Responsible Cashmere Round Table

October 15, 2019

Vancouver, Canada Agenda

• Responsible Cashmere Round Table Overview • Anne Gillespie, Stefanie Pokorski – Textile Exchange • The Cashmere Experience • Ukhnaa Sarangoo - AVSF • Anne Gillespie on behalf of CCMI • Mongolian Cashmere: working with the UNDP • Simon Cooper, Satoko Okamoto – UNDP • Farmed Cashmere: working on Standards • Anna Heaton – AbTF • Ayoshi Ayongxi – ICCAW • Hanna – Textile Exchange • Open Discussion • Stuart Antsee - South Gobi 80 Participants! 80 participants 38 Brands Australia - 2 India - 4 19 Services Austria - 1 Italy - 2 15 NGOs Bangladesh - 1 Japan - 3 4 Suppliers Canada - 11 Mongolia – 4 2 Associations China - 3 Netherlands – 4 2 Education Denmark - 1 Sweden – 5 1 Mining France -2 Switzerland – 1 Germany - 3 UK – 9 Hong Kong - 1 US - 23 Chatham House Rule

“When a meeting, or part thereof, is held under the Chatham House Rule, participants are free to use the information received, but neither the identity nor the affiliation of the speaker(s), nor that of any other participant, may be revealed.” RCRT Overview

Anne Gillespie, Textile Exchange Responsible Cashmere Round Table (RCRT)

The RCRT, as a neutral platform for cashmere buyers to learn about and understand the issues, opportunities, and solutions, brings the industry together to create a common understanding of the needs of all stakeholders, look for alignment on what solutions are needed, and work with the industry players to drive action.` What have we done so far?

• Cashmere meetings at 2017 and 2018 Textile Exchange annual conferences • SFA conference and field visit in 2017 • Launch of Responsible Cashmere Round Table (RCRT) in 2019 • UNDP conference and field mission in 2019 • 5 RCRT meetings: presentations from programs active in Mongolia and China • Agreement to lead the International Buyers’ Group for the Mongolia Multi- Stakeholder Sustainable Cashmere Platform • Draft mapping of programs • Supported brands facing PR pressure Stakeholders

Brands and Supply Chain Retailers

NGOs Farmers and Herders

Special Interest Groups Governments International Buyers’ Group Non- Brands and Mongolian Retailers suppliers

NGOs Farmers and Herders

Special Interest Groups Governments Cashmere Programs Mapping

Stefanie Pokorski, Textile Exchange

50 Shades of “Sustainable”

Inner Mongolia (China) • Sustainable Cashmere “Sustainable Standard (ABTF) Farms De-Hairing Washing Cashmere” • ICCAW mutton and cashmere standard

Brand/ “Sustainable Processing Retailer Cashmere”

“Responsible Nomads” Herders Co-operative Trader De-Hairing Washing “Sustainable “Noble Fiber” Cashmere” Mongolia • Sustainable Cashmere (SFA) • Responsible Nomads (Green Gold) • Sustainable Cashmere (AVSF) • South Gobi • Noble Fiber (MWCA) • TNC • more

Questions

1. When was your organization established, and by who? 2. What are the mission/vision/goals of your work? 3. How many staff are involved in Mongolia and outside of Mongolia? 4. What are the key issues that you are working to address? 5. What are your modes of action: a) Working with herders b) Working with government c) Scientific research d) Establishment of best practices e) Other: 6. If you have a Standard or Code of Practice a) What areas does it cover? b) How is it verified? ( 1st, 2nd or 3rd party) c) Is this a standard that brands could use for their sourcing? 7. Do you collect any data or Key Performance Indicators? a) If yes, what do you collect? b) How is it verified c) Where is that information reported 8. Do you have a business model set up for moving cashmere from your projects through the supply chain? a) How do you trace the fiber? 9. What is your vision for the cashmere industry in Mongolia? a) What do you think it should look like by 2030? b) What will be different?

Other Areas to Understand Further

• Mechanisms • Verification • Financial • Chain of Custody / Traceability • Product Claims • Impact Measurement

Watch for webinars! The Cashmere Experience

Ukhnaa Sarangoo, AVSF Anne Gillespie for CCMI MONGOLIAN CASHMERE SECTOR- 40 YEARS OF DEVELOPMENT

Ukhnaa Sarangoo, Project manager, AVSF Mongolian cashmere sector : Raw material production Raw material production Herd size , thousand heads Mongolian statistics 2018 Camel wool, Mongolian statistics 2018 1400 Yak wool, 260 433 4388 3939 Cashmere, 9200 27347

30110

Sheep wool, 33600 Mongolian cashmere sector : Raw cashmere production

Raw cashmere production Export of scoured cashmere 300000 6000 30000 vs goat population 27336

