1 Q2 2017: 1 April – 30 June BCI QUARTERLY REPORT This document contains confidential information and is intended solely for the use of the individual or entity to whom it is addressed. Introduction You will find in this report a new special focus section outlining progress in the Results, Impact, and Learning Programme. The programme is a vital part of BCI as we build the framework for communicating the impact of the Better Cotton Standard System’s implementation.
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1
Q2
20
17
: 1 A
pril –
30
Ju
ne
BC
I Q
UA
RT
ER
LY
RE
PO
RT
This document contains confidential inform
ation and is intended solely for the use of the individual or entity to
wh
om
it is a
dd
resse
d.
Intr
od
uc
tion
You will find in this report a new
special focus section outlining progress in the R
esults, Impact,
and Learning Programm
e. The program
me is a vital part of B
CI
as we build the fram
ework for
comm
unicating the impact of
the Better C
otton Standard System
’s implem
entation.
2
Q2 2
017
Highlights
Better C
otton Dem
andD
emand for Better C
otton at the spinner and retailer and brand levels rem
ain strong, with
a further increase in supply chain uptake expected at the end of the harvest season.The total retailer and brand declarations of Better C
otton between January 1st, 2017 and
June 30th, 2017 was 289,000 m
etric tons (M
T). Declarations by spinners during the
same tim
e period was 612,577 M
Ts.
New
Mem
bersD
uring Q2, 103 m
embers joined BC
I. We are
delighted to announce that the first Brazilian retailer and brand, Lojas R
enner SA joined during Q
2. Total number of m
embers is now
at 1,093.
Com
munications
For the second quarter of 2017, BCI had
147 media im
pressions, of which 94%
were
positive. This represents nearly a 100%
increase in overall impressions from
Q1 2017
Progress on Revising the
BC
I StandardThe 2nd public consultation of the BC
I standard closed on 29 January 2017 and the Standard R
evision Com
mittee review
ed the full set of com
ments from
the consultation. R
ecomm
endations on changes to the Standard are being subm
itted to the Council
for review and discussion by stages. The
pro
cess s
hould
be c
om
ple
ted b
y th
e e
nd
of this year.
BC
I Information Infrastructure
A new in-house IT Project M
anager started on 1 June and is leading BC
I’s work to
integrate and link its diverse data and reporting platform
s, as well as to lead
projects automating data entry and
facilitating data analysis, which has been
pre
dom
inantly
manual to
date
. This
is a
first step to providing more rapid and robust
data and information across BC
I.
3
Selected Country H
ighlights
China
An MoU
with C
hina Cotton Industry Alliance
(CC
IA) was signed, w
hich is an important
step in the embedding process of the Better
Cotton Standard System
in China.
In June 2017, the BCI team
in China
successfully reached 92% of their annual
mem
bership recruitment target, and
surpassed their target for new Better C
otton Tracer (BC
T) users. There are now 268
BCI M
embers and 580 Better C
otton Tracer (BC
T) users in China. In addition, C
&A China
officially launched the BCI on-product m
ark.An M
oU w
ith China C
otton Industry Alliance (C
CIA) w
as signed - an important step in
the embedding process of the Better C
otton Standard System
in China.
IndiaThe team
in India have been working on
developing a new m
obile ‘app’ that will give
Implem
enting Partners and farmers access
to the latest scientific research on cotton production as w
ell as seasonal and regional advice on practices. The app is developed together w
ith the Central Institute for C
otton R
esearch who w
ill provide the content in
local languages. It will be launched in Q
3 to support both our Im
plementing Partners and
farmers and w
ill provide continuous support and training to the farm
ers.
PakistanThe Pakistan N
ational Stakeholders Council
Meeting took place on 3 M
ay 2017. The m
eeting provided a platform for stakeholders
to discuss the challenges and opportunities associated w
ith forming the basis for a
longer term national plan for Better C
otton in Pakistan. R
epresentatives from both Punjab
and Sindh Governm
ents participated along w
ith central Governm
ent.There w
ere 16 new m
embers and Better
Cotton Tracer users from
Pakistan during the first 6 m
onths of 2017.
TajikistanBC
I’s Implem
enting Partner, Sarob, added a new
area and group of farmers in the
northern part of Sughd province, an important
step towards further expansion of the
programm
e in the coming seasons.
