Pathways to Systems Change Circular Fibres Initiative and

Pathways to Systems Change: Circular Fibres Initiative and Fairtrade Textile Standard Matthew Anderson: Senior Lecturer in Business Ethics Diego Vazquez-Brust: Professor of Global Business Sustainability & Strategy

Dr Matthew Anderson

Outline and Research Questions: Review of business management literature - key findings on the benefits and tensions within the Circular Economy concept. 1. Has the social dimension been omitted from the concept of Circular Fibres? 2. Can the Fairtrade Textile Standard provide a baseline for investigating the social dimensions of CE? 3. How could these approaches be developed/aligned as part of a future research agenda?

Literature Review - Key Findings: An analysis of the articles available in the Scopus database published in management journals with an ABS Ranking 3 or higher, in the period 2007 to August 2017. • Current literature is focused on research into technical cycles at the expense of biological cycles. • Majority of articles either conceptual papers or simulations and mathematical modelling. Empirical studies with primary data collection are less frequent. • Understudied issues include: social impacts (Murray et al. , 2015) trade-offs between different types of environmental, social and economic impacts (Pishvaee et al. , 2014; Wang et al. , 2015; Zhalechian et al. , 2016)

Stages of the circular economy concept: Blomsma, F. , & Brennan, G. (2017). The emergence of circular economy: A new framing around prolonging resource productivity. Journal of Industrial Ecology, 21(3), 603 -614.

Circular Fibres Initiative (2017) Fairtrade Textile Standard (2016)

RANA PLAZA: SAVAR, BANGLADESH 24 April 2013

Circular Fibres Initiative: Today’s clothing system Ellen Mac. Arthur Foundation, (2017) A New Textiles Economy: Redesigning Fashion’s Future

Circular Fibres Initiative: A vision for a new textile economy “Today’s textiles system also has multiple negative societal impacts. Many workers face dangerous working environments due to unsafe processes and the hazardous substances used in production. High cost and time pressures are often imposed on all parts of the supply chain, which can lead to workers suffering poor working conditions with long hours and low pay, with evidence, in some instances, of modern slavery and child labour” (p. 21). “This report proposes a vision for a new textiles economy aligned with the principles of a circular economy one that is restorative and regenerative by design and provides benefits business, society, and the environment” (p. 22).

Circular Fibres Initiative: Value is circulated among enterprises of all sizes “Such a system would be distributive by design, meaning value is circulated among enterprises of all sizes in the industry so that all parts of the value chain can pay workers well and provide them with good working conditions” (p. 22). “Since the cost of pesticides can represent a huge share of total production costs – as much as 60% for small-scale cotton farmers in Africa – regenerative methods could also present a significant opportunity for farmers to reduce costs, and increase their control over them since inputs such as fertiliser are generated by the farm itself” (p. 65).

Circular Fibres Initiative: Ambitions for a New Textile Economy Ellen Mac. Arthur Foundation, (2017) A New Textiles Economy: Redesigning Fashion’s Future

Circular Fibres Initiative: Economic growth and collaboration “While some sectors (e. g. the production of virgin materials and certain clothing production activities) could expect reduced revenue, overall income would be expected to increase, which could boost economic growth” (p. 46). “Long-term relationships and collaboration with suppliers could help many farmers who do not have the resources needed to make the shift to regenerative methods. Such a shift can take significant time and might need new capital and financing mechanisms. Indeed, Cotton. Connect points out that connecting farmers to buyers willing to pay a fair price for cotton is the ‘long-term solution to address poverty and create resilient rural communities’” (p. 65).

Fairtrade Textile Standard (2016) “Fairtrade is a strategy that aims to promote sustainable development and to reduce poverty through fairer trade. The purpose of the Fairtrade Textile Standard is to set the requirements that determine participation in the Fairtrade system that applies to workers along the entire textile supply chain, guaranteeing them a decent living and empowering them to combat poverty, strengthen their position and to take more control of their lives. The requirements ensure that employers pay living wages, guarantee the right to join trade unions, and make certain that health, safety and environmental principles are adhered to. ”

Fairtrade Textile Standard: 1. Pre-finance

Fairtrade Textile Standard: 2. Trade Union or workers’ organisation

Fairtrade Textile Standard: 3. Living wages

Fairtrade Textile Standard: 4. Waste management plan

Fairtrade Textile Standard: Theory of Change

Fairtrade Textile Standard: Geographical Scope Policy

Future Research Agenda: CE Social Impact Studies • emphasis should be placed on identifying the factors in different settings that shape the outcomes and impacts of CE (context) • methodological challenges of identifying the initial attributes of farmers and workers entering CE (case selection) • attempt to measure changes in income, expenditure or assets for participating households (unit of analysis) • longitudinal assessment of changes in producer and worker livelihoods over time (how change happens) Nelson, V. (2017) Fairtrade Impacts: Lessons from around the world, Practical Action Publishing.

Thank You

Emerging Markets and Fairtrade Consumption Building Fairtrade Markets We will prioritize growth in Brazil and India, building on already solid progress which demonstrates the enthusiasm of shoppers in producer countries to champion famers and workers locally as well as fair trade globally. Fairtrade Global Strategy Changing Trade, Changing Lives 2016 -2020