251956.2 25000 250000 5000 223815.4 200000 205639.5 4000 20000 197181 192534.6

13883 15000 13267 150000 145379.5 3000 5413.5 5409.7 5286.6 10270 4988.2 9200 10000 8521 100000 104625.1 4035.3 2000 3597.7 5126 3015.5 5000 3316.75 3470.75 2130.25 2567.5 50000 1000 1281.5

0 0 0 1990 1995 2000 2005 2010 2018 2010 2012 2014 2015 2016 2017 2018 Goats, thous hds Raw cashmere production, tn Export of scoured cashmere Sales, USD Mongolian cashmere sector : Processing and export

Installed capacity vs production Cashmere product export thous. USD 10000 by category 9100 9000 Reprocessed cashmere 100.3 8000 7400 7000 Other cashmere items 6968.8

6000 5350 Cashmere coats and blazers 305.6 5000

4000 Cashmere knitwear 11499.2

3000 2800 2000 Cashmere blanket 267.2 2000 1680 1680 1440 1300 1000 680 Dehaired cashmere 54944.2

0 Scouring, tn Dehairing, tn Spinning, tn Knitting, Weaving, m Scoured cashmere thous pcs

Installed capacity Production 2018 0 50000 100000 150000 200000 250000 Employees in cashmere sector

• Herder family - 169 710 families • Herders - 288 700 herders • Professional workers - 7 200 • Engineers, technicians - 1 800 • Designers experts - 60 • Total - 297 760 persons Challenges: Pastureland degradation

Non degraded area – decreased 10% Heavily degraded area - increased 5% High proportion of sites in Selenge, Arkhangai, Tuv, Khuvsgul, Khentii aimags shifted to higher degradation level Challenges: overgrazing

Years Total From total Other indirect consequences: Horse Cow Camel Sheep Goat Herd size 66219 3939.8 4388.5 434.1 30109.9 27346.7 • Poor nutrition 2017 • Uncontrolled animal welfare Herd size 51632.2 3157.8 3176.6 434.1 22966.5 21897.2 • Weak constitution of herds suitable to • Decreased quality of animal actual products pastureland • Lack of water Overgrazing, - -782 -1211.9 0 -7143.4 -5449.5 head 14586.8 • Frequent dryness • Unbalanced ecosystem Overgrazing, -28% -24% -38% -31% -24% • Wild life migration % Best practices: Sustainable raw materials production

Good Sustainable governance rangeland of management cooperatives

Quality of raw materials and traceability Survey covered 684 herders of 14 soum in Bayankhongor, Arkhangai, Gobi Altai. 2017.08.11 2018.08.13 Impacts of resilience-based rangeland management

Map of Bayan Uul PUG of Tsakhir soum, Arkhangai aimag

0 Үетэн Улалж Шарилж Алаг өвс

2017 2018 Photo monitoring sites presenting spring/winter pasture Best practices: Animal nutrition

4 seasonal rotation of pasture in the rangeland plan Forage preparation for spring / winter by Give the pasture a chance to compensate cooperatives. Financial resource : Sales of Grazing from non degraded pasture sustainable raw cashmere Best practices: Good governance of cooperatives

Democratic administration and Access to domestic and transparent foreign market governance

Operations with Payment of final development policies dividend to cooperative and plans members Best practices: Cashmere quality and traceability

Raw cashmere harvesting in herders Herders cooperatives created the nuclear folks cooperative ware house. Zalaajinst white to improve the quality of cashmere Assurance of : Origin, traceability and Herd size of nuclear folk – 240 heads quality Best practices: Best quality thanks to the herders effort

Cashmere quality harvested by herder 60

16.5 40 16 16.3 14.7

30 16.8 16.3 16.5 15 20 Fineness, micron

10 17.3 15.5 16.5 16.8

0 Trader Herder (1 year) Herder (Femal 2-4 Herder (Male 2-4 year) year) Raw cashmere delivery in textile factory Highest Average Lowest Further development – connecting sustainable cashmere initiative to local industries

Close collaboration of herders and industries for the development of the sustainable cashmere value chain in Mongolia Conclusion

• Scaling up existing best practices of sustainable cashmere • Continual support and training on sustainable production and consumption to target factories • Collaboration of multi-stakeholders to develop sustainable cashmere value chain Cashmere and Camel Hair Manufacturers Institute

October 15, 2019 Vancouver Textile Exchange Sustainability Conference CCMI • International organization • Founded in 1984 representing the interests of the Cashmere & Superfine Wool • Incorporated in USA (State of industry New York) • Established by international leading processors of Cashmere fibers • Offices: • Recognized authority on • Biella, Italy international standards and other issues concerning luxury fibers • Tokyo, Japan • Portland, Maine

36 Members (Cashmere Council)

• Brunello Cucinelli S.p.A. • Fukaki Woollen Textile Co Ltd • Cariaggi Lanificio S.p.A. • Hong Kong Sales (Knitwear) • Chifeng Dongrong Group • Hermès Textile Holding • DanRoy dva Shinto LOC • Johnston of Elgin • Erdos Cashmere Group • Loro Piana S.p.A. • Ezma Luxury Div of Essma • South Trading Ltd. • Falconeri s.r.l. • Sudwolle Group • Fibre Resources S.p.A. • Todd & Duncan Ltd. • Filati Biagioli Modesto S.p.A. • Toyoboshi Kogyo Co., Ltd • Filatura di Trivero S.p.A. • Z. Hinchliffe & Sons Ltd.

37 CCMI’s mission

Maintain the integrity of Cashmere, Camel Hair Represent world and Superfine Wool Promote Cashmere industry to products through improvement of address common market monitoring, testing abilities and international challenges: education and analysis technologies • Sustainability enforcement of labeling • Recycled Cashmere standards

38 Definition of Cashmere

• The fine (dehaired) undercoat fibers produced by a Cashmere goat (Capra Hircus Laniger) • The fiber is generally non-medulated and has a mean maximum diameter of 19 microns • The co-efficient of variation around the mean shall not exceed 24% • There can be no more than 3% (by weight) of cashmere fiber over 30 micron

39 Market Monitoring - Enforcement

• CCMI monitors the international marketplace for Cashmere & Superfine’s mislabeled products, including online, and tests them at independent laboratories

• When mislabeled product is found: • CCMI writes an informational and warning letter to the retailer or supplier of the product • If necessary, CCMI will take legal action to stop the unethical and illegal trade practice • CCMI also will inform and liaise with authorities entitled to act in cases of fraud to consumers and unfair competition

40 CCMI Round Trial CCMI conducts Round Trial very year to assess testing abilities of laboratories

About 50 laboratories from all over the world participate in CCMI Round Trial

CCMI lists the laboratories performing well in the round trial in its website in two categories: microscopy methods and alternative methods

41 Fiber Box

• The Fiber Box is used to train laboratory staff and calibrate instruments.

• The Fiber Box contains verified samples of several fine animal hairs: cashmere, wool sheep, yak, etc.

42 Animal Fibres Analysis Technologies • Microscopic methods (subjective) • Optical microscopy • Electronic microscopy (SEM) • Alternative methods (objective) • DNA analysis (qualitative, quantitative not yet reliable) • Proteomic, protein analysis: • LC-ESI-MS (different variants) • MALDI-TOF-MS

New analysis methods, particularly Protein Analysis Methods, showed remarkable progress in the last few years.

43 Sustainability

CCMI is currently focused on the topic of “Sustainability” and to contribute to the sustainable growth of the Cashmere industry.

CCMI views Sustainability as the responsibility of governments, herders, manufacturers, brands, retailers and consumers. Together we all play a vital role.

CCMI is actively collaborating with the Chinese cashmere industry and other organizations worldwide.

44 Recycled Cashmere Recycled Cashmere products are made from fiber recovered from woven or knitted Cashmere products, of post-consumer use The presence of recycled materials, including a precious one like Cashmere, is understandable for many reasons However, during the recycling processes, Cashmere fibers receive varying degrees of damage and do not maintain their original quality Under US laws, presence of recycled Cashmere, must be indicated on the label CCMI considers that global consumers have the right to be informed, through compulsory labeling, as to whether a product contains recycled or virgin Cashmere. In our experience, very few products of recycled cashmere adequately disclose their presence in the market.

45 Thank you!

46 Mongolian Cashmere: working with the UNDP

Simon Cooper, UNDP Satoko Okamoto, UNDP GREEN COMMODITIES PROGRAMME

MULTI-STAKEHOLDER COLLABORATION FOR SYSTEMIC CHANGE GCP’s MISSION

The UNDP Green Commodities Programme exists to improve the national economic, social and environmental performance of agricultural commodity sectors.

In 2009, UNDP launched the Green Commodities Programme (GCP) in recognition of the importance of global agricultural commodities in achieving the SDGs, with a mission to: o Improve the lives of farmers and their communities. o Protect high conservation value forest and important vulnerable ecosystems.

49 Multi-Stakeholder Collaboration for Systemic Change

Multi-stakeholder Collaboration for Systemic Change is how GCP achieves success.

GCP defines multi-stakeholder collaboration as a process of Sustainability is characterised by complex and “messy” problems interactive learning, empowerment and participatory that have a multitude of interactions between all the different governance that enables stakeholders with interconnected players and issues involved. sustainability problems and ambitions, but often differing interests, to be collectively innovative and resilient when faced Systemic change involves working with the complexity, to help with the emerging risks, crises and opportunities of a complex people see the whole system, and to recognise that change will and changing environment. often be an unpredictable and surprising process.

50 OUR STORY IN 3 MINUTES

51 GLOBAL PORTFOLIO MAP Pineapples

Fisheries

Palm Oil

Cattle

Coffee Mongolia

Cocoa

Soy

Dominican Republic Cashmere

Cote d’Ivoire Philippines Costa Rica

Liberia Indonesia Ecuador Ghana Papua New Guinea

Peru

Paraguay

52 MONGOLIA SUSTAINABLE CASHMERE PLATFORM

TEXTILE EXCHANGE RCRT MSCFSC IN ACTION

June 12 Multi- stakeholder Conference in UB Objectives • To advance positioning Mongolia as a leading producer of Sustainable Cashmere by accelerating current efforts; • To support the Government of Mongolia in the implementation of its Cashmere Program from a sustainability perspective; Outputs • To jointly identify best mechanisms available for national dialogue and collective action for • Agreement on priority themes calling for aligning interest to be Sustainable Cashmere in Mongolia. considered for future national dialogue and collective action; • Agreement on potential mechanisms for national dialogue and collective action on Sustainable Cashmere in Mongolia; MSCFSC IN ACTION

55 MONGOLIA SUSTAINABLE CASHMERE PLATFORM

THE STORY SO FAR Platform Objectives

1. To formulate and implement a collective action plan that addresses the root causes limiting the sustainability of cashmere in Mongolia; 2. To influence and harmonise government policy that ensures a strong and coherent legal and institutional framework for sustainable cashmere in Mongolia; 3. To establish partnerships and coordinated investments and actions that accelerates current efforts; 4. To position Mongolia as a global leader for sustainable cashmere Timeline

Collective Action & Investment Scoping Launch of platform Action Plan (Q1) Finalisation Monitoring & Preparation Evaluation Action Plan Financing long- Formalisation Formulation term activities Embedding & Adapting

2019 2020 2021 2022-2027 DESIGN DIALOGUE DIALOGUE IMPLEMENTATION Consensus on Platform Technical Sustainability Working Groups International Buyer's Group Capacity Building (TE) ü To provide expertise, learning and recommended solutions/actions ü Can be virtual or face to face Mongolia Sustainable ü Meet throughout the process of Cashmere Platform action plan formulation Technology & Innovation Market Access ü Also multi-stakeholder ü Ideally around 15 people ü Voluntary Enabling Incentives and ü Each group led by Chair/Vice Chair Environment Financing The Stakeholders

National-level umbrella mechanism with collaborative leadership Draft open for consultation – nothing yet ”set in stone” 60 THANK YOU

For more information on the platform please contact Nicolas Petit: [email protected] STATEMENT OF SUPPORT WORKING TOGETHER FOR SUSTAINABLE CASHMERE PRODUCTION IN MONGOLIA

We, the undersigned companies, strongly support the establishment in 2020 of the Mongolia Multi-Stakeholder Sustainable Cashmere Platform, a national level umbrella mechanism with collaborative leadership and facilitated by the United Nations Development Programme. Through the platform, we are committed to work alongside leaders from industry, herders, government, civil society and development partners to: • accelerate current efforts, • develop and implement a collective action plan to produce cashmere in a way that is respectful to the environment, expand social and economic benefits for herders and their communities, ensure animal welfare • and position Mongolia as a global leader for sustainable cashmere.

We will establish such collaboration through the “International Buyer’s group”, to be led by Textile Exchange, in order to ensure adequate linkages between the platform national dialogue and international market requirements.

The development of a multi-stakeholder platform and implementation of an effective collective action plan focused on sustainability will provide countries such as Mongolia with a strong competitive advantage in the global cashmere market. As international buyers of cashmere we look forward to a growing supply of sustainable cashmere from Mongolia. Monday, 11 November 62 2019 Opportunities and Challenges in Mongolia’s Sustainable Cashmere Market

Satoko Okamoto, SDGs and Private Sector Officer, United Nations Development Programme (UNDP) Mongolia Opportunities and Challenges in Mongolia’s Sustainable Cashmere Market

Satoko Okamoto, SDGs and Private Sector Officer, United Nations Development Programme (UNDP) Mongolia UNDP Mongolia commissioned two studies to assess the supplier capacity and buyer demand for sustainable cashmere from Mongolia UNDP consultants interviewed program staff of development projects and sustainability officers at leading int’l and local apparel firms

Sustainable Cashmere Value Chain At A Glance

Supplier side actors Demand side actors

Herder Dev. Washing, Knitting, Int’l / local Groups Projects dehairing, spinning leading - AVSF processors and apparel - Coops - GGHP weaving firms - PUGs - SFA processors - Others - WCS (local and - Others int’l) Mongolia is not yet ready to supply sustainable cashmere in volume

Sustainable cashmere remains an elusive concept but is increasingly gaining recognition because of development projects’ efforts to promote sustainable management of pastureland

Mongolia is capable of producing ~9,400 tons of cashmere with ~27 mil goats (2018) Four organizations implement projects that produce sustainable cashmere as project output 276 tons of - Agronomes et Vétérinaires Sans Frontières cashmere ~3% transacted as - Green Gold Animal Health Project “sustainable - Sustainable Fibre Alliance cashmere” (2018) - Wildlife Conservation Society

Source: National Statistical Office of Mongolia; UNDP Mongolia The four projects build herder organizations capacity in similar ways

Environmental and social impacts of the projects are yet to be assessed

Source: UNDP Mongolia Increasing interest especially from higher-end brands and suppliers Within a company the raw materials teams, not the sustainability teams, will make purchasing decisions

Key considerations for brands in sourcing cashmere

Considerations Middle – Mass Brands High End Brands

Quality Important; Specs less strict Important; Specs very strict Considerations for cashmere in general Price High elasticity Relatively inelastic

Source: UNDP “Comparative Analysis of Sustainable Cashmere Projects in Source: UNDP “Comparative Mongolia”Analysis of Sustainable Cashmere Projects in Considerations for Animal welfare High Mongolia” High sustainable cashmere Env. Impact High High Social Impact Medium Medium Buyers face quality challenge + unclarity on sustainability considerations

Demand has not been met due to unclarity about the sustainability concept and lack of traceability

Key considerations for brands in sourcing cashmere

Considerations Middle – Mass Brands High End Brands

Quality Important; Specs less strict Important; Specs very strict Quality ? Price Highly elastic Relatively inelastic

Source: UNDP “Comparative Analysis of Sustainable Cashmere Projects in Source: UNDP “Comparative Mongolia”Analysis of Sustainable Cashmere Projects in Animal welfare High Mongolia” High What is the issue? How to monitor? Env. Impact High High Little traceability Social Impact Medium Medium Recommendations

1. Forge clarity and common agreement on the definition of sustainable cashmere from Mongolia, including a joint understanding of the issues to be tackled and the required measurement of progress and impact

§ Indicators and monitoring frameworks § Monitoring system based on transparency and common vision + M&E metrics § Cost assessment for differing levels of traceability and sustainability § Facilitate coordination Recommendations

2. Establish a multi stakeholder platform for cashmere in Mongolia to ensure stronger collaboration to identify and tackle sustainability challenges

§ Build on existing initiatives § Be inclusive and consider differing views § Create a pre-competitive space Recommendations

3. Deepen understanding of the current context and underlying issues giving rise to unsustainable practices in order to inform the strategy and action plan development

§ Technical expertise is needed § Learn from other commodities’ best practices and experiences UNDP strengthens the enabling environment for the nascent market for sustainable cashmere

Roadmap for the Platform Traceability Technology Thank you https://www.mn.undp.org/content/mongolia/en/home.html [email protected]

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Consensus on Financial sustainability Incentives

$ Capacity Government Government Support building $ Financial International Market access Herders Premiums Expert $ Buyers Organizations Incentives and National Foundation $ financing Platform Support Stories, claims, Enabling

impacts Industry action for collective themes Priority environment

Development Organizations Technology Civil Society Farmed Cashmere: working on Standards

Anna Heaton, Aid by Trade Foundation Ayoshi (Ayongxi), International Cooperation Committee of Animal Welfare THE GOOD CASHMERE STANDARD® BY AID BY TRADE FOUNATION

Responsible Cashmere Roundtable Meeting

Vancouver, 15 Oct. 2019 OUR GOAL IS TO MAKE THE CASHMERE PRODUCTION IN INNER MONGOLIA MORE SUSTAINABLE FOR GOATS, HERDERS AND THE ENVIRONMENT

The standard’s goals are to

• promote animal welfare in cashmere production in Inner Mongolia • promote social criteria for herders and employed workers • protect the environment and promote biodiversity • offer transparency in the textile value chain for brands & retailers and the consumer • promote sustainably produced cashmere B2B and B2C

Good Cashmere Standard by AbTF 11.11.19 78 THE STANDARD ADDRESSES ALL KEY SUSTAINABILITY HOTSPOTS

Criteria overview

ü Feed, water and nutrition Animal welfare ü Living environment ü Breeding/kidding ü Physical alterations ü Combing/shearing ü Health ü Euthanasia/on farm slaughter Environment

ü General land Management ü Crop Management ü Wildlife and Biodiversity ü Usage of pesticides/fertilizers Management Social/ ü Payment/contracts/social compliance ü Good governance ü Continuous improvement approach ü Applied on large farms, small farms / buying stations

Good Cashmere Standard by AbTF STANDARDS DEVELOPMENT

• Review of best practice goat management • Review of key stakeholder concerns for animal welfare, environment and social criteria • Development of draft standard

• Pilot visit to China to meet herders, review farm practices and test the draft standard • Standard consultation with key stakeholders AND public comment

• Revision of the draft to create final standard • Development of guidance and audit protocols to accompany the standard

Good Cashmere Standard by AbTF 11.11.19 80 GOOD CASHMERE ALIGNS WITH RWS/RMS

Development of RMS and revision of RWS uses the Textile Exchange Animal Welfare Framework Key topics in the Good Cashmere Standard mirror the framework – for example the husbandry section:

TEXTILE EXCHANGE FRAMEWORK GOOD CASHMERE STANDARD Husbandry Desired outcome: Handling Animals are bred, Inspection raised, handled, managed and cared Disease prevention for in a manner that Treatment of health issues ensures their health Foot/hoof care and lameness and safety. Animals are free from pain, Antimicrobial use injury and disease and Growth promoters [hormones and beta agonists] managed with a Painful Procedures: Identification proactive approach to ensure that their Painful Procedures: Castration health of the animal is Painful Procedures: Horn modification (disbudding, dehorning) maintained through all Painful Procedures: Equipment stages of life. Breeding and source of livestock: Breed choice Breeding and source of livestock: Breeding, pregnancy and birthing Breeding and source of livestock: Weaning Euthanasia/on-farm slaughter

Good Cashmere Standard by AbTF SIZE/STRUCTURE OF THE SECTOR IN INNER MONGOLIA

Overview

• Inner Mongolia has the largest grassland area in China (19% of the country’s total grassland) making an important region for livestock and particularly cashmere goats.

• Most Chinese cashmere production and processing takes place in Inner Mongolia

Farmers

• There are an estimated 8,000 to 10,000 herders in Inner Mongolia

• Average herd size 200 to 300 (but can be thousands of animals)

• Production focused around a permanent farm structure

• Many farmers grow corn or other crops to feed their goats

• Area of land available for grazing varies from farm to farm

Good Cashmere Standard by AbTF 11.11.19 82 SIZE/STRUCTURE OF THE SECTOR IN INNER MONGOLIA

Beyond the farmers

Buying stations

• Some herders always sell to the same buying station; others switch stations from season to season

• Some buying stations also carry out dehairing

• Variable quality of record keeping

Processing

• A few large processors, and thousands of smaller businesses

• This project working with the biggest processors in the region

Good Cashmere Standard by AbTF 11.11.19 83 NEXT STEPS: IMPLEMENTATION

Herders and

• Owns, develops, manages the standard Buying Stations • Organizes verifications AbTF • Develops training material • Trains the auditors • Herders: Produce sustainable cashmere in accordance with the standard • Herders: Receive training • Herders: Complete self-assessment questionnaires • Stations: Collect data • Stations: Follow traceability requirements for certified Good Cashmere 3rd Party audit and Certified certification Cashmere cashmere company Processors in Inner Mongolia • Audit individual herders • Review self-assessment information • Focal points for AbTF (e.g. for • Audit buying stations data collection, verification etc.) • Manage compliance issues • Buy certified Good Cashmere through Buying stations

Good Cashmere Standard by AbTF 11.11.19 84 Ensuring traceability DIFFERENT LEVELS TO ENSURE TRACEABILITY OF THE STANDARD CONTROL TAKE WILL PLACE A

Good Cashmere Standard by Cashmere Good Standard Verification • • • (large/smallfarms) herders Stations and Buying Includes 10%) 3 Self level,size sample at audits) herder (throughannual plus verification rd Party: Elevate Party: - Assessment Assessment AbTF >

Cashmere (optional) “Haelixa” marking system through aDNA is recognizable The raw material -

Label online application producer upon nominated label platform ofa provided viaa exclusively The labels willbe T

Product online (optional) cashmere orders status ofthe follow the order Retailers can TIMELINE FOR THE GOOD CASHMERE STANDARD®

July 2019 August - September October 2019 April/May 2020 2019 October/November 2019 Standard is finalized, Public consultation Training of verifiers Cashmere verified has been shared in Inner Mongolia Verification starts … with stakeholders’ phase according to the and received Good Cashmere feedback Standard® will be available

Good Cashmere Standard by AbTF 11.11.19 86 AID BY TRADE FOUNDATION The Aid by Trade Foundation (AbTF) is a non-profit organization, based in Hamburg, Germany. The aims of the Foundation are to promote environmental protection and to improve livelihoods by supporting people to help themselves through trade. It was founded in 2005 by the German entrepreneur Prof. Dr. Michael Otto.

Contact Aid by Trade Foundation +49 40 25 76 75 542 [email protected] [email protected] www.thegoodcashmerestandard.org www.aidbytrade.org 11.11.19 87 Progress of Cashmere Standard in China

Ayongxi, President The International Cooperation Committee of Animal Welfare (ICCAW) China Association for the Promotion of International Agricultural Cooperation (CAPIAC) 1. Introduction of ICCAW The International Cooperation Committee of Animal Welfare China Association for the Promotion of International Agricultural Cooperation

ICCAW, affiliated with CAPIAC, is a non-profit organization approved by the Ministry of Agriculture and registered at the Ministry of Civil Affairs in 2013. It’s the first organization named after “Animal Welfare” in China and is dedicated to promoting farm animal welfare.

-:--- -: .-:-,-- ---,: - -: - Has developed multiple farm animal welfare standards, Organize World Conference on Farm Animal Welfare and won China Standard Innovation Contribution Award

Animal Welfare Column has been set up on National Agricultural Conduct technical training and exchanges in farms Product Quality and Safety Public Information Platform 2. Introduction of Cashmere in China 2009-2018 Cashmere Industry Export 2009-2018 Cashmere Production Chart in China Volume and Growth Rate in China The cashmere supply is relatively stable in The cold and dry climate conditions in China, with a slight decline in production in northern China are very conducive to the 2018. According to the National Bureau of production of high-quality cashmere. The Statistics, in 2018, the cashmere production quality of raw cashmere is significantly better was 15,437.76 tons in China. than that of other countries. High-quality cashmere accounts for more than 80% of the global total. Introduction of Excellent Cashmere Companies In 2015, ICCAW developed Farm Animal Welfare Requirements: Mutton Sheep, which includes four items on cashmere acquisition. 1. The collection of wool (cashmere) should be done by shearing. 2. Shearing wool (cashmere) should be carried out during suitable seasons. 3. The wool (cashmere) of adult sheep should be sheared at least once a year when the weather turns warm. 4.Shearing wool (cashmere) should be carried out by Farm Animal Welfare skilled personnel. Sheepskin should not be injured when Requirements: Mutton Sheep shearing. On account of accidental injury, it should be treated immediately. 3. Reasons of Standard Development A. Consumers and consumer-end companies pay more attention to animal welfare The sustainable development of cashmere has become the mainstream trend of the international community. Consumers pay more and more attention to animal welfare and the harmonious coexistence between humans and nature. B. Cashmere standard is in focus The promulgation of the standard on mutton sheep in 2015 has played a considerable role in promoting animal welfare concepts. However, with goat welfare in focus and changes in international trade, this standard has become insufficient. 4. Cashmere Standard Progress in China Project Establishment Symposium of Group Standard “ Technical Requirements for Welfare-Friendly Farming July 18th 2019 and Shearing of Cashmere Goats Further refine the animal welfare requirements for goat farming and cashmere shearing, and give different rates in accord with different animal welfare levels.

More than 40 people, including representatives of international animal welfare organizations, industry experts, and corporate representatives, attended the symposium. Visit many pastoral areas to fully understand the actual farming conditions and conduct welfare training. Technical Regulations on Farming in “Technical Requirements for Welfare- Friendly Farming and Shearing of Cashmere Goats

3.General farming techniques 1. Feeding and drinking 3.1 Group 1.1 Forage 3.2 Grazing 1.2 Drinking water 3.3 Ear tag 3.4 Hoof repair 1.3 Additives 3.5 Castration 3.6 Reproduction 2. Farming environment 3.7 Health 2.1 Sheep house construction requirements 4. Daily management 4.1 Requirements for technical staff 2.2 Sports venue 4.2 Handling Technical Regulations on Cashmere Collection in Te”chnical Requirements for Welfare-Friendly Farming and Shearing of Cashmere Goats 1.Season and method of cashmere collection 2.Preparation before cashmere collection (1) Venues and facilities of cashmere combing (shearing) (2) Personnel requirements (3) Sheep preparation 3. Cashmere combing (shearing) (1) Hold the sheep still (2) Procedures of cashmere shearing (3) Procedures of cashmere combing 4. Important messages after cashmere combing (shearing) First, multiple organizations are developing or intend to develop cashmere standards, for example, AbTF, Sustainable Fibre Alliance.

Second, China is a major cashmere producing country, therefore, a China-based organization has the advantage of being very close to the realities on the ground with Chinese farming and production.

Third, it's much easier to continuously follow up with the standard implementation in China for a China-based organization.

SuggestionEstablish a specialized agency to develop a globally unified standard for uniform implementation.

RWS Objectives

• Ensure that wool does not come from animals that have been subjected to any unnecessary harm.

• Reward and influence the wool industry for strong animal welfare and land management practices.

• Provide robust chain of custody from farm to final product. • Create an industry benchmark to drive improvements in animal care and land management where needed. FARM TRADER SCOURING YARN FABRIC GARMENT BRAND/RETAILER

Farm Scope Chain of Custody (CCS) • Animal Welfare • Land Management

• Addresses the welfare of sheep based on animal 5 freedom: #1 hunger and thirst, #2 discomfort #3 pain, injury and disease #4 express normal behavior #5 fear and distress • Farm level requirements address land health including: soil health, grazing practices, biodiversity as well as fertilizer and pesticide use. • Reward and influence strong animal welfare and land management practices • Chain of custody from farm to final product RWS adoption - 2018

RWS certified sites (units) RWS certified farms 2017 to 2018: 37% increase 2017 to 2018: 193% increase

Animal Welfare Framework

Nutrition: Access to sufficient feed and water suited to the animals’ age and needs to maintain normal health and to prevent prolonged hunger, thirst, malnutrition or dehydration. Living Environment: Animals are kept in an environment that provides the conditions and facilities needed for health, safety, comfort and normal behavior. Animal Management: Animals are managed in a way that promotes good health and prevents disease. Sick or injured animals are treated. Husbandry operations are carried out in a way that minimises pain and distress. Handling and Transport: Good human-animal relationships are in place and animals are handled and transported around the farm and off the farm in a way that protects welfare. Management, Plans and Procedures: Farmers have a clear strategy and set of protocols to safeguard the welfare of their animals, and to demonstrate compliance to the relevant Textile Exchange standard. Animal Welfare Framework

Module Living Environment

Desired outcome Animals are kept in an environment that provides the conditions and facilities needed for health, safety, comfort and normal behavior.

Categories Indoor Environment, Outdoor Environment

Topics Infrastructure - construction and maintenance, cleanliness and air quality, thermal comfort, flooring, space allowances, prohibition on close confinement, lighting, enrichment, noise, access to outdoors (pasture), shade / shelter, fencing, stocking density, protection from predators.

Principles (e.g) No routine close confinement e.g. tethering Access to pasture is required at all times when welfare would not be affected Animals are protected from the threat of predation Responsible Wool Standard Responsible Mohair Standard ANIMAL Desired outcome: Animals are managed in a way that promotes good health and prevents disease. Sick or MANAGEMENT injured animals are treated. Husbandry operations carried out in a way that minimises pain and distress. AW3Inspection Inspection Animals are AW4.2 The farm shall conduct routine AW3.1 The farm shall conduct routine welfare checked with a welfare inspections and monitor for signs of inspections and monitor for signs of disease or frequency that disease or production disorders. production disorders. ensures their AW4.2.1 The frequency of inspections shall AW3.1.1 The frequency of inspections shall be welfare is be increased as required during, for increased as required during, for example, protected example, extreme weather events, lambing extreme weather events, kidding times, flystrike times, flystrike etc. etc. AW3Preventative Health Animals are AW4.1 The producer shall have a AW3.2 The producer shall have a management management planning managed to management plan for flock health and plan for flock health and animal welfare. prevent health animal welfare. AW3.2.1 The plan shall be reviewed at least problems (not just AW4.1.1 The plan shall be reviewed at least annually. treated when they annually. AW3.2.2 The farm shall keep sufficient records become sick or AW4.1.2 The farm shall keep sufficient to allow assessment against the management injured) records to allow assessment against the plan. management plan. AW3.2.3 Advice shall be sought as needed from AW4.4.1 Advice shall be sought as needed a veterinarian or specialist advisor on from a veterinarian or specialist advisor on prevention, treatment, and strategies to avoid prevention, treatment, and strategies to the development of resistant parasites. avoid the development of resistant parasites. Land Management

Soil Desired outcome: Farmers have an understanding of what will impact the health of their soil, and have a strategy to mitigate damage and improve soil health. Biodiversity Desired outcome: Farmers have an understanding of what will impact of the biodiversity of their land, and have a strategy to protect and improve it over time. Fertilizers Desired outcome: Farmers use the minimum amount of inputs to meet the nutritional needs of their land to maintain their carrying capacity. Pesticides Desired outcome: Farmers use the minimum amount of pesticides to achieve adequate control of pest burden on their farm. Next steps

• Complete RWS revision and RMS development. • Final draft prepared • Public stakeholder consultation • Release early 2020 • Governance process for adding species scopes (updates rather than revisions). • Permanent IWG in place • Evaluate additional species scopes on the basis of need (gap in the market). • Overall Responsible Animal Fibers overall scope • Standard setting process Speed Interview

Stuart Antsee, Stuart Anstee and Associates And Strategic Adviser to the South Gobi Cashmere Project Open Forum Table Discussions

1. What are the core elements of “sustainable” that need to be addressed?

2. Which issues are the most urgent? Why?

3. Can brands work with multiple programs? If yes, what is the best way to do so? If no, what kind of solution is needed?

4. What does success look like? Thank you

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