TurkeyBC
I’s Strategic Partner, IPUD
, launched an 18-m
onth project on child labour in cotton production. The project is being developed in partnership w
ith the Fair Labour Association (FLA), H
&M and Inditex, w
ith additional brands expected to join and support the w
ork. This project builds upon preparation w
ork and training conducted in 2016 w
ith the FLA. Independent projects like this add value to the Better C
otton Implem
entation, and form
part of our focus on continuous improvem
ent.
United States
Over 400 farm
s in 14 US states are
participating in BCI for 2017, thus tripling
US farm
participation for the third consecutive year.
West A
frica (Mali and Senegal)
The new grow
ing season started with a joint
meeting to align and plan key activities for
the c
otto
n s
eason w
ith a
ll partn
ers
in M
ali
and Senegal (FNPC
, APRO
CA, C
MD
T, SO
DEFITEX).
4
Conference and M
eetings
BC
I’s 1st Global C
otton C
onference The first BC
I 2017 Global C
otton Conference
took place in Berlin, 17-18 May 2017. It w
as attended by nearly 300 participants from
37 countries representing business, governm
ent, international organisations, non-governm
ental organisations, academ
ics, farmers and other experts
from the cotton sector.
BCI w
as honoured to have Parliamentary
State Secretary Thomas Silberhorn from
the G
erman Federal M
inistry for Economic
Cooperation and D
evelopment (BM
Z) provide a keynote speech on the opening day. H
e remarked: “You’re no longer niche.
You’re part of a movem
ent that is gathering m
omentum
.” See the Summ
ary in Part 2 of the report for further details of the C
onference outcomes.
Donors and Supporters
Meeting
The first Donors and Supporters M
eeting was
held on 15 May 2017, in Berlin. The m
eeting included current past and prospective donors and supporters of BC
I. Further details of the outcom
es are found in the following
quick link.
Annual M
embers’ M
eeting, 16 M
ay 2017, Berlin
The A
nnual Mem
ber Meeting
was h
eld
the day before the Conference. The
meeting brought together BC
I Mem
bers to discuss updates on BC
I progress and other operational aspects of BC
I, including the BC
I GIF and future directions w
ith innovation.
Thomas Silberhorn
Parliamentary State Secretary, BM
Z
5
2015-2016 Global R
each Figures of BC
I
Better Cotton C
ountriesBenchm
arked countries
1,528,537Better C
otton F
arm
ers
3,491,263Area U
nder Better C
otton Cultivation (ha)
2,504,613
MT of Better C
otton Lint produced
12%of global
pro
du
ctio
n
23co
un
tries o
n
5co
ntin
en
ts
Upcom
ing BC
I Events
BC
I Implem
enting Partner Meeting and
Symposium
BCI Annual Im
plementing Partner M
eeting and Sym
posium w
ill take place in Sri Lanka on D
ecember 5th and 6th 2017. The Annual
Meeting w
ill focus on the new Principles and
Criteria, specifically the m
ain innovations brought to the revised standard: pest m
anagement, w
ater stewardship, clim
ate change, biodiversity m
anagement planning,
and land use change. In addition to the Im
plementing Partner m
eeting, there will be a
Symposium
on Integrated Pest Managem
ent.
BC
I 2018 Global C
otton Conference
and General A
ssembly, B
russels
A BCI D
onors and Supporters meeting w
ill be held on 25 June 2018. The them
e will
be the Sustainable Developm
ent Goals
and BCI.
BCI is pleased to announce the dates of 27
to 28 June 2018 as the official dates for the Second Annual G
lobal Cotton C
onference
The Mem
ber Only G
eneral Assembly w
ill take place on 26 June 2018.
6
2017 Q
2
Summ
ary
Report
Dem
and: Mem
bership and Supply Chain
Mem
bership Update
At mid-year, 43%
of the target for new
mem
bers was achieved: 103 m
embers joined
BCI out of the total target num
ber of 250 new
mem
bers set for 2017. Recruitm
ent is strong for R
etailers & Brands and Suppliers & M
anufacturers, with som
e lag in Civil Society
and Producer Organisations. Am
ong the retailers and brands that joined BC
I in Q2
is our first Brazilian retailer and brand Lojas R
enner SA. Others w
ho joined in the period are the Benetton G
roup S.r.l., Work in
Progress Holding AG
and HU
GO
BOSS AG
. There are 4 pending (new
) retailer and brand m
em
bers
whic
h w
ill be a
dded to
the lis
t once
their m
em
bers
hip
dues a
re p
aid
.
