A Report Connecting to the How Companies are Engaging in to Build Regenerative and Thriving Supply Chains

c Agriculture relies on productive land, adequate water, workers’ labor, and the welfare of . However, environmental damage and social injustice threaten these basic needs. The loss of half of our arable soil, extreme drought, widespread poverty across smallholder , and growing farm labor shortages weakens the entire agricultural supply chain. This is companies, farmers, workers, and the environment perilously close to failure.

Instead of expecting producers to manage This report describes the efforts of five A few of the featured companies are at the these challenges on their own, leading companies—Danone North America, early stages of their journey; others are companies are reaching through their supply Dr. Bronner’s, Sun World, The North Face, farther along. They share a common set chains and connecting directly with their raw and Wrangler—to engage in their supply of best practices to advance sustainable material suppliers. These businesses seek to chains and help shape the future agriculture in their supply chains based understand, encourage, and support efforts of to a more on three fundamental farm engagement to rebuild the soil, replenish water, boost regenerative and thriving system. principles: communication, collaboration, productivity and deliver fair pricing and and building capacity. respect for farmers, workers, and animals. BUSINESS CASE FOR ENGAGING IN SUSTAINABLE AGRICULTURE • SUN WORLD’s work to establish Harvesters Inc., a labor cooperative, and Cost savings, risk reduction, and growth opportunities their efforts to build water banks on emerge when companies engage at the farm level. company land help reduce operational risks from labor and water shortages. • DR. BRONNER’S commitment to fair- trade and certified organic raw materials helped the company build consumer trust, create new product offerings, and build supply resilience. • THE NORTH FACE points to the Cali Wool Beanie selling out during its first year online as proof of consumer interest. The hat was made with wool from sheep raised on land using soil carbon sequestration practices.

Communication Take the time to understand the supply chain situation, include producers and other stakeholders to build the program, and incorporate two-way feedback into the implementation of the program.

Collaboration Think win-win with producer partners and other organizations that can provide expertise and support for the program.

Capacity Start small but design for scalability, leveraging standardized criteria, training, technical assistance, and other tools.

© 2018 COPYRIGHT PURE STRATEGIES 1 The Future of Sustainable Agriculture Sustainability is the principle of meeting the needs of the present without compromising the ability of future generations to meet their own needs.

This principle demands more than the within agriculture, focused on soil health, halting of damaging practices; revitalizing biodiversity, and watersheds. A common and rebuilding efforts are often needed. principle of regenerative agriculture is a Companies and their supply chains are net improvement through system-level stepping up with several approaches and approaches. practices, such as: • welfare: The North Face THE FUTURE OF • Soil health: Wrangler sources from spearheaded the development of the producers using soil health best practices Responsible Down Standard to ensure that SUSTAINABLE AGRICULTURE of no-till, crop rotation, and cover cropping, geese and ducks in the down supply chain along with others, to conserve soil and lived without unnecessary harm and were build soil ecosystem services, such as provided the Five Freedoms for health carbon sequestration (removing carbon and wellbeing. dioxide from the atmosphere). • Fair trade: Dr. Bronner’s has long • Regenerative systems: Dr. Bronner’s included fair-trade certification in its couples holistic systems approaches sourcing to ensure the producer gets paid regenerative that address soil, animal, and human appropriately for their product and is improved ecological systems wellbeing. Their coconut and palm oil incentivized to use best practices. projects incorporate organic agriculture, • Sun World soil health practices, , fair- Empowered employment: helped launch an innovative farm labor trade, and community development. cooperative, California Harvesters Inc., to Some organizations, such as Carbon stabilize labor demand by providing higher- Underground, use regenerative to focus quality year-round work, empowering the on improving soil—soil health and carbon workers in the operation of the organization, sequestration. Others use the term to and providing valuable benefits. refer to the rebuilding of ecosystems thriving healthy animals, communities, and economies

