Earthsight: Our Statement and Audit Summary

Better Cotton has today shared the findings of an independent audit which investigated allegations relating to cotton production in Brazil’s Matopiba region and sets out the steps it is taking in response.  

The allegations made by Earthsight, a non-profit organisation, relate to two companies that own or manage a number of farms in the state of Bahia and cover illegal deforestation, green land grabbing and coercion of local communities, amongst other issues. 

The audit report, produced by independent global advisory firm Peterson, has confirmed that three out of the farms mentioned were licensed to sell Better Cotton during the timeframes specified in Earthsight’s report. These three farms were not in breach of the Better Cotton Standard. 

In Brazil, Better Cotton’s strategic partner is the Brazil Cotton Growers’ Association (ABRAPA) and its Responsible Brazilian Cotton (ABR) programme is recognised as equivalent to Better Cotton’s standard.  

Some of the challenges reflect the complexity of Brazil’s agricultural sector and demonstrate the need for multistakeholder dialogue to ensure effective oversight and information sharing across agencies to positively impact key environmental and social issues.  

We welcome the scrutiny of organisations such as Earthsight as they help to shine a spotlight on areas where both farm and regulatory oversight need to improve. Better Cotton’s mission is to promote more sustainable agricultural practices globally, helping cotton communities survive and thrive while protecting and restoring the environment.

Key Findings & Next Steps 

The independent Peterson audit found no relation between the accusations by Earthsight relating to community impact and the three farms that produce Better Cotton, and therefore no breach of standards. Nevertheless, the independent auditor is engaging the communities in question with the view to understanding and addressing their concerns.  

With regards to violations of land rights, the audit found that the farms in question are fully registered with the Rural Environmental Registry (CAR), a self-declaratory database of rural properties, and therefore comply with the ABR standard. The farms are also certified with IBAMA, the Brazilian Institute of the Environment and Renewable Natural Resources, so the use and conversion of land for cotton farming on these farms complies with national legislation and meets the ABR standard. Better Cotton cannot comment on the ongoing legal investigations into landowners. 

In relation to deforestation, the report refers to fines relating to years before the farms started working with Better Cotton. There are no areas currently under embargo.   

There is no evidence of the illegal spraying of pesticides as alleged. The embargos on spraying were lifted in 2018 so the aerial sprays highlighted in the report were legal. The complaint did not provide objective evidence the farms applied pesticides in violation of legal distancing. 

The auditor’s report says that the ABR standard should evolve to become more focused on issues such as community needs and cultural values of lands, and to ensure that land conversion does not occur in areas of High Conservation Value. In addition, the report finds that the ABR criteria should be strengthened to ensure that producers are not engaged in acts of corruption. 

Its recommendations to further strengthen the ABR programme’s indicators and assessment guidance correlated to land use law and change, biodiversity conservation, and community impact are aligned with the latest iteration of Better Cotton’s standard (v.3.0) which is being adopted in Brazil in time for the 2024/25 growing season. 

Alan McClay added: “Our latest version of the Better Cotton Standard is the toughest yet and demonstrates that we are committed to bringing the cotton industry on a journey of continuous improvement. This is designed to set out our core requirements for acceptable farm-level practice.” 

Better Cotton has a due diligence process to review the criteria and procedures used by each of its benchmark partners in the countries where it works with a local association. Better Cotton is also actively considering carrying out direct due diligence on large corporate owners of cotton farms given the wider impact of these businesses.  

A further component of Better Cotton’s response will be to encourage and support additional engagement across commodity stakeholder groups, standards bodies and certification schemes to remedy the adverse impacts associated with cotton production.   

Better Cotton has been actively working with stakeholders across the cotton value chain over the last three years to create an inclusive and scalable approach to traceability. This effort has enabled the tracking of cotton through various stages, providing more granular visibility into where cotton is grown. By 2025, we are working to offer traceability, not just at a country level, but to the gin which is only one step removed from the farms. 

To read the summary of findings of the independent audit, use the link below.

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Earthsight Audit Summary – April 2024

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Reviewing the legislative landscape: Public Affairs Manager Lisa Ventura provides update on EU’s Corporate Sustainability Due Diligence Directive 

Photo credit: Andrew Gustar. Location: Brussels, Belgium, 2012. Description: EU Commission. Link: https://flic.kr/p/dxGNie

After weeks of delay, member states in the European Council have reached an agreement on the European Union’s (EU) Corporate Sustainability Due Diligence Directive (CSDDD) – the major piece of EU legislation aiming to establish a corporate due diligence duty for companies to identify, prevent, end or mitigate negative impacts of their operations on people and the environment in their own operations, their subsidiaries and their value chains.

We spoke with Lisa Ventura, Public Affairs Manager at Better Cotton, to understand what happened and how it will impact the cotton sector.

