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Making global cotton production better for the people who
produce it, better for the environment it grows in and better
for the sector’s future.
BCI
Supply chain event
Syed Rizwan Vajahat
www.bettercotton.org
Improve…
livelihoods
and economic
development in cotton
producing areas
Increase…
Reduce…
Ensure…
The environmental impact
of cotton production
the credibility and
sustainability of the Better
Cotton Initiative
commitment to and flow of
Better Cotton throughout
the supply chain
BCI aims to transform cotton production worldwide by developing Better Cotton
as a sustainable mainstream commodity.
BCI- SPECIFIC AIMS:
1- Reduce the environmental impact of cotton production
2- Improve livelihoods and economic development in cotton producing areas
3- Improve commitment to and flow of Better Cotton throughout supply chain
4- Ensure the credibility and sustainability of the Better Cotton Initiative
How BCFTP Works
Executive Board
Policy making body – strategic
planning, financial governance
and delivery of the Charter
Public Funders
Upto 50%
BCFTP Secretariat: IDH, BCI
Coordination, fund and project
management
Investors Committee
Approval and oversight of
investment decisions
Upto 50%
Standard,
Licensing,
Verification and
Traceability
BETTER COTTON FAST TRACK FUND
(€50-60 million over 5 years)
Goal: 1.5 million MT Lint of Better
Cotton by 2015
Private Partners
Project Assessment
Implementing Partners
Training
Farmers
Supply Chain
Engagement
LICENSED BETTER COTTON
Impact Assessment
Results: Environmental and Economic Indicators
4.5% of the world’s cotton is sustainable…
…and 71% of all sustainable cotton is Better Cotton
1%
1%
12%
15%
71%
1.4
Millions MT Lint
1.2
3.8%
1.0
4.5% of Global
Production
of Cotton
0.8
2.1%
0.6
0.4
Organic
Organic and Fairtrade
1.0%
1.4%
1.2%
Fairtrade
0.2
CmiA
0.0
BCI
2008-9
2009-10 2010-11 2011-12 2012-13 2013-14
In 2013-14, 812,000 MT Lint Better Cotton was produced. Other sustainability standards kept static from 20122013 basis trends awaiting figs .
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BCI Retailer and Brand Members
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“By 2020, the company wants all of the cotton used in its
products to come from sustainable sources.”
“5% of the cotton in the two million pairs of jeans
shipped to the stores this fall was grown using
sustainable methods
“By 2018 the adidas Group has committed to using 100%
‘Sustainable Cotton’ in all its brands.”
“We signed on to the BCFTP in 2011 with the commitment to source
100 % more sustainable cotton by the end of FY20”
IKEA’s goal is to use 100% cotton from more
sustainable sources by end of FY15.
WHERE DOES BETTER COTTON GROW?
USA
Turkey
Tajikistan
India, Pakistan,
China
Brazil
Mali, Senegal,
Burkina Faso,
Cote d’Ivoire,
Ghana
Mozambique,
Malawi, Zambia,
Zimbabwe
Australia
Countries where Better Cotton is grown via a partnership agreement between BCI and a national actor
Better Cotton Countries with BCI owned legal entities and operations
In the pipeline
BCI and AbTF (CMiA) Signed a strategy partnership
agreement on August,2013. CMiA cotton can be
recognized as better cotton under certain condition. So
the global supply of better cotton increases because of the
agreement.
Livelihoods
Environment
Supply Chain
Better Cotton lint
metric tonne (MT)
Global Indicator
Number of Better
Cotton farmers
Better Cotton
hectares under
cultivation
BCI Sustainability
Earned income as %
of global costs
volume
a) produced
b) bought by spinners
2012 actual
165,000
685,000
2013 licensed*
240,000
815,000
2015 target
1 million
2 million
2020 target
5 million
9 million
Vision:
a) 670,000
b) n/a
812,000
a) 2.6 million
b) 1.5 million
a) 8.2 million
b) 4 million
50%
50%
75%
100%
Market Transformation
Better Cotton becomes a commodity
The volume licensed is based on the expected volume of seed Better Cotton to be harvested. For some regions, harvesting has not yet been completed. The
estimates presented here are based on the total area under cultivation per project multiplied by expected average yield. Yield may vary and it is possible that
final production figures will be different. These values are thus only indicative
BCFTP Portfolio 2014 - Projections
Projected Project Costs : 7,5M
44 projects in 5 countries
Projected MT lint: 1.6 million
Projected number of farmers: 581,720
Projected BC hectares: 1.84 million
Mali:
2 project
Projected MT lint: 87,822
Projected nr of farmers: 65,000
Projected BC hectares: 197,250
India:
23 projects
Projected MT Lint: 365,041
Projected nr. of famers: 224,723
Projected BC hectares: 435,216
Pakistan:
7 projects
Projected MT Lint: 360,509
Projected nr. of farmers: 133,739
Projected BC hectares: 405,306
*Brazil: Benchmarking with the
ABRAPA’s ABR standard
Licensed MT: 880,000
Licensed nr of farmers: 214
Projected BC hectares: 620,000
Mozambique:
2 project
Licensed MT Lint: 28,000
Licensed nr. of farmers: 115,000
Projected BC hectares: 116,000
China:
10 projects
Projected MT Lint: 184,000
Projected nr. of farmers: 43,258
Projected BC hectares: 70,111
Better Cotton is establishing a significant footprint.
In addition there is cotton from the partnership countries.
Engagement Strategy
Agree on Goal
Internally
• BC to be treated as a KPI. Overall goal broken down by
business unit and allocated and communicated.
• Clarity within the teams as to what they are working towards
Buy in from key internal
stakeholders
• The key stakeholders must be in agreement and vested in
goal
• Must understand the goal and better cotton
Understand your Supply
Chain- Map it
• Identify your key supply chain partners
• Primary attention on large suppliers & low hanging fruit
• Work with existing supply chain
Business as Usual
Execute Procurement
Plans
Track & Trace
• Better Cotton supply chain no different then conventional
cotton.
• Increase awareness on Mass Balance Administrative system
• Breakdown goal into manageable segments and execute on
ground
• Allocate resources and time to execute
• Include Better Cotton in their reporting.
• Address challenges as they come up.
Top down, work with the existing supply chain.
Thank you!
www.idhsustainabletrade.com
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IDH – Syed Rizwan Vajahat - Better Cotton Initiative