Impact Report 2019/2020 A year in review

elcome to Traidcraft Exchange’s As part of this process we have recognised WImpact Report 2019-20, in which that we urgently need to do more to respond you can find some of the highlights of to the climate crisis. the past year. As articulated by the World The report formally covers the year to Organisation, of which we are a member, the end of March 2020 – which of course ‘There can be no without climate was the month in which the whole world justice’. changed, and some activities now seem We have to start from the recognition that a world away from the new reality we as world trade is broken. Current patterns of a global community are facing. global trade were built over centuries on I’m struck by the resilience shown by the back of slavery, colonialism and fossil some of the communities we work with fuel extraction. If we are to build a more just in the face of this global pandemic. This and fair trading system, we must address is tribute to the nature of Traidcraft the historic debt that we in the global north Exchange’s work, which is always owe those in the global south who have seen about building the long term ability of few of the benefits of industrialisation, yet vulnerable people to benefit from trade are paying the price as the climate becomes by helping them realise their collective more extreme and unpredictable. We have power. to find a way of building trade which does For example, in , we have not contribute to climate change – but does been supporting very poor farmers to enable people to earn a decent income – and create their own producer groups (page that is the challenge we have set ourselves. 9) since 2007. When the pandemic hit, Thank you, again, for your support and the longest-established groups were commitment to helping us meet this able to use collective savings to support challenge. their members through the crisis without the need for external help. Over the last few years Traidcraft Exchange has been establishing itself as a standalone charity, alongside its Charlotte Timson partner business Traidcraft plc. This has CEO, Traidcraft Exchange included reviewing priorities and the ways in which we work. Financial summary

e would like to thank all of our donors, supporters and partners who have Whelped us have an impact during 2019-20. We are committed to keeping our overhead costs as low as possible, to ensure that most of our income goes directly towards changing trade and improving the lives of vulnerable farmers, workers and artisans worldwide. Thank you for supporting us.

Income in 2019/20

Institutional donors £1,506k Gifts in wills £205k Trusts and foundations £202k Supply chain services £38k Gifts from individuals, groups and churches Other £125k (includes £1,014k £101,000 for Company)

Expenditure in 2019/20

Support and Influencing government running costs £333k policy & business practice £335k Invested in fundraising £550k Working directly with people living in poverty £2,156k

These figures include income and expenditure of our subsidiary company in India.

TRAIDCRAFT EXCHANGE IMPACT REPORT 2019 - 2020 3

3 Where and how we work

India Bangladesh People benefiting: People benefiting: 22,660 246,027

Senegal People benefiting: 8,780 People benefiting: 10,365 Tanzania People benefiting: 5,219 Namibia People benefiting:

1,950 Numbers of people benefitting are based on the assumption that the whole household benefits, calculated on local average household size figures obtained during project baseline research.

Men Women Men Women Project 1,998 3,297 30,157 36,982 Participants

Africa

4 TRAIDCRAFT EXCHANGE IMPACT REPORT 2019 - 2020 raidcraft Exchange believes that current trade systems Tare not working for the poorest of the world’s people and for the planet we all depend on. Vulnerable people are being exploited for profit or excluded from the benefits of trade altogether. Mass production and consumption is stripping the earth of its natural resources, degrading local environments and resulting in run-away climate change. Despite this, we still believe that trade and business can generate wealth, support livelihoods, regenerate the Credit Traidcraft Exchange /Kevin Ouma environment and enable people to thrive. But trade is not an end in itself, and business does not inevitably result in equitable rewards for everyone. We are committed to justice and equality, and believe that trade needs to be managed and shaped to be fair and accountable, and to help bring about a world where the most vulnerable people are included and the environment is sustained.

Programmes We do this through programmes working directly with vulnerable workers and producers within supply chains in the global south by: • Bringing people together to form groups which build their collective and individual power in the supply chain • Providing training and support to understand market needs and develop relevant skills • Helping people make connections and grow their networks.

Influencing Alongside this, we work to influence government and business in the global north to make trade fairer and more accountable. We do this by advocating directly with decision-makers, and by running campaigns which engage active citizens the world over to add their voice to the collective call for trade and climate justice.

Consultancy We also work with ethical businesses and others to help them make justice in trade a reality.

Our history and roots are in the alternative trade movement and we work closely with our partner business Traidcraft plc. We believe that we cannot achieve our aims alone and so we work in collaboration and partnership with others who share our goals.

