Apr 25, 2024 (MarketLine via COMTEX) --
As Better Cotton publishes an independent audit following allegations that its sustainably-certified cotton was linked to Brazilian farms allegedly engaged in illegal deforestation, non-profit investigator Earthsight calls the report "almost worthless".
Better Cotton has shared the findings from an independent audit investigating allegations made by Earthsight related to alleged "tainted" cotton production in BrazilaEUR(TM)s Matopiba region, that was said to be Better Cotton-certified as sustainable.
Better Cotton explained: "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."
Better Cotton added that its audit report, which was carried out by independent global advisory firm Peterson, confirmed that three of the farms mentioned were licensed to sell Better Cotton during the timeframes specified in Earthsight's report, but stated: "These three farms were not in breach of the Better Cotton Standard".
However, Earthsight is not satisfied with Better Cotton's audit with a spokesperson telling Just Style: "This so-called aEUR~investigationaEUR(TM) is so flawed as to be almost worthless."
Earthsight's spokesperson continued: "Investigators examined a tiny proportion of the farms claiming to be producing Better Cotton where we alleged serious harms were occurring, and assessed them in a narrow manner which ignored the complexities of the issues we uncovered."
What were Earthsight's allegations of tainted Brazilian cotton? Earthsight spent more than a year analysing satellite images, court rulings, shipment records and going undercover at global trade shows to trace nearly a million tonnes of tainted cotton from some of the estates in Brazil to clothing manufacturers in Asia that supply two of the worldaEUR(TM)s largest fashion retailers.
Earthsight explained it tracked 816,000 tonnes of cotton from its investigated estates to eight Asian firms that made nearly 250m items of finished clothing and homeware over 12 months for global stores of both Swedish fashion retailer H&M and Inditex's brands Zara, Bershka and Pull&Bear.
It also stated the industrial-scale farms are said to be among Brazil's biggest cotton producers and it alleged they "have a long record of court injunctions, corruption rulings and millions of dollars in fines related to clearances of around 100,000 hectares of Cerrado wilderness".
Better Cotton's findings and next steps Better Cotton argued that in Brazil Better CottonaEUR(TM)s strategic partner is the Brazil Cotton GrowersaEUR(TM) Association (ABRAPA) and its Responsible Brazilian Cotton (ABR) programme is recognised as equivalent to Better CottonaEUR(TM)s standard.
For this reason, it admitted that some of the challenges reflect the complexity of BrazilaEUR(TM)s agricultural sector and demonstrate the need for multi-stakeholder dialogue to ensure effective oversight and information sharing across agencies to positively impact key environmental and social issues.
Better Cotton's CEO Alan McClay said: "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 CottonaEUR(TM)s mission is to promote more sustainable agricultural practices globally, helping cotton communities survive and thrive while protecting and restoring the environment."
Better Cotton stated that its independent 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, it said the independent auditor is engaging the communities in question with the view to understanding and addressing their concerns.A
With regards to violations of land rights, Better Cotton said its audit found the farms in question were fully registered with the Rural Environmental Registry (CAR), a self-declaratory database of rural properties, and therefore comply with the ABR standard.
It added the farms were 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, Better Cotton said the report refers to fines relating to years before the farms started working with Better Cotton and added there are no areas currently under embargo.AAA
Earthsight deems Better Cotton audit 'incomplete' However, Earthsight's spokesperson maintained that Better CottonaEUR(TM)s audit is "extremely unsatisfactory and incomplete".
Earthsight stated: "Inexplicably, it focuses on only three farms, none of which are located at Estrondo, one of the most notorious cases of land grabbing in BrazilaEUR(TM)s history. It ignores the fact that two of the farms audited have their legal reserves on the traditional lands of CapAGBPo do Modesto, a fact that is itself the subject of a lawsuit for land grabbing. Better Cotton says AbrapaaEUR(TM)s standard is equivalent to its own, but then admits the latter needs strengthening to better address issues related to communitiesaEUR(TM) rights and corruption. Finally, Better Cotton acknowledges the assessment only looked at these individual farmsaEUR(TM) operations, ignoring broader issues related to the agribusinesses that own them. ItaEUR(TM)s not surprising then that Better Cotton could not find any links to corruption."
The organisation added that Better Cotton's "blinkered effort at greenwash wonaEUR(TM)t cut it with the public, and it shouldnaEUR(TM)t with H&M and Zara".
A spokesperson for H&M told Just Style exclusively: "We are in close dialogue with Better Cotton to follow the result of their investigation and gain more understanding of their action plan and timeline. Together with other brand members and stakeholders, we are engaging with Better Cotton in conversations to further improve their standard. We kindly refer to Better Cotton for more information on their investigation."
Inditex had not responded to Just Style's request for comment prior to going to press.
Better Cotton pointed out that it 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 also said it is actively considering carrying out direct due diligence on large corporate owners of cotton farms given the wider impact of these businesses.AA
The NGO initiative added: "A further component of Better CottonaEUR(TM)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.
In April 2024, Better Cotton introduced its a aEURoefirst-of-its-kindaEUR traceability solution where fashion brands and retailers can track and document key stages of cotton production on the Better Cotton Platform, from cultivation to distribution.
It stated that it is working to offer traceability, not just at a country level, but to the gin which is only one step removed from the farms by 2025.
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