The number of new
Better Cotton Tracer
(BCT) system
users for 2017 has reached 358. The annual target is set at 650 new
users. At the end of Q
2, 55% of the 2017
target has been achieved.In total, BC
I is on target to meet its new
m
ember target relating to incom
e from
mem
bership fees and BCT user fees.
0
200
400
600
800
1000
1200
20102011
20122013
20142015
201630-Jun-17
We are Grow
ing!
Retailers and BrandsProducer O
rganisationCivil Society
Associate Mem
bersSuppliers &
Manufacturers
Quarter 2 w
as dedicated to training partners w
ho supported farmers as sow
ing began in the northern hem
isphere, continuing new
mem
ber re
cru
itment a
nd c
ulm
inate
d
in BCI hosting its first D
onors and Supporters m
eeting and the first Global
Cotton C
onference.
7
Q2 B
CI M
embership D
istribution M
embership D
istribution by Category
– 2
017 Q
2
Better C
otton Dem
andThe dem
and for Better Cotton at the spinner
and retailer and brand levels remain strong
compared to 2016 over the sam
e Quarter.
The total retailer and brand declarations of Better C
otton over Q1 and Q
2 is 289,000 m
etric
tons (M
T). D
ecla
ratio
ns b
y s
pin
ners
during the same tim
e was 612,577 m
etric tonnes (M
Ts). Figures for BCI R
etailer and Brand and Spinner M
embers are low
er than the BC
I forecasts. This is a regular pattern as seen in past years over the sam
e time
period and is a function of seasonal growth
fluctuations. It is expected that BCI w
ill reach its annual uptake targets.
Afric
a, 2
%
Ch
ina
, 24
%
Ind
ia, 2
5%
Pa
kis
tan
, 11
%
Re
st o
f Asia
, 13
%
Eu
rop
e, 2
0%
No
rth A
me
rica
, 4%
Oce
an
ia, 0
.4%
So
uth
Am
eric
a, 1
%
2017 – 30 June
Retailers and Brands
74
Producer Organisation
32
Civil Society
33
Associa
te M
em
ber
10
Suppliers and M
anufacturers944
Tota
l Mem
bers
1093
BCT U
sers1149
8
Source: BCI, 30 June 2017
9
Standards, Learning and Impact
Progress on Revising the B
CI Standard
The 2nd public consultation of the BCI
standard closed on 29 January 2017 and the Standard R
evision Com
mittee has
reviewed the full set of com
ments from
th
e c
onsulta
tion. T
he re
com
mendatio
ns
to the Standard were subm
itted to the BCI
Council for review
and discussion. Due to
the extensive number of item
s to address for the revision, the C
ouncil decided to adopt changes through a staged review
process. This review
process began in Berlin at the C
ouncil Meeting w
hich took place prior to the G
lobal Cotton C
onference, in May 2017.
Two additional review
stages will take place
in September and O
ctober. The approval of the R
evised Standard is expected to be com
pleted by the end of Novem
ber at the next BC
I Council M
eeting.Tw
o test pilot projects were launched in June
2017 associated with the approval of the
revised parts of the Standard on water and
land use change.
BCI, together w
ith Helvetas and the Alliance
for Water Stew
ardship will begin testing the
new (revised) Principle 2 on w
ater in India, Pakistan, Tajikistan and M
ozambique. The
pilot will start in July w
ith the development
of a training module on the 5 com
ponents of the BC
I water stew
ardship plan. The second pilot project w
ill focus on developing and testing the new
land use change approach. BC
I is partnering with the
High C
onservation Value (HC
V) Resource
Netw
ork to develop a risk assessment tool
that evaluates the likelihood of HC
V presence in areas subject to crop conversion. The next steps are the developm
ent of procedures for conducting the H
CV assessm
ent in low, m
edium and high-risk situations based on
results derived from the application of the risk
assessm
ent to
ol.
BC
I Information Infrastructure
Update on Inform
ation Systems
Managem
ent A new
in-house IT Project Manager started
on 1st June and is leading BCI’s w
ork to integrate and link BC
I’s diverse data and reporting platform
s and to lead projects autom
ating data entry and facilitating data
analy
sis
.