TRAIDCRAFT EXCHANGE IMPACT REPORT 2019 - 2020 5 Combatting debt bondage in India and Bangladesh

hrough our work we aim to prioritise the Tpeople who are most vulnerable in trade. This includes migrant workers, homeworkers and people without land. Traidcraft Exchange/Pawan Kumar Landless families are particularly vulnerable to debt bondage, where they work on a lender’s Discussion on bonded labour in fields for nothing – sometimes for several years Madhya Pradesh, India – to repay a loan. In January 2019, Traidcraft Over the last year, the project has begun to Exchange started a major new project working establish group enterprises, which focus on with people from Dalit and Adivasi communities preventing exploitation and raising awareness in India and Bangladesh who are victims – or of labour rights, while providing skills training at risk – of bonded labour. The project, in and business support to help people secure new partnership with Jan Sahas in Madhya Pradesh, ways of making a living. India and ASSEDO in northern Bangladesh, is called ‘Muktee’ meaning ‘freedom’. It works not The Muktee project is co-funded by the only to rescue and rehabilitate men, women and , the Allan and Nesta Ferguson children from debt bondage and forced labour Charitable Trust and several other trusts and conditions, but also to help people at risk of foundations. bonded labour earn a decent income and escape the cycle of debt for good.

Co-funded by the European Union New report: At risk of forced labour

Traidcraft Exchange has that workers in both formal and informal recently published the work settings were at risk of forced labour results of an exploratory with violations of a number of Indian and study into the risk of forced international human rights standards. labour among migrant Read the report on our website: textile and apparel workers www.traidcraftexchange.org/forced-labour- in and around Delhi, report India. The research found

6 TRAIDCRAFT EXCHANGE IMPACT REPORT 2019 - 2020 Working to include people with disabilities in trade in Tanzania

nother group of people who are particularly Avulnerable are those with a disability. In The first Tanzania, where almost one in ten people have challenge“ a disability, we are working in partnership with SHIVYAWATA, the Tanzania Federation albinos have is of Disabled People’s Organisations, to support being accepted sustainable livelihood options in the coffee, for what you cocoa and palm oil value chains. can do.” Many disabled people face discrimination and Lankini . abuse, which coupled with physical limitations, makes earning a living extremely difficult. By working together and setting up cooperatives, learning new farming techniques tailored to their disabilities and growing new crops in the target value chains, disabled farmers can earn more from their land, and develop skills to help them improve their incomes. Traidcraft Exchange/Michael Goima We are also working with non-disabled people in local communities to help break down Lankini has joined a group and is happy to be discriminatory attitudes and practices. engaged in the project. ‘I was fascinated and Lankini has albinism, a genetic condition which excited because we heard the project would involve reduces the production of melanin pigment in coffee and making charcoal from coffee waste, and the skin, hair, and eyes, increasing the risk of I want to learn about that. I’m happy to be involved skin cancer and visual impairment. Lankini has in something that might help improve my life.’ devoted his life to activism on behalf of people This work is co-funded by the National Lottery with albinism. Community Fund, the Squires Foundation and Lankini explained: ‘The first challenge albinos have several other trusts and foundations. is being accepted for what you can do, and people not believing in you. I’ve heard of other albinos who have been refused jobs because they’re albinos, not because they can’t do the job. These people have gone to school and studied but still can’t get jobs.’

TRAIDCRAFT EXCHANGE IMPACT REPORT 2019 - 2020 7 Land, rights and business Palm oil plantation accountability in Liberia. in Liberia. Traidcraft Exchange/Derick Snyder

raidcraft Exchange has long called for them. They give us a small thing – that’s the only Tbusinesses to be held accountable for human way we can eat.’ rights violations. This year we carried out new Equatorial Palm Oil is just one example; there research into the impact of palm oil plantations have been numerous other allegations of human in Liberia, West Africa and launched a campaign rights abuses against UK companies operating calling on the UK government to introduce new abroad. legislation on this issue. That’s why we are calling for new legislation We spoke to communities in Liberia living on which would require British companies to assess or near an oil palm plantation operated by the the human and environmental impact of their British company Equatorial Palm Oil. When the activities and to take action to prevent harm to company arrived in 2012, it asked to bulldoze the people and the environment. The legislation village’s farmland and add it to their plantation. would also hold companies legally accountable In return it promised handsome compensation if they failed to make those assessments or for destroyed crops and to provide jobs, adequately prevent harm. improved roads, a new clinic and a school. Nearly 6000 people contacted the Prime But the benefits never materialised. When the Minister to ask for new legislation to be time came to make the compensation payments, introduced. Although there has been no farmers received only $6 for each rubber tree, immediate move towards introducing this not the $97 they had been promised. There is no legislation, we will continue to push for this. new clinic or school, and jobs have been limited to insecure, ill-paid contract work. Protests have This work is funded by The Joseph Rowntree been met with violence and threats. Charitable Trust and the European Union. Without their farmland, communities are stripped of their livelihoods. As one community elder put it: ‘The level we are living in is very deplorable. We are starving to death. We can only survive when we go to our neighbour and work for Co-funded by the European Union

