Market transformation investing in Better Cotton New DelhiAugust
Market transformation investing in Better Cotton New Delhi-August 2014
In the next 40 years, more food and fibers will be produced than so far in the history of mankind
Business has great leverage Top 200 multinationals 15 key commodities 35 most threatened regions
Sustainable cotton: 3% of world production 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Coffee Cocoa Palm oil Tea Sustainably produced Cotton Bananas Sugar Soy Sustainably produced and sold Data over 2012. Source: State of Sustainability Initiatives Review (2014)
BCI: young initiative with high growth rates Organic and Fairtrade Cmi. A BCI 1, 400 Thousands 1, 200 4. 5% 3. 8% 1, 000 800 2. 1% 600 400 1. 0% 1. 4% 1. 2% 2009 -10 2010 -11 200 0 2008 -9 2011 -12 2012 -13 2013 -14 71% of the sustainable cotton in the world market is Better Cotton
Second generation standard • Based on performance metrics and continuous improvement • Benchmarking leads to scale, for instance: o Brazil: 7% world production o Australia BMP: 2% o USA: 14% o XPCC: 3% • Ownership by national associations and government (Turkey, Mozambique, Brazil)
There is a scalable investment vehicle Better Cotton Fast Track Fund BETTER COTTON FAST TRACK FUND (€ 50 -60 million over 5 years) Goal: 1. 5 million MT Lint of Better Cotton by 2015
“IKEA hopes to be using Better by 2015. ” Cotton exclusively “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. We want that number to rise to 20% by 2015. ” “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 FY 20”
There is a scalable investment vehicle • So far we have invested around € 22 million, now reaching 1, 4 million MT and 553, 000 farmers. Over the years we brought down cost levels from 44 € /MT in 2009 to 4 € /MT in 2014 • Target is to reach 9 million MT and 5 million farmers in 2020, roughly equivalent to 30% of world production • Approximately € 70 million needed for the transition, of which 25 -30 million from B&R (compare that to annual USD 100 million into cocoa certification in Cote d’Ivoire only)
This investment helps you protect your brand shareholder value
This investment helps you create value towards to consumer? CEO
Still Have Questions ? Contact: Pramit Chanda, IDH chanda@idhsustainabletrade. com +91 98111 09022 “By 2020, one-third of the world’s cotton production will be sustainable !”
Thank you chanda@idhsustainabletrade. com
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