Why were there delays in approving this legislation?

Lisa Ventura, Public Affairs Manager at Better Cotton

First, it is important to highlight that such a directive comes after years of negotiations between EU bodies, including member states in the council, civil society and other key stakeholders. After a preliminary agreement was reached last December, all stakeholders assumed the rest would be straightforward.

However, in January, Germany announced that it would no longer support the directive. Then other member states such as France and Italy requested changes and no longer showed a strong commitment to the previously agreed deal. For this reason, the process was delayed to allow for revisions of the text before it regained enough support from member states and the EU at large.

After some significant concessions in the text, the EU member states in the European Council finally reached an agreement on March 15, 2024.

How much has the legislation changed from the original draft and what does this mean?

The main change in the latest version of the legislation is the scope of the companies covered by the directive. The latest version raises the employee threshold from 500 to 1000 and the turnover threshold from €150 million to €450 million, which means only a third of companies are now covered by the law compared to what was initially proposed.

The rules will still apply to both EU and non-EU companies and parent companies. There were also amendments related to civil liability, giving Member States greater flexibility on how rights can be enforced.  

Despite the revisions, which came as a disappointment to civil society at large, this is still a step forward in the promotion of corporate sustainability and responsible business conduct.  

When will the legislation be seen by the European Parliament, and how soon could it come into effect?

Now that an agreement has been reached in the council and at the parliament’s legal affairs committee, the revised CSDDD will be submitted to a final vote in plenary around April.

Should it be adopted and come into force then, Member States will have two years to transpose it into national law.

Due to one of the recent changes in the directive, there will be a staged approach to the implementation depending on the size of the company. We can then expect the directive to be implemented by 2027 for the largest companies, and by 2029 for smaller companies.

How could it affect the cotton sector?

Despite the revisions, this legislation still represents significant progress for community rights around the world, including those of farmers and farm workers. Businesses will have to address human rights risks in their operations and value chains.

One of the concessions in the latest version of the directive removed the proposal to reduce the threshold for companies in high-impact sectors, including textiles and agriculture. This means that it has now lowered its ambitions and fewer companies from those sectors will have to address their impact on the environment and human rights. This means the cotton sector’s transition will be slower.

Nevertheless, at Better Cotton, we welcome the adoption of this directive and hope its implementation will drive improvements within textile supply chains, in addition to meaningfully supporting sustainable livelihoods for communities around the world.

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Better Cotton Pakistan Supports Emission Reductions via New MOU 

Photo credit: Better Cotton Pakistan. Location: Islamabad, Pakistan, 2024. Description: Better Cotton and Net Zero Pakistan sign Memorandum of Understanding.

Better Cotton Pakistan has signed a Memorandum of Understanding (MoU) with Net Zero Pakistan (NZP) to promote sustainability on cotton farms across the country and explore ways in which carbon emissions can be reduced.  

Net Zero Pakistan, a coalition of national companies, public institutions and sectoral experts, was launched in 2021 by the Pakistan Environmental Trust with a goal to ensure that Pakistan’s carbon emissions do not exceed the amount absorbed by the atmosphere by 2050.  

Its signatories commit to measuring and disclosing their Scope 1-3 greenhouse gas emissions – those relating to internal and supply chain activities – and following a roadmap to deliver improvements.  

This MOU with the coalition will be founded on the basis that, as a field-level organisation, Better Cotton is uniquely positioned to drive change at scale within Pakistani cotton farming communities via our standard system and the promotion of more sustainable agricultural practices.  

Soil health is directly linked to the environment’s ability to capture and store carbon, which helps combat the effects of greenhouse gasses in the atmosphere while providing the ground with beneficial microbes. 

There are more than 500,000 licensed Better Cotton Farmers in Pakistan which work across more than one million hectares of land. In total, more than 1.5 million smallholder farmers produce cotton in Pakistan, with little to no protection from the effects of climate change.  

In 2022, 40% of the country’s cotton crop was lost due to severe floods caused by climate change. Better Cotton champions agricultural best practice to make cotton farming communities more resilient to extreme weather conditions – which, according to the cross-industry platform Cotton 2040, will impact cotton growing regions with increasing frequency.  

The MOU stipulates that Better Cotton and NZP will collaborate to: 

  • calculate emissions produced at the field level and identify how these can be reduced 
  • increase productivity and the production of more sustainable cotton 
  • implement quality improvement programmes throughout the value chain 
  • identify and establish better market linkages capable of streamlining industry collaboration 
  • develop joint initiatives for collaborative fundraising that would benefit Better Cotton’s mission in the country 
  • promote Better Cotton’s mission and benefits both domestically and internationally 

Our commitment to the production of more sustainable cotton in Pakistan is one shared by Net Zero Pakistan, which, since 2021, has itself had a notable impact on the country’s sustainability journey. We are excited to start this collaboration and explore opportunities to drive further improvements in cotton farming communities.

Earlier this month, Better Cotton Chief Operating Officer, Lena Staafgard, and the Director of Better Cotton Pakistan, Hina Fouzia, joined Net Zero Pakistan’s Programme Director, Hassan Anwar, at a signing event in Islamabad. 

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Better Cotton Pakistan Promotes Traceability Through New Partnership 

Photo credit: Better Cotton. Location: Islamabad, Pakistan, 2024. Description: Better Cotton and the Federation of Pakistan Chambers of Commerce and Industry sign Memorandum of Understanding.

Better Cotton Pakistan has signed a Memorandum of Understanding (MoU) with the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) to amplify the benefits and accelerate the uptake of Better Cotton across the country.  

The FPCCI oversees more than 270 domestic trade bodies relating to national trade and services. Its expertise lies in promoting economic activities and safeguarding the interests of the private sector, which it does through close and constant dialogue with the country’s government.  

A key point of this collaboration will be Better Cotton Traceability, which launched in November 2023 after three years of research and development alongside fashion and textile stakeholders. 

The FPCCI will support Better Cotton Pakistan in the national rollout of traceability, as supply chains adapt to meet increasing demands for transparency and the requirements of emerging legislation. 

Better Cotton will provide training to the FPCCI on its new Chain of Custody Standard, which suppliers that wish to trade Traceable Better Cotton must comply with in order to participate in the product’s chain of custody. 

Better Cotton Pakistan will work to accelerate capacity strengthening in the country in order to meet industry expectations and export targets.  

In turn, the FPCCI will promote the mission statement and uptake of Better Cotton among its members, communicating the advantages of more sustainable cotton production both at field level and within supply chains.  

Earlier this month, Better Cotton Chief Operating Officer, Lena Staafgard, and the Director of Better Cotton Pakistan, Hina Fouzia, joined the FPCCI’s President Atif Ikram Shiekh at an event in Islamabad to formalise the agreement. 

This partnership has been forged at an opportune time for Better Cotton Pakistan, as we look to scale the availability of Traceable Better Cotton and in-country compliance with our Chain of Custody Standard. The FPCCI’s trade expertise and relationships with government will be a key lever as we look to advance this area of our work and promote its benefits both domestically and globally.

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Annual Member Meeting in India Highlights Future Opportunities 

Photo credit: Better Cotton. Location: New Delhi, India, 2024. Description: Audience at Better Cotton India Annual Member Meeting.

Better Cotton hosted its latest India Annual Member Meeting at the end of February – welcoming around 150 Members and stakeholders from across India, Bangladesh, Sri Lanka and the United Arab Emirates.  

Held in conjunction with global textile expo Bharat Tex, in New Delhi, the meeting gave retailers and brands, civil society organisations, suppliers and manufacturers, spinners, fabric mills and cotton traders the opportunity to connect with Better Cotton, learn about trends and projects guiding the organisation, and network with peers.  

A keynote speech from Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council (AEPC) – part of India’s Ministry of Textiles – set the scene with a focus on the government’s ambitions of advancing India’s cotton sustainability credentials, and its work to increase exports into the global fashion and textile markets. 

A series of sessions led by Better Cotton staff followed, with updates on:  

  • Better Cotton’s 2030 Strategy, the India programme and supply chain engagement, by Jyoti Narain Kapoor, Director of Better Cotton’s India Programme 
  • The organisation’s traceability solution, by Manish Gupta, Supply Chain Manager of Better Cotton’s India Programme 
  • Better Cotton’s India Impact Report 2014-2023 results, our approach to data analysis and positive changes on cotton farms, by Vidyun Rathore, Monitoring, Evaluation & Learning Coordinator 
  • The changing legislative landscape and how it’s set to impact members, by Eva Benavidez Clayton, Senior Director of Membership & Supply Chain 
  • Better Cotton’s ambitions to improve farmer remuneration via new financing mechanisms, by Lars van Doremalen, Director of Impact 

Member companies and organisations – including IKEA and the Welspun Group – also spoke, highlighting success stories which included the latter’s WelKrishi Programme and its goal to boost uptake of more sustainable agricultural practices among cotton farmers. 

This meeting was a great opportunity to update our Members on the projects underway at Better Cotton, the sustained impact we’re having at field level, and the regulations and trends influencing the sector’s direction of travel.

We are incredibly grateful for the turnout at this year’s Member Meeting. We welcomed representatives from India, Bangladesh, Sri Lanka and the United Arab Emirates, which is demonstrative of the highly engaged membership base we have within these regions.

