Sustainability will become a license to do business, based on the discussions at the Better Cotton Initiative (BCI) Supply Chain conference held in September 2011 in Colombo, Sri Lanka. During the meeting, large retailers discussed their mutual challenges in establishing sustainable and transparent cotton supply chains with their key suppliers from India, Pakistan, Bangladesh and Sri Lanka.
BCI was formed to make global cotton production better for the people who produce it, better for the environment it grows in, and better for the sectorΆs future. An alliance of multinational companies is now working together on sustainability with civil society organizations and their supply chain partners through BCI.
This alliance includes leading retailers such as Adidas, H&M, IKEA, Levi Strauss & Co. and Marks & Spencer. These retailers have shared ambitions to use only sustainable cotton in the near future. To achieve this, they have taken a further step by forming the Better Cotton Fast Track Program and strive to accelerate Better Cotton production by encouraging supply and building demand.
“The key message of the conference was that ΅business as usualΆ will not be enough in coming years,” says Anke van Kempen, who represented CSR Rabobank International at the conference. “This is a unique opportunity for many key players present at the conference as well as for Rabobank to have a frontrunner position to help change the dynamics of the entire cotton value chain.”
Benefit for farmers and industry
Last year was a groundbreaking and crucial one for the Better Cotton system. Farmers in India and Pakistan were supported in their efforts to produce Better Cotton through investment in farmer support, which was made possible by several organizations, including the Rabobank Foundation.
“Many smallholders in the cotton sector live in unhealthy and unsustainable conditions, and their income is highly dependent on the quality and quantity of their harvest,” says Hans Schripsema, a board member of the Rabobank Foundation. “To create a solid solution for millions of farmers and a win-win situation for an entire sector requires an innovative approach.”
The importance of farmer support was affirmed by IKEA, which has been involved in the program for the last five years. Their experience shows the enormous impact that this support for cotton smallholders has on improving their livelihood and the environment.
“The farmers who are now producing Better Cotton can save up to 50%on input costs, which directly increases their income as well as improves their health condition,” says Iris van der Velden, region manager of Asia for the Rabobank Foundation.
New opportunities
In 2011, the Rabobank Foundation continues to support the program by matching private sector investment in training small farmers. Rabobank International will actively position itself in this promising initiative.
“This new development provides opportunities for Rabobank International to establish a meaningful position in the cotton sector,” adds Surojit Shome, CEO of Rabo India. “Also, Rabobank International has recently obtained a bank license in India, which opens new capabilities for supporting business and projects.”
To move things forward, players in the cotton supply chain need to become active stakeholders in making Better Cotton work. The business case for all players will be on the agenda in coming years, including the one for farmers, Rabobank says.