2 CASE STUDY: DR. BRONNER’S

David Bronner, the third-generation leader of the Dr. Bronner’s saw an opportunity to recreate that family-owned company, and his team are inventors. market by helping farmers convert to organic and Since the early 2000s, they have been developing fair-trade practices. The company took it a step new ways to ensure that the raw materials for further by integrating agroforestry at the Dr. Bronner’s personal and home care products because mixed forests with coconut, cocoa, and are produced and sourced responsibly. As David other tree and field crops boost coconut yields. “ Beyond the production of Bronner states, “We have to take responsibility for So, in addition to facilitating the organic our supply chain. It is an ethical imperative.” certification of 1,500 farmers and the resumption a product, our work is an of coconut oil production in an oil mill owned by By 2006, the company had a foundation of investment in the health of its local partner, Dr. Bronner’s worked with Ecotop, certified organic ingredients and led the natural an agroforestry expert, to replant farms in a the soil, the farmers, their and organic product market. This market position, dynamic agroforestry system. however, did not address the social aspects of families, and communities.” producing and trading the materials. To meet this To make coconut production attractive again, Dr. challenge, the company shifted to sources that Bronner’s also increased the low price received GERO LESON, VICE PRESIDENT OF were both certified organic and fair-trade certified. by farmers for coconuts with a 50 percent price SPECIAL OPERATIONS AT DR. BRONNER’S Along the way, it learned more about its supply increase for the organic and fair-trade production. chain, uncovering challenges that could limit the Dr. Bronner’s is confident that it will, in cooperation availability of responsibly sourced options. with other buyers and the Samoan Ministry of Agriculture, bring about a demand-driven Coconut oil is a primary ingredient for Dr. Bronner’s revitalization of the Samoan coconut and cocoa soaps. To meet the company’s growing demand, it industries, formerly the two largest agricultural looked to Samoa. Samoa was once a key region for industries in Samoa, in a sustainable way. coconut production, but the industry had been declining. Farms producing coconuts for generations were losing their market, along with the livelihood for thousands of families and communities.

3 Communication HOW DO YOU BRING YOUR PRODUCER COMMUNITY ON BOARD? Get to know your to identify needs and opportunities, The need to build trust and provide align on priorities, and build in two-way feedback. clear value to your producers cannot be overstated. Start with getting to know their To provide real value, an agricultural en- Sun World responded to a California situation, what they care about, and what gagement effort needs to address supply labor shortage by taking the time to learn they are concerned about. It helps to start by chain–specific issues, which differ across about the benefits and shortcomings of engaging with pioneering farmers, those that crops and materials. Taking the time to learn the existing labor system and asking the others look to for ideas, and including them from producers and experts is an import- community about gaps that could help in the creation of your efforts. ant part of getting started. Maintaining strengthen and stabilize the workforce. that line of communication throughout the A key insight was that workers lacked • WRANGLER spent time with the producers in program sets it up for success. access to options such as health care its cotton pilot to understand their priorities and work to address them in the engagement and education because they were not effort it built, including improving the Wrangler began its journey of coordinated or connected to the options. producers’ profitability through increased understanding the supply chain by This communication process showed yield, reduced costs, and lower risks. The engaging at the farm level all the way Sun World that a farm labor cooperative company was also clear about its commitment upstream to the producer level. Wrangler could be a win-win for the company and to sourcing the sustainably grown cotton and met one-on-one with a few producers. the workers. The brand discovered that soil health, getting the producer’s story out. which aligned with producer priorities • THE NORTH FACE included producers and of resilience and profitability and brand suppliers in the development of the Responsible priorities of sustainable practices and Down Standard. This collaboration helped the land stewardship, was a common interest. producers and suppliers buy into and trust the Consequently, soil health became the process and understand the business value for focus of the brand’s agricultural efforts. adopting it.

• DANONE NORTH AMERICA believes that engaged producers are a key source of best-in- class ideas and innovation. The company created a producer network that encourages peer-to- peer learning and collaboration to facilitate best practice sharing. Further, the company supports long-term relationships through a cost-plus model, which helps to provide stability and build trust to support its robust network.

4 CASE STUDY: SUN WORLD

Sun World is a vertically integrated produce Sun World pulled together a group of organizations company that planted its first grape vines in with expertise and shared interests to provide California 40 years ago. Acquired by Renewable funding, tools, and guidance to help Sun World build Resources Group (RRG) in 2013, the company and effective pilot. Early in 2018, California Harvesters remains committed to Better Farms and Better Inc. was launched as an independent cooperative Flavor through its innovative sustainability program with local managers and service providers, and with “ California Harvesters is a and proprietary grape variety development. Sun World as its anchor client. Within the first month, California Harvesters met its initial recruitment goal of powerful approach, because The company pioneered an approach to sustainable 250 workers, with up to 650 members expected by water management. Over 550 acres of Sun World it brings stability to farm the end of 2018. As co-op members, they get $0.25 land were developed as water banks—which collect more an hour and access to health care, education, workers while also respecting surface water on-site during heavy-precipitation and other opportunities. Because California periods and percolate it into the ground for storage their role in the supply chain Harvesters is a cooperative, its members will be for future use in dry years. This system has already trained and empowered to serve as the organization’s by empowering them and banked the company’s water need for the next five leaders and shape its—and their—future. years, with a portion donated to the local community providing valuable benefits.” as well. Sun World and RRG use that entrepreneurial Sun World is committed to hiring workers from approach to tackle additional issues. California Harvesters and supporting its growth, to RUPAL PATEL, CSR AND SUSTAINABILITY meet Sun World’s farm labor needs as well as those LEAD AT RENEWABLE RESOURCES GROUP Sun World began searching for innovative options of other produce companies. Rupal Patel, CSR to address California’s farm labor shortage, while and Sustainability Lead at Renewable Resources improving the working conditions and support Group, which supports Sun World on this project, systems for farmworkers. After interviewing notes, “California Harvesters is a powerful approach farmworkers, experts, and community service because it brings stability to farm workers while providers, the company began developing a new also respecting their role in the supply chain by model—a farm labor cooperative organization. empowering them and providing valuable benefits.”