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Fields of Change: Making Cotton Work Better for Women 

By Alia Malik, Chief Development Officer, Better Cotton

This article was first published by Impakter on 8 March 2024

Alia Malik, Chief Development Officer at Better Cotton.

The textile and apparel industries are showing signs of progress on gender awareness and women’s empowerment. Yet, at the start of their supply chains, the cotton sector lags behind. So, for International Women’s Day, Alia Malik asks: How can cotton sow fields of change?

Whether it is used to make classic blue jeans and a tight white T-shirt, or a high thread-count bedsheet and reusable nappies, cotton comes with a production story. 

This story starts not in a factory, but in cotton fields and their surrounding communities. At present, it is one in which there are still very few women leads; but, this is a story that can change. 

Not a simple numbers game 

According to the Food and Agriculture Organization of the United Nations (FAO), roughly 31.5 million farmers cultivate cotton worldwide and almost half are women (46%).  At first glance, this representation sounds promising, but headline numbers only tell half the story.  When we break these totals down by geography, country, role and task, the story gets a lot more complex. It makes a real difference what the actual job is, and where.

For example, the FAO found more than one fifth of all cotton production takes place in India. The number of women employed on these farms is high. Along with Pakistan, India is one of the countries where the sustainable trade initiative IDH estimates women account for as much as 70% of the cultivators and even 90% of the cotton pickers

Yet, as our 2023 India Impact Report has highlighted, whilst 85% of rural women in India are engaged in agriculture, only 13% own land. The inequality is still plain to see. 

Sustainable livelihoods, not just jobs 

Much of the vital work women do is low-skilled and low-paid. Due in part to deeply ingrained cultural traditions and social norms that keep them in domestic roles, women face disproportionate barriers and are seldom found in decision-making roles. 

Furthermore, in the labour-intensive jobs more commonly done by women, the working conditions are typically worse, with long hours spent out in the field, in the heat. This can mean the women in these roles are not only cash-poor, but time-poor, too. 

In response, our ambition at Better Cotton extends beyond basic job counts towards sustainable livelihoods. This means cotton farmers, workers and communities will have the knowledge, skills, power and choice to access the resources they need to sustain or improve their wellbeing, regardless of gender. 

Principles in practice, in partnership 

So, how do these principles play out, in practice? Well, Better Cotton has set itself a 2030 target of reaching one million women in cotton with programmes and resources that promote equal farm decision-making, build climate resilience, or support improved livelihoods. In all of this, collaboration is key. 

By the time International Women’s Day comes around again, we’ll have strengthened existing ties and forged new partnerships with textile industry actors, helping advance our work towards gender equality. 

Working with our multistakeholder network on a revised gender strategy, we’ll also have actioned plans to unlock field-level finance. As a traceability win-win, this will reward Better Cotton Farmers for performance around environmental and social sustainability.  

Much of this may sound aspirational, but we have already revised our field-level standard to prioritise gender and mainstream inclusive approaches. This is in addition to improving farm labour monitoring that will better equip us to identify and remediate emerging issues. 

We want women in cotton to realise their full potential, free from gender discrimination, so that they can participate and benefit equally from training and opportunities in cotton communities. This includes recognition for their work, access to and control over economic resources (like land and credit), and decision-making power. 

Driving change through investment 

Training makes a tangible difference. Its success can be seen in fields and lives, alike. In Maharashtra, western India, for instance, a two-year gender analysis by Sattva and IDH found that training women in cotton cultivation boosted adoption of best farm practices by 30-40%. 

When it comes to personal life stories, though, training can bring about profound change — take the case of Almas Parveen, a 27-year-old woman in Punjab, Pakistan. 

Photo Credit: Better Cotton/Khaula Jamil. Location: Vehari District, Punjab, Pakistan, 2018. Description: Almas Parveen standing in her cotton field that has been prepared for sowing.

One of four siblings, Almas had been running her family’s nine-hectare farm since 2009, in place of her elderly father. Better Cotton’s local Partner, the Rural Education Economic and Education Development Society (REEDS) was working with her to raise productivity. 

As her interest and competence grew, Almas wanted to spread the word, and enable other farmers – both men and women – to benefit from what she had learned. So, in addition to managing her own farm, Almas completed the training with REEDS and qualified to become a Better Cotton Field Facilitator, paid to train other farmers. 

Right now, women Field Facilitators remain rare in the Global South. Numbers are up, though, rising from a mere 10% to 15% in India, for example, over just 12 months in 2022. 

The total is still small, but the change is not; and, for the likes of Almas, it wasn’t easy. She faced discrimination and opposition from community members, before winning them over. This is women’s empowerment in action. We want women in leadership positions, with representation for their voices to be heard. This is where Almas is now; this is change. 

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