EPA 3).
    • Develop an Integrated Pest Management (IPM) plan to reduce pesticide reliance (EPA 7).
    • Use coffee pulp as organic fertilizer, reducing waste and the need for chemical fertilizers (EPA 5).

4. Metalworking & Foundries

This sector is energy and emissions-intensive.

  • Primary EPAs in Focus:
    • EPA 1 (Energy & GHG): High fossil fuel and electricity use for melting and forming metals. Improving furnace efficiency is a key focus.
    • EPA 4 (Emissions to Air): Controlling particulate matter (PM), sulfur oxides (SOx), and volatile organic compounds (VOCs) released during production.
    • EPA 8 (Noise): Managing high noise levels from machining and forging operations.
  • Practical Application Example:
    A steel foundry in Turkey addresses its BEPI profile by:
    • Installing high-efficiency burners on its melting furnaces (EPA 1).
    • Upgrading its baghouse filtration system to capture more particulate matter (EPA 4).
    • Erecting acoustic barriers around high-noise equipment (EPA 8).

Tangible Industrial Benefits of Application

When a factory applies the BEPI framework, it achieves:

  1. Operational Efficiency: Reduced utility bills (energy, water) and lower waste disposal costs.
  2. Risk Reduction: Minimized chance of environmental accidents, regulatory fines, and shutdowns.
  3. Market Competitiveness: The BEPI Performance Rating becomes a key differentiator when bidding for contracts with international brands.
  4. Improved Stakeholder Relations: Builds trust with the local community, regulators, and NGOs by demonstrating a commitment to environmental responsibility.
  5. Future-Proofing: Prepares the facility for increasingly stringent environmental laws and customer demands.

Conclusion

The industrial application of Amfori BEPI is a practical, targeted process where factories move from simply being “audited” to actively managing their environmental performance. By applying the 11 EPAs to their specific operational context, industries can transform environmental challenges into opportunities for efficiency, resilience, and growth, securing their place in a sustainable global supply chain.

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