8 TRAIDCRAFT EXCHANGE IMPACT REPORT 2019 - 2020 Building power and resilience in rural Bangladesh

n rural Bangladesh, poor families Istruggle to make a living by farming small plots of land. They Traidcraft Exchange/Derick Snyder are incredibly vulnerable, both to exploitation within the local markets, and to the growing threat of climate change. Over many years, Traidcraft Exchange has empowered smallholder farmers through the Traidcraft Exchange/GMB Akash formation of groups. Khamatayan, which means ‘empowerment’ in Bangla, is helping these groups of farmers to Producer groups hold elections to the understand their rights and entitlements, and to district and sub-district association. advocate and collaborate with local government and north western districts. In the coastal to ensure these are implemented effectively. south however, the situation has proved much After two years, the groups are already stronger more challenging. A tropical cyclone battered and better organised – for example, they all have southern Bangladesh in November 2019 and as a a written constitution, more than 90% have result participating farmers have had to rebuild regular monthly meetings and keep records of their livelihoods almost from scratch. This these. Almost all run their own savings schemes, experience highlights the vulnerability of rural which subsequently proved to be a lifeline Bangladesh to climate change. during the coronavirus crisis with groups able to This is why the programme is also supporting support their most vulnerable members from smallholders to take-up climate resilient their savings. practices which boost productivity, reduce Using the group structure helps farmers get dependence on expensive and harmful government support and services – things like chemical inputs, improve soil health, and utilise agricultural advice and veterinary support – and ecosystem services where possible. this has improved their productivity, reduced This work is in partnership with Solidarités costs, helped them achieve economies of scale, International, , Rural Development and increased their market competitiveness. Sangstha, Gana Unnayan Kendra and Shushilan. Between the first and second years of Khamatayan, average incomes for participating farmers increased by 36% across north eastern Co-funded by the European Union.

TRAIDCRAFT EXCHANGE IMPACT REPORT 2019 - 2020 9 Challenging investor protection in post-Brexit trade and investment deals

his year saw huge political upheaval as the ISDS tribunal using a clause in an investment Tgovernment of Theresa May sought to find treaty between the US and Ecuador. The tribunal a withdrawal agreement which was acceptable ruled that Chevron was not liable and both to the EU and to its own backbenchers. But instructed the government of Ecuador to pay while parliamentary resignations and revolts Chevron’s costs. were making headline news in the British press, There are numerous ISDS cases pending between Traidcraft Exchange was highlighting some of businesses based in the rich world and poor the risks and opportunities of potential new countries in the global south. Many are being trade agreements post-Brexit. brought under the UK’s numerous investment We particularly wanted to make the UK public treaties with former colonies. aware of the potential impact of a little-known In some cases, ISDS is being used by big clause included in many trade and investment businesses to stop governments legislating agreements, the Investor-State Dispute for new measures which would limit carbon Settlement or ISDS. emissions and so tackle climate change. ISDS gives foreign investors the right to sue In 2019, Traidcraft Exchange launched a a host government for policies which could campaign calling on the government to ‘stop threaten investors’ current or future profitability. rolling out the red carpet’ to businesses. We It’s a hugely powerful argued that ISDS needs to mechanism which operates be removed from all new entirely in favour of trade and investment deals investors. The number of because it is undemocratic, ISDS cases being brought unfair on the poorest before tribunals has countries, not needed to increased exponentially protect investors and not since the 1990s. wanted by citizens across In Ecuador, decades of oil Credit: War on Want the world. drilling in the Amazon basin More than 6,300 by oil giant Texaco (bought campaigners added their names to our petition, by Chevron in 2001) destroyed the livelihoods which when joined with names collected by other of smallholder farmers and indigenous people. organisations made a total of 69,804 signatures After an 18-year-long battle, the communities handed in to the Department for International finally won the right to compensation. But Trade in March 2020. instead of paying, Chevron took the case to an