The development of the O
nline Project D
atabase (OPD
) for collecting and analysing field-level data (e.g. G
lobal Reach Indicators
and Results Indicators) is progressing and
will lead to partners entering data directly
into the system. This is part of BC
I’s efforts to reduce m
anual data managem
ent and to im
prove the quality of data collected as w
ell as the efficiency of processes. These are im
portant steps that accompany BC
I’s expansion and future objectives. The Inform
ation Infrastructure Strategy will
continue in this direction through the rest of the year and BC
I will continue taking
steps to becoming a data m
anager.
10
China
97,93986,575
246,000415,000
62,11651,746
401,000932,000
79,693565,000
1,310,000
India424,664
408,948638,000
373,000445,065
303,886501,000
325,000650,000
975,000512,000
Israel91
9110,000
19,00084
848,000
14,00075
7,00013,000
Kazakhstan
----
----
4543
2,0001,000
1692,000
1,000
Mali
51,12449,293
138,00056,000
53,27251,612
174,00077,000
53,000174,000
77,000
Pakistan139,957
129,574498,000
352,000128,393
90,441359,000
316,000290,993
920,000852,000
Senegal5,511
5,5116,000
1,0004,553
4,5263,000
1,0008,700
9,0004,000
Tajikistan820
82012,000
11,0001,051
1,05113,000
13,0001,261
18,00017,000
Turkey561
44113,000
23,000374
34216,000
30,0001,155
27,00060,000
USA
8484
25,00034,000
128124
87,000101,000
300200,000
250,000
Madagascar
2,7121,229
2,0001,000
4,9152,493
7,0003,000
5,00013,000
5,000
Mozam
bique87,920
72,57189,000
16,000100,038
75,60876,000
11,000100,000
95,00023,000
South Africa147
302,000
1,0001,618
not yet available
17,00014,000
1,60017,000
18,000
BCSS G
lobal Totals811,530
755,1671,679,000
1,302,000801,652
581,9561,664,000
1,838,0001,191,946
3,022,0003,142,000
Australia (MyB
MP)
5344
27,00052,000
7676
66,000156,000
7666,000
156,000
Brazil (AB
R)212
198607,000
832,000250
not yet available
770,0001,200,000
250770,000
1,200,000
Cm
iA773,128
773,1281,178,263
318,613750,000
750,0001,000,000
350,000750,000
1,000,000350,000
1,584,9231,528,537
3,491,2632,504,613
1,551,9781,332,282
3,500,0003,544,000
1,942,2724,858,000
4,848,000
Questions or feedback on the data? C
ontact Kendra Park Pasztor, M
&E M
anager: [email protected].
DATA SN
APSHO
T – August 2017B
CI S
TA
FF
AN
D C
OU
NC
IL O
NLY
. NO
T FOR
DISTRIBU
TION
2017-18 Harvest (Estim
ates)
Country
2015-16 Harvest (Final)
2016-17 Harvest (N
on-Final Figures)
Area under C
otton C
ultivation [Ha]
Better C
otton Volum
e [MT lint]
Participating Farm
ersLicensed B
CI
Farmers
N. Hemisphere
Participating Farm
ersParticipating
Farmers
Licensed BC
I Farm
ers
Area under B
etter Cotton
Cultivation [H
a]
Better C
otton Volum
e [MT lint]
» Cm
iA c
ountrie
s in
clu
de: Z
am
bia
, Zim
bab
we, T
anzania
, Mozam
biq
ue, G
hana, E
thio
pia
, Cote
d’Iv
oire
, Cam
ero
on a
nd B
urk
ina F
aso. (W
ithout U
ganda a
nd M
ala
wi a
s th
ey a
re n
ot b
enchm
ark
ed w
ith B
CI)
S. HemisphereS. Hemi
Global TO
TALS
Notes
» F
igure
s fo
r Are
a a
nd P
roductio
n, in
clu
din
g g
lob
al s
um
s, a
re ro
unded o
ff.
» Purple
- pre
-season p
roje
ctio
ns
» Yellow
- licensed fig
ure
s. F
inal, a
ctu
al fig
ure
s w
ill be k
now
n 1
6 to
18 w
eeks a
fter th
e s
eason e
nds (p
er c
ountry
), on th
e b
asis
of fin
al R
esult In
dic
ato
r Rep
orts
. As a
result, g
lob
al to
tals
are
als
o s
ub
ject to
chang
e.