5 Collaboration WHY IS THERE SO MUCH FOCUS ON SOIL? Partner with organizations and companies that can Production of food, fiber, and other natural help fill the identified needs and share the value created materials begins with the soil. Half of our soil has been lost due to conventional by the collaboration. agricultural practices and conversion of land to cropland, but there are known best Companies do not have to advance At the same time, the company will learn practices that reduce soil erosion and sustainable agriculture on their own. how it can leverage best practices across build soil health. It is important to look to like-minded its supply chain, and the researchers will organizations for help. gain insight to further their research and Soil is also the largest terrestrial pool of carbon, innovation. To support their soil-sustainability efforts with the potential to accumulate more carbon by following the same best practices that build soil on cotton, Wrangler pulled together Sun World develops most of its water health. Although the potential to be a carbon sink organizations with a shared interest projects in collaboration with agencies varies by region, the status of soil degradation, of advancing soil health with local and that manage water for the wider crops grown, and production practices, The expert knowledge and aligned aims. community so that the benefits of Nature Conservancy estimates that widespread Groups such as Field to Market, the Soil these programs not only support Sun adoption of soil health practices could mitigate Health Initiative, the Texas Alliance for World’s needs, but also ripple out to the 25 million metric tons, or 5 million passenger Water Conservation, The Sustainability community and other farms across a cars’ worth, of carbon each year. Consortium, and others provided tools, 6,000 square mile region between research, and advice to help the brand Fresno and Bakersfield, CA. For Sun Awareness of this carbon mitigation opportunity build an effective pilot with cotton World’s work to build an effective labor is on the rise all along the supply chain, from produced using soil health best practices. cooperative pilot program, it sought out farmers to brands. THE NORTH FACE supported insight and support from The Workers early research by the nonprofit Fibershed to Like Wrangler, Danone North America Lab, Democracy at Work Institute, The evaluate best practices for building soil health is advancing its sustainable agriculture Working World, Coalition of Immokalee and soil carbon sequestration to help mitigate program by emphasizing soil health. The Workers, and Farmworker Institute on greenhouse gas emissions. With promising company is starting with a “dream team” Leadership and Eduction Development. results, Fibershed developed the Climate of experts from Cornell University and Beneficial Wool standard and piloted it at the Ohio State University who will test the Bare in California. THE NORTH FACE soil and analyze the farming practices at sourced the certified wool for the Cali Wool 16 pilot farms to help them successfully Beanie that sold out on their online store during implement new soil health best practices. its first year in 2017. The program is currently at the single ranch phase, but there are plans to expand so more North Face products can be created using certified wool.

6 CASE STUDY: DANONE NORTH AMERICA

The North American subsidiary of Danone, the Baseline data will be used to identify ways to world’s largest Certified B Corporation® and enhance organic matter and soil fertility with long- leader in plant-based and organic food and term benefits such as soil carbon sequestration, beverages, has been advancing its farm-level reduced chemicals use, improved soil water- engagement. The company began to shift to holding capacity, greater biodiversity, and the sourcing their milk directly in 2012 to establish a economic resilience of farmer communities. “ The long-lasting closer connection to its producers. This connection rests on a cost-plus model of providing payment Ryan Sirolli, Agriculture Director for Danone North relationships we have for the cost of production plus an agreed-to America, notes, “The long-lasting relationships we have with our growers and dairy farmers, who have with our growers and margin for specific requirements and continuous improvement. This method provides greater a passion for change and strive for continuous dairy farmers, who have transparency and enables changes in production improvement, have enabled us to launch this program. We know this work requires collaboration a passion for change practices, such as animal welfare certification and Non-GMO Project Verified feed. Now the company to make a meaningful impact, and we are excited and strive for continuous is building a best-in-class soil health program, to bring together uniquely skilled partners to help us to continue to fulfill our ambition.” improvement, have aimed at enhancing organic matter and soil fertility, into their supply chain. The pilot farm learnings are anticipated to be enabled us to launch The company partnered with a team of university a source for training on soil health best practices this program.” researchers and a data tracking software provider with their producers, through reports and field on a pilot study of 16 farms beginning in 2018. days with farmers. The company will then begin RYAN SIROLLI, AGRICULTURE DIRECTOR Dairy and feed growers will have their soil and to integrate these approaches into its cost- plus model to drive continuous improvement FOR DANONE NORTH AMERICA farming practices evaluated to establish a baseline across the various growing systems and regions. in its supply.

7 the benefits of healthy soil

drought resilience weed reduction

carbon sequestration cost savings soil and water retention

yield improvement nutrient and microbial greater profitability enhancement

8 CASE STUDY: WRANGLER

Wrangler brand jeans were first made in 1947. During this process of understanding the Since then, the brand has held deep community producers’ challenges, goals, and priorities, partnerships, such as its 50-year support of the it became clear that known best practices to Future Farmers of America. The brand is now a build soil health address many of the priorities part of VF Corporation and continues to build producers have, particularly risk reduction on its heritage. Roian Atwood, Sustainability and profitability. “ From the health of our Director at Wrangler, notes, “From the health of our communities, to the conservation of our land, The Newby family, who are seventh-generation communities, to the water, and air, we take responsibility for the legacy Alabama farmers, were one source of this insight we leave future generations.” for Wrangler. The brand started working with the conservation of our land, Newbys to pilot an approach that implements and water, and air, we take The brand wanted to deepen its connection and measures the effects of robust soil practices such sense of responsibility with cotton, its number as no-till, crop rotation, and cover cropping. This responsibility for the one raw material. About half of Wrangler’s supply approach involved bringing in experts, including legacy we leave future of this natural fiber is grown internationally and E3, the Soil Health Institute, and others. Their the rest in the . The brand began trusted and expert on-the-ground knowledge generations.” to source from Better Cotton Initiative–certified helped improve yield, water and energy efficiency, producers for the internationally grown volume and soil conservation. ROIAN ATWOOD, SUSTAINABILITY and looked for a way to support U.S. growers DIRECTOR AT WRANGLER more directly. Forty thousand pounds of Newby cotton will be used to make a special collection of Wrangler Wrangler began its efforts in the United States denim jeans in 2018. Additional producers are with a discovery process that involved meeting included in this pilot, with a target of doubling the with several experts and producers to learn amount of healthy-soil cotton in the fabric by 2019. about practices used and decisions made.

9 Build Capacity HOW DO YOU MEASURE PROGRESS? Projects need performance measures, Directly support the supply chain and create solutions because without tracking progress it is hard that are scalable. to know if the aims are being achieved. The metrics to use depend on the objectives of the project. Ultimately, supply chain engagement This has included setting up downstream must involve more than a few farms. processing infrastructure, such as getting • DR. BRONNER’S uses the Cool Farm Tool to Programs often begin with a smaller a coconut oil-processing mill running for estimate the soil and climate benefits of the effort and provide resources and use smallholders in Sri Lanka or a palm oil measures its supplying farmers are taking. That tools to build the capacity and scale. mill in rural Ghana that purchases palm information is included in the calculation of the fruits from smallholders and employs 2 company’s carbon footprint. Dr. Bronner’s also Dr. Bronner’s had been supporting 50 staff. tracks the number of supplying farmers, volume organic production of coconuts and palm and value of purchased materials, and the fruits in Sri Lanka, Ghana, and India since In another example, to improve the volume and use of the fair-trade premium paid 2007. More recently, the company started treatment of birds in its down supply to farmer communities. demonstration farms to test and prove- chain, The North Face looked to invest out dynamic agroforestry in Ghana and in an approach that could be widely • WRANGLER uses the Fieldprint Calculator Samoa and is now scaling that approach. adopted and chose to develop an from Field to Market to track progress on soil conservation, greenhouse gas emissions Training farmers helps make the industry-level standard for animal welfare reduction, and energy and water efficiency. transition from the demonstration farm in down production. The North Face The tool allows producers to evaluate their to many farms. The company also assists spent time training its supply chain decisions. Because data entry was a barrier for producers finance replanting and fills in members on the standard, so they could adoption, Wrangler partnered with software other resource gaps to enable scalability. meet the requirements. The company solution provider MyFarms to ease that burden. met its target of sourcing only certified responsible down ahead of schedule, and • DANONE NORTH AMERICA measures over 50 brands adopted the standard profitability, milk quality, cow comfort, and within four years. other measures in its current cost-plus model, which pays actual production costs plus an agreed-to margin for meeting defined requirements and continuous improvement. The results from the work on soil health practices will be integrated into the model in the future.

10 CASE STUDY: THE NORTH FACE

The North Face offers gear and apparel for at the entire supply chain, from hatcheries to outdoor enthusiasts. With the close connection farms, slaughterhouses, collectors, pre-processors, of its products to the environment, sustainability processing facilities, and garment manufacturers. has been core to the brand’s history. Now a part These stakeholders worked in partnership with the of VF Corporation, the brand aims to empower nonprofit Textile Exchange and certifier Control exploration, protect the environment, and make its Union to develop a traceable, verifiable approach “ Developing a standard with products responsibly. The North Face has piloted that could align the vastly different types of farms and scaled advances in raw material production to across a variety of geographies to a common involvement across the support these goals. set of criteria to protect the birds and set up the entire supply chain and all industry for a change at scale, extending well Duck and goose down deliver critical insulating beyond The North Face’s own down supply. geographies was critical to properties to many The North Face products, including outerwear, sleeping bags, and Textile Exchange has owned and operated the reaching the scale for notable accessories. After questions were raised by external Responsible Down Standard (RDS) since its launch impact. We are now working stakeholders about animal welfare, the brand in 2014. The North Face committed to sourcing began an investigation of its supply chain. Because down from certified farms and supplies, and by on a similar approach for down is a byproduct of meat and liver production, 2016, the brand has used 100 percent certified land management practices The North Face did not have direct relationships responsible down, hitting their goal one year with producers and needed to reach through the earlier than expected. As of the summer of 2018, in wool production.” complicated supply chain to understand down’s more than 90 brands from the outdoor, apparel, sources and production practices. and home industries are using the RDS to verify JAMES ROGERS, DIRECTOR OF their down and feather products, including H&M, After that exploration and talking with experts, SUSTAINABILITY AT THE NORTH FACE C&A, Mammut, and others. It is estimated that over The North Face identified animal welfare issues it 500 million birds are under RDS certification at the could act on, and the company began developing farm level on over 3000 sites in Europe, Asia, and a standard. The process included a detailed look North America, including 2000 industrial farms.

11 communication learn, align, feedback

Engage Now The issues in agricultural supply chains, such as labor shortages, loss of arable soil, and animal welfare demand focused and effective action. Leading brands and retailers are connecting through their collaboration supply chains to their producers and together they are making meaningful advances in sustainable agriculture. fill needs, share value Supply chain engagement is not just about With this commitment, important shifts reaching out externally. It is also requires in thinking and action can lead to more including company leadership and business transparent, connected, regenerative, and functions, such as procurement and thriving agricultural supply chains that marketing. It is important to integrate the effectively support sustainable agriculture efforts into the organization and everyday for future generations. business activities.

capacity pilot, support, scale

12 Additional Resources ABOUT PURE STRATEGIES ABOUT THE REPORT Pure Strategies has been transforming Pure Strategies has been helping Carbon Underground business through sustainability companies engage in their supply thecarbonunderground.org performance since 1998. Our team chains, including supply chains that Cool Farm Tool helps companies initiate and enhance support sustainable agriculture, coolfarmtool.org existing sustainability programs by for many years. To prepare for this setting meaningful goals, devising report, we conducted global market Fieldprint Calculator effective management strategies, surveys of sustainability leads about fieldtomarket.org and making changes to products and their successes and challenges in Rodale Institute supply chains that deliver value to understanding their supply chains and rodaleinstitute.org the business and society. Our clients engaging at the farm level. With this include Walmart, Wrangler, Seventh background, we identified a need to SAI Farm Sustainability Assessment Generation, Sun World, The North outline the best practices in farm-level fsatool.com Face, Sephora, and Ben & Jerry’s. supply chain engagement. We coupled Soil Health Institute Pure Strategies is proud to be a our experience and past research with soilhealthinstitute.org co-founder of The Chemical Footprint in-depth interviews of the companies Project, a licensed GreenScreen® featured in this report. The Sustainability Consortium Consultant, have a staff member be sustainabilityconsortium.org a registered service provider through The Sustainability Consortium, and to be a certified B Corp.

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