10 TRAIDCRAFT EXCHANGE IMPACT REPORT 2019 - 2020 Reimagining trade: learning from alternative business models

raidcraft Exchange wants to see Ta world full of businesses that do the right thing – sourcing ethically, paying their workers properly and taking action to tackle climate change. So why is it that many mainstream businesses don’t do this? Company directors are legally obliged to act in reported foregoing profits to ensure that the interests of shareholders, and most interpret they were able to achieve alternative social this as a mandate to maximise profits and and environmental aims. But why are these deliver dividends. Managers have little incentive businesses able to act differently to the to take decisions that might jeopardise profits mainstream? – such as committing to paying a living wage We found two main features. Firstly, many or investing in greener production processes. Fair Trade Enterprises are owned by workers, The ultimate outcome is that much business suppliers or the community. This means that activity serves to undermine our efforts to tackle they make decisions to benefit those groups collective challenges such as poverty, inequality rather than simply aiming to maximise and climate change. profit. Secondly, a large number of Fair Trade Of course, not all businesses fit this model. Over Enterprises have a formal policy to limit the the last year Traidcraft Exchange have partnered dividend paid to shareholders. Again, without with the World Fair Trade Organisation (WFTO), the pressure to maximise shareholder returns, a community of more than 364 enterprises that these businesses are free to invest in social or aims to deliver a social or environmental mission environmental goals, or even in growing their whilst remaining profitable. own operations. Our report of February 2020, co-authored with The full report can be downloaded here: www. WFTO and academics from the Universities traidcraftexchange.org/creating-new-economy of Cambridge and York, ‘Creating the New Economy’, found that 92% of Fair Trade Enterprises reinvest all their profits in their mission, rather than using profits to enrich shareholders. And 85% of these businesses Co-funded by the European Union

TRAIDCRAFT EXCHANGE IMPACT REPORT 2019 - 2020 11 Introducing Traidcraft Exchange’s consultancy services

s part of its mission to transform trade, Traidcraft Exchange offers consultancy services to Abusinesses and other organisations through a Supply Chain Services team in the UK, and a wholly-owned social enterprise, Traidcraft Services India. Consultants are available to support the development of ethical, sustainable and resilient supply chains. These services generate income for the wider work of the charity whilst delivering sustainable change.

Traidcraft Services India was commissioned Based in the UK, Traidcraft Exchange’s Supply by Spanish business Importaco to assess the Chain Services team have been working with the working conditions of cashew workers in Co-operative Group and Rectella International to two factories of their lead supplier in Kollam, create a fair and environmentally-sound supply Kerala and suggest improvements. India is chain for charcoal. a major centre for the process and export of In Namibia, the aptly named ‘invader bush’ poses cashew nuts. Most cashew nuts are shelled by real challenges for cattle farmers, as well as hand and the women working on this process depleting water supplies. Clearing the land and experience a range of problems from back using the wood for charcoal improves biodiversity, pain to skin problems caused by the corrosive and makes water available for other plants and shells. trees. The clearance of the bush is carefully Following a rigorous assessment, the managed and certified by the Forest Stewardship Traidcraft Services team proposed a number Council (FSC). Once cleared, the invader bush will of areas for improvement and worked regrow, so charcoal workers can return there again with the company to put these in place. in future years - ensuring they have a steady and They are currently engaged in designing well-paid source of income. an ergonomically improved work station Traidcraft Exchange’s Supply Chain Services team that reduces physical stress and improves regularly audit farms to ensure that they are productivity. This change was possible meeting the requirements of because of the strong partnership between for the charcoal. The team also supported the Traidcraft Services, Importaco and their lead development of a Fair Trade Premium Committee supplier. who oversee the spending of the premium that is For more information about Traidcraft earned on all charcoal sold as Fair Trade. Services India visit www.traidcraftservices.in Fair Trade charcoal is available to buy in the Co-op.

Find out more about Traidcraft Exchange’s consultancy services here: traidcraftexchange.org/consultancy-services

12 TRAIDCRAFT EXCHANGE IMPACT REPORT 2019 - 2020 Publications 2019-20

Programme Briefings Policy reports A series of briefings review our approach and The Unfair Trading Practices Directive: a learning in different sectors. transposition and implementation guide Tea Programme Briefing (July 2019) Honey Programme Briefing Creating the new economy: business models that put people and planet first(January 2020) Sustainable Textiles Programme Briefing Our Land. Our Rights. (January 2020) Climate-Resilient Agriculture Kenya Programme Briefing These and other policy briefings are available to download: These briefings are available to download: www.traidcraftexchange.org/policy-resources www.traidcraftexchange.org/research-reports

TRAIDCRAFT EXCHANGE IMPACT REPORT 2019 - 2020 13 Funding opportunities

hrough the challenges of the sustainable sources of income. ‘Hidden Homeworkers’ Tcoronavirus pandemic we (see page 6) project supports these are continuing to develop the We believe the UK government vulnerable women and seeks following areas of work, all of should require businesses to engage brands, unions which are seeking funding: to review the human rights and policymakers in raising In Tanzania, we will continue risks of their activities. We awareness and improving to work with people with will continue advocacy conditions. disabilities to improve their and campaigning work for Following our successful livelihoods through coffee, mandatory human rights due campaign around Fast Fashion cocoa and small-scale palm diligence. (see page 8) in response to the coronavirus oil production and processing. Our work with grassroots crisis, we are planning to work Disabled people face multiple groups of smallholder farmers on longer term regulation of forms of discrimination and are will continue in Bangladesh, the garment industry. more likely to live in poverty. helping to strengthen groups We are working with poor (see page 7) and build long term resilience in and indigenous communities We will continue the ‘Muktee’ a changing world. (see page 9) in Jharkhand state, India, project, working in India and Women working in their own helping them to improve their Bangladesh to fight forced and homes in India, Pakistan livelihoods by collecting and bonded labour, and in particular processing natural products support communities at risk of and Nepal contribute to the production of clothing and from the surrounding forests bonded labour by helping them in a sustainable way. to develop more resilient and footwear sold in Europe. Our

14 TRAIDCRAFT EXCHANGE IMPACT REPORT 2019 - 2020 With thanks to our donors

We are grateful to our funders and institutional donors, including: National Lottery Community Fund Comic Relief Department for International Development European Union Oak Foundation Allan and Nesta Ferguson Charitable Trust Laudes Foundation

Ricci Shryock /Traidcraft Exchange The Ceniarth Foundation The Joseph Rowntree Charitable Trust We will continue to challenge the causes Society of the Sacred Heart of climate change and support poor The Squires Foundation communities to adapt to the changing World Day of Prayer world. Evan Cornish Foundation Our Catalyst Fund provides seed We are also grateful to the following trusts and funding to scope and develop new foundations: and innovative projects, and to help us review and document our approaches. The Bryan Guinness Charitable Trust, W F Several of the projects featured in this Southall Trust, Nelson New Forest Foundation, report have benefited from this fund in The Maidenhead Malachi Trust, Miss E F their early stages, including disability Rathbone Charitable Trust, The Souter Charitable work in Tanzania and forced labour and Trust, The Fulmer Charitable Trust, Tisbury homeworkers in South Asia. Over the Telegraph Trust, The Paget Charitable Trust, past year the Catalyst Fund has helped us Kernco Foundation, Open Gate, The Anne Jane leverage more than 25 times its value in Green Trust, The Carpenter Charitable Trust, new funding. Saxham Trust, Waylan Trust, Miss K M Harbinson Charitable Trust, Arimathea Charitable Trust, The J P Jacobs Charitable Trust. These projects all require additional We are also grateful to individual supporters funding. For more information, please get in touch with our and the families and friends of those who have Programme Funding team at generously remembered Traidcraft Exchange in [email protected] their wills. In 2019-20 we received £205,000 in legacy income.

TRAIDCRAFT EXCHANGE IMPACT REPORT 2019 - 2020 15 raidcraft Exchange is an international Contact us Tdevelopment charity which uses the power of trade to bring about lasting solutions to poverty. In the UK It runs development programmes in South Asia 5th Floor, 7-15 Pink Lane and Africa, works directly with businesses to Newcastle-upon-Tyne NE1 5DW improve their supply chains, and does advocacy 2:12 The Foundry and campaigning in the UK to promote justice and 17 Oval Way, London SE11 5RR fairness in international trade. It works closely with General enquiries specialist fair trade company Traidcraft plc. +44 (0)191 497 6445 [email protected] www.traidcraftexchange.org @TraidcraftDepth In Bangladesh Apt 1/B House 11 Road 13, Dhanmondi Residential Area, 1209 +880 2811 4751

In India Traidcraft India Liaison office Badhe House, 6-3-788 / 36 & 37 A Durganagar, Ameerpet Hyderabad 500016 +91 90528 00028

In Kenya c/o Practical Action – E Africa Regional Office Methodist Ministries Centre Office Block C, 1st floor Registered charity no. 1048752 Oloitokitok Road, +254 0 20 259 5311 Front cover photo: Arifa Begum now has the confidence to contact local government support officers after joining a Traidcraft Exchange project in Bangladesh. In Tanzania ‘I have become very courageous. Before, I couldn’t even 2 Kona Street, off Msikitini Road make a simple phone call, but now I do it regularly.’ Mikocheni B Credit: Traidcraft Exchange/GMB Akash P.O. Box 13038, Dar es Salaam