» Pink
- early
season fig
ure
s
» G
rey - fin
al, a
ctu
al fig
ure
s
Area under C
otton C
ultivation [Ha]
Cotton Volum
e [M
T lint]
11
2%
6%
7%
12%
15%
20%
2012-132013-14
2014-152015-16
2016-17 2017-18
BC
I Perce
ntage o
f Wo
rld C
otto
n
Pro
du
ction
, by year
201
6-1
7 & 20
17-1
8
are ESTIM
ATES
*No
te: this g
rap
h exclu
des C
miA
cou
ntries
201
6-17 &
201
7-18
are EST
IMA
TES
12
China
Mem
bership Update
In June 2017, our team in C
hina successfully reached 92%
of their annual mem
bership recruitm
ent target, and surpassed their target for new
Better Cotton Tracer (BC
T) users. There are now
268 BCI M
embers and 580
Better Cotton Tracer (BC
T) users in China.
C&A C
hina officially launched the BCI on-
product mark. O
ver 220,000 items, from
jeans to blouses, now
comm
unicate about C
&A’s comm
itment to the Better C
otton Initiative. The on-product m
ark will be rolled
out further, a positive indicator for building increased aw
areness about our initiative.
Supply Programm
e Update
An MoU
with C
hina Cotton Industry Alliance
(CC
IA) has been signed. The aim of the
MoU
is to support national embedding of the
BCI standard in C
hina through cooperation w
ith national organisations and expansion of governm
ent engagement. C
CIA w
ill also w
ork to connect BCI partners to training led
by scientists. CC
IA is a multi-stakeholder
organisation that is working to integrate
cotton production, processing, trading, and textile m
anufacturing, and to facilitate the developm
ent of more sustainable cotton
in China. Led by C
hina Cotton R
esearch Institute, w
ith support from the M
inistry of Agriculture, they are a strong partner to support BC
I’s ambition to em
bed the standard at national level.
Country updates
13
India
Building the C
apacity of our PartnersThe 2017-18 cotton season is the m
ost am
bitious to date for our India programm
e. The Im
plementing Partners are projecting
to reach more farm
ers than ever before, and require ongoing support and guidance from
the BCI India team
to deliver effective program
mes. A few
examples of these
support activities are:
The team is w
orking on the development
of a new m
obile phone training app. T
he n
ew
app w
ill be la
unched in
Q3 to
support both our partners and the farmers
they work w
ith in delivering training on, and understanding of, the Better C
otton Standard System
. This app will provide
information about recom
mended practices
in local languages, such as plant protection techniques and w
ater managem
ent practices, w
ith advice tailored to each state. It has enorm
ous potential to benefit our program
me not only in India, but also
in other BCI countries. In partnership w
ith the C
entral Institute for Cotton R
esearch in India, updates, current seasonal inform
ation and other data on cotton production w
ill be made available regularly
to the farmers.
Representatives from
the BCI India
Supply Programm
e Team conducted
visits to the Implem
enting Partners in N
orth India to support their work. As part
of this visit, a leading etymologist from
the regional C
otton Research Station
was invited to speak to the im
plementing
partners about how to address the key
challenges and solutions facing their region. N
orth India produces approxim
ately 13% of India’s cotton.
An MO
U w
ith the Junagadh Agricultural U
niversity in Gujarat w
as signed to support efforts to build the capacity of our Im
plementing Partners by providing
technical advice and expertise.
A new relationship w
ith the Indian Centre
for Research on Innovation and Science
Policy (CR
ISP) is forming to build
functional capacities of IP staff.In other new
s, the relationship with
the International Fund for Agricultural D
evelopment (IFAD
) is advancing. Through this relationship, a Better C
otton project could be in
troduced in
to a
new
cotto
n p
roductio
n
state, if IFAD has an existing presence.
Current w
ork with IFAD
in Maharashtra
contin
ues.
EventsThe BC
I Indian Country Team
was invited
to attend the annual general meeting of the
All India Coordinated R
esearch Project on C
otton (AICR
P), part of the Indian Council
for Agricultural Research (G
overnment of
India). The AICR
P project aims to tackle
problems encountered in driving sustainable
cotton production, such as productivity, seed developm
ent, pests, diseases, salