2025 Sustainable Cotton Challenge Second Annual Report 2020

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Toward a more sustainable future We’ve proven a pathway to scale better cotton, now adopted by many of the world’s largest brands. We enthusiastically encourage others to As we release this report, we are in the midst of What is next? A greater focus on continuous join the journey. discovering what the impact of the Coronavirus will improvement and positive impacts. be on our communities. The entire supply network is Set a target being impacted – including farmers who continue to Next year's report will showcase how these initiatives Commit to transitioning your cotton usage to sustainable sources plant and harvest with the changing of the seasons. are delivering on impacts. Be sure to check out such as organic, BCI, Fairtrade and others featured in this report. Set This is an excellent opportunity to pull in sustainable the status of The Delta Project on page 11. It's an quantitative, time-bound targets to help track progress. and preferred fibers as we reset and restart the textile inspiring undertaking that will allow us to adopt these core key performance indicators as ways to measure industries' powerful engine. Secure your supply the progress we are making, while we encourage Now is the time to make the paradigm shift from a each other along this journey. Start by mapping your suppliers, using chain of custody to make a Price to Value-driven business model, and to convey content claim, and going beyond certification to ensure impact. the value of our products in a way that will give factory I am so pleased with the direction that our leaders and farm workers a fair price. are taking. They are expanding programs, developing Invest in transitional cotton new organic projects including transitional, and The 2025 Sustainable Cotton Challenge continues building more ways to engage. You'll see some great Looking for innovative ways to do great things? Invest in cotton in to grow with the number of initiatives, brands and highlights on pages 29–37, all to inspire methods of transition-to-organic cotton blended with your certified organic cotton. manufacturers that are engaged. And the impact? increasing positive impact. Diversify your sourcing We're increasing the amount of more sustainable, organic and regenerative cotton that is entering the For those of you who were with us in Vancouver for Consider a diverse approach to building your organic supply base; marketplace. the annual conference, when we announced our 2030 different regions offer different opportunities. Strategy: Climate+ Goal, you will understand that 30 additional brands and retailers and 5 the 2025 Sustainable Cotton Challenge is one of the Join a Round Table or Working Group manufacturers are participating, and their strong partnerships that is working to enable proactive sustainable cotton usage is up by 19 percent. innovation around new business models to support Pre-competitive, peer-to-peer and group exchanges through Textile more sustainable and regenerative agriculture. Exchange’s convening platforms is the best way to transform the With the recent addition of the U.S. Cotton Trust industry. Protocol, farmers in key regions have access and I invite you to join us and be part of the solution. options to participate in a variety of solutions to Sustainable, Organic and Regenerative Cotton Do business differently address the many challenges they face. is contributing to mitigating the climate crisis Look at your business model. Can you adopt natural based and provides positive impacts in cotton-growing accounting practices? How do you re-engineer your sourcing We also see more brands proactively engage with communities. practices? OCA, ChetCo and OrganiMark’s “cluster” programs each farmer groups on the ground – be sure to check out help brands and suppliers leverage scale they create together. what OCA (page 65) and REEL (page 75) are doing to – La Rhea Pepper, link brands to farmers. Managing Director, Textile Exchange Start your journey with the CottonUP Guide.

Cover image: Jane Dever, Professor – Cotton Breeder, Texas A&M AgriLife Research - Lubbock. Photo by Mark Arnold, Senior Research Associate (retired), Texas A&M AgriLife Research

The 2025 Signature Brands are the Leaders in driving real and meaningful change. "CottonConnect feels a deep responsibility "We may not know what a to the cotton farming communities we work post-COVID-19 world will The impact of COVID-19 is yet to be “Overstocked” is the theme for the in. In April 2020 we launched the campaign look like, but it is important ‘Sustainable Lives: Mission Hope,’ which is that we do not falter in our determined. However, we know that entire supply network, with the final currently focused on COVID-19 awareness and efforts towards a more the effect will be far-reaching across all domino falling on some of the most response, providing accurate information and sustainable future for the sectors and communities. Some of the vulnerable people. There have been a distributing essential supplies. We are working textile industry. Despite the most vulnerable are our farmers and the lot of conversations about the impact with our farmers, through remote systems as challenging times, we are communities in which they live; many are that this pandemic is having in the much as possible, on ways to increase their continuing to develop the without access to clean water, much less textile manufacturing supply network. farms’ resilience, specifically through building U.S. Cotton Trust Protocol. health care. Let’s not fail to link everything back to shock-resistance and diversified forms of This project will inventory and the source. We need to build solutions incomes. We encourage brands, supply chains validate progress U.S. cotton The turn of the seasons goes on – to support farmers as we plan for and the wider sector to come together and growers continue to make regardless of what is going on in the rest short- and long-term recovery. As we leverage each other’s support, while at the towards the U.S. 10-year of the world. In the southern hemisphere, turn on the economic engine, let’s same time, helping the marginalized cotton sustainability goals and will farming community overcome the crisis." help make USCTP cotton cotton harvest is underway, and in the do it in a way that supports the most a preferred fiber choice for north, soils warm and the world’s cotton sustainable, regenerative and organic apparel brands and retailers." farmers are making decisions for what supply and production systems. This is – Amol Mishra, Global Commercial Director, crops to plant. Cotton, as well as other our opportunity to push the reset button. CottonConnect crops are facing the influence of a buildup Knowledge is power, action is change. – Jesse S. Daystar, in stocks and continued downward price Chief Sustainability pressure. – La Rhea Pepper, Managing Director, "In partnership with Higg Co and Boston Officer, Cotton, Inc. Textile Exchange Consulting Group (BCG), we recently launched The International Cotton Advisory “Weaving a Better Future," a report that Council’s (ICAC) May 2020 report states highlights how sustainability in fashion is at risk “Now, more than ever, the that cotton prices are $.71 for 2019/2020 in a post-crisis world and lays out a framework cotton and textile sector must year end and $.56 for 2020/2021. This is for a phased rebuilding that elevates the role of come together to support one the lowest that cotton prices have been in social and environmental commitments within another and share the burden over 12 years. The ICAC May 2020 report business resiliency strategies. Although the so that we can mitigate the also highlights that “Cotton will suffer a future remains unknown, we hope that we're damages and emerge on the able to articulate that those companies who are 12 percent decline in consumption due to other end of this crisis.” integrating sustainability efforts more deeply into the COVID-19 pandemic.” 1 the business and not retreating from them are poised to come out of the crisis in a position – Alan McClay, CEO, BCI of strength. I believe that there is much our group can do together to ensure that we are And check out an interview with supporting the industry now and in the future." Alan here, as well as Alan's new (1) ICAC- Cotton: May 2020 edition of "Cotton This Month" blog series on this issue here. – Amina Razvi, Executive Director, BACK TO CONTENTS Sustainable Apparel Coalition © 2020 Textile Exchange Page 3 What’s inside

Welcome to the 2019 edition of the 2025 Sustainable Impacts and the Sustainable Development Goals (SDGs) 28 Focus on Organic Cotton: Q&A with Bart Vollaard 65 Cotton Challenge Report 5 Q&A With Margot Lyons 29 Organic Cotton: The Year in Numbers 66 What is the 2025 Sustainable Cotton Challenge? 6 Burton Makes Progress 30 Recycled Cotton 68 How to Participate 7 C&A Goes High Tech 31 Recycled Cotton: Evrnu 70 Project Leadership 7 Well Along the Journey 32 Recycled Cotton: Re:newcell 71 Partners in the Evolution to Preferred Cotton 8 Q&A With Suhas Khandagale 33 Recycled Cotton: Recover 72 Our Vision for the Future of Cotton 9 Lindex Case Study 34 Recycled Cotton: TENCEL™ Lyocell fibers with REFIBRA™ Cotton 2040 10 Brooke Summers Chats With Eloise Bishop 35 technology 73 Delta Sustainability Framework 11 MetaWear's RESET Project 36 Recycled Cotton: Worn Again Technologies 74 Terminology: “Sustainable” and “Preferred” Cotton 12 The Answer Beneath Our Feet: The Importance of Soil REEL Cotton 75 Understanding Regenerative 13 Health 37 Regenerative Organic Cotton 77 Where to Find Sustainable Cotton Across the Globe 14 Q&A with Elizabeth Whitlow 78 Sustainable Cotton Initiatives 38 Spotlight on Sub-Saharan Africa 15 Transitional Cotton 79 Working Toward The Same Goal 39 Bergman Rivera Supports Transitional Cotton 80 Global Cotton Production 16 A Direction of Travel 40 Global Cotton Production 17 ABRAPA 41 Looking Ahead 81 Global Preferred Cotton Production 18 BASF e3™ 43 Our Newest Initiative: The U.S. Cotton Trust Protocol 82 A Closer Look at Preferred Cottons 19 Better Cotton Initiative 45 Our Newest Signatories 83 Cleaner Cotton™ 47 Resources 84 Perspective on Brand Participants 21 Cotton made in Africa 49 About Textile Exchange 85 2025 Sustainable Cotton Challenge Current Participants Fairtrade 52 2018-19 22 Organic Fairtrade 53 The Big News 23 Field to Market 54 2025 Participants are Closing The Gap 24 ISCC 56 Sub-Sector Analysis 24 myBMP 58 The Corporate Fiber & Materials Benchmark Program Organic Cotton 62 (CFMB) 25 Organic Content Standard 63 2025 Sustainable Cotton Challenge Benchmark Global Organic Textile Standard 63 Performance Distribution 26

Welcome to Textile Exchange’s second annual Looking at industry transformation with data 2025 Sustainable Cotton Challenge report. About the initiatives The use of data and rating tools such as the CFMB The 2025 Sustainable Cotton Challenge inspires can inform decision-making and strengthen internal and their work retailers and brands to champion the greater use of systems toward advancing a company's sustainability sustainable cotton by aiming for 100 percent of the commitments. Textile Exchange’s organic cotton The “heart” of the 2025 Sustainable Cotton Challenge is cotton from their supply chains to come from the production data collection and management processes the Preferred Cotton initiatives and the Sustainable Cotton most preferred sources. These environmentally friendly have been independently assessed by BSD Consulting Matrix. Various not-for-profit groups, academic institutions sources are from the Textile Exchange list of recognized in accordance to the Global Reporting Initiative (GRI) and businesses have collaborated to try and provide organic and sustainable cotton initiatives. and AA1000APS principles. This was a rewarding systems, standards, transparency and traceability in these moment for the Textile Exchange team who worked programs to assist all involved from field to fabric make These initiatives include organic cotton certified to the very hard for this recognition. The same methodology is decisions. Sustainable production practices and technology Organic Content Standard (OCS) or the Global Organic now being rolled out to other data collection processes. are constantly evolving and adaptation is critical at the farm Textile Standard (GOTS), Fairtrade cotton (certified The accuracy of this reporting is key to keeping all gate. These initiatives provide education, assistance and to Fairtrade International or Fair Trade U.S.A.), Better brands involved on track toward these important long- the platforms needed to guide us all to a more sustainable Cotton Initiative (BCI), Cotton Made in Africa (CmiA), term goals. cotton supply. Sorting out the nuances, attributes and BASF e3, and recycled cotton (rCotton) certified to differing approaches can be a daunting task. Textile Exchange an independently verifiable standard such as the Teamwork is critical has attempted to provide a snapshot of the differences Global Recycled Standard (GRS) or the Recycled It is essential that team members from across brand and similarities between these programs. Effects on the Claim Standard (RCS). In addition, CottonConnect’s leadership and the supply chain are responsible for environment, economics and social ethics are compared REEL program and code provides a starting point for coordinating efforts and that accountability sits with via the Sustainable Cotton Matrix, which we use to detail businesses aiming for greater sustainability in their decision-makers. Public reporting is a gateway to the initiatives in this report. While this snapshot is in no way cotton supply chain. And starting with 2020 reporting, transparency; it demonstrates a company’s strength “evergreen,” it is our hope that this can benefit brands, retailers the United States Cotton Trust Protocol will also be part of commitment, ensures goals are being met and and consumers when trying to decide on their sustainable of the program. milestones are reached. cotton strategy and needs. In our 2019 report, we evaluate the progress of the 2025 Sustainable Cotton Challenge corporate participants and the sustainable cotton initiatives they have partnered with to make progress on their journey. Sevilla Granger Iovacchini Brent Crossland We will look at their consumption data from the Textile Program and Project Strategist, Textile Exchange Exchange's Corporate Fiber & Materials Benchmark Textile Exchange Ambassador Program (CFMB) as a way to track their evolution. We will also learn about the various initiatives and standards that are the framework for this work and be inspired by bite-sized stories from the organic field.

History of the Challenge hopefully spur wider action across the sector and go a long way in helping to reduce the negative environmental and His Royal Highness The Prince of Wales established social impacts that are all too often associated with cotton the International Sustainability Unit (ISU) to facilitate production.“ The commitment made by these companies consensus on how to resolve some of the key environmental equated to more than 300,000 metric tons (mt) of cotton challenges facing the world. These challenges include purchased each year. The aims of the Communiqué halting tropical deforestation, sustaining the marine includes steps to increase the uptake of organic and environment and exploring ways to maintain ecosystem sustainable cotton which will, in turn, increase the income of resilience while achieving development goals. The ISU was smallholder farmers, eliminate highly hazardous pesticides, proud to have played a part in facilitating the advances that eliminate or reduce the amount of pesticides and synthetic have been made, based upon its international reputation for fertilizer used, reduce water use and improve water quality credible, trusted and neutral convening, underpinned by well and soil health, including positive carbon impacts as a result researched and rigorous analysis and broad consultation of more sustainable practices. with key actors from governments, the private sector and civil society. What are the Criteria for an Initiative to be a part of the 2025 Sustainable Cotton Challenge? In 2017, the ISU, in collaboration with M&S and The Soil Association, convened some of the world’s leading All initiatives that qualify for the Challenge have clear clothing companies together with a number of NGOs and guidelines, or standards of better or best practices. Farmers standards organizations working on sustainable cotton. need to be specifically enrolled in the program as a long- These meetings at Clarence House offered participants the term objective. They are then monitored by a second party opportunity to discuss the possible launch of a collaborative or third party certified. effort on scaling the use of sustainable cotton within the The 2025 Sustainable Cotton Challenge is a catalyst to textile industry. shift the market toward the use of more sustainable cotton. A small steering group, led by the ISU, Marks&Spencer, Through this challenge, these companies are ensuring that The Soil Association, Textile Exchange, Levi Strauss & 100 percent of the cotton they use comes from sustainable Co., and Kering worked together to draft the Sustainable sources by 2025.The progress made on sustainable cotton Cotton Communiqué. In May 2017, at a high-level reveals how entire commodity sectors can make rapid meeting in London, the Sustainable Cotton Communiqué progress toward sustainable outcomes, so long as the was launched. Thirteen of the world’s most renowned business case is clear that solutions can be found and clothing and textile companies, in the presence of His senior level leadership is behind the process of change. Royal Highness The Prince of Wales, signed up to the 2025 Sustainable Cotton Challenge. The Prince of Wales congratulated the companies that signed and described their commitment as “a hugely encouraging step that will Photo Credit: HRH Prince of Wales International Sustainability Unit

This Challenge is a catalyst to spur a shift If your company is interested in signing In March 2018, with the close of His Royal in the market toward the use of more up for the 2025 Sustainable Cotton Highness The Prince of Wales International A very special thank you sustainable cotton. As stated in the original Challenge, please fill out the pledge at the Sustainability Unit, it was agreed that Textile to our dedicated Communiqué, companies will be required bottom of the webpage at the link below. Exchange would assume the role of the Steering Committee: to independently publish their progress More information, including the full text of initiative’s Secretariat. Textile Exchange from 2018 which will be collected by Textile the Sustainable Cotton Communiqué, is is thrilled to have this honor. Under the Exchange. available on the Textile Exchange website: guidance of the Steering Committee, we will Sarah Compson continue to build on the momentum created The Soil Association There is no cost to join and no requirement textileexchange.org/2025-sustainable- through this initiative, enrolling more brands Alan McClay to be a member of Textile Exchange. Brands cotton-challenge to the Communiqué and helping to secure a BCI are asked to participate in either Textile more sustainable cotton sector. If you have any questions, please contact Exchange’s Preferred Fiber and Materials La Rhea Pepper Benchmark program or the Consumption us at: Textile Exchange Tracker so we can document their collective [email protected] progress. Liza Schillo Levi Strauss & Co. All results are reported as aggregated data and no information is disclosed from specific Phil Townsend brand reporting; information submitted Marks & Spencer is absolutely secure. Any inspirational stories that brands and initiatives provide in addition are purely voluntary.

The resiliency of our long-term sourcing strategies starts on the farm. As the climate changes and we experience disruptions Cara Smyth “ like COVID-19, we need to sustain the momentum of market Gabelli Business School Fellow share growth of preferred cotton to actively manage risk, enable Founder, Sustainable Business Coalition, end-to-end visibility and deliver value to investors, consumers, Fordham University employees and the planet.”

There are a number of other projects Cotton 2040, initiated by Forum for The Partnership for Sustainable Textiles multi-stakeholder pilot project in Egypt in supporting the transition toward preferred the Future, launched CottonUp, a new in Germany launched the “Organic February 2019, to train cotton farmers on cotton. Collaboration and information are “Guide to Sourcing Sustainable Cotton” in Cotton Sourcing Guide” in January 2019 the Better Cotton Initiative’s approach to key for a successful uptake of preferred June 2018. This guide provides practical in collaboration with C&A Foundation, sustainable cotton production. UNIDO is cotton. information and resources to either start Organic Cotton Accelerator and Helvetas. also supporting organic cotton production sourcing sustainable cotton or increase in Egypt through the project CottonForLife, Textile Exchange's Organic Cotton Round volumes. Delta Project The aim of this 3-year a private sector initiative of FILMAR. Table (OCRT) held the first Regional OCRT project (2019 to 2021) is to develop a joint in China, March 2019, with collaboration CottonConnect is an enterprise with a sustainability measurement and reporting The U.S. Cotton Trust Protocol, a data from CottonConnect. In September 2018, clear mission to transform the cotton framework for different agricultural collection, measurement and verification the first Regional OCRT for West Africa industry for good. In August 2019, commodities focusing on cotton and procedure, was introduced by the was organized in Koudougou, Burkina Primark announced the expansion of coffee. It is a collaboration between BCI, Cotton Council in November 2019. It Faso in collaboration with Catholic Relief its collaboration with CottonConnect to ICAC-SEEP, the International Cotton will document USA cotton production Services (CRS), USDA and SICOT. Further train 160,000 cotton farmers in more Organization and the Global Coffee practices and its environmental impact. round tables have been held in Izmir environmentally friendly farming methods Platform. The Delta Project is funded by The Cotton Council aims to benchmark focusing on Turkey, Egypt and Central Asia by 2023. the ISEAL Innovations Fund. the cotton growers’ results against its as well as the Global OCRT held during 2025 sustainability goals. the Textile Exchange Conference each Organic Cotton Accelerator (OCA) is the Soil Health Institute (SHI), a US based year. only multi-stakeholder organization fully non-profit organization, announced in West Africa Organic & Fairtrade Cotton dedicated to organic cotton. As a global March 2019 that it will launch “Healthy Coalition was launched at the International The Laudes Foundation, in partnership platform, we’re committed to bringing Soils for Sustainable Cotton,” a continuous Cotton and Textile Conference (SICOT) in with the Brazilian NGO ESPLAR and integrity, supply security and measurable engagement project to help USA cotton Koudougou, Burkina Faso in September World-Transforming Technologies (WTT) social and environmental impact to organic farmers increase their soil health. The initial 2018. This coalition aims to establish launched the program “Meaningful cotton. OCA participated in the Organic pilot program, conducted during 2019, reliable market access for tens of Innovation for Family Farming - Cotton Traceability Pilot; a joint effort started in two American states and will thousands of smallholder farmer families Sustainable Cotton Challenge” at the end between OCA, Fashion for Good and expand to another three states in 2020. in West Africa who are producing organic of 2018. The goal is to support simple Laudes Foundation with support Fair Trade cotton and other organic crops. innovations that can help smallholder from C&A, Kering, PVH Corp., Zalando Solidaridad, Cotton made in Africa, organic cotton farmers to increase their SE and Pratibha Syntex with Bext360 as Danish Ethical Trading Initiative and MVO Please see also Textile Exchange’s Organic overall productivity and living standards. the leading technical partner. Nederland launched the new project Cotton Market Report 2019 for more Bottom UP in June 2019 to promote a information. The Chetna Coalition (ChetCo) was The Organic Trade Association sustainable cotton and garment value formed in 2013 with a shared vision to announced the official launching of its chain, from Ethiopian cotton to European pilot a novel and highly collaborative Organic Fraud Prevention Solutions consumers. sourcing model for ethical fashion. In program in March 2019 to help companies 2019, the coalition published its first minimize or eliminate fraud in organic UNIDO, the United Nations Industrial Chetna Coalition Brand Impact Report. certification both inside and outside of the Development Organization, launched a United States. BACK TO CONTENTS © 2020 Textile Exchange Page 8 Our Vision for the Future of Cotton

The goal is to develop and support thriving rural communities where soils Vision for 2040 and beyond will be healthy, biodiversity is flourishing, The cotton industry has changed and people have both food security and dramatically: it prioritizes sustainable economic stability. Responsibly grown practices, is highly transparent and cotton using regenerative practices will be Vision for 2030 traceable and provides viable livelihoods core to delivering on this vision. The United Nations Sustainable for farming communities. Development Goals Textile Sector Report communicates significant impacts around water use and quality, biodiversity, food Vision for 2025 security and case studies supporting the journey to regenerative agriculture and Over 50 percent cotton volume has been resilient communities. 2019 converted to more sustainable solutions. The rest of the industry understands the 22 percent of the world’s cotton is issues and solutions and is following the more sustainable1s and saw a 58 lead. percent production increase, from 3.8 million mt to 6 million mt. Farmers have broader choice in seed availability

Builds soil organic matter through crop Natural defoliation rotation, intercropping & composting

Beneficial to animals & insects Good for farmers & builds communities Physical removal Conserves water & uses rainwater or intercropping to Better for the more efficiently remove weeds environment

Uses soil balance, trap crops and beneficial insets to manage pests

(1) ICAC- Cotton: World Statistics 2019 and Textile Exchange compilation of total global fiber volume data (see “Global Fiber Market”) Diagram: Textile Exchange / AboutOrganicCotton.org

Creating a Resilient Cotton Industry in Turbulent Times

The cotton system requires systemic, We envisage a sustainable global Over the next three years, Cotton 2040 radical change if it is to thrive and contribute cotton industry: and its partners will deliver a set of three positively to the environmental, social interconnected workstreams with the and economic challenges that society is • Which is resilient in a changing climate. biggest potential to drive a systemic shift facing in an increasingly disrupted world. • Which uses business models that to mainstream sustainable cotton through This level of change can only be achieved support sustainable production and collaborative efforts. Cotton 2040’s progress has been by actors across the supply chain taking guided by a steering group that included livelihoods. • Planning for adaptation: Creating a collaborative approach to addressing sustainable cotton standards, programs sector-wide collaborative action to key systemic challenges to the long-term • Where sustainably produced cotton is and codes (organic, represented by Textile understand and adapt to the changing sustainability of the cotton industry. the norm. Exchange; The Better Cotton Initiative (BCI); climate. CottonConnect; Cotton Made in Africa Cotton 2040 is a platform which brings The initiative’s progress to date includes (CMiA); Fairtrade; myBMP (Cotton Australia); together leading international brands and • Sourcing sustainable cotton: Driving building the CottonUP Guide to sourcing and the Organic Cotton Accelerator (OCA). retailers, sustainable cotton standards, the uptake of sustainable cotton sustainable cotton, creating the first platform Brand and retail partners have included and other stakeholders across the value with brands and retailers, building on providing comprehensive information on Marks & Spencer, Target, Aditya Birla chain to accelerate progress and maximize the success of the CottonUP Guide sourcing cotton across multiple sustainable Fashion and Retail Ltd. and Burberry, the impact of existing sustainable cotton launched in 2018. standards. We’ve also been carrying among others, alongside industry partners initiatives. Convened by international out foundational work with sustainable • Developing sustainable business such as IDH, ICAC and more. sustainability non-profit Forum for the Future cotton standards, programs and codes models: Supporting a widespread shift and supported by Laudes Foundation, it on pathways toward greater alignment in toward alternative business models In this next phase, we will continue to seeks to align and accelerate action on traceability and impact reporting (the latest which ensure fairer distribution of value expand existing relationships and engage critical issues, from increasing uptake of phase of this work has been carried out and risk between stakeholders, and a broader cross industry network to enable sustainable cotton by brands and retailers, in collaboration with Project Delta). As we enable the regeneration of land and system wide dialogue and action. to addressing a wider range of complex, enter the critical decade for action on the resources. systemic challenges. SDGs, Cotton 2040 is now embarking on Find out more at Forum for the Future, an exciting, ambitious next phase of work to We are now inviting expressions of interest or contact Charlene Collison, Associate continue to drive transformational change in and commitment from organizations wishing Director – Sustainable Value Chains & the cotton industry. to contribute to one or more of these Livelihoods at Forum for the Future for more workstreams in 2020 and beyond. information.

Bridging the Gap of Measuring Sustainability Performance

The Delta Project is a joint effort of the It includes a common set of 15 impact Better Cotton Initiative (BCI), the Global and outcome indicators across the Coffee Platform (GCP), the International environmental, economic and social pillars Coffee Organization (ICO) and the and detailed methodological guidance International Cotton Advisory Committee to gather information on each indicator. (ICAC). It aims to develop a Common The current version of the indicator set Sustainability Framework to align was developed through an intensive sustainability monitoring and reporting consultation process commencing in June in cotton and coffee to the Sustainable 2019 with over 25 organizations including Development Goals (SDGs). This project the Cotton 2040 Impacts Alignment was possible thanks to a grant from the Working Group members, comprising major ISEAL Innovations Fund, which is supported cotton sustainability standards, programs by the Swiss State Secretariat for Economic and codes2, as well as retailers, donors, Affairs SECO. research institutes, national committees and international agricultural organizations. The Delta Sustainability Framework is voluntary and intended to apply worldwide The Delta Project will soon begin pilot to any cotton and coffee farming system, testing of the indicators in Vietnam for Photo Credit: Textile Exchange with the potential to be expanded to other coffee and in South Africa for cotton, among Some of the framework’s intended uses The final framework, including reporting agricultural commodities over time. It others. Independent expert groups have include supporting national reporting on the guidance, will be available in 2021 after the builds on the work already undertaken by already agreed to assist with the preparation commitments set by the SDGs; assisting pilot testing. The set of indicators to be pilot several commodity platforms and initiatives of international common data protocols on brands and retailers to track the impact tested in 2020 is accessible at to define and harmonize sector-wide specific indicators (e.g. soil carbon content, of their sustainable commodity sourcing www.deltaframework.org. sustainability measurement, in particular gender index, highly hazardous pesticides decisions; upgrading farmer services to on the Coffee Data Standard and on the and carbon footprint) and to provide on-the- support continuous improvement at farm For more information, contact SEEP Guidance Framework on Measuring ground guidance during data collection. level and increasing transparency and Eliane Augareils, Delta Project Manager Sustainability in Cotton Farming Systems1. communication with consumers on the actual value of sustainably produced goods.

(1) SEEP is an expert panel of the International Cotton Advisory Committee (ICAC) established in 2006. (2) The Cotton 2040 Impacts Alignment Workstream (supported by Laudes Foundation) and The Delta Project are working closely together to drive alignment of sustainability impact indicators and metrics for cotton farming systems.

There are many terms used to describe approaches that How Textile Exchange determines a Preferred Fiber Taking a Portfolio Approach aim to transition away from conventionally grown cotton to or Material more sustainable techniques. A portfolio approach involves: Textile Exchange define a preferred fiber or material as Building a suite of preferred fibers and materials, The title of this challenge, as coined at its inception by the one which results in improved environmental and/or social from a choice of preferred options, through the International Sustainability Unit, uses the term “sustainable sustainability outcomes and impacts in comparison to consideration of impacts and organizational cotton.” Textile Exchange has a preference for using the conventional production. An assessment framework is priorities. term “preferred cotton” in its work, and this latter term is, under development. therefore, used in parts of this report that refer to other work Embedding a strategy that leads to preferred initiated by Textile Exchange, such as the Corporate Fiber Ways to recognize or achieve a preferred status include all options replacing unsustainable or less and Material Benchmark. You can read Textile Exchange's or a combination of the following: sustainable options. definition of “preferred” fiber or material on the right. The fiber or material has sustainability criteria A commitment to the principles of continuous developed through a formalized multi-stakeholder However, despite differences in the terminology used, improvement and ensuring options selected result process. the partners and signatories of the 2025 Sustainable in a positive impact. Cotton Challenge share the same vision and ambitions The fiber or material has a recognized industry for the sector as Textile Exchange. We are aligned on the standard in place which confirms its status as Provided the above approach is taken, Textile Exchange mission to transform the cotton sector based on a portfolio preferred. approach, committed to continuous improvement and to recognizes that “one size does not fit all” and that a achieving a positive impact. There is a robust chain of custody system in place company will build its own portfolio based on the preferred to track or trace the fiber or material through the fibers and/or materials their company is implementing. The most important thing is to encourage the movement supply chain and back to its origin. from programs that do "less harm" to programs that are building, strengthening and implementing regenerative The fiber or material has been objectively tested or practices. verified as having greater sustainability attributes, such as through a peer reviewed Life Cycle Assessment.

The fiber or material has a good potential for circularity.

The term “regenerative” is increasingly a Regenerative agriculture is not a “one size feature of conversations about sustainable fits all” prescriptive practice, instead it looks or preferred fiber choices, and you’ll see at the combination of methods that support it frequently featured in this report. To resilience as well as build and nourish get to the heart of the matter, we need our ecosystem. Over time, regenerative to understand the difference between practices can increase production and Regenerative Practices and Regenerative naturally reduce the need for external Agriculture. When utilizing Regenerative inputs. When these regenerative practices Agriculture in cotton and cultivated are implemented successfully, the health production systems, farmers use a holistic of the agriculture ecosystem and farmer approach. economic stability can be improved. This is regenerative agriculture. Regenerative Practices usually address a single element or set of practices within Keeping the concept of regeneration and the system. Regenerative agriculture is a continuous improvement at the forefront holistic philosophy that aims at positively of cotton production systems is essential influencing biosequestration, biodiversity, to address the key challenges we need to ecotoxicity, climate resilience, water tackle over the next ten years, and which systems, micronutrients, and ecosystem this Challenge was initiated to spearhead. services. Standard practices include no or low till plowing, cover cropping, multi-use For a deeper dive on regenerative, see systems, agroforestry, rotational farming, pages 77–78. precision agriculture, integrated pest management, and intentional use of inputs that are landscape specific.

Sustainable cotton was grown in 30 countries in 2017/18. More than 95 percent of all preferred cotton CENTRAL ASIA was grown in ten countries: Brazil, China, Pakistan, India, USA, Australia, Côte d’Ivoire, Cameroon, KAZAKHSTAN 1,000 mt KYRGYZSTAN 22,682 mt (2) TAJIKISTAN 27,360 mt (2)

Burkina Faso and Turkey. A closer look at Sub-Saharan Africa is provided on the next page. BCI: 1,000 mt Organic: 22,309 mt BCI: 18,000 mt Fairtrade: 373 mt Organic: 8,999 mt TOP 10 COUNTRIES Fairtrade: 361 mt by volume of preferred cotton, together producing >95 percent of all preferred cotton: EAST AND SOUTH EAST ASIA • Brazil - 2 million mt • China - 1.2 million mt CHINA 1.2 million mt BCI: 1,188,000 mt • Pakistan - 702,853 mt Organic: 38,586 mt • India - 682,555 mt REEL: 5,295 mt

• USA - 273,940 mt THAILAND 2 mt • Burkina Faso - 259,073 mt Organic: 2 mt • Australia - 229,281 mt 702,853 mt • Côte d’Ivoire - 140,879 mt PAKISTAN BCI: 701,000 mt • Cameroon - 106,880 mt REEL: 1,775 mt Fair Trade: 77 mt • Turkey - 52,652 mt

SOUTH ASIA NORTH AMERICA INDIA 685,376 mt (2) USA 273,940 mt BCI: 572,000 mt BCI: 245,000 mt Organic: 85,530 mt BASF e3: 22,852 mt Fair Trade: 14,885 mt Organic: 5,082 mt REEL: 12,961 mt Cleaner Cotton: 1,006 mt

MIDDLE EAST / SOUTH AMERICA NORTH AFRICA (MENA) AUSTRALASIA ARGENTINA 2 mt PERU 659 mt BRAZIL 2 million mt EGYPT 287 mt GREECE 850 mt ISRAEL 12,000 mt TURKEY 52,652 mt AUSTRALIA 229,281 mt

Organic: 2 mt Organic: 502 mt ABRAPA: 2,005,800 mt Organic: 287 mt Organic: 850 mt BCI: 12,000 mt BCI: 41,000 mt myBMP: 229,281 mt REEL: 157 mt BCI (=ABRAPA): 1,542,000 mt Organic: 11,652 mt

(1) Email correspondence with cotton initiatives. (2) As the per country breakdown of Fairtrade Organic cotton was not available to the report production team at the launch of the report, this figure may include cotton that is certified to both Fairtrade and organic and thus a double- counting of this figure is possible. The total volume of preferred cotton per country would not change much though, as the share of Fairtrade Organic cotton compared to the total amount of preferred cotton is rather low.

Sustainable cotton was grown in 14 countries in Sub-Saharan Africa in 2017/18. MALI 6,225 mt (2) BURKINA FASO 259,073 mt (2) ETHIOPIA 11,292 mt UGANDA 2,023 mt (2) The top 5 sustainable cotton producing countries in Sub-Saharan Africa by BCI: 6,000 mt CmiA: 258,136 mt CmiA: 11,232 mt CmiA: 1,233 mt volume in 2017/18 were Burkina Faso, Côte d’Ivoire, Cameroon, Zambia and Fairtrade: 148 mt Organic: 538 mt Organic: 60 mt Organic: 765 mt Organic: 77 mt Fairtrade: 399 mt Fairtrade: 25 mt Mozambique. Cotton made in Africa (CmiA) certified 37 percent of cotton production in Africa in 2017/18.

TOP 5 SUB-SAHARAN COUNTRIES by volume of preferred cotton: TANZANIA 10,424 mt • Burkina Faso - 259,073 mt CmiA: 8,549 mt* • Côte d’Ivoire - 140,879 mt Organic: 4,890 mt* * incl. CmiA Organic: 3,015 mt • Cameroon - 106,880 mt • Zambia - 34,370 mt

• Mozambique - 27,420 mt SENEGAL 644 mt (2)

Organic: 638 mt ZAMBIA 34,370 mt Fairtrade: 6 mt CmiA: 34,370 mt

CÔTE D’IVOIRE 140,879 mt

CmiA: 140,879 mt

MOZAMBIQUE 27,420 mt

CmiA: 16,420 mt BCI: 11,000 mt GHANA 863 mt

CmiA: 863 mt

BENIN 713 mt CAMEROON 106,880 mt SOUTH AFRICA 11,000 mt MADAGASCAR 500 mt

Organic: 713 mt CmiA: 106,880 mt BCI: 11,000 mt BCI: 500 mt

(1) email correspondence with cotton initiatives. (2) As the per country breakdown of Fairtrade Organic cotton was not available to the report production team at the launch of the report, this figure may include cotton that is certified to both, Fairtrade and organic, and thus a double- counting of this figure is possible. The total volume of preferred cotton per country would not change much though, as the share of Fairtrade Organic cotton compared to the total amount of preferred cotton is rather low. BACK TO CONTENTS © 2020 Textile Exchange Page 15 Global Cotton Production

Cotton is the second highest volume fiber since synthetics took the lead in the mid-1990s. Cotton production took a dip in 2015/16 recovering in 2017/18 with around Cotton is grown in around 26.66 million mt and a market share of approximately 24.5 64 countries on approximately percent of global fiber production. Production of cotton is 33 million hectares expected to be approximately 26,053 million mt in 2018/19. = 2 percent of global arable land.

Global Cotton Production Trend Global Cotton Production ('000 mt) Breakdown 2017/18 (million mt) 30 The average cotton fiber yield is 778 kg/ha. India 6.4 25 Yields range from China 5.9 130–2088 kg/ha.

20 USA 4.5

15 Rest of World 3.4 Brazil 2 10 Pakistan 1.8 Total global cotton fiber production was 05 Australia 1.1 26.66 million mt in 2017/18. Uzbekistan 00 0.8 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 Turkey 0.8 26,224 mt 26,234 mt 21,476 mt 23,075 mt 26,664 mt 26,053 mt

Cotton farms range from highly industrialized in more developed economies, to small scale family farmers in the developing southern hemisphere.

- ICAC - World Cotton World Statistics April 2019. - Textile Exchange Preferred Fiber and Materials Report 2018. - Note that 2017/18 data is given as percent of 2017 calendar year data total fiber production as this is the common way of allocation by key industry reports.

From a niche to a market share of (ROC) cotton production in 2017/18 22 percent in 2017/18, preferred was still zero and figures for Transitional % % % cotton is gaining ground. Cotton were not available in 2017/18. 5 9 9 The preferred cotton options included With a production of around 26.7 million here align with all virgin cotton options mt in 2017/18, cotton had a share of 5+95+F 9+91+F 9+91+F included in the 2025 Sustainable Cotton 1,367 of 27,078 mt 2,298 of 26,224 mt 2,450 of 26,234 mt around 24.3 percent of the total fiber Challenge3. market1. 2015/16 2016/17 2017/18 All BCI cotton, including its equivalents The market share of preferred virgin ABRAPA, CmiA and myBMP, made cotton increased from five percent of up around 19 percent of all cotton in % % % the total cotton production in 2012/13 2017/18 and thus the large majority of 13 16 22 to 22 percent in 2017/18. This equals the 22 percent of preferred cotton in an increase in global production volume 2017/18. The BCI Standard, without of preferred cotton from 1.4 million mt 13+87+F 16+84+F 22+78+F equivalents, accounted for 10.53 2,884 of 21,476 mt 3,778 of 23,075 mt 5,957 of 26,664 mt in 2012/13 to 6 million mt in 2017/182. percent, the Brazilian standard ABRAPA And even more impressive is the for 7.52 percent, CmiA for 2.17 percent, Preferred cotton Other cotton increase in the last year, when we have and myBMP for 0.86 percent of all seen a 58 percent production increase, cotton in 2017/18. BCI aims to increase from 3.8 million mt to 6 million mt. its market share to 30 percent of the PREFERRED COTTON FIBER PRODUCTION IN 2017/18 global cotton production by 2020. The preferred cotton figures reported 6 million MT here include ABRAPA, BASF e3, All other cotton programs together, in ,000 mt and percent of cotton Better Cotton Initiative (BCI), Cleaner including BASF e3, Cleaner Cotton, Cotton, Cotton made in Africa (CmiA), Fair Trade, ISCC, organic(4) and REEL Fair Trade ≈ 17 (0.06 %) Fairtrade, Fairtrade Organic, Field to cotton, had a combined market share of Organic ≈ 181 (0.68 %) Market, ISCC, myBMP, Organic, REEL 3 percent of all cotton in 2017/18. Cotton, Regenerative Cotton and CmiA ≈ 579 (2.17 %) Transitional Cotton. Field to Market BCI equivalency ≈ 5,142 (19.28 %) and Regenerative Organic Certification

(1) ICAC- Cotton: World Statistics 2019 and Textile Exchange compilation of total global fiber volume data (see “Global Fiber Market”). (2) ICAC-Cotton: World Statistics 2019, standard owner data received by mail or from their publications; compilation by Textile Exchange - overlaps of standards excluded. (3) (1) These figures do not include recycled cotton. Please see the chapter “Recycled Cotton” for more information on recycled cotton. (4) This includes organic cotton certified to bioRe. 6 11 167 3 576 2,807 229 2,006 1.01 20 23 109 0.02 % 0.04 % 0.63% 0.01 % 2.16 % 10.53% 0.86 % 7.52 % 0.00 % 0.08 % 0.09 % 0.41 % General note: Methodological changes and comparison to previous years Textile Exchange continuously improves its data collection methodology. Some data reported in previous years has been revised or updated since the actual data has become available for initial Fair Trade Fair Trade OrganicOrganic CmiA OrganicCmiA BCI Standardmy ABRAPA Cleaner CottonREEL BASF e3 ISCC estimates or the methodology has been improved. A simple comparison between previously reported numbers and data reported in this year BMP does not show the actual change over time but is caused by one of the reasons mentioned above. For specific adjustments, please refer to the Textile Exchange Preferred Fiber and Materials Market Report 2020.

2,006 2000 36 40 ABRAPA cotton production increased Cleaner Cotton production increased 1500 30 from 753,608 mt in 2012/13 to from 258 mt in 2012/13 to 1,006 mt in 1,190 23 1,128 1,042 1,043 approximately 2 million mt in 2017/18. 2017/18. This equaled 0.004 percent of 1000 20 This equaled a market share of 7.52 all cotton produced in 2017/18. 754 percent of all cotton grown in 2017/18. 500 9 10 An estimated 75 percent of all ABRAPA Cotton made in Africa (CmiA) production increased from 144,909 mt 0 0 cotton was accounted for as BCI in 12–13 13–14 14–15 15–16 16–17 17–18 12–13 13–14 14–15 15–16 16–17 17–18 2017/18. in 2012/13 to 578,562 mt in 2017/18. This equaled 2.17 percent of all cotton The BASF e3 cotton production was produced in 2017/18 and equaled approximately 22,852 mt in 2017/18. approximately 37 percent of all cotton BETTER COTTON INITIATIVE CLEANER COTTON This equaled 0.09 percent of all cotton production in Africa in 2017/18. Almost 6,000 1.2 produced in 2017/18. all (97 percent) of the CmiA produced in 5,142 1.01 2017/18 was also accounted for as BCI 4,500 0.9 0.75 Better Cotton Initiative (BCI) cotton 0.70 equivalent. 3,262 production including equivalents 0.60 0.61 3,000 0.6 increased from 665,789 mt in 2012/13 Fair Trade cotton production reached 2,505 1,879 1,969 to 5.142 million mt in 2017/18. The 16,906 mt in 2017/18. This equaled 1,500 0.26 0.3 BCI Standard made up 54.59 percent 0.06 percent of all cotton produced in 666 of all BCI cotton produced in 2017/18. 2017/18. 0 0 12–13 13–14 14–15 15–16 16–17 17–18 The remaining 45.41 percent of BCI 12–13 13–14 14–15 15–16 16–17 17–18 cotton was produced according to the Fairtrade Organic cotton production BCI equivalents ABRAPA, Cotton made was approximately 11,000 mt in 2017/18. 65 percent of all Fairtrade BCI Standard BCI eq. ABRAPA in Africa and myBMP. BCI including BCI eq. CmiA/SCS BCI eq. myBMP equivalents represented 19 percent of all cotton in 2017/18 was also certified to an organic standard. cotton production in 2017/18. COTTON MADE IN AFRICA FAIR TRADE 600 579 25 496 19 480 18 20 400 17 16 17 Tip: How to find out more about the different cotton programs. 15 360 320 15 Check out the Textile Exchange Sustainable Cotton Matrix to learn more about 240 10 169 the specific programs and what they cover. 145 120 5

0 0 12–13 13–14 14–15 15–16 16–17 17–18 12–13 13–14 14–15 15–16 16–17 17–18 (1) The data are based on information from the standard owners which we have received through email correspondence or from their websites. The production volumes reported here include the total volume produced per standard including equivalents and overlaps with other standards. Fair Trade Organic Fair Trade

Field to Market certified cotton was not REEL cotton production has fluctuated yet produced in 2017/18. over the past few years with 20,000 The production volume of preferred cotton is growing (in ‘000 metric tons). mt grown in 2017/18. This equaled ISCC cotton production was 108,575 0.8 percent of all cotton produced in mt in 2017/18. This equaled 0.41 2017/18. ISCC percent of all cotton produced in myBMP 120 2017/18. Regenerative Cotton certified 109 229 250 according to the Regenerative Organic 90 200 myBMP cotton production increased Certification (ROC) was not yet from 54,000 mt in 2013/14 to 229,281 produced in 2017/18. 138 150 mt in 2017/18. This equaled 0.86 60 percent of all cotton produced in Transitional Cotton is the cotton-in- 100 2017/18. myBMP is also accounted as conversion to organic. 44,394 ha of 30 54 60 32 50 BCI equivalent. land were in-transition land in 2017/18. For more details, please reference the 0 0 12–13 13–14 14–15 15–16 16–17 17–18 12–13 13–14 14–15 15–16 16–17 17–18 Organic cotton production increased Organic Cotton Market Report. from 107,243 mt in 2012/13 to 180,871 mt in 2017/18. This equaled a market U.S. Cotton Trust Protocol certified share of 0.68 percent of all cotton cotton was not yet produced in produced in 2017/18. The organic 2017/18. ORGANIC COTTON REEL 200 48 50 cotton production volume includes the 181 organic cotton that is certified according 160 37 40 to bioRe. For more information on 30 118 organic cotton please see our Organic 117 112 30 120 107 107 24 Cotton Market Report 2019. 20 80 20 12 40 10

Tip: How to find out more about the different cotton programs. 0 0 12–13 13–14 14–15 15–16 16–17 17–18 12–13 13–14 14–15 15–16 16–17 17–18 Check out the Textile Exchange Sustainable Cotton Matrix to learn more about the specific programs and what they cover.

(1) The data are based on information from the standard owners which we have received through email correspondence or from their websites. The production volumes reported here include the total volume produced per standard including equivalents and overlaps with other standards.

In the 2018-19 cohort of the 2025 Textile Exchange tracks signatories’ Sustainable Cotton Challenge, 82 progress through the Corporate Fiber participating companies including and Materials (CFMB) Benchmark subsidiaries championed the greater use Program, where participants are required of sustainable cotton by aiming for 100 to report data through an online portal percent of the cotton from their supply called “Probench." In 2019, 73 of the 82 chains to come from the most sustainable signatories reported data this way, either sources. independently or through a combined submission made by their holding These companies are placing sustainable company, resulting in 40 completed cotton at the core of their businesses. There survey submissions representing the 73 is a strategy in place and policies have been signatories. set to address key sustainability issues in the sourcing of fiber and materials. Setting From the 40 submissions, 31 completed the goal of 100 percent sustainably sourced the full "cotton module" i.e. they reported cotton by 2025 helps these companies stay on both management as well as uptake focused, and the use of measuring tools activities, and the remaining 9 reported on such as the Textile Exchange Corporate uptake (consumption data) only through the Fiber & Materials Benchmark Program “progress tracker.” (CFMB) can inform decision-making and strengthen internal systems. The majority (39 of the 40 participants) were able to provide uptake figures, which 2025 Sustainable Cotton Challenge approximated a combined one million Signatories are a mix of brands, retailers metric tons (mt) of preferred cotton and and holding companies, with a combined represented 80% of their entire cotton estimated turnover of USD 305 billion. use (including conventional). This figure Signatory companies are head quartered represented 3.8 percent of global cotton across 12 different countries. produced in the same year.

We are very pleased to announce that in the last year, participants in the 2025 Aim: 100% sustainable cotton by 2025 Sustainable Cotton Challenge (2025 SCC) grew from 30 companies to 40. This expanded group of participants increased their reported preferred cotton uptake from 67 3% percent to 80 percent of their total cotton use. If we look specifically at the companies 100% 6% 3% reporting uptake data in both 2018 and 2019, we see a 19 percent increase in year-on- % year preferred cotton uptake. 17% 15 80% 7% 25% 60% 23% As a cohort, reported preferred cotton 27.5% 80% uptake increased from 40% 67% 67% to 80% between 37% 2018 and 2019. 20% 27.5% 10% 2018 2019 0% 2018 2019 30 participants 40 participants

27.5% of 2025 SCC Participants that have achieved: participants have 27.5% reached the target of ...their target of 100% preferred cotton. 100% preferred cotton ...a preferred cotton share of between 75-99%. - an increase of 17.5% 10% compared to 2018. ...a preferred cotton share of between 50-74%. ...a preferred cotton share of between 25-49%. 2018 2019 ...a preferred cotton share of less than 24%.

Participants that are not tracking or reporting preferred cotton uptake.

The reported use of preferred versus conventional cotton by the 2025 Sustainable Cotton Challenge participants:

In 2019, based on the absolute volume of preferred cotton reported, the overall mix of preferred to conventional was: 80 percent preferred and 20 percent conventional:

2019 - 80.3 percent preferred cotton Organic Fairtrade Organic Fairtrade CmiA BCI e3 rCotton Conventional Cotton 0% 10.5% 0% 2.5% 65.3% 0.1% 1.9% 19.7%

2018 - 67 percent preferred cotton

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Sub-Sector Analysis

Multi-Sector (8 participants) - 81.1 percent preferred cotton

Home/Hospitality (5 participants) - 98.5 percent preferred cotton

Outdoor/Sports (6 participants) - 81.3 percent preferred cotton

Apparel/Footwear (20 participants) - 69.1 percent preferred cotton

0% 20% 40% 60% 80% 100%

Four Years of Benchmarking: CFMB Preferred Cotton Uptake 173 Participants (including subsidiaries, totaling 116 individual CFMB submissions) 2019: 2018: 2017: 2016: 17 Countries 940,533 mt 622,359 mt 319,248 mt Estimated Turnover USD$ 640 Billion 1,353,380 mt

Preferred cotton reporting has been steadily increasing over the past three years, with Participation 105 of the 116 benchmark entrants reporting uptake for cotton in 2019 From the 105, 37 percent are 2025 Sustainable Cotton Challenge participants. The 2019 entrants reported a combined use of eight different preferred cotton programs from the 16 options available to signatories (i.e. cotton grown to specific sustainability standards and other initiatives). Organic 89 The most commonly reported preferred cotton was organic (85 percent participants), 87 2016 2017 2018 2019 followed by BCI (43 percent), and in third place, recycled cotton (33 percent). By quantity, 76 BCI is by far the highest volume reported.

56 BCI

There have been substantial gains made over the past few years in scaling the 43 45 production of more sustainable forms of cotton, which is now higher than ever at Recycled 36 34 35 over 1,353,380 mt in 2018. However, companies are actively sourcing less than 25% of the available sustainable cotton1. 22 22 19 20 Fairtrade Organic 16 14 CmiA

In order for sustainable cotton to become standard business practice, the amount Fairtrade e3 bioRe 6 4 5 4 5 5 6 6 of sustainable cotton grown and bought must increase significantly. The 2025 1 1 Sustainable Cotton Challenge sends a signal to millions of producers that there is a real demand for a more sustainable approach to cotton production that reduces the environmental and social costs. 16+1920++14+0+56+7687++89+0+6+45++4+0Outcome+5+56++6+0+22+3643++45+0+0+2234++35+0+1+0+1 The companies that have pledged their support are at various stages on their journey to using sustainable cotton, with some already securing all of their cotton from 647,026 ha Preferred Cotton was sustainable sources. However, all are clear that collaboration across the sector is % needed to bring about transformative change. Land under improved or 57 reported consumed vs. organic management 43% Conventional Cotton

1. Textile Exchange (production data: PFMR 2019, estimated consumption data: CFMB 2019)

The following charts show the 2025 SCC participant's performance in the Corporate Fiber and Material Benchmark Program in 2019.

Number of Participants Management Score for Cotton Module for Cotton Module 2025 SCC participants make up 90 The 2025 SCC participants 65 56 34% of all the companies that are performing above the completed the CFMB2019 cotton 31 sector average at incorporating module sustainability practices in their 2025 SCC Sector 2025 SCC Sector cotton operations. Participants Participants

Average Scores for Relative Uptake Score Cotton Module for Cotton Module 69 77 53 On average, 2025 SCC participants 66 scored 11 points higher than the sector for the CFMB cotton module. 2025 SCC Sector 2025 SCC Sector Participants Participants Absolute Uptake Score Performance Distribution for Cotton Module of Cotton Module At a score of 87, the 2025 SCC 87 78 Majority (58%) of the 2025 SCC 43 participants are also reporting participants are in the "Leading" 58 higher absolute volumetric uptake performance band. The remaining are compared to the sector average. performing at "Maturing performance band. 2025 SCC Sector Participants 38 Leading Risk Maturing 42 Management Investment Transparency Targets Uptake Impact 11 Establishing 2025 SCC 8 Maturing Maturing Maturing Leading Leading Establishing Developing Participants 2025 SCC Sector Participants Sector Establishing Maturing Establishing Leading Maturing Establishing

Adoption of Verification Models in Cotton Programs

2025 SCC shows higher coverage of verification across majority of the cotton programs used. Full coverage Partial coverage No response in CFMB

Better Cotton Cotton made Organic Fairtrade Organic Cotton Fairtrade Cotton BASF e3 Initiative in Africa Recycled Cotton

11 13 18 33 25 25 50 50 56 68 63 25 63 67 67 100 100 50 68 67 43 50 50 44 29 31 34 25 22 20 15

2025 Sector 2025 Sector 2025 Sector 2025 Sector 2025 Sector 2025 Sector 2025 Sector 10067SCC++1009343++ 1009629SCC++1009331++ 100050SCC++1007550++ 0100SCC++0100++ 10044SCC++1009734++ 1007525SCC++1008922++ 1008720SCC++1008215++

Labeling of Cotton Products

In general, 2025 SCC product labeling practices are at par or slightly below that of the sector. Yes No No response in CFMB

Better Cotton Cotton made Organic Fairtrade Organic Cotton Fairtrade Cotton BASF e3 Initiative in Africa Recycled Cotton

21 12 16 11 20 21 25 25 29 20 50 50 21 33 20 53 25 18 100 100 100 75 75 68 56 60 57 50 50 50 53 32

2025 Sector 2025 Sector 2025 Sector 2025 Sector 2025 Sector 2025 Sector 2025 Sector 0100SCC++1007957++ 1009675SCC++1008868++ 100050SCC++100075++ 1000SCC++1000++ 010050SCC++1008432++ 1007550SCC++1008956++ 1008060SCC++1007153++

How preferred cotton (pCotton) interacts with the U.N.’s Sustainable Development Goals (SDGs) Cotton and the SDGs U.N. Targets SDG 12 U.N. Indicators Cotton

12.2: By 2030, achieve the sustainable management and 12.2.1: Reduced material Water, energy, GHG Several organization offer in depth efficient use of natural resources. footprint emissions (savings) information on how sustainable growing practices support the SDGs:

12.5: By 2030, substantially reduce waste generation 12.5.1: mt of material Recycled cotton (volume) Textile Exchange: through prevention, reduction, recycling and reuse. recycled Achieving the SDG through Organic Cotton: here.

12.6: Encourage companies, especially large and 12.6.1: Number of pCotton reporting rates GOTS: transnational companies, to adopt practices and integrate companies reporting (number of companies) SDG Infographic: here. sustainability information into their reporting cycle. data (through the PFM IFOAM: Benchmark program) Organic SDG Benefits Infographic: here How Organic Agriculture helps meet the SDG initial mapping: Initial mapping is based on Life SDGs: here. Cycle Assessment. It links preferred fiber and materials to Fairtrade: responsible consumption, sustainable agriculture, water, Sustainable Development Report: here. energy, climate, land use, technology and infrastructure. Cotton made in Africa: CmiA and the SDGs: here.

Better Cotton Initiative: BCI and the SDGs: here.

SDG future mapping: The PFM SDG Gateway: Benchmark program will continue The Organic Cotton Accelerator (OCA) and to map and measure linkages the SDGs: here. between adoption of pCotton and the SDGs.

Margot Lyons Manager, Production Sustainability Coyuchi

Coyuchi has always been a Is there a special cotton pioneer in 100 percent organic product that you developed cotton sourcing. What are some Q this year that takes Coyuchi’s Q of the new steps you’re taking to commitment to the next level? make even more progress and get to the next level? This fall, we’ll continue to build on our Arroyo Collection and will be introducing Coyuchi was the first to bring organic four new styles, which use 100 percent cotton bedding to the United States certified organic Fair Trade fiber sourced almost 30 years ago and continues to use from Chetna Organic, an Indian, farmer- certified organic cotton today. Our mission owned producer group of 10,000+ is to provide organic cotton products that organic cotton smallholder farming families are both verified and support the long- comprised of nine cooperatives across term sustainability of organic farming Telangana, Orissa, and Maharashtra. communities. In 2019, we expanded our Coyuchi has worked with Chetna as a product assortment made from our 300TC member of the ChetCo shared value Organic Sateen, which uses certified sourcing network since 2015. Working in organic Fairtrade cotton sourced from cooperation with fellow members that span Pratima, a farmer-owned producer group the supply chain, ChetCo’s collaborative of almost 4000 organic cotton smallholder sourcing efforts have generated a 400+ Photo Credit: Coyuchi farming families in Orissa. The farmers at percent increase in organic cotton Where do you go from here? Pratima have used their Fairtrade premiums purchases from Chetna’s farming Q from products like these to fund a variety of communities. The impact of improving the On Earth Day, Coyuchi announced a new projects from building community centers, procurement process and payment timing partnership with White Buffalo Land Trust. to providing access to clean drinking water, for these farmers sends a clear message We will be moving beyond organic to creating a fund for the women in their of market demand and provides economic regenerative organic and have set a goal to community and providing access to quality, security needed for the longevity of these launch our first product in 2023. non-GMO organic seed. communities.

Burton was established in 1977 in a Organic cotton protects the health of barn in rural Vermont and found its people and the planet by reducing overall footing as the brand that pioneered the exposure to toxic chemicals from synthetic sport of snowboarding. The company pesticides. Because organic agriculture has demonstrated commitment to its doesn’t use toxic and persistent pesticides, communities since day one by focusing on choosing organic products is an easy way the rider experience, fighting for inclusion to help protect both consumers and the of the sport at ski resorts, and promoting farming communities that are growing gender equity by offering equal prize cotton. And a bonus – it’s softer, too! money for women and men since the very first Burton US Open Snowboarding Burton is proud to be a member of the Championships. Over the years, Burton has 2025 Sustainable Cotton Challenge, grown its product line to support the active aligned with their commitment to minimizing outdoor lifestyle by offering bags, apparel, negative environmental impacts and outerwear, and accessories. maximizing positive social impacts of the company. In 2017, Burton doubled down on putting its values into practice by setting ambitious sustainability goals. This includes a commitment to grow its organic content for cotton fiber to 100 percent for product on shelves starting in November of 2021. This represents just three product development years since the 2017 baseline of 23 percent organic cotton fiber. The company has been making progress across all product categories. Beginning with the spring of Photo Credit: Burton 2020, all of Burton’s inline tee shirts are made from 100 percent organic Peruvian cotton.

C&A, in partnership with Bext 360, Fashion At the farm level, the solution’s digital for Good, Laudes Foundation, and the trail is creating transparency not only by Organic Cotton Accelerator (OCA), as verifying the material but also by ensuring well as Kering, Zalando, PVH Corp, are the fair price brands are paying is reaching pioneering a new initiative called the Organic the farmers. Additionally, the digital trail Cotton Traceability Pilot at its supplier simplifies logistical transactions for farmers Pratibha Syntex. The objective of this and enable banks to provide them loans. pilot is to develop a proof of concept for the physical traceability of organic cotton At the consumer level, the technology sheds from farm to store using the combination a light on the suppliers and manufacturers of blockchain, machine vision, artificial that are behind a final product, increasing intelligence and product markers. trust and transparency.

This pilot initiative combines multiple With testing underway to trace organic technologies to trace and identify the origin, cotton from farm to gin, the next step will purity and distribution of organic cotton. trace from gin to consumer and finally it will While these technologies have already been need to be proven at scale. If taken to this used before in other supply chains, they level, this initiative has potential to become a have not been yet been used in fashion. leading end-to-end traceability solution not only for organic cotton, but also for other While block chain technology allows for preferred fibers. efficient integration of data from multiple sources in the supply chain, the use of machine vision, artificial intelligence, microbiome sequencing and on-product unique markers (including the physical markers: NFC, IN-Codes and fluorescent Li-Code's) help to guarantee data integrity as well as grade the quality and purity of materials. For machine-readable technologies like product markers, this can usually be done without altering the product itself.

Our mantra at prAna is Clothing for Positive Change. It inspires us to make the right choices when designing and making our “ products. Since Spring of 2018, 100 percent of the cotton used in our products is organic. While we are proud of that accomplishment, it is only a moment in our journey to create Russ Hopcus, President positive change. We do this out of respect to prAna our planet and its people.

At Timberland, we aim to move beyond reducing our negative environmental impacts by setting a goal to source materials that “ are net positive for people and planet. We believe cotton can be sourced in a way that actually restores the environments it comes from and betters the lives of the people Zachary Angelini, who grow it. This is why we are so excited Environmental to launch products in Fall of 2020 using Stewardship Manager Timberland Community Cotton. This cotton is sourced from smallholder farmers in Haiti through an agroforestry model which aims to improve farmer livelihoods and restore deforested land.

Suhas Khandagale Global Material Manager for cotton H&M Group

Can you tell us about H&M as Ethiopia and other African countries. Q Group’s 2020 cotton goal? We are also working together with the Organic Cotton Accelerator, through our Our commitment for 2020 is for all our farm sourcing projects in various states in cotton to be either recycled or sourced in India to create a prosperous organic sector a more sustainable way (meaning organic in the country. This sector faces several Photo Credit: H&M Group cotton or cotton sourced from the Better challenges, which result in a weak business Cotton Initiative) and we are on the good case for farmers and sourcing risk for Exchange and we constantly promote the way to get there. The figure of cotton brands. Our farm sourcing projects helped use of recycled cotton in our fabrics and What can we expect in the years to come in your cotton sourced in a more sustainable way at H&M to create a ground impact by assured buy yarn by new technical solutions driven by Q Group is 97 percent, as of today. Over the back agreements and providing access our own experts in production. A big part sourcing strategy? time, long-term actions around these three to trainings and other resources, such as of our denim collection is made with cotton We have a steady progress on reaching main types of cotton have been taken, GMO-free seeds for the farmers, which are blended with post-consumer recycled 100 percent cotton sourced in a more such as engaging with external partners, required for organic farming. The premium cotton from old garments. Part of these sustainable way. For 2019, this figure was collaborating with experts in this area or that is paid to the farmers motivates them to garments come from our global garment 97 percent (meaning recycled, organic setting progressive goals within the H&M continue organic production, where the yield collecting initiative, which is a great example cotton and BCI cotton). One of H&M group, to mention a few. production is approximately 14 percent less of how we can close the loop in fashion. Group's brands, Monki, already achieved compared with conventional cotton. During H&M’s latest collection includes fleece this goal in 2018 and we are working hard 2019, around 15,000 farmers were part of sweatshirts and joggers made of recycled What is the progress during for all the brands within the group to reach these sourcing projects and have shown cotton blended material, while H&M Home Q 2019 toward this goal? this goal by 2020. Beyond 2020, we will desire to continue with organic cotton. offers cotton rugs made from pre-consumer focus in increasing our recycled cotton cotton waste from H&M Group’s supplier We joined BCI in 2010 and thanks to our share even more, finding alternatives to Are you using other factories in Bangladesh. And we have commitment with our suppliers to constantly virgin cotton and continue working towards sustainable cottons? exciting projects ahead. We will be part of increase sourcing BCI cotton on our behalf, Q stronger industry standards for both organic the Ellen MacArthur Foundation’s Redesign we are currently the world’s biggest buyer project through two of our brands, H&M and and BCI cotton. of this kind of cotton. We are working The percentage of recycled cotton may seem small in comparison with BCI cotton Weekday. The project consists of rethinking together with BCI to develop and scale up the design and production process of denim the production and sourcing of better cotton or organic, we are a leading company in buying recycled cotton according to Textile products and move towards a circular from newer sourcing destinations, such process.

Supporting Women Farmers Converting to Organic Cotton

Lindex, an international fashion company, for good by enabling brands and retailers This latest initiative on cotton, the most fertilizers and pesticides, she has now was one of the first signatories of the to develop a more robust and resilient commonly used fiber in Lindex’s garments, learned how prepare her own compost, and Sustainable Cotton Communiqué in 2017. cotton supply chain. Beginning in October is part of the company’s sustainability is fully aware of the harm chemical inputs Today, 68 percent of its cotton is organic 2019, the two-year Women in Cotton promise: to make a difference for future can have to the environment and human and its entire baby assortment is made of program in Madhya Pradesh, India, will generations, by empowering women, health. Kanu says it is rare to have training organic cotton, making it one of the top ten support the farmers’ conversion journey respecting the planet and ensuring human for women, and the sessions have become users of organic cotton worldwide. For its from conventional cotton, with a focus on rights. a platform for women to come together and latest sustainable cotton project, Lindex is good agricultural practices, biodiversity and interact. She now knows more women in working with CottonConnect to train 350 improving integrity of cotton. Farmer story: Kanu Bai has a small cotton her community and is more confident to go women farmers in India in the Women in farm (1.41 ha) in Dhasalgaon village, out and get things done. Cotton program. The training covers multiple aspects of in Khargone district, Madhya Pradesh, agronomic interventions, including seed India, and started attending the Lindex/ “We decided to combine our commitment selection and spacing, water, nutrition CottonConnect program training. Having to organic cotton with the responsibility we and pest management through organic previously spent money on purchasing feel towards women in our value chain, from measures, as well as sessions on health and the field to the fitting room,” said Anna-Karin safety, and decent work. Farmers will also Dahlberg, Corporate Sustainability Manager learn about financing organic certification with Lindex. “These women cotton farmers and the organization of farmer collectives. are from tribal areas that are isolated and cut-off from mainstream development. They Having spent the last seven years working are converting from conventional farming to with partners to support thousands of organic farming, but have only a very basic organic cotton farmers across India, knowledge of organic farming practices, CottonConnect recognizes how crucial and therefore will benefit from some specific education is to scaling up organic practices, organic cotton training.” and for farmers to understand the benefits. Alison Ward, CottonConnect’s CEO says: Lindex is funding this two-year program with "Our partnership with Lindex seeks to surplus from One Bag Habit, a joint initiative transform the organic cotton sector not only by Lindex, KappAhl and H&M, which uses by increasing the volumes of organic cotton the surplus from the sale of shopping bags and by working with women who are often to support causes that drive sustainable neglected in training programs; but also, development. and very importantly, by creating a direct link between the farms and the brands. CottonConnect is an organization with a We believe this is essential to truly change mission to transform the cotton industry cotton supply chains." Photo: Cotton Connect

Brooke Summers What is Country Road's How does Country Road Supply Chain Consultant Q sustainable cotton goal? Q define "sustainable" cotton?

Cotton Australia By 2020, we’re aiming for 100 percent of Like many brands, we take a portfolio Country Road’s cotton products to support approach to sustainable cotton. We focus more sustainable farming practices. This on Australian, recycled and organic cotton. goal is a part of our Good Business Journey, Country Road is also a proud member of a program designed to embed sustainability Eloise Bishop the Better Cotton Initiative (BCI), believing into day-to-day business practices. Head of Sustainability in the power of shared learning and

Country Road Group collaboration. Why the focus on cotton? Q BCI is the largest cotton sustainability Cotton is one of our favorite fabrics. In fact, program in the world and takes a holistic our very first product – the iconic white approach to transforming global cotton shirt – was crafted from pure cotton. Since production. Through this program, farms are then, cotton has remained a strength of trained to use water more efficiently, care for our brand across Woman, Man, Child and the health of the soil and natural habitats, Home. Sustainability is becoming ever more reduce the use of harmful chemicals as important to our business. Customers are well as respect the rights and wellbeing of increasingly asking questions about where workers. our products come from and how they are How has the partnership with made. Cotton being such an integral part of Q Cotton Australia evolved? our business means that we not only have a responsibility to do the right thing, but we Country Road started working with also have great potential to drive positive Cotton Australia five years ago, when our change within the industry. formalized sustainability journey had just begun. The partnership has since evolved Sourcing Australian cotton goes hand- beyond cotton sourcing – we’re now in the in-hand with our brand ethos and our early stages of planning an exciting new sustainability focus. project around the stewardship of natural resources in cotton landscapes.

Photo Credit: Cotton Australia

Marci Zaroff Founder & CEO ECOfashion Corp

MetaWear delivers customized, full package the reduction of human and environmental sustainable textiles for brands and retailers. impacts, zero-budget natural farming, With an office in India and seasoned team climate change mitigation and circularity on the ground, we oversee all facets of through our bio-mass post-harvest stalk sourcing and product development, through collection, RESET supports and trains our production, quality control, inspections farmers to improve their livelihoods, turn and logistics. From farm, fiber and raw waste into worth, build healthy soil, and materials, to full transparency, certifications capture carbon through regenerative and and manufacturing, to marketing and transitional organic practices. In 2019, the communication strategy, MetaWear offers RESET program included 545 farmers and our partners a vertically-integrated, one- 46 villages, and is preparing to scale and stop shop to co-create turnkey circular meet our goal of 15,000 farmers in five and flat knits, as well as woven apparel years. Our intention is to double current and home textiles. With over two decades farmer income levels, increase efficiency of experience, story-doing and market and yields by 25 percent, convert at least leadership pioneering and overseeing 62,500 acres of conventional cotton from organic, regenerative and sustainable degenerative to regenerative production supply chains, MetaWear serves as an systems, completely eliminate GMOs and unparalleled solution provider—the "Intel devastating high interest farmer loans, inside" of sustainable fashion and home. sequester 160,000 metric tons of carbon, remove 337,500 kgs of toxic pesticides, RESET, our unique and innovative farm and increase farm biodiversity (species & project in India's cotton belt, is dedicated genetic) by 100 percent. to "Regenerating the Environment, Society and Economy through Textiles." By Together, we can empower lives, drive full partnering with our brand and retail clients, traceability, authenticity and accountability, we are building a win-win-win business and RESET both agriculture and popular model—from source to story. Focusing on culture alike.

Photo: Leslie Hassler

Starting with the soil might seem like Unfortunately, over the years the trains farmers to grow good quality organic levels of his farm. Also, the legume produce a strange way to address the multiple intensification of agriculture has seen the cotton, securing organic cotton for the serves as an additional source of income. crises that the 2025 Sustainable Cotton overuse of artificial nitrogen fertilizers, which future and testing the integrity. To nourish the soil, he prepares his own Challenge is trying to tackle, but taking the have played havoc with soils and resulted farm bio-inputs such as the green manure soil seriously is essential if we are to have a in depleted levels of organic matter. This The training sessions influenced him to re- Azolla (aquatic fern), CPP (Cow Pit Pat) meaningful impact. has serious implications not only for long- evaluate his cotton growing practices and manure, digested bio-gas slurry, and vermi term crop productivity, but also in terms of adopt organic methods of cotton farming. compost. These practices have reduced his Far from being boring, ubiquitous and climate and biodiversity impacts. The organic farming practices have helped expenditure on pesticides and fertilizers and brown, soils hold the very key to unlocking Parasram significantly improve his income. provide additional benefits, for example the the challenges we face. This is something This is why good soil management is a The immense benefits that organic farming bio-gas plant produces methane gas which championed by organic regenerative vital cornerstone of sustainable farming, brings to soil health and overall biodiversity is used for cooking. farmers the world over and well understood and ultimately a sustainable fashion future, are yielding results for him in many other by many of the schemes recognized by the because we’ll need healthy soils if we’re ways too. As was the general practice, Motivated by the success of organic Challenge. to produce cotton in a way that’s fit for the Parasram used to practice mono-cropping farming, Parasram encourages fellow future and helps rather than hinders the fight which led to problems ranging from lower farmers to adopt these practices. He loves Why are soils so important? against climate change. production of crops, soil health deterioration to share his knowledge and experience on and rising crop diseases. Today, he grows organic agriculture with his peers through One reason is that soils store two to three Case Study: times more carbon than the atmosphere legumes along with cotton. This practice his unique form of poetry. does. Managed well, soils are a huge Improving soil health through organic of intercropping has improved soil nutrient carbon sink, managed badly they become farming a carbon source. Healthy soils are ones Parasram switched to organic farming that are rich in organic matter and teeming six year ago and became a certified with life. By building up organic matter organic farmer in 2018/19. Hailing from through methods like composting and the state of Madhya Pradesh in India, growing green manures (plants that naturally which accounts for 43 percent of India’s fix nitrogen from the air), healthy soils and 24 percent of world’s organic cotton can grow healthy plants that are naturally production, Parasram was growing cotton more resilient to pests and diseases, the conventional way before he began can cope better in times of flood and adopting organic farming practices. The drought (because soils rich in organic initial years of the switch were difficult. matter act as a sponge), and are home to However, the positive results that he saw a multitude of other species that support in his farm strengthened his confidence wider ecosystems, from pollinators to pest in organic cotton farming. He became predators, thus supporting a wide range of part of CottonConnect’s Organic Cotton biodiversity. Farming Program in 2019. The program

The standards and initiatives listed to the right are currently tracked in Textile Exchange’s (Organic Content Standard [OCS], Global Organic Textile Standard [GOTS]), recycled cotton Preferred Fiber & Materials Benchmark Program. Through this program we have been able (Recycled Claim Standard [RCS], Global Recycled Standard [GRS] and SCS Recycled to track the use of more sustainable fibers and materials from 111 global brands for several Content Standard), REEL Cotton, Regenerative (Regenerative Organic Certified), Transitional years and are using this data to build a track record of growth and success. cotton (GOTS, OCS, Transitional), and our newest initiative, the U.S. Cotton Trust Protocol.

These initiatives include Abrapa, BASF e3™, Better Cotton Initiative (BCI), Cleaner Cotton, By committing to use cotton from these initiatives and standards, brands are ensuring that Cotton made in Africa (CmiA), Fairtrade, Field to Market, ISCC, myBMP, Organic cotton the intentions of their sustainable sourcing strategies are maintained.

A note on yield: Yields will vary from country to country (region to region, producer to producer and year to year), depending upon factors such as climatic conditions, water availability, soil quality, pest pressure, and farmer resources. This is particularly Better Cotton Initiative Cotton made in Africa ABRAPA BASF e3™ true when it comes to “rainfed versus irrigated” production. Small-scale family producers (on landholdings of 2 hectares or less), who account for 80-90 percent of farmers, primarily in the global south, are often the most vulnerable, particularly when it comes to yield variation. Optimizing yield and farm diversity (including food crops) over the longer term, rather than a single focused approach to maximizing cotton production and yield, Cleaner Cotton Fairtrade Cotton Organic Cotton Field to Market can be a more sustainable approach and can result in higher resilience and less risk for the farmer. In addition, balancing economic factors, such as yield, with sustainability outcomes and impacts, such as soil and water quality/conservation, food security and farm net income, should also be carefully considered in any cotton sustainability strategy.

ISCC myBMP Regenerative Cotton REEL Cotton A note on LCA data: While Life Cycle Assessment (LCA) help us evaluate the inputs and impacts of production systems, it is limited to a restricted set of criteria more suitable for a factory than a farm. In addition, conditions will vary from year to year, region to region, and farm to farm. These variances can be obscured when LCAs are presented as a global average (even

©TextileExchange if volume-based weightings are applied). Other key impacts that are not captured in an LCA include biodiversity and socio- Recycled Cotton Transitional Cotton U.S. Cotton Trust economic impacts which are critical to a sustainability agenda. Protocol

According to the United Nation’s introduces improved production practices Cotton Code Intergovernmental Panel on Climate across a number of core areas such as Farm Requirements Verification Systems Certification or Standard Change (IPCC), the agriculture, forestry, water use and management, integrated pest nd and other land use sector is responsible for management. Other programs introduce Self-Assessment, 2 BCI Grown to BCI Criteria rd an estimated 23 percent of anthropogenic regenerative soil practices and organic and 3 Party Verified greenhouse gas (GHG) emissions,1 production system practices designed to 3rd Party Cleaner Cotton Producers 2nd Party Verified mainly from deforestation and agricultural build ecosystems and biodiversity. Certified emissions from livestock, soil, and nutrient Self-Assessment, 3rd 2 One of the 2020 goals for this program CmiA Grown to CmiA Criteria management. There is therefore a clear Party Field / Gin and urgent need to adopt and promote will be the adoption of key performance nd agroecological production methods that indicators (please see the report on the e3 Grown to Code 2 Party Verified, FPC sequester carbon, are climate resilient, and Delta Project on page 11) that will allow Fair Trade Producers certified to 3rd Party work with nature rather than against it3,4. all of these programs a way to collect Cotton Fair Trade Standard Certified consistent impact data and adopt strategies rd The 2025 Sustainable Cotton Initiatives are for the promotion and implantation of Fair Trade Grown to both Organic 3 Party recognized based upon having a clear code, continuous improvement. Organic and Fair Trade Standards Certified guideline or standard that, for a base line, Field to Market Grown to Code 2nd Party Verified, FPC 3rd Party ISCC Grown to Standard 1 IPCC (2019). Summary for Policymakers. In: P.R. Eickemeier, B. Kriemann, J. Savolainen, S. Schlömer, C. Certified Shukla, J. Skea, E. Calvo Buendia, V. Masson-Delmotte, von Stechow, T. Zwickel. & J.C. Minx (eds), Mitigation Grown to Organic 3rd Party H.- O. Pörtner, D. C. Roberts, P. Zhai, R. Slade, S. of Climate Change. Contribution of Working Group III to Organic Cotton Connors, R. van Diemen, M. Ferrat, E. Haughey, S. Luz, the Fifth Assessment Report of the Intergovernmental Production Standards Certified S. Neogi, M. Pathak, J. Petzold, J. Portugal Pereira, Panel on Climate Change. Cambridge University By Request P. Vyas, E. Huntley, K. Kissick, M. Belkacemi, J. Malley Press, Cambridge, United Kingdom and New York, NY, REEL Grown to REEL Code 2nd Party Verified – 3rd Party (eds). Climate Change and Land: an IPCC special report USA. Retrieved from https://www.ipcc.ch/site/assets/ Certified on climate change, desertification, land degradation, uploads/2018/02/ipcc_wg3_ar5_chapter11.pdf sustainable land management, food security, and U.S. Cotton 2nd and/or 3rd Party 3 Nuijten, E., Messmer, M. M., & Lammerts van Grown to Code greenhouse gas fluxes in terrestrial ecosystems. In press. Trust Protocol Verified, FPC Retrieved from https://www.ipcc.ch/site/assets/uploads/ Bueren, E. T. (2017). Concepts and strategies of sites/4/2019/12/02_Summary-for-Policymakers_SPM. organic plant breeding in light of novel breeding Note: This list is not intended to be exclusive. Other Codes or Standards that meet pdf techniques. Sustainability, 9(1), 18. DOI: 10.3390/ su9010018 similar criteria may be included. 2 IPCC [Smith, P., Bustamante, M., Ahammad, H., Clark, H., Dong, H., Elsiddig, E. A., Haberl, H., Harper, 4 Devos Y., Demont M., Dillen K., Reheul D., Kaiser M., Note: FPC refers to the Field Print Calculator R., House, J., Jafari, M., Masera, O., Mbow, C., & Sanvido O. (2009) Coexistence of Genetically Modified Ravindranath, N. H., Rice, C. W., Robledo, Abad C., and Non-GM Crops in the European Union: A Review. Romanovskaya, A., Sperling, F., & Tubiello F.] (2014). In: Lichtfouse E., Navarrete M., Debaeke P., Véronique Agriculture, Forestry and Other Land Use (AFOLU). In O. S., Alberola C. (eds), Sustainable Agriculture. Springer, Edenhofer, R. Pichs-Madruga, Y. Sokona, E. Farahani, Dordrecht. DOI: 10.1007/978-90-481-2666-8_14 S. Kadner, K. Seyboth, A. Adler, I. Baum, S. Brunner, P.

abrapa.com.br Objective The Responsible Brazilian Cotton program The ABR offers workers a series of The Brazilian Association of Cotton Producers aims to increase the profitability of (ABR) epitomizes the union of cotton guarantees: formal registration, fair wages, the sector through the union of its agents and seek strategic sustainability, acting growers in favor of a more sustainable extra hours as per law, weekly day off and politically, socially and economically with the public and private sectors, practicing cotton production in Brazil. ABRAPA paid vacations; safety in the workplace; management of results in four aspects: fiber quality, traceability, sustainability and aims to protect and preserve the integrity lodging, meals, transportation, medical commercialization. of workers. It is 100 percent in line with care, and recreational structure; non- Brazilian labor laws (CLT), International discriminatory treatment; freedom to join Overview Labor Organization (ILO) Conventions unions and support to collective bargaining. and Regulating Norm 31, which controls The Brazilian Responsible Cotton program - ABR, is the union of cotton growers in work safety, occupational health and work Under the environmental pillar, growers favor of a more sustainable cotton production in Brazil, focused on the progressive environment. are encouraged to adopt best practices evolution of good agricultural, social, environmental and economic practices. that combine agricultural production and ABR participating production units have a environmental protection. zero tolerance policy toward child labor, with non-compliance preventing certification. ABR promotes protection of water sources, rivers, and reservoirs; preservation of Fiber Production (2017/18) Market Share of Total Cotton Grown (2016/17) biomes and of the soil; air, water and soil 2,005,800 mt 5 Year Production trend (,000) quality. 7.52% 2,006 2,000 Growth in Production Fiber Production Projected to Producing Countries (2016/17–2017/18) Increase? 1600 Brazil. 1,190 Yes. Estimates show 2,170,211 1200 1,128 69% 1,042 1,043 mt and 1,227,735 ha in 2018-19. 800 Yield Rainfed / Irrigated 400 Average 1,629 kg/ha 95% rainfed, 0 5% irrigated 13-14 14-15 15-16 16-17 17-18

Initiative data is referenced to Textile Exchange Preferred Fiber & Materials Market Report 2018 which is sourced from and verified by respective initiative. The market share indicated in this page is initiative dependent and may differ from what is outlined in Global Preferred Cotton Market due to overlapping programs between initiatives (i.e. as BCI equivalency).

LCA Availability Biodiversity Verification / Certification $ Cost Implications / Impacts (farm level) n/a ABR certification is 100 percent aligned with No membership fee for the ABR application all federal laws in the country. Promotes Diagnostic evaluation, plan for the correction or licensing fees. Water Consumption: conservation of biomes, water sources, of nonconformities and certification by third No LCA data. fauna, flora and environmental recovery. parties. Quality Perception / Implications Consistently high quality, among the highest Primary Energy Demand: GMOs Permitted? Chain of Custody (supply chain) in the world in all parameters. No LCA data. Yes - regulated and carefully managed. ABR The model adopted (EAN 128 - subsidy has specific items regarding the GMO and B) was based on the system implemented Global Warming: its management of the resistance. by the USDA. The current standard uses No LCA data. a Serial Shipping Container Code (SSCC) Use of Hazardous Pesticides logistic unit serial code - one of the most Eutrophication: important application identifiers used in The farm has a strategy to discontinue the No LCA data. product traceability - containing 18 digits use of WHO Class I pesticides, listed in the preceded by a two-digit prefix (00) that Rotterdam Convention and Endosulfan. Water Management identifies the EAN / UCC code type. It is a simple, practical and very safe system for Use of Synthetic Fertilizer ABR has 21 verification items related the traceability of cotton bales, which can to the efficient use and conservation of Permitted - In the criterion of good be implanted by all producers and cottons water within the criteria of “Environmental agricultural practices the ABR has five without major investments. Performance” and “Good Agricultural certification items related to the sustainable Practices.” use of synthetic fertilizers. Product Marketing / Labeling Soil Fertility Limited in the marketing of products in the Social Considerations / Regulations bales. 18 criteria related to soil health, including: The social theme is aligned with the minimum crop, crop rotation, soil fertility legal precepts that protect and preserve Consumer Recognition analysis, organic matter, no-till, erosion the integrity of the worker. 100 percent prevention and soil salinity, fertilizer Low levels of awareness in consumer aligned with Brazilian labor legislation - efficiency and pH correctives, precision recognition. Consolidation of Labor Laws (CLT); 100 agriculture, map soil fertility, fertilizer percent aligned with the conventions application at variable rates and use of Livelihoods of the International Labor Organization biome-adapted cultivars, and cotton (ILO); 100 percent aligned with Regulatory Maybe some price differential paid directly growing areas outside the Amazon biome, Standard 31, which regulates work to farmers, who are paid based on market and cultivated in areas that were once safety, occupational health and the work price, prevailing quality and whether or not it farmed. environment. is certified cotton.

e3cotton.us

Only e3™ brings together a unique blend production methods to optimize water use, of integrity and authenticity to provide increase soil and plant health, preserve land Objective peace of mind and sustainable credibility. and reduce energy. Sustainable farming may The consumer can now know who grew or may not use plants improved through To create a more sustainable American cotton landscape. the cotton in their apparel and under what modern biotechnology. conditions it was produced. Overview Dedicated e3™ cotton growers commit e3™ is BASF CropScience’s more sustainable cotton option. It is grown in the U.S. The core focus of sustainable farming to certification and verification through with care by cotton producers striving to improve their sustainability in production of practices is to meet the current needs independent audits, allowing for tracking the highest-quality upland cotton for apparel and home furnishings. for productivity and profit ensuring future of specific environmental and social generations can do the same. Their measurements. definition of sustainable also includes the use of new technologies as well as proven Producing Countries Fiber Production (2017/18) Market Share of Total Cotton Grown (2017/18) 5 Year Production trend (,000) U.S. 22,852 mt 60 0.09%

50 47 40 36 37 Growth in Production Fiber Production Projected 30 (2016/17–2017/18) to Increase? 23 20 52% Yes. Estimates show 160,754 10 mt and 114,737 ha in 2018-19. no data 0 13-14 14-15 15-16 16-17 17-18 Yield Rainfed / Irrigated 754/lb per acre to more than Combination 2,000/lb per acre [138 kg/ha to 367 kg/ha]

Initiative data is referenced to Textile Exchange Preferred Fiber & Materials Market Report 2018 which is sourced from and verified by respective initiative.

LCA Availability Water Management Use of Synthetic Fertilizer Livelihoods

No, but tracking systems are provided via Aims to reduce irrigation water use. Fertilizer use is measured under e3™ e3™ farmers are paid a small per bale tools that measure producer operations program criteria, along with crop rotation, incentive to reinvest in sustainable activities and field level activities. Soil Fertility compositing and cover crop usage. 98 improvement practices. percent of e3™ producers conduct soil Promotes soil health and stewardship. Water Consumption: tests and 94 percent applied nutrients Cost Implications / Impacts Activity is assessed on various factors $ 36 percent of e3™ producers use drip based on crop and soil needs and/or including land use and soil carbon. Small price differential paid to farmers, irrigation or low pressure sprinklers and flow University recommendations Concept based on continuous, measured negotiated with individual brand/retailer. meters. At least 73 percent of e3 producers improvement. practice residue management, use cover Social Considerations / Regulations Quality Perception / Implications crops, mulching, or other evaporation Biodiversity US cotton growers are all held to high prevention measures. No known quality implications. standards by law for worker health and Promotes biodiversity conservation. Activity safety. Equal Employment Opportunity, Primary Energy Demand: is assessed on various factors including Child Labor Legislation, Personal Protection conservation. The concept is to improve 34 percent of e3™ producers use and Migrant Labor Laws all must be one’s performance on these various renewable or alternative energy such as adhered. ethanol, biodiesel, solar or wind energy. parameters over time. Verification / Certification GMOs Permitted? Global Warming: (farm level) 92 percent of e3™ producers reduce Yes. nitrous oxide emissions through optimum Self-evaluation and third-party audits. rates and timing of nitrogen fertilizer or Use of Hazardous Pesticides use of a nitrogen stabilizer. 46 percent of Chain of Custody (supply chain) Pesticide use is measured under e3™ e3™ producers plant new trees, maintain CoC to the mill (for further content claims guidelines, while IPM is encourage through forest areas and pastures, to offset carbon use). emissions. precision farming technologies, and subject to US regulations regarding pesticide use. Product Marketing / Labeling Eutrophication: 92 percent of e3™ producers use non- 79 percent of e3™ producers use grass chemical means of pest control including Bt Limited on product marketing. waterways or filter strips to control water varieties and bio-based insecticides and 91 runoff and 46 percent use vegetative percent preserve beneficial insects by using Consumer Recognition borders to reduce nutrient runoff. scouts who can identify and understand No data. economic value of useful insects.

bettercotton.org

The Better Cotton Initiative (BCI) brings Better Cotton Initiative (BCI) cotton together farmers, ginners, traders, spinners, production including equivalents increased Objective mills, cut and sew, manufacturers, retailers, from 665,789 mt in 2012/13 to 3.26 million brands, civil society and grassroots mt in 2016/17. The BCI Standard made To transform the market by making Better Cotton a sustainable mainstream organizations in a unique global community up approximately 50 percent of all BCI commodity. committed to developing Better Cotton as a cotton produced in 2016/17. The remaining sustainable mainstream commodity. ~50 percent of BCI cotton was produced Overview according to the BCI equivalents ABRAPA, BCI sets out to improve the sustainability of mainstream cotton production. Growers Cotton made in Africa and myBMP. must meet core environmental and social requirements for their cotton to qualify as 5 Year Production trend (,000) Better Cotton. Continuous improvement is a key element of the Assurance Program. Producing Countries 6,000 5,142 In the 2017/18 cotton season, Better 5,000 Cotton was produced in China, India, Fiber Production (2017/18) Market Share of Total Cotton 4,000 Israel, Kazakhstan, Madagascar, Mali, Grown (2017/18) 3,262 Mozambique*, Pakistan, South Africa, 2,806,500 mt (BCI Standard) 3,000 2,505 Tajikistan, Turkey and the USA. An 2,335,000 mt (BCI Benchmark) 8.76% (BCI Standard) 1,969 2,000 1,879 additional 10 countries produced Better 10.53% (BCI Benchmark) Cotton under BCI recognized equivalent 1,000 Growth in Production Fiber Production Projected to standards - CmiA (Burkina Faso, Cameroon, (2016/17 - 2017/18) Increase? 0 Cote d'Ivoire, Ghana, Mozambique, 13-14 14-15 15-16 16-17 17-18 Tanzania, Uganda and Zambia), myBMP 33.12% (BCI Standard) Yes (Australia) and ABRAPA (Brazil). 86.11% (BCI Benchmark) BCI Standard BCI eq. ABRAPA BCI eq. CmiA/SCS BCI eq. MyBMB *Mozambique is counted once. Yield Rainfed / Irrigated BCI collects yield data at country-level. In the Combination vast majority of cases, implementation of the Better Cotton Standard System leads to higher yields, but the measures of improvement vary. For example, in the 2017/18 season, BCI Farmers in China had 14% higher yields and BCI Farmers in Pakistan had 15% higher yields than Comparison Farmers in the same geographic areas1.

LCA Availability Soil Fertility Use of Synthetic Fertilizer Consumer Recognition

BCI understands the sector’s expectations Soil Health is one the seven Better Cotton The use of fertilizers (organic and inorganic) The introduction of the Better Cotton Claims for measurable indicators of improvement Principles and Criteria. Management is addressed in the Soil Health and Water Framework enabled BCI’s Members to and impact, and is currently developing practices address soil analysis and Stewardship Principles and Criteria. communicate their commitment to BCI and reliable indicators that offer value to type identification, enhancement of soil Producers should develop a better Better Cotton to their consumers. members while ensuring the credibility and structure and fertility, and nutrient cycling understanding of, and have better control feasibility of the Better Cotton Standard improvement. of, fertilizer use. Livelihoods System. Social Considerations / Regulations No price differentials for farmers but yields Biodiversity and income expected to improve. The Water Consumption: The Better Cotton Standard is aligned with volume-based fee paid by BCI’s Retailer No LCA data. Biodiversity and Land Use is one of the seven Better Cotton Principles and Criteria. the ILO. Decent Work agenda requirements and Brand Members is invested into farmer on gender. Guidance on topics such as training and capacity building programs. Primary Energy Demand: Management practices address identifying child labor, sanitation facilities and equal For example, in the 2017/18 season, BCI No LCA data. and mapping biodiversity resources, identifying and restoring degraded areas, payment are also included in the Standard. Farmers in India had 24 percent higher profits and BCI Farmers in China had 25 Global Warming: enhancing populations of beneficial insects, ensuring crop rotation and protecting Verification / Certification percent higher profits than comparison No LCA data. riparian areas. (farm level) farmers in the same geographic areas. Find the full results at Bettercotton.org/farmer- Self-assessment, Second-Party Credibility Eutrophication: results/. GMOs Permitted? Checks by BCI and/or partners, Third- No LCA data. Yes. BCI is technology neutral with respect Party Verification by independent verifiers, Cost Implications / Impacts and for large-farms in the US, a US Group $ Water Management to GM cotton, and will neither encourage farmers to grow it, nor seek to restrict their Management model. No price differential at point of sourcing but Water Stewardship is one of the seven access to it. membership and volume-based fees apply. Better Cotton Principles and Criteria. Chain of Custody (supply chain) Management practices address water Quality Perception / Implications Use of Hazardous Pesticides Physical segregation farm to gin; mass resources identification and mapping, soil balance gin to retailer. No known quality implications. moisture management, efficient irrigation Pesticides listed in Annex A and B of the practices, water quality, and participation in Stockholm convention, Annexes of the Product Marketing / Labeling collective action to promote the sustainable Montreal Protocol, and Annex III of the use of water. For example, in the 2017/18 Rotterdam convention are forbidden. On-product and off-product season, BCI Farmers in India used 10 Producers must phase-out active communications. The BCI On-Product Mark percent less water than Comparison ingredients that are known or presumed can be used by BCI’s Retailer and Brand Farmers in the same geographic areas. Find to be highly or extremely hazardous, Members. Strict criteria for use are set out the full results at Bettercotton.org/farmer- carcinogens, mutagens or reproductive in the Better Cotton Claims Framework results/ toxicants.

sustainablecotton.org/cleaner-cotton-tm

SCP’s farm program brings together a Cleaner Cotton™ fiber is high quality fiber, community of family farmers growing available in both Pima and Acala varieties. Objective cotton in California’s Fresno, Madera and It utilizes biological farming practices and Merced counties. With SCP’s support eliminates the 11 most toxic chemicals Cleaning Up Cotton In California. and guidance from experts at UC IPM used in conventional cotton cultivation in and UC Cooperative Extension, these California, reducing toxicity in the air, soil Overview growers are changing the way they farm by and watersheds. The Sustainable Cotton Project works with California cotton growers to reduce the implementing biologically-based practices, harmful impacts of pesticide use from cotton production on the air, water and soil in Cleaner Cotton™ receives a modest which protect the land, air and water the region and to market the cotton they grow in the project as Cleaner Cotton™. resources in the region. The fiber that these premium, paid directly to the farmer to help farmers produce as part of SCP’s program support these practices. It is tracked from is called Cleaner Cotton™. field to spinner, using the USDA Permanent Bale Identification barcode and data. Fiber Production (2017/18) Market Share of Total Cleaner Cotton production increased from Cotton Grown (2017/18) 5 Year Production trend (,000) 258 mt in 2012/13 to 699 mt in 2016/17. 1,006 mt 1.0 1.0 0.004%

0.75 Producing Countries 0.8 0.7 0.6 0.61 Growth in Production Fiber Production Projected 0.6 U.S. - California. (2016/17–2017/18) to Increase? 0.4 44% Estimates show 914 mt and 0.2 652 ha in 2018-19.

0 13-14 14-15 15-16 16-17 17-18 Yield Rainfed / Irrigated Average 748 kg/ha 100% irrigated

Initiative data is referenced to Textile Exchange Preferred Fiber & Materials Market Report 2018 which is sourced from and verified by respective initiative.

LCA Availability Biodiversity Social Considerations / Regulations Livelihoods n/a Promotes farming systems that increase U.S. cotton growers are all held to high A modest price differential is paid directly to beneficial insect habitat and survival. standards by law for worker health and the farmer. Water Consumption: safety. No LCA data. GMOs Permitted? $ Cost Implications / Impacts Verification / Certification Yes - sold separately from non-GMO. Price differential paid to farmer. Primary Energy Demand: (farm level) No LCA data. Use of Hazardous Pesticides Second party monitoring. Quality Perception / Implications

Global Warming: Disallows the use of the 11 most toxic Chain of Custody (supply chain) No known quality implications. No LCA data. chemicals used in cotton in California - unless pests threaten to cause economic Bale identification system - USDA bar code Eutrophication: loss, or other lower-risk options are on each bale. exhausted. IPM and biological alternatives No LCA data. encouraged. Up to 50 percent reduction in Product Marketing / Labeling chemical inputs over conventional. Water Management Marketed and trademarked as Cleaner Cotton™. Some cotton grown on drip irrigation. Use of Synthetic Fertilizer

Growers encouraged to adopt biological Consumer Recognition Soil Fertility methods to improve soil quality. Yes, consumer messaging via products and Compost and cover crops encouraged to website. maintain soil health and productivity.

cottonmadeinafrica.org Objective Cotton made in Africa (CmiA) is an initiative Growers must meet minimum environmental Sustainable African Cotton for a global Textile Industry. of the Aid by Trade Foundation (AbTF) that and social requirements for their cotton to works to promote economically, ecologically, qualify as CmiA. GMOs are banned in the Overview and socially sustainable cotton production CmiA standard. in Africa. Cotton made in Africa is an initiative of the Aid by Trade Foundation (AbTF) that helps With production having increased from African smallholder cotton farmers to improve their living conditions. Growers must CmiA helps smallholder farmers improve 144,909 mt in 2012/13 to 495,839 mt in meet core environmental and social requirements for their cotton to qualify as CmiA. their living conditions and profit from fair 2016/17, CmiA is a major player in the contracts and training in efficient and cotton sector of Sub-Saharan Africa. environmentally sound cultivation methods. The CmiA verification process also includes The Aid by Trade Foundation has introduced the workers in the cotton gins. Together a CmiA Organic Standard into its family of with partners, CmiA additionally invests in standards, which combines existing organic Fiber Production (2017/18) Market Share of Total community projects that provide school standards with the social and economic Cotton Grown (2017/18) production criteria of CmiA. 578,562 mt infrastructure, set-up WASH and nature 2.17% conservation projects and empower women. Growth in Production Fiber Production Projected to 5 Year Production trend (,000) Producing Countries (2016/17–2017/18) Increase? 600 579 Cameroon, Cote d’Ivoire, Ethiopia, 496 Yes. Estimates show 593,067 mt 500 17% Ghana, Mozambique, Tanzania, Uganda, and 1,656,998 ha in 2018-19. 400 400 Zambia. 320 300 Yield Rainfed / Irrigated Claim of 20% average yield 200 169 100% rainfed increase 100

0 13-14 14-15 15-16 16-17 17-18

LCA Availability Soil Fertility Social Considerations / Regulations Consumer Recognition

Yes - PE International (2014a). Farmers receive training to improve Production must comply with labor 13 percent awareness among German agricultural practices, particularly soil and standards as set by the ILO. CmiA standard consumers (measured Aug 2016). Water Consumption: water conservation. Composting and includes farm as well as gin level criteria. 1 m3 / 1,000 kg fiber manure are encouraged while crop rotation Social project investment with AbTF and Livelihoods (~100 percent reduction - LCA). is mandatory. retail partners/cotton companies. No price differential for farmers but the volume-based fee paid by brands/retailers Primary Energy Demand: Biodiversity Verification / Certification (farm level) is reinvested in the Foundation’s activities, No LCA data. Destruction of primary forest (or other e.g. farmer training, verification, community designated resources protected by national projects, etc. Global Warming: Self-assessment and 3rd party verification or international law) for the purpose of on field and gin level. 1,037 kg of CO -eq / 1000 kg fiber 2 cotton production is prohibited. $ Cost Implications / Impacts (43 percent reduction - LCA). Chain of Custody (supply chain) GMOs Permitted? No membership fee but retailers/brands pay Eutrophication: Mass Balance from spinning mill onward a volume-based fee and spinning mills pay a No. small annual registration fee. 20.4 kg of phosphate-eq / 1000 kg fiber (hard identity from field to spinning mill); full (431 percent increase - LCA). traceability possible through Hard Identity Use of Hazardous Pesticides Preserved (option). Quality Perception / Implications Please note: LCA used default values for The use of organic pesticides is No known quality implications. erosion rates and nutrient content of the encouraged. Promotes bio-intensive IPM Product Marketing / Labeling soils due to lack of specific data. It can be and excludes pesticides banned under Consumers can easily recognize CmiA assumed that eutrophication in reality is the Stockholm Convention on Persistent through woven labels and hangtags on the significantly lower that calculated. Organic Pollutants (POPs), the WHO list of textiles as well as other communication highly hazardous and hazardous pesticides, material used by retailers and brands. Water Management and pesticides listed in the Rotterdam CmiA farmers practice rainfed agriculture Convention on PIC. exclusively. This means they do not use any Use of Synthetic Fertilizer artificial irrigation. Excessive use of fertilizers not an issue in CmiA’s growing regions; IPM, organic manure and compost pits encouraged.

The cotton business is tough. Farmers in rural Africa have to face hard physical work, low access to training and inputs and are strongly affected by the consequences of climate change.

Two out of the 800,000 farmers CmiA is cooperating with are Sabina and Paul – a cotton farming couple from Tanzania. Sabina and Paul grow cotton on their small farm together. They only had the chance to finish primary school. What helps them a lot on a daily basis are the agricultural trainings CmiA is offering farmers in close cooperation with the local cotton company Alliance. Thereby they learn about new and sustainable cultivation methods and techniques that help them improve their yields and income. The trainings are led by an extension officer who trains a small group of farmers on a regular basis on different aspects of cotton farming and beyond. During their trainings Sabina and Paul also learned about the bio-pesticides: “At the beginning we were wondering if it really works. But now, we are very happy with it”, they said and added satisfied “with the help of bio-pesticides we were able to protect our cotton better against pests and thus harvest more cotton at the end of the season than the year before.” Asked about what they wish for their son Johann, they said: “We want our children to learn more than we did. We hope for our son Johann that he can become a teacher at school.“ Photo: Martin J. Kielmann / CmiA

fairtrade.org.uk/Farmers-and-Workers/Cotton Objective Fairtrade (FT) is a global movement to decide how they want to use the Fairtrade To make trade fair, empower small scale producers and workers and to foster support small-scale, marginalized farmers Premium, and it generally goes toward sustainable livelihoods. and workers in developing countries, community development. changing the way trade works through Overview better prices, decent working conditions, Fairtrade has stringent social criteria and an overall fairer deal. ensuring freedom from discrimination, Fairtrade changes the way trade works through better prices, decent working forced and compulsory labor, child labor, conditions and a fairer deal for farmers. The Fairtrade standards require farmers Fairtrade standards require farmers freedom of association and collective to organize in democratic producer organizations and environmentally sound to organize into democratic producer bargaining. agricultural practices. It ensures the Fairtrade Minimum Price and Fairtrade Premium. organizations and to have environmentally sound agricultural practices. In return, they Fairtrade cotton production reached 17,997 are guaranteed the Fairtrade Minimum mt in 2016/17, of which 17.65 percent was Price, which provides an important safety also certified to an organic standard. GMOs net, as well as a Fairtrade Premium. The are banned in the Fairtrade standard. Fiber Production (2017/18) Market Share of Total Cotton Grown (2017/18) producer organizations democratically 16,906 mt 0.06% 5 Year Production trend (,000) Producing Countries 25 India, Kyrgyzstan, Tajikistan, Burkina Faso, Growth in Production Fiber Production Projected 20 18 Mali, Benin, Senegal, Uganda, Egypt 17 17 (2016/17–2017/18) to Increase? 16 17 15 6% Yes 10

5 Yield Rainfed / Irrigated 0 13-14 14-15 15-16 16-17 17-18 Yield increases recorded. Predominantly rainfed (75% in Dependent on rainfall as most 2015) Fairtrade Organic Fairtrade Fairtrade cotton is rainfed.

Organic Fairtrade (OFT) cotton is cotton that is LCA Availability GMOs Permitted? Product Marketing / Labeling certified to both Fairtrade and organic standards. No. No. On-product and in-store marketing. Fairtrade encourages organic farming practices Third-party certified (Fairtrade mark). and has a higher minimum price for organic Water Consumption: Use of Hazardous Pesticides commodities. Organic farm standards ensure No LCA data. Consumer Recognition that the cotton is grown within a rotation system Promotes IPM and organic practices. that builds soil fertility, protects biodiversity and is Prohibited Materials List is divided in Fairtrade mark widely understood and grown without the use of any synthetic fertilizers, Primary Energy Demand: two: The Red List includes materials trusted by consumers. hazardous pesticides or GMOs. No LCA data. that are prohibited, while the Amber List includes materials that are under Livelihoods With most (93 percent) of OFT participants Global Warming: evaluation for inclusion in the Red List. adopting third-party standards, the sector is No LCA data. Farmers paid Fairtrade Minimum performing well in Chain of Custody (86). The Use of Synthetic Fertilizer Price. Communities benefit from sector score for Traceability is relatively strong at Eutrophication: Fairtrade Premiums - spending decided 69, with 86 percent of participants able to trace Red and amber list of PML (based on democratically by cooperatives. No LCA data. their suppliers of OFT cotton to some degree. POP, PIC, WHO, PAN 12). Sustainability Investment scored slightly lower at Cost Implications / Impacts Water Management $ 56. However, with 64 percent of OFT participants Social Considerations / Price differential (Fairtrade Minimum making Sustainability Investments in their supply Promotes efficient and sustainable use Regulations Price). Buyers also pay Fairtrade chains, this score was the highest among all of water resources. Stringent criteria on freedom from Premium for community investment. modules. discrimination, forced/compulsory labor, Soil Fertility More than two-thirds (71 percent) of OFT child labor, freedom of association and Quality Perception / Implications participants have a SMART Target driving uptake Encourages improvement of soil fertility collective bargaining. Operators in the Historical perceptions of quality being an of OFT cotton and 14 percent are maintaining an through composting, crop rotation and supply chain must comply with ILO core issue - but that is less of an issue today. OFT-only status (100 percent of cotton usage). intercropping and reduction/prevention conventions. The majority, (71 percent) of OFT participants are of soil erosion. able to report consumption volumes Verification / Certification Biodiversity (farm level) OFT leads in Section 4: Consumer Engagement with a sector score of 54. 86 percent of OFT Ensures no negative impact on Certification by third party. participants regard their use of Organic-Fairtrade protected and HCV areas and must as core to Establishing Brand Value and comply to national legislation on Chain of Custody (supply chain) communicate/label OFT products. 93 percent agricultural land use and carry out Two models: Classic: Physically of OFT participants engage customers on the activities to protect and enhance segregated and traceable. Mass benefits of OFT. Calculating ROI (14) is lagging biodiversity. balance: Physically traceable until and Monitoring Business Benefits (36) could be spinner; CoC maintained through supply improved. chain via online tool.

fieldtomarket.org Objective Field to Market: The Alliance for Sustainable emissions, irrigation water use, land use, soil Convenes diverse stakeholders to work collaboratively to define, measure and Agriculture is a diverse, multi-stakeholder carbon, soil conservation, and water quality. advance the sustainability of food, fiber and fuel production in the United States. initiative working to create opportunities The associated metrics are science-based across the agricultural supply chain in and designed to measure environmental Overview the U.S. for continuous improvements in outcomes from individual farm fields. The productivity, environmental quality, and metrics have been developed or adopted by The Alliance for Sustainable Agriculture is a diverse, multi-stakeholder initiative human wellbeing. The organization provides Field to Market through a multi-stakeholder working to catalyze opportunities across the agricultural value chain for continuous a common framework for sustainability governance process over the past decade. improvements in environmental outcomes. It provides a common framework for measurement that row crop farmers sustainability measurement that row crop farmers and the supply chain can use and the supply chain can use to better Farmers can access the sustainability to better understand and assess performance at the field, local, state and national understand and assess performance at the metrics through Field to Market’s online levels. Field to Market's programs helps the food and agricultural value chain field, local, state and national levels. Field Fieldprint® Calculator, a free and confidential benchmark sustainability performance, catalyze continuous improvement and enable to Market’s Supply Chain Sustainability tool available to all U.S. row crop producers, brands and retailers to characterize the sustainability of key sourcing regions as well Program helps the agricultural supply chain or through associated farm-management as measure and report out on progress against environmental goals. benchmark sustainability performance, software that integrates the Platform’s catalyze continuous improvement and metrics and algorithms. Brands, retailers enable brands and retailers to characterize and suppliers can access aggregated data from farmers who opt-in to participate in the sustainability of key sourcing regions, as Market Share of Total Cotton local projects. The organization has also Fiber Production (2017/18) well as measure and report out on progress Grown (2017/18) against environmental goals. developed verification protocols that allow No data companies to make certain kinds of supply No data The organization focuses on eight key chain sustainability claims. sustainability indicators that are most Growth in Production Fiber Production Projected relevant to U.S. row crop production – Producing Countries (2016/17–2017/18) to Increase? biodiversity, energy use, greenhouse gas U.S. No data No data

Yield Rainfed / Irrigated Participating farmers input Both rainfed and irrigated producers their individual yield data. are included in the program. Irrigated fields receive a specific metric on the irrigation water use efficiency of their Initiative data is sourced from and verified by respective initiative. system.

LCA Availability Water Management Use of Synthetic Fertilizer Product Marketing / Labeling

No. Participating farmers receive metric scores Field to Market is technology-neutral. No No consumer-facing labeling or marketing. on irrigation water use efficiency and water specific products are prohibited or required. Water Consumption: quality. Consumer Recognition Individual users report their water use Social Considerations / Regulations No consumer-facing labeling or marketing and receive an irrigation metric score; Soil Fertility Field to Market does not ask questions and no data on consumer recognition at this overall industry performance has improved Participating farmers receive metric that replicate regulations in the U.S. and time. significantly in the U.S. over the past scores on the soil carbon and soil erosion does not have explicit social metrics at the 35 years, documented in our National implications of their practices; they must field scale. The National Indicators Report Livelihoods Indicators Report. indicate whether soil testing is used in considers industry-wide economic and No specified price differential or payment determining fertilizer needs. social indicators. Primary Energy Demand: requirement for partners, though supply Individual users enter their practice Biodiversity Verification / Certification chain partners develop strategies for grower information and receive a score of their (farm level) recruitment and retention that may include energy use per unit of yield. Overall industry Participating farmers receive a biodiversity financial or non-financial incentives that performance in the US has improved over score for their cultivated fields and other Second-party verification is used for have included direct payment, cost-sharing, time. land types on the farm that indicates the project level measurement. Third-party financial assistance, and technical or potential to support diverse ecosystems. verification is used for projects that make educational assistance. Global Warming: This information is used to educate farmers an Impact Claim. The farmer does not Individual users enter their practice on opportunities to increase this potential. apply for individual verification, rather the $ Cost Implications / Impacts company wishing to make a sustainability information and receive a score of their The supply chain partners typically bear greenhouse gas emissions (lbs CO e) per GMOs Permitted? claim applies for process/data verification 2 the cost of data collection and analysis and of results for the farmers in their sourcing unit of yield. Overall industry performance in Field to Market is technology neutral. No any incentives or assistance provided to project, as a group. This is not a certification the U.S. has improved over time. specific products are prohibited or required. participating farmers. The program is free system. for growers. Eutrophication: Use of Hazardous Pesticides Chain of Custody (supply chain) Individual users receive a water quality Quality Perception / Implications Field to Market is technology-neutral. No score on four elements - sediment erosion, Product is not physically segregated or specific products are prohibited or required. No known quality implications. nitrogen loss, phosphorous loss and physically traced. Two project accounting Participating farmers are subject to all U.S. pesticide loss - that is calculated based on systems have been enabled for projects laws and regulations regarding permitted/ the fertilizer input, crop chemical input and that seek to make Impact claims: traditional prohibited chemicals and safe handling conservation management practices. mass-balance and volume proxy based on requirements. production acres.

iscc-system.org Objective International Sustainability & Carbon They provide full traceability along the ISCC aims to promote the implementation of deforestation free, environmentally, Certification (ISCC) is one of the leading entire cotton supply chain from farms and socially and economically sustainable production, as well as the use of certified fiber, certification schemes applied on a global plantations through to the final product. food, feed and biomaterials in global supply chains. scale for different feedstocks and markets. More than 50 ISCC certificates have been issued for cotton, covering both mills and Overview The ISCC principles for farms and hundreds of cotton farmers. plantations are a balanced set of ecological ISCC is applicable to all field crops, including cotton. ISCC ensures that crops are and social criteria. They include the Each farmer has an average of 3-4 hectares not produced on land with high biodiversity and high carbon stock; good agricultural protection of biodiverse and carbon-rich of cotton. The fiber, seedcase and oil are all practices are applied to protect soil, water, and air air, and that human, labor, and areas, good agricultural practices, safe sustainably produced to strict standards. land rights are respected. Supply chain traceability is ensured. There are specific working conditions, compliance with human A changing sample of farmers is visited approaches to help smallholders. Non-GMO certification and verification of GHG labor and land rights, compliance with laws by an auditor every year. Each cotton mill emissions are optionally available. and international treaties, and good land is audited individually. The greenhouse management practices that encourage gas intensity of cotton production and continuous improvement. In comparison, processing is also calculated. ISCC covers more sustainability Fiber Production (2017/18) Market Share of Total Cotton requirements than other standards. Grown (2017/18) Producing Countries 108,575 mt 0.41% 40 producing countries. ISCC certification is applied in more than 100 countries Growth in Production Fiber Production Projected (including processors and trading/storage). (2016/17–2017/18) to Increase? No data Yes. Estimates show 137,052 mt and 46,775 ha in 2018-19.

Yield Rainfed / Irrigated No data Irrigation is allowed (if permit from responsible authority is available), but no data available.

Initiative data is sourced from and verified by respective initiative.

3. Water management plans for efficient Convention on Persistent Organic Pollutants out additional "integrity audits" to check on LCA Availability water usage during irrigation, responsible shall not be applied. Chemicals listed in auditors. No. use of organic fertilizers and agro- the WHO 1a and 1b and Annex III of the chemicals, waste discharge including Rotterdam Convention shall be avoided. Chain of Custody (supply chain) Water Consumption: annual documentation and monitoring. Certification add-on "Classified Chemicals" available to ban extremely hazardous Two options possible: physical segregation Water management plan required Soil Fertility chemicals and phase out moderately or mass balance. Book and claim is not minimizing negative impacts on water hazardous chemicals. allowed. quality and quantity. Water consumption Improvement of soil fertility is addressed must be monitored according to water through soil management plans, crop Use of Synthetic Fertilizer Product Marketing / Labeling management plan. rotation, intercropping, plant spacing etc., avoidance of erosion and compaction Permitted. However, fertilizer balance or On-product claims and ISCC logo use is Primary Energy Demand: through cultivation techniques. Certification soil organic matter balance and integrated encouraged for certified consumer goods Energy consumption must be monitored. add-on “Environmental Management and pest management are required. Further available. Fossil fuel reduction and the use of Biodiversity” available to further support requirements on sustainable handling, renewable energies, e.g. biofuels, biogas, farmers to conserve and improve soil fertility, storage and application of fertilizers (e.g. Consumer Recognition solar or wind energy, on the farm or water, and biodiversity. only on absorptive soils, weather conditions plantation are encouraged. to be taken into account). Disadvantageous Currently mainly business-to-business, Biodiversity impacts of synthetic fertilizers (e.g. regarding but increasing application of on-product Global Warming: claims and logos for consumer goods and Land use change of land with high GHG, energy consumptions) are specifically Efforts are made to reduce fossil energy business-to-consumer communication biodiversity or high carbon stock, is covered in add-ons "Greenhouse Gas consumption and thus lower greenhouse Emissions" and "Consumables." through website, etc. gas emissions. Optional use of add-on not allowed (cut-off date January 2008). Requirements to conserve natural resources "Greenhouse Gas Emissions." Livelihoods and biodiversity on cultivation areas are Social Considerations / Regulations Eutrophication: applied. Certification add-on "Environmental Compliance with human, labor and land A living wage is to be paid which meets at Management and Biodiversity" available to Fertilizer balance or soil organic matter rights, as well as safe working conditions least legal or industrial minimum standard further support farmers to conserve and balance required. Further requirements required on farm level, including: core ILO and that are sufficient to meet the basic improve soil fertility, water, and biodiversity. on sustainable handling and application standards (no forced and child labor), no needs of workers and provide some of fertilizers (e.g. only on absorptive soils, discrimination, freedom of association and discretionary income. GMOs Permitted? weather conditions, storage, buffer zones bargaining, minimum wage, appropriate Cost Implications / Impacts to be taken into account). Yes, but certification of non-GMO also facilities and accommodation (if applicable) $ for workers and their families, etc. possible. Non-GMO material must be kept Competitive fee structure for certification. Water Management segregated from GMO. Verification / Certification Quality Perception / Implications Best practices to maintain and improve Use of Hazardous Pesticides (farm level) water quality and quantity are applied: No known quality implications. 1. Respect of existing water rights Safe usage and storage of plant protection 3rd party certification. Physical audit 2. Application of good agricultural practice products required. Regulations for required annually for all individual and to reduce water usage and to maintain and restrictions on plant protection products group certifications. Sampling possible for improve water quality available. Chemicals listed in the Stockholm group certification of farms. ISCC carries BACK TO CONTENTS © 2020 Textile Exchange Page 57 myBMP

mybmp.com.au Objective myBMP is a voluntary farm and Through myBMP, all Australian cotton To produce high quality, high-yielding fiber while sustaining the natural environment, environmental management system which growers have a resource bank to access people and regional communities. provides self-assessment mechanisms, the industry’s best practice standards, practical tools and auditing processes to fully supported by scientific research and Overview ensure that Australian cotton is produced development, resources and technical according to best practice. The original support. The myBMP (Best Management Practices) program is the Australian cotton BMP (Best Management Practices) program industry’s environmental and social standard. To achieve full certification, growers began in 1997 and was reviewed and By using myBMP’s tools, growers can must comply with more than 325 checklist items across 10 modules including soil redeveloped in 2006-07, with the new improve on-farm production by: health, water management, natural assets, pest management, energy efficiency and online myBMP system re-launched in 2010. worker health and safety. • Better managing business and myBMP is the industry’s assurance production risk. mechanism, a best management practice • Maximizing potential market advantages. • Demonstrating responsible and system for growers to improve on-farm Fiber Production (2017/18) Market Share of Total sustainable natural resource production. It attends to the industry’s Cotton Grown (2017/18) requirement for risk management and management to the community. 229,281 mt supports the industry’s social license. 0.86% myBMP is the result of industry-wide 5 Year Production trend (,000) consultation with growers, researchers and Growth in Production Fiber Production Projected industry bodies, taking into consideration 250 229 (2016/17–2017/18) to Increase? the requirements of the cotton industry 200 now and into the future. The initiative 66% Yes. Estimates show 102,721 is supported by the Cotton Research mt and 57,421 ha in 2018-19. 150 138 Development Corporation and Cotton 100 Australia. Yield Rainfed / Irrigated 54 60 Average 2,235 kg/ha 77% irrigated, 50 32 Producing Countries 23% rainfed 0 13-14 14-15 15-16 16-17 17-18 Australia.

LCA Availability Soil Fertility Use of Synthetic Fertilizer Product Marketing / Labeling

No. 32 criteria related to soil health including: 13 criteria relating to fertilizer efficiency In-store marketing and on-product label minimum tillage, crop rotation, soil testing, including plant monitoring to assess (own label or Australian cotton swingtag). Water Consumption: organic carbon, stubble retention, erosion requirements, pre- and in- season nutrient 0.5 m3/MT Irrigation Water Use Efficiency and salinity prevention, fertilizer efficiency budgets, monitoring and record keeping. Consumer Recognition (DPI, 2019). 67 criteria related to water and plant monitoring. Higher levels of awareness in Australia. management Social Considerations / Regulations Biodiversity All Australian cotton growers are subject Livelihoods Primary Energy Demand: 28 criteria related to sustainable to high standards by law for fair work 4,000 MJ / 1,000 kg of lint (on farm only) No price differential paid directly to farmers landscapes, including: management of conditions, pay, health and safety. + 17 criteria in myBMP addressing energy - farmers paid based on prevailing market native vegetation and natural assets, myBMP includes 49 criteria related to efficiency. price and quality. improve habitat for biodiversity, assess and human resources and worker health and monitor native vegetation condition and safety including 35 standards required by Global Warming: Cost Implications / Impacts stock exclusion. Australian law. $ No LCA data. No price differential at point of sourcing; no GMOs Permitted? Verification / Certification Eutrophication: membership or licensing fees. (farm level) No LCA data. Yes - regulated and carefully managed. Quality Perception / Implications Self assessment, third party verification and Water Management Use of Hazardous Pesticides certification and spot checks. Consistently very high quality, among the highest in the world across all parameters. 67 criteria related to water management. 80 criteria related to pesticide management. Chain of Custody (supply chain) From 1992 to 2019, there has been a 97 Since 1993 there has been a 97% decrease per cent increase in the bales of cotton in the use of insecticides industry wide Physical segregation and tracing possible, grown per megaliter (ML) of water (effective and the Australian cotton industry’s unique bar-code identifier on every bale rain and irrigation). This equates to a 48 per Environmental Toxic Load (ETL) for bees tracking field to spinning mill. cent decrease in the water required per bale decreased by 18.2 per cent from 11 to of cotton. 9 in the four years to 2018. Practices include Integrated Pest Management (IPM), compulsory training, pupae busting, farm mapping, weather monitoring, safe storage and handling.

Eloise Bishop Brooke Summers Head of Sustainability Supply Chain Consultant Country Road Group Cotton Australia

What does Cotton Australia What are some of the biggest value most about its relationship impacts the Better Cotton Q with Country Road? Q Initiative has had in Australia?

Country Road shares many values with The program is constantly evolving and the the Australian cotton industry, particularly Australian cotton industry collects industry- when it comes to quality product and the wide impact data to measure progress. importance of social and environmental For example, producing a bale of Australia sustainability. Our farmers are incredibly cotton now uses 48 percent less water, proud of the transformation they’ve made 42 percent less land and a fraction of the on their farms, and recognition of these insecticides (97 percent less) than it did efforts from brands like Country Road really back in 1992. The ability to provide data like drives them to further improve. this to Country Road has been instrumental in giving them confidence to source What are some of the reasons Australian cotton. this partnership has evolved in Q such an authentic way? What are you looking forward to in future? We’ve always been open and transparent Q about the industry – its achievements We’re excited about working with Country as well as the areas that still need Road to amplify the story of Australian improvement. The Country Road team cotton and its sustainability credentials has been out to the farms they’re sourcing to customers. We know that Australian from, met the agronomists and researchers consumers love to support Australian that support our work and have a direct farmers and we’re keen to get into some relationship with our industry. The leadership on-ground storytelling around technology, team at Country Road is fully committed, innovation and impact. And of course, which has made a huge difference. to help them meet the 2025 Sustainable Cotton Challenge! Photo Credit: Cotton Australia

Around 80 percent of Australia’s cotton We are a real team effort, where I (Charm) What’s something you still Why do you believe farmers are participating in the industry’s manage the business and administrative need to improve? sustainability is important? myBMP (Best Management Practices) functions and Tom manages the day-to-day Q Q cotton certification program. Charm and farm operations along with 2-3 staff in peak Tom Arnott are two of the best, recognized times. We do strive to improve to do more with It is implicit that we all have a responsibility this year by winning the 2019 Australian less and find easier solutions to problems. to continue to strive towards improved Cotton Grower of the Year Award for their Why do you choose to grow New technology is always on the horizon, sustainability, making better use of the highly disciplined approach to farming and Q cotton? making agriculture an exciting space. Our natural resources we use and the way business management. They are committed improvement focus is around areas such as we produce cotton. In turn, when I am adopting precision agriculture and telemetry shopping and buy Better Cotton or to a methodical program of continual Water is our most precious natural resource technologies to improve data collection Australian Cotton labeled clothing, it is with improvement, which they achieve by and our water source is not always reliable and improve our farming techniques. a sense of pride that at the retail end I am measuring and benchmarking every aspect due to drought and the ephemeral nature of Utilizing these technologies for real time also contributing as a consumer to buy from of their operation. our rivers. We grow cotton because it gives management decisions are powerful and brands that support our farm gate ethos. us the best financial return on the water we Ensuring farming practices are efficient exciting tools. do have in this area. When there is no water, and sustainable while achieving an What are some of the we don’t plant irrigated cotton which makes important sustainability increasingly consistent yield year-after-year What are some of the benefits it the ideal crop because it’s switched on challenges that cotton is are key goals. The team are enthusiastic of participating in myBMP? Q and off depending on conditions. Q proponents of myBMP and believe their facing at the moment? accreditation demonstrates a commitment In terms of sustainability on One light bulb moment came when I was We’re in the middle of a horrible drought to sustainability excellence for the local your farm, what’s something involved in some cotton industry strategic that has seen the Australian cotton crop community and the whole supply chain. Q you’re really proud of? planning workshops where I found many halve in size for two seasons in a row. A of the biggest global brands were publicly lack of water in turn has sparked emotional We are very proud of the high standard of Could you start by telling us a committing to source cotton only from debate in the media and this is one of the our farming operation and the high quality Q bit about your farm? sustainable sources. That meant we biggest challenges we face at the moment. product we produce. This is through the needed to be involved in the Better Cotton A perception that cotton farmers “take all sustainable treatment of our soils, careful Our family farm is near Goondiwindi on the Initiative, and that can only be gained from the water” is hurtful to growers and our river use of our precious water resources, NSW/Queensland border and covers 1400 being myBMP certified here in Australia. communities, because it’s simply not true. mindfulness around the chemicals we hectares where we grow cotton and lots of That, and the financial incentives that come When there is no water, we don’t get a apply, supporting the businesses in our other crops, mostly under irrigation. with accreditation, was the carrot that we water allocation and we don’t plant a crop. community, contributing to our thriving needed to push us the last 10-20 percent This has a devastating impact on our ability regional town Last season we grew 500 hectares of of the way to becoming myBMP certified to support local town businesses and job fully irrigated cotton and 223 hectares of cotton growers. creation and makes it hard to maintain our rainfed cotton on a “one in one out” row thriving regional community. configuration where cotton is planted only every second row to save water.

textileexchange.org/organic-cotton-round-table

Organic Cotton (OC) is cotton that The Organic Content Standard (OCS) and is produced and certified to organic the Global Organic Textile Standard (GOTS) Objective agricultural standards. Its production link the organic agriculture standards for sustains the health of soils, ecosystems chain of custody forward and provide third- Sustaining the health of soils, ecosystems and people. and people by using natural processes party assurance organic product claims. In rather than artificial inputs. Importantly addition, GOTS includes environmental and Overview organic cotton farming does not allow the social responsibility in processing. Organic cotton is grown within a rotation system that builds soil fertility, protects use of toxic chemicals or GMOs (genetically biodiversity, conserves water, helps farmers feed their families and is grown without Organic cotton production increased from modified organisms). Instead, it combines the use of any synthetic chemicals or GMOs. Growers must meet organic agricultural 107,243 mt in 2012/13 to 117,525 mt in tradition, innovation and science to benefit standards as set nationally and by the importing country if export is carried out. the shared environment and promote a 2016/17. good quality of life for all involved. For more information on organic cotton please see the Textile Exchange Organic Cotton Market Report 2018. Fiber Production (2017/18) Market Share of Total Cotton Grown (2017/18) 5 Year Production trend (,000) 180,871 mt 200 180 0.68% Producing Countries

150 Argentina, Benin, Brazil, Burkina Faso, Growth in Production Fiber Production Projected 117 118 112 107 China, Egypt, Ethiopia, Greece, India, (2016/17–2017/18) to Increase? 100 Kyrgyzstan, Mali, Peru, Senegal, Tajikistan, Yes (44,394 ha in-transition in Tanzania, Thailand, Turkey, Uganda, USA. 54% 2017/18) 50

0 Yield Rainfed / Irrigated 13-14 14-15 15-16 16-17 17-18 Claim of yield increases recorded 75-80% rainfed in West Africa, India, Tajikistan and others.*

Initiative data is referenced to Textile Exchange Preferred Fiber & Materials Market Report 2018 which is sourced from and verified by respective initiative. * Dependent on rainfall in rainfed areas, alongside availability of other resources such as The market share indicated in this page is initiative dependent and may differ from what is outlined in Global training. In-conversion farmers sometimes report a decline as soils stabilize to non-chemical Preferred Cotton Market due to overlapping programs between initiatives (i.e. organic covers Fairtrade). conditions.

textileexchange.org/integrity global-standard.org

Objective Objective

Third party assurance on organic product claims. Third party assurance on organic product claims, including environment and social responsibility in processing. Overview Overview The Organic Content Standard (OCS) is a chain of custody standard that provides companies with a tool to verify that one or more specific input material is in a final The Global Organic Textile Standard (GOTS) is recognized as the world’s leading product. It requires that each organization along the supply chain take sufficient processing standard for textiles made from organic fibers. It defines high-level steps to ensure that the integrity and identity of the input material is preserved. environmental criteria along the entire organic textiles supply chain and requires compliance with social criteria as well.

Producing Countries Producing Countries

47 Countries with Certified units - top 10 are: Bangladesh, India, China, Turkey, South 64 Countries with certified units - top 10 are: India, Bangladesh, Turkey, Germany, Italy, Korea, Japan, Pakistan, Portugal, Sri Lanka, Italy. China, Pakistan, Portugal, USA, South Korea.

Fiber Production (2017/18) Market Share of Total Fiber Production (2017/18) Market Share of Total Cotton Grown (2017/18) Cotton Grown (2017/18) No data No data No data No data

Growth in Production Fiber Production Projected Growth in Production Fiber Production Projected (2016/17–2017/18) to Increase? (2016/17–2017/18) to Increase? No data No data No data No data

Yield Rainfed / Irrigated Yield Rainfed / Irrigated Claim of yield increases recorded 75-80% rainfed Claim of yield increases recorded 75-80% rainfed in West Africa, India, Tajikistan and in West Africa, India, Tajikistan and others.* others.*

* Dependent on rainfall in rainfed areas, alongside availability of other resources such as training. In-conversion farmers sometimes report a decline as soils stabilize to non-chemical conditions.

LCA Availability Soil Fertility Use of Synthetic Fertilizer Product Marketing / Labeling

Yes - PE International (2014b) Effective management of soil fertility No. Organic production relies on crop In-store marketing and on-product label. is at the heart of organic production, rotation and natural inputs such as animal or Third-party certification label. Water Consumption: with requirements for crop rotation, soil green manures to build fertility. 182 m3 / 1,000 kg fiber conservation and soil management. Organic Consumer Recognition (88 percent reduction - LCA) cotton farmers report increases in organic Social Considerations / Regulations Concept of organic widely understood, matter (OM). Soil fertility challenges vary Organic Cotton: trusted and respected by consumers. Primary Energy Demand: from region to region. Studies by FiBL, N/A, as they are not required standards FAO and Rodale Institute show soil fertility 5,800 MJ / 1,000 kg fiber for developing countries relating to organic Livelihoods increases on organic farms. (58 percent reduction - LCA) production. A price differential/sustainable price (i.e. Biodiversity Global Warming: OCS: meeting the cost of production and of ecosystem value addition) is expected to 978 kg of CO2-eq / 1,000 kg fiber Organic management maintains or OCS does not address social aspects occur via market mechanisms and producer (26 percent reduction - LCA) enhances biodiversity in crop and non- of production beyond the integrity of the group policy, but is not a requirement of the crop habitats on farms. FAO and FiBL organic material. However, to qualify as standard. Optional partnership investment Eutrophication: studies alongside others show increased organic, production must comply with labor via NGOs, corporate investment, and PG 2.8 kg of phosphate-eq / 1,000 kg fiber biodiversity on organic farms. standards as set by the ILO. investment goes back into the community. (64 percent reduction - LCA) GMOs Permitted? GOTS: Cost Implications / Impacts Water Management Minimum social criteria for GOTS is based $ No. on the key norms of the ILO, which must be Price differential paid to farmer/producer Organic Standards require effective met by all GOTS certified processors and group. management of water resources. Increased Use of Hazardous Pesticides manufacturers. soil organic matter increases resilience to No use of hazardous pesticides. There Quality Perception / Implications flood and drought. are slight variations between the different Verification / Certification Historical perceptions of quality have been a organic standards regarding the exact (farm level) problem in the past, but are not considered pesticides authorized and their conditions Certification (annual) by third party. an issue today. of use. Chain of Custody (supply chain)

Identity Preserved; Certification of Supply Chain.

Bart Vollaard 2) Growth in farmer numbers: During and a standardized methodology to GMO the 2017/18 season, 1,780 farmers testing in the organic cotton and textiles Executive Director participated in our Farmer Engagement sector. The leading Chain of Custody Organic Cotton Accelerator and Development program, which provided standards in organic textiles from GOTS them with a secure market and a better and Textile Exchange are planning to price for their organic produce. In the last include the protocol in their next standard catalysts for the powerful and positive 2018-19 season, this increased to nearly revision rounds which will ensure adoption Can you tell us about OCA? Q impact organic cotton can have on 12,000 farmers in India. throughout the sector. people, planet and prosperity. We call this The Organic Cotton Accelerator (OCA) is 3) Income benefits to farmers: A real 6) On-product markers provide the Organic Cotton Effect. Support the and compelling business case for using opportunities for traceability: OCA was a the only multi-stakeholder organization fully farmer, you strengthen the sector and you dedicated to organic cotton. As a global organic practices has been demonstrated partner in the Organic Cotton Traceability safeguard the planet. However, for this to farmers; with farmers in OCA projects Pilot, together with Laudes Foundation and platform, we are committed to bringing positive effect to be fully realized; we need integrity, supply security and measurable receiving a premium payment and earning Fashion for Good. The pilot tested the use time, a commitment to shift behavior and on average 4 percent higher net income of a unique combination of technologies social and environmental impact to organic sustained investment and collaboration cotton. Our programmatic interventions from their cotton than conventional farmers including blockchain, machine vision, AI, across the whole sector. OCA envisions in the same region. microbiome sequencing and on-product are all focused on creating the conditions a future where we have fully realized the for organic cotton to thrive. As a platform, markers for organic cotton to trace and Organic Cotton Effect. We know this 4) New cotton cultivars bred: OCA’s identify the origin, purity and distribution of we invest in solutions that nurture a healthy positive effect can’t be unlocked overnight, investment in India’s leading organic organic cotton sector; from creating a organic cotton. and it certainly won’t happen based on our cotton breeding program, "Seeding the secure market for organic cotton farmers to efforts alone. We need allies and advocates Green Future," has helped strengthen diagnosing the integrity of organic cotton at to join our movement - which is why we’re and secure quality cottonseed supply in Q What does the future hold? farm-level. From investing in quality seed for committed to uniting the sector to unleash India for organic agriculture. At least eight organic agriculture to exploring technology the potential of organic cotton, together new cotton cultivars are currently under As a global platform for organic cotton, that enables increased traceability in . development and getting ready for market production and processing. Right now, OCA has a global focus. Our initial Any highlights you'd like to release. we’re even working on a fund to support the interventions began in India as it is by far share from 2019? the largest organic cotton producer in the development of high-quality farm projects, Q 5) Standardizing the approach to GMO world. We do have plans to expand our which should, in turn, drive an increase in testing: OCA led the development of an 1) Our global platform scales up: The geographic scope in the future and we are the conversion of conventional farmers to international reference protocol for the OCA community now has 28 Contributors currently developing a Global Strategy for organic. screening of GMO in cotton and textiles spanning brands, retailers, suppliers, farm 2030 which will enable us to drive continued through an ISO International Workshop groups, NGOs, philanthropic foundations impact in the sector and bring us even At OCA, we support farm-level interventions Agreement (IWA 32:2019, published in and civil society organizations. closer to fully unleashing the potential of because we believe farmers are the April 2019), bringing much needed clarity organic cotton from field to fashion.

2017/18 organic cotton production snapshot

INDIA 180,871 MT 47%

44,394 ha USA 3% CHINA 21% Organic Cotton TURKEY 6% TANZANIA 3% TANZANIA In-Transition 5% TAJIKISTAN Fiber 12% KYRGYZSTAN Land 356,131 ha Organic Certified Land1

+56% 98% GLOBAL PRODUCTION STEMS FROM over 2016/17 56% GLOBAL GROWTH JUST 7 COUNTRIES Organic Cotton Fiber IN ORGANIC COTTON PRODUCTION *The remaining 12 countries are: Greece (0.5%); Uganda (0.4%); Benin (0.4%); Burkina Faso (0.3%); Peru (0.3%); 19 Global organic cotton production Egypt (0.2%); Mali (0.04%); Ethiopia (0.02%); Brazil (0.01%); Countries growing grew by an impressive 56 Senegal (0.003%); Argentina (0.001%); Thailand (0.001%) organic cotton PRODUCTION AT ITS HIGHEST percent in 2017/18, well IN EIGHT YEARS exceeding the previous year’s growth rate of 10 percent. Production of organic cotton declined Estimates indicate that growth INDIA, CHINA & KYRGYZSTAN FUEL GROWTH significantly in 2010/11 in connection will continue next year, stemming India, China and Kyrgyzstan contributed most significantly by volume to this year’s with the financial crisis. However, in predominantly from India, global growth. This trend looks set to continue, with the same three countries having 2017/2018, organic cotton production Tanzania, Turkey, Kyrgyzstan the biggest land area in-transition to organic. reached its highest in eight years. and Brazil, among others.

TOP FIVE BY TOP FIVE BY TOP FIVE BY CERTIFIED FACILITIES FIBER GROWTH RATE FIBER VOLUME INCREASE IN-TRANSITION LAND AREA ALSO ON THE RISE h 16% Argentina +300% India + 26,060 MT India 25,237 ha Not only are production volumes Kyrgyzstan +178% China + 16,138 MT Kyrgyzstan 9,100 ha growing, so are the number of China +71% Kyrgyzstan + 14,290 MT China 3,669 ha h 15% facilities certified to voluntary organic standards around the Turkey +51% Turkey + 3,911 MT Turkey 2,439 ha world. Peru +49% Tajikistan + 2,594 MT Tanzania 1,297 ha 2013-14 2014-15 2015-16 2016-17 2017-18

BACK TO CONTENTS © 2020 Textile Exchange Page 66 Global Organic Cotton Production SWITZERLAND UNITED STATES bioRe Foundation Stakeholder directory Textile Exchange Non-profit Non-profit This map locates the headquarters of some of the key international organizations working on organic cotton1. C&A Foundation Organic Trade Association Non-profit Industry Association UNITED KINGDOM

CottonConnect FiBL Social Enterprise Research Institute

Fairtrade International Helvetas Voluntary Standard Non-profit

Pesticide Action Network UK GERMANY Non-profit GIZ THE NETHERLANDS Non-profit

Soil Association Solidaridad Network Non-profit Non-profit Global Organic Textile Standard Voluntary Standard Organic Cotton

Accelerator SOUTH AFRICA Non-profit OrganiMark IFOAM-Organics Service Company International Non-profit

Supply Chain Intervention: Standards/Chain of Custody Market making Field-level Intervention: Field data & analytics Development Seed breeding Field capacity building & training Cotton cultivation/processing Informing & Convening: Education & awareness raising Market research & analytics Multi-stakeholder platforms

BACK TO CONTENTS 1 Please note that this stakeholder map is a work in progress and is not an exhaustive list. Please also note that it does not currently include © 2020 Textile Exchange Page 67 organic cotton producers. If you have suggestions for amendments or additions, please send to: [email protected]. Recycled Cotton ©TextileExchange

textileexchange.org/integrity

Recycled Cotton (rCotton) has been reprocessed from reclaimed cotton. The LCA Availability GMOs Permitted? Chain of Custody (supply chain) Recycled Claim Standard (RCS), the Global Yes - F.A. Esteve-Turrillas and M. de la Potential for GMOs to enter supply chains Global Recycled Standard. Recycled Standard (GRS) and the SCS Guardia (2016). through feedstock as a result of over Recycled Standard are Chain of Custody 80 percent conventional cotton being Product Marketing / Labeling standards to track the use of recycled Water Consumption: genetically modified. material through the supply chain. The In store and on-product marketing. Zero water consumption. GRS, in addition, includes social and Use of Hazardous Pesticides: environmental requirements that must be Consumer Recognition Primary Energy Demand: met during the processing stages. n/a 1,440 MJ / 1,000 kg of fiber. Primarily B2B but in-store marketing. Use of Synthetic Fertilizer: Livelihoods: Global Warming: n/a 100 kg of CO2-eq / 1,000 kg of fiber. n/a Social Considerations / Regulations: Eutrophication: n/a Cost Implications / Impacts n/a $ Cost absorbed / Co-op promo concepts. <1% ~12.5% Water Management: Verification / Certification of all clothing is of the global fashion (farm level): Quality Perception / Implications recycled back (1) market committed to n/a circularity (2) n/a No known quality implications. Some Soil Fertility: limitations in color variety due to mechanical n/a recycling.

Biodiversity:

n/a

The LCA data has been contributed by Recover

The Ellen MacArthur Foundation The Alliance for Responsible Denim estimates that less than 1 percent of all brought together representatives from clothing is recycled back into clothing. the entire denim value chain in a pre- At the same time, around 12.5 percent competitive collaboration to make the of the global fashion market has made denim industry smarter and cleaner. a public commitment to circularity by Circle Economy, MADE-BY, and the signing the Circular Fashion System Amsterdam University of Applied Commitment. Sciences joined forces to convene the Alliance for Responsible Denim The recycling of cotton is one approach (ARD) and drive the project forward. toward a more circular textile industry. Circle Economy led the post-consumer Recycling of cotton can either be done recycled (PCRD) working group, with mechanically or chemically. Please note the ambition to stimulate the adoption that with chemically recycled cotton, the of PCRD in the market and grow end result is a “manmade cellulosic,” demand. Over 20 brands were trained not a “cotton.” on post-consumer recycled denim and standardized PCRD fabric briefs were Collaboration is key in order to increase developed according to their needs. the transition to recycled cotton. A These briefs were translated by 10 number of initiatives are working to global denim mills, 2 yarn suppliers and support this goal. 4 recyclers into 40 PCRD styles, with a Examples: recycled content of 7–40 percent, for the participating brands to integrate into Textile Exchange supports recycled their collections. cotton by providing information through it's annual Market Reports, publications such as the Material Summaries, the 2025 Sustainable Cotton Challenge, and focus sessions at its annual conferences, among other approaches. Textile Exchange also works with Accelerating Circularity as a knowledge partner.

evrnu.com

LCA Availability GMOs Permitted? Objective Preliminary LCA performed but technology Potential for GMOs to enter supply chains Regenerating cotton waste to create premium, renewable fiber for apparel, home is still in R&D. through feedstock as a result of over 80% and industrial applications. conventional cotton being genetically Water Consumption: modified. Overview Minimal - bench scale achieved tens of Evrnu purifies cotton garment waste, converts it to a pulp, and extrudes it as a gallons of direct water use/ kg fiber. Chain of Custody (supply chain) pristine new fiber for the creation of premium textiles. Their process can create Technology is compatible with an Primary Energy Demand: engineered fibers with a wide range deniers, shapes, and properties. The Evrnu embedded fiber tracer to ensure chain of process creates very little negative environmental impact. Pre-commercial bench TBD (Pre-commercial). Preliminary data custody and facilitate end-of-life recycling. scale -prototype garments produced. indicates that Evrnu pulping takes less energy than wood pulping. Fiber energy Product Marketing / Labeling demand varies by solvent systems (ex: viscose, lyocell). TBD (pre-commercial) Producing Countries Global Warming: Consumer Recognition USA. TBD (pre-commercial). Preliminary results TBD (pre-commercial) of est. -1000 kg CO2e/ton pulp at lab scale when made with US textile waste, projected Cost Implications / Impacts to reach -2000 kg CO e/ton pulp. $ Manufacturing Process Manufacturing Location 2 n/a Chemical post consumer TBD (R&D stage) Eutrophication: cotton recycling. n/a Quality Perception / Implications Can yield higher quality fibers from low Growth in Production Fiber Production Projected quality cotton input, with custom length, (2016/17–2017/18) to Increase? composition, and shape. Can exceed wood fibers in quality. TBD (pre-commercial) TBD (pre-commercial)

renewcell.com circulo.se

LCA Availability GMOs Permitted? Objective Preliminary - SCS Global Services (2017). Potential for GMOs to enter supply chains To lead the way to a sustainable world by producing high quality products from through feedstock as a result of over 80% recycled textiles. Water Consumption: conventional cotton being genetically 3 modified. Overview TBD: 5 m / 1000 kg pulp.

Re:newcell’s textile recycling technology transforms a high cellulosic portion fabric Primary Energy Demand: Chain of Custody (supply chain) into high quality recycled dissolving pulp, branded as Circulose(R). The process does TBD: Recycling plant runs on 100% Preparing for GRS, finalized second half not require any environmentally harmful chemicals, and the Re:newcell pulp can be renewable energy. of 2020 fed into the commercial textile production chain. Commercially active in industrial scale since 2019. First product launched in retail in March 2020. Global Warming: Product Marketing / Labeling

TBD: -2000 kg CO2e per 1000 kg fiber Circulose® (product brand). Eutrophication: Producing Countries Consumer Recognition n/a Sweden. Large B2B recognition and growing consumer awareness. First garments in store in March 2020.

Manufacturing Process Manufacturing Location $ Cost Implications / Impacts Chemical cellulosic recycling. Kristinehamn, Sweden. Cost competitive to conventional MMCF.

Quality Perception / Implications

Growth in Production Fiber Production Projected Physical characteristics are equal or higher (2016/17–2017/18) to Increase? than fibers made from virgin material. No data. 4500 ton/year production pace in 2020. 60000 tons/year by 2025.

recovertex.com

LCA Availability GMOs Permitted? Objective Yes - F.A. Esteve-Turrillas and M. de la Potential for GMOs to enter supply chains To help facilitate Closed-Loop manufacture and a zero-waste industry. Guardia (2016). through feedstock as a result of over 80% Overview conventional cotton being genetically Water Consumption: modified. Recover® produces Mechanically Recycled Cotton Yarns. Recover® is known for Zero water consumption. offering the finest gauges, consistent quality, and precise color control. Recover® Chain of Custody (supply chain) Primary Energy Demand: cotton is blended into accurate colors lot to lot without any dyestuffs applied to GRS. cotton fiber. Recently published LCAs indicate significant water, energy, chemical and 1440 MJ /1000 kg fiber (LCA).

CO2 savings. Product Marketing / Labeling Global Warming: In store and on product marketing. 100 kg of CO2-eq/ 1000kg fiber (LCA).

Producing Countries Eutrophication: Consumer Recognition n/a Spain. Primarily B2B but in-store marketing. $ Cost Implications / Impacts Cost absorbed / Co-op promo concepts. Manufacturing Process Manufacturing Location Mechanical cotton recycling, Banyeres Di Mariola, Quality Perception / Implications blending and spinning yarns. Alicante Spain. No known quality implications. Some limitations in color variety due to mechanical Growth in Production Fiber Production Projected recycling. (2016/17–2017/18) to Increase? No data. Yes

lenzing.com tencel.com/refibra

LCA Availability GMOs Permitted? Objective LCA is in progress. Potential for GMOs to enter supply chains Lenzing's contribution to drive circular economy solutions in the textile industry. through feedstock as a result of over 80% Overview Water Consumption: conventional cotton being genetically Minimal due to closed loop fiber production modified. Pioneering REFIBRA™ technology uses a substantial portion of cotton scraps process. and the closed loop fiber production process to produce new virgin TENCEL™ x Chain of Custody (supply chain) Primary Energy Demand: REFIBRA™ lyocell fibers. REFIBRA™ use innovative special identification technology RCS. to confirm fiber origin and improve supply chain transparency. Fiber is globally No current data. commercial available and garments in store at different brands. Product Marketing / Labeling Global Warming: No current data. TENCEL™ x REFIBRA™ at POS and through supply chain. Producing Countries Eutrophication: Consumer Recognition Austria. n/a Messaging via hangtags, website, social media, POS.

Manufacturing Process Manufacturing Location $ Cost Implications / Impacts Chemical cotton recycling. Austria. Competitive considering high innovation degree.

Quality Perception / Implications Growth in Production Fiber Production Projected (2016/17–2017/18) to Increase? Quality and performance proven as the same high level as TENCEL™ lyocell fibers Follow the market (up to several 400% made from virgin material thousand tons).

wornagain.co.uk

LCA Availability GMOs Permitted? Objective Preliminary LCA performed but technology Potential for GMOs to enter supply chains To replace the use of virgin resources by recapturing raw materials from non-reusable is still in R&D. through feedstock as a result of over 80% products. conventional cotton being genetically Water Consumption: modified. Overview TBD (R&D stage). Worn Again Technologies has developed a textile-to-textile polymer recycling Chain of Custody (supply chain) Primary Energy Demand: technology to separate, decontaminate and recapture polyester and cellulose from TBD (pre-commercial). cotton from end of use textiles and PET plastics to be reintroduced into the supply TBD (R&D stage). chain as new, virgin equivalent raw materials. Pre-commercial, scaled up to pilot Global Warming: Product Marketing / Labeling plant phase. No data. No data.

Eutrophication: Consumer Recognition Producing Countries n/a Primarily B2B. Works closely with end of UK. use textile supply chain, brand partners and their supply chains and future plant operators. Manufacturing Process Manufacturing Location $ Cost Implications / Impacts Separation, decontamination Lab (Nottingham), Pilot Plant Goal of low cost industrial process to enable and extraction of PET and (Redcar), UK. competitiveness with virgin or equivalent cellulose. 'circular' raw materials.

Growth in Production Fiber Production Projected Quality Perception / Implications (2016/17–2017/18) to Increase? Goal to be comparable to virgin raw material specifications. TBD (R&D stage). TBD (pre-commercial).

cottonconnect.org

The REEL Cotton Program is Consumption (13) is the lowest within CottonConnect’s three-year agricultural the pCotton modules. None of the REEL Objective program providing farmers with training on participants reported consumption data, sustainable cotton farming practices. The and SMART Targets are not generally in To create more sustainable, traceable cotton. REEL Code is used to verify that farmers place. Overview in the REEL Cotton Program are using Consumer Engagement is an untapped those sustainable practices, with additional The REEL Cotton Program is a three-year modular program for farmers with area for REEL Cotton. REEL participants are program elements that ensure traceability Sustainable Agricultural Practices (SAP) at its core. It has four key focus areas: and decent working conditions. not carrying out the full extent of consumer engagement activities. Product Marks and - Agronomic training. REEL, as one of the newest sustainability Labeling (13) was the one area of activity - Social mobility and engagement. programs, has the lowest participation rate with participants communicating REEL of all pCotton modules, and has a sector Cotton usage on company websites and in - Supply chain verification. score of 46 for Section 2: Supply Chain. corporate reports. - Brand reputation. The sector is performing reasonably in Chain of Custody (40), Traceability (50) and REEL cotton production was 29,997 mt in Sustainability Investment (50). 2016/17. Fiber Production (2017/18) Market Share of Total Cotton Grown (2016/17) 20,188 mt 5 Year Production trend (,000) Producing Countries 0.08% 50 48 China, India, Pakistan. 40 37 Growth in Production Fiber Production Projected 30 30 (2016/17–2017/18) to Increase? 20 20 33% Yes. Estimates show 63,326 mt 12 and 68,313 ha in 2018-19. 10

0 13-14 14-15 15-16 16-17 17-18 Yield Rainfed / Irrigated 9.4% average yield increase Mostly irrigated. among REEL farmers compared with control Initiative data is referenced to Textile Exchange Preferred Fiber & Materials Market Report farmers. 2018 and further updated and verified by respective initiative in January 2019.

by 17.1 percent compared with control LCA Availability Soil Fertility farmers. Product Marketing / Labeling Water consumption; Primary energy Promotes soil health and nutrient Use of Synthetic Fertilizer REEL Cotton products can be labeled as demand; Global warming; Eutrophication management through crop rotation REEL Cotton or using a brand’s own label and composting. REEL Code requires REEL farmers trained in composting, crop for sustainable cotton. Note: No LCA data available this year; appropriate measures are implemented to rotation and reduction in use of chemical however, CottonConnect is conducting a increase soil fertility and avoid erosion of the fertilizers. Use of chemical pesticides Consumer Recognition pilot to measure LCA factors. soil. reduced on average by 12.7 percent compared with control farmers. Primarily business-to-business but in-store Water Consumption: Biodiversity marketing. No LCA data. Social Considerations / Regulations Promotes the use of bio-pesticides and bio- Livelihoods fertilizers and reduces the use of chemical Primary Energy Demand: Provides training to produce cotton with pesticides and fertilizers. The REEL Cotton REEL farmers receive training to increase No LCA data. respect for human rights principles for Code requires cotton production to respect decent working conditions; no child labor; yield and profit. 7.3 percent average profit ecologically sensitive areas by keeping application of health and safety principles; compared with control farmers. In addition Global Warming: sufficiently sized buffers around cotton gender inclusion. Focus on women to agronomic training, REEL Cotton No LCA data. fields. Farmers are motivated to plant trees empowerment through Women in Cotton programs improve livelihoods through the around farms; diversify their production program. social intervention programs including Eutrophication: system through crop rotation and "Women in Cotton," "Farmer Business No LCA data. intercropping; plant border crops around the Verification / Certification School" and "Health and Safety in Cotton cotton field; and take necessary steps to (farm level) Gins." Water Management increase beneficial insects on the farms. Developed and verified by Flo-Cert (third Cost Implications / Impacts Promotes water efficiency. 12.5 percent $ Note: CottonConnect is conducting a pilot party). average reduction in water use compared Brand/retailer pays for service. to measure biodiversity and soil health with control farmers. The REEL Cotton improvements. Chain of Custody (supply chain) Code requires water used for irrigation Quality Perception / Implications of cotton fields stems from sustainable CottonConnect has developed a product GMOs Permitted? No known quality implications. sources and is safe for crop, soil and human called TraceBale, providing traceability health. Farmers are encouraged to adopt Yes. from the source of cotton to the finished measures to optimize water use for irrigation product. The software tool uses a TraceBale and adopt water resource recharging Use of Hazardous Pesticides ID to provide visibility of the cotton from practices. the farmers to ginners, and connecting REEL farmers are trained in pest into existing yarn ID systems to provide management and reduction of harmful traceability throughout the supply chain. chemical use. Training is provided on organic pesticides (e.g. neem spray). Use of chemical pesticides reduced on average

www.regenorganic.org

What’s the buzz on Regenerative Organic Certified cotton?

Whole Foods just named regenerative organic cotton is the "north star" of this consumers value products that were made The Three Pillars Of farming the biggest trend for 2020, with critical sector and quality driven brands in a planet-friendly way more than ever. But Regenerative Organic Company President A.C. Gallo stating that clearly recognize it. with so many claims on the market, they Certification this year, the grocer giant will “spend a lot need assurance at a glance that their dollars of time and energy looking into… how to In 2018, the Regenerative Organic are well-spent. That’s where labels like move regenerative agriculture forward.” The Alliance created the Regenerative Organic Regenerative Organic Certified come in. concept has been featured in the pages Certification (ROC). ROC is a holistic, of Forbes, Vogue Business and Outside high-bar certification for food, fiber, and ROC is unique because it represents a full Magazine, among many others. It seems personal care products. The certification suite of values that extend beyond food, nearly everyone—from businesses and encompasses three pillars—soil health, guaranteeing that the land, animals, and brands to policymakers, consumers, and animal welfare, and social fairness—all of people involved in creating a product were activists—are interested in regenerative which affect and touch on each other. Like all treated with respect. ROC is a promise Soil Health organic farming and its potential to fight USDA Organic, ROC prohibits synthetic to consumers that their purchase makes a the climate crisis. It’s a thrilling time, and inputs like fertilizers, herbicides, and positive impact. the energy is palpable. The whole world insecticides and prohibits the use of GMOs. In 2019, ROC underwent its Pilot Program. is pivoting toward this conversation and What’s more, ROC requires farmers to The Regenerative Organic Alliance the realization that regenerative organic actively build soil health and organic matter conducted audits on over 20 farms around agriculture has the ability to solve some of on their land, conserve water, reduce soil the world, testing the first version of the humanity’s biggest problems. disturbance, build habitat, provide fair and comfortable working conditions, and more. ROC standards against real-life conditions Importantly, there is specific interest ROC addresses the full range of issues that on real farms. Armed with that information, around regenerative textiles. Conventional plague conventional cotton, like intense they will fine-tune the standards and design Animal Welfare cotton is notoriously harmful. One of water use, soil degradation, and unfair labor training materials to help others on the the most chemical-intensive crops, it’s practices. journey to Regenerative Organic Certified. been implicated in water shortages and Regenerative Organic Certification will destruction of native soils, not to mention its Increasingly, consumers want to be be open to general applications in spring egregious history of forced labor. As brands connected to the source of their food and 2020. As its network of farmers grows, the jump to decrease their footprint and appeal products, and they want those sources to opportunities for regenerative organic cotton to consumer values, sustainably grown be authentic and sustainable—regenerative, are exciting. and harvested cotton is the obvious choice if you will. As witnessed in the growth of organic, consumers are willing to pay a with mainstream companies like Walmart Learn more at regenorganic.org. investing in building more sustainability into premium to buy in line with their values. Social Fairness their cotton supply chain. Regenerative With climate uncertainty at an all-time high,

and Vogue Business wrote a two-part vulnerable. To protect them, ROC brands series on the subject, too. The Outdoor and buyers are held to a high standard— Elizabeth Whitlow Executive Director Retailer Expo 2019 was telling—one look only a certification like ROC ensures that around the room and you could see that farmers are paid a fair premium while Regenerative Organic Alliance brands are heavily invested in recycled, also ensuring that natural resources are organic, salvaged, and other kinds of conserved. We think that dual approach sustainable goods because that’s what matters. Consumers do, too. For brands, their demographic demands. Everyone is having the ROC logo on their cotton in farming, as in life. We don’t have all the What were the biggest jumping on the bandwagon. And some of product sends a strong signal to consumers answers. What we do have is a willingness challenges of the Pilot these brands are huge manufacturers of that no one was harmed in the making of Q and dedication to working hand-in-hand Program? clothing—this is a sector that has potential the clothing—neither soil nor farmer. with farmers on the ground to come up with Our biggest challenge was time and to make a big impact. solutions. As for ROC and the future of cotton, once scheduling! Certifiers are under-resourced. What is the future for we get our database up and running, we’ll Auditors are extremely busy. Working on For this movement to reach its full Q regenerative organic cotton? have a way for interested parties to search an international scope compounded the potential, we need more farmers practicing for ROC certified farmers. We hope to have difficulties. regenerative organic who can, in turn, As is the case with a lot of organic cotton, that by the end of 2020. help other farmers adopt these methods. demand outstrips supply. We need to As expected, we learned that the Farmers operate under the thinnest increase awareness among farmers about What's next for ROC? Regenerative Organic Alliance (ROC) imaginable margins and need the brands regenerative organic practices, not only Q standards will need to be adjusted who rely on them to support and invest in so they can put these amazing climate- to accommodate farms in disparate shifting the paradigm. This movement is friendly methods to work, but so that they By Q2 2020, we’ll have adjusted the geographic conditions and climates. Some global, but to make it successful, we need can capture the higher premiums that framework and will begin accepting general agricultural practices are highly site-specific, to think regionally and get people on the regenerative organic products demand for applications. Shortly after, of course, we’ll and there is definitely no one-size-fits-all ground applying the ideas to the unique themselves and their communities. start officially certifying farms. It’s an exciting solution for every farm. context of each farm. time! Acquiring suitable seeds is an issue—it’s What were the biggest Do you see interest from the extremely difficult to find non-GMO cotton Q takeaways? textile and fashion industries seed, which ROC requires. The strong push Q in regenerative organic for more sustainable textiles should help tip practices? that trend. Another concern in growing the An important takeaway was something we supply chain is social fairness. It’s expected knew going in: the standards weren’t written There’s tremendous interest around that, to fill the gap in demand, smallholder into perfection, and they will need to be sustainable textiles right now. Fashionista cotton production will increase. Without continually updated as we learn more from recently wrote a deep-dive article on protection, those small-scale farmers are farmers globally. There is so much nuance regenerative agriculture and fashion,

The demand for, and the benefits of, organic The process of transition: of India, China, and Turkey as well as other agriculture are clear. Evidence of the positive leading producer countries. In the United Textile Exchange, in partnership role organic agriculture plays to address Transitional (also known as "in-conversion") States, both CCOF and Quality Assurance with Kering, is developing a biodiversity and regenerative properties is a agriculture is farming that shifts land from International (QAI) offer transitional programs cornerstone solution to address the climate conventional practices to an organic as do numerous state agencies such as the Transitional Cotton Roadmap crisis. This means that supporting organic management system until it qualifies to Texas Department of Agriculture, located which will be made available production by incorporating organic fiber be certified organic under national or in the primary U.S. organic cotton growing soon. The Roadmap aims into textile programs is more important international organic standards. region. to support the sustainable today than ever. growth of the organic cotton That transitional process usually takes Standards that support transitional place over a 36-month (three year) period. sector. It builds on the earlier A Rodale Institute study, which looked at organic fiber in finished products work delivered through this farming systems and pasture trials, claimed It can take only one year if no substances International textile processing standards partnership and provides a farmers could capture up to 100 percent prohibited in organic agriculture have been also support the creation of a transitional of current annual global carbon emissions used during the preceding year. During robust business model that supply chain from field to finished products. through organic farming using regenerative those three years, certification bodies benefits people and planet. The leading organic textile standards - the organic practices. In addition, a study by conduct annual audits as per international Global Organic Textile Standard (GOTS) The Organic Center demonstrated that organic farming standards. The goal is and Textile Exchange’s Organic Content organic farms store more carbon in the soil that transitional farms become certified to Standard (OCS) - permit both certified than conventional ones and keep it out of organic standards after their third year and organic cotton and "in-conversion" cotton in the atmosphere for longer than conventional become fully certified organic. finished products with appropriate labeling. farming methods. Organic farm standards are developed Where is transitional cotton grown? One of the greatest opportunities for nationally but transitional farming and labeling requirements may differ slightly increasing the supply of organic cotton (and According to the Textile Exchange 2019 between nations and even individual other fibers) lies in programs that support Organic Cotton Market Report, there were certifiers. farmers along their journey to organic almost 44,000 hectares of transitional certification by providing labeling-based Standards that support transitional cotton grown in 2017/18, led by countries incentive programs during the transitional organic fiber production in South Asia (25,242), the Middle East and period. These programs also provide Central Asia (12,840), China (3,669), Africa verification of claims permitted along the There are several standards in place (1,712), Latin America (627), and the United supply chain from field to finished product, to support the conversion of land from States (304). distribution of premium pricing from retailer transitional to organic production. These to farmer, increased financial stability for are managed by state or national authorities farms during the transition, and increased as well as private certifiers. Internationally, education and understanding as to how to transitional organic standards are in place attain, and retain, organic certification. in the top organic cotton producing nations

Our support to transitional cotton farmers final consumer to understand why this is a Why promote better farming practices? We have been part of the increasing has been fundamental for the growth and preferred fiber. Because we have seen a real impact on demand on transitional cotton offering it in success of Bergman Rivera, as this is people’s wellbeing, besides that is a way to LS and ELS fibers as an option to brands where it all starts. In order to become an During the last year, we have been offering protect the environment. Also, it is important that have chosen to start using preferred organic farmer, the soil needs to cleanse transitional cotton to new clients, which are for us to maintain a healthy farming tradition fibers in their productions. during three years. During this period of just starting their journey to sustainability. with younger generations. time, farmers have to adapt to a new way of For us promoting it has not been that hard, One of the biggest challenges on promoting farming, eliminate pesticides, insecticides, as it is a stepping stone towards a better By implementing transitional cotton transitional cotton is the lack of information chemical fertilizers, among others. Their and more responsible supply chain and programs, we can achieve all the mentioned about labeling and demonstrate its benefits. yields initially go down and their cotton is better livelihood for the farmers that are above, and that is why encouraged our Transitional Cotton carries certifications both sold as conventional, as it is not yet organic, starting their path to organic agriculture. most important clients to start using at farm and industrial levels. These assure thus they don’t get a premium. transitional cotton as they grow their Currently 37 percent of the farmers in our demand of organic cotton each year, that traceability of the raw materials and its During 30 years, we at Bergman Rivera project are part of the Transitional Cotton way they can assure their organic cotton processing methods. have assumed that additional cost, as this Program and our forecast is to grow 30 supply. is the only way to promote the transition to percent each year. organic farming. That three year cost has The most interesting fact is that on 2019 then to be translated to the organic cotton we reported sales growth of 230 percent, price, making the price difference be even just by offering Transitional Cotton to higher. some of our most committed partners and Three years ago, we started working directly new clients. We believe that if we have a with brands, helping them understand that common message among all the players the only way to secure the future growth involved and provide data that the brands of organic cotton is by assuming part of can leverage, this is a great opportunity to the investment cost of growing the organic increase organic cotton areas among the farmed area. They understood that the world. easiest way was through them starting to It is our duty as producers and Textile purchase transitional cotton for what it is Exchange Board Members to encourage and not conventional. brands and lead them to choose wisely Transitional cotton is more sustainable than when they think of preferred cotton other options out there in the market and alternatives. in the second year of cleanse it is GOTS Even though we have long term and strong certified, which offers a great opportunity. relationships with the farmers we work Labeling and language behind transitional with, we need to promote better farming cotton still needs work, in order for the practices in the areas where they operate. Photo: Bergman Rivera

Cotton producers in the United States Building Environmental Trust The U.S. Cotton Trust Protocol are caretakers of millions of acres of farm land which are planted to cotton each Working through a vast network of national is a program that provides a voluntary way The industry recognized that for U.S. cotton year and many more millions of acres and regional cotton associations, farmer- to formalize individual farmer management to be the supplier of choice for many global when considering the entire farming funded check off programs, state farm practices and communicate common brands and retailers, as well as meet the enterprise. Cotton farms typically include organizations and input providers, cotton elements of those practices. The program needs of the consumers, it needed to verify other row crops, grains, pasture, animals, farmers work to assure customers can is being created to enable U.S. cotton existing production systems and practices timber, water bodies, native grasslands, trust U.S. cotton as being a sustainable producers and industry organizations to and establish long-term environmental conservation reserve land, native wildlife and responsible choice. Farmers believe demonstrate their commitment to more goals. This program is designed to meet habitats and forests. that supply chain partners can trust U.S. sustainable cotton production and their those needs, while showcasing U.S. cotton to help meet their own corporate progress toward long-term environmental cotton’s story of continuous improvement. environmental and social responsibility Nearly all U.S. farmers and their families improvement, thereby meeting the It also charts a path to meet the industry’s live and work on their farms. All believe that needs. 2025 sustainability goals. sustainability goals of downstream users of protecting the land, water, air, and wildlife U.S. cotton. habitat is essential for their family and U.S. farmers have production and More info on their website. community’s current well-being. They are management programs to assure cotton While its primary purpose is to provide committed to protect resources for future is produced efficiently and responsibly. guidance to best practices, it also serves as generations. Individual farms are distinct, and a mechanism to chart a plan for continuous each operation is tailored to meet the improvement. It is important to recognize Brands, retailers and users of cotton are requirements of the land, available natural that specific needs vary from farm to farm establishing both short-term and long- resources and community. There is no one- and that each operation must tailor a plan to term sustainability goals. Consumers are size-fits-all farm plan. its own circumstances. also demanding more transparency about the products they buy. More and more Regulatory Framework The program is supported by all segments companies have shareholders who are of the U.S. cotton industry, including supply U.S. cotton farms operate under a myriad of making investment decisions based on chain partners, and will be managed mandatory regulations assuring that national environmental and social governance data and implemented as a single member environmental standards, federal labor and their supply chains must comply or LLC. The Trust Protocol has established and worker protection laws, and soil and face being left behind. It is essential that a Board of Governance representing water conservation requirements are met. U.S. cotton provides high quality trusted producers, brands/retailers, civil societies, In addition to regulations, farmers operate ginners, merchants, cooperatives, textile data to meet the needs of both the supply under principles of applying the most chain and consumers who are increasingly manufacturers, cottonseed crushers/ appropriate technologies that meet the handlers, and cotton warehouses. demanding more sustainable fibers. site-specific needs and provide a fair return on investment and quality of life of families, workers and communities.

We warmly welcome and congratulate the newest members to the 2025 Sustainable Cotton Challenge. Their progress will be measured along side the other brands in the next annual report.

Brands Manufacturers

There is a plethora of information and resources available to you and your brand along the journey toward a more sustainable cotton supply:

The Cotton Up Guide from Forum for the Future: cottonupguide.org

Planning An Effective Cotton Strategy: textileexchange.org/materials-z/planning-an-effective-cotton-strategy

Cotton mapping to the SDGs: textilesforsdgs.org/resources/insights

Information on Organic Cotton: aboutorganiccotton.org

Information on Textile Exchange’s Organic Cotton Round Table: textileexchange.org/organic-cotton-round-table textileexchange.org/organic-cotton-round-table/ocrt-2019-vancouver

Textile Exchange Organic Cotton Market Report 2019: textileexchange.org/downloads/2018-organic-cotton-market-report

Textile Exchange Preferred Fiber and Materials Market Report 2018: store.textileexchange.org/product/2019-organic-cotton-market-report

Learning Resources for Preferred Cottons: textileexchange.org/learning-center/preferred-cotton

Matrix of Preferred Sustainable Cotton Initiatives: textileexchange.org/sustainable-cotton-initiatives-matrix

Textile Exchange's Quick Guide to Organic Cotton textileexchange.org/downloads/quick-guide-to-organic-cotton

Organic Cotton Accelerator organiccottonaccelerator.org

Our work would not be possible with the tremendous support from Textile Exchange Members THANK YOU!

Founded in 2002, Textile Exchange is a global non-profit small, from across the textile world—all seeking to create a with more than 375 members that represent leading brands, more sustainable and responsible fiber and materials industry. retailers and suppliers – the quality and global reach of which Members gain access to a suite of valuable tools, relevant data, has meaningfully accelerated the use of preferred fibers and insight reports, industry networks and connections —and, above increased the adoption of standards and certifications in the all, the opportunity to take action, individually or collectively. global textile industry. As an organization, Textile Exchange Our goal is to help you succeed. Please join us in our collective creates leaders in the sustainable fiber and materials sector by journey! providing learning opportunities, tools, insight, standards, data, measurement and benchmarking—and by building a community textileexchange.org/become-a-member that can collectively accomplish what no individual or company Textile Exchange has three tiers of membership to suit your can do alone. company or organization’s needs, including Friend, Supporter, Textile Exchange members are connected to a powerful Partner (Brand/Retailer) and Partner (Supply Network). community of brands, retailers and companies, large and

On behalf of the 2025 Sustainable Cotton Challenge participants and initiatives, we would like to thank the generous support of Textile Exchange members who are supporting the work of driving the adoption of Preferred Fiber & Materials.

ABRAPA • BASF e3 • Better Cotton Initiative • Cotton made in Africa • Cotton Connect / REEL Cotton • Fairtrade International Field to Market • ISCC • myBMP • Recover • Regenerative Organic Certified • US Cotton Trust Protocol

Adidas Group • Amberoot • Americo Group • ASOS • Bloomsbury Mill • Burberry • Burton • C&A • Coyuchi • Eddy's Brand Eileen Fisher • greenfibres • H&M • Hanky Panky • Hemtex • House of Fraser • IKEA Indigenous Designs • KappAhl • Kathmandu • Kering • Kid • Knickey • Levi Strauss & Co. • LINDEX • Lyle and Scott • Mantis World Mara Hoffman • M&S • Mayamiko • MetaWear • Modelmalhas • Mulberry • Mustaqim • Naturepedic • némloh • Next • New Look Nike • Orimpex • Otto Group • prAna • Pratibha • Rambler's Way • Reformation • Sainsburys • Sanuk • SKFK • Ted Baker • TenTree • Tesco • Timberland • Varner Group • We Fashion • Woolworths Holdings Ltd

Report production team Data analysis team Sevilla Granger Iovacchini (Lead) Liesl Truscott (Lead) La Rhea Pepper Evonne Tan Brent Crossland Suet Yin Siew Phil Bettany

Cover image: Jane Dever, Professor – Cotton Breeder, Texas A&M AgriLife Research - Lubbock. Photo by Mark Arnold, Senior Research Associate (retired), Texas A&M AgriLife Research

BACK TO CONTENTS © 2020 Textile Exchange Page 86 Textile Exchange envisions a global textile industry that protects and restores the environment and enhances lives. TextileExchange.org Textile Exchange announced its new 2030 Strategy: Climate+ in October 2019. Under the Climate+ strategic direction, Textile Exchange will be

the driving force for urgent climate action with a goal of 35-45 percent reduced CO2 emissions from textile fiber and material production (pre- spinning phases) by 2030. The 2030 Strategy: Climate+ is the result of extensive stakeholder engagement through interviews and an online survey conducted with a mix of Textile Exchange members and non-members from organizations representing brands, retailers, suppliers, manufacturers, nonprofits and professional services across the globe. For years, Textile Exchange has promoted practices, standards, and resources that benefit the climate. Adopting the Climate+ strategy makes climate a deliberate priority and organizational focus for an impact area that requires immediate attention and for which we have many existing tools and resources. The “+” in Climate+ allows Textile Exchange to prioritize climate while continuing to address other impact areas that are interconnected with climate in most situations (e.g., water, biodiversity, forests, soil and animal welfare). The “+” is also an acknowledgement that Textile Exchange cannot achieve this new 2030 goal of 30 percent reduction in CO2 emissions from preferred fiber and material production on its own. Achieving the 2030 Strategy: Climate+ goal will require strong partnerships to accelerate adoption of existing tools as well as enable disruptive innovation around new business models and zero carbon materials. The 2025 Sustainable Cotton Challenge is Partnership In Action! textileexchange.org/2025-sustainable-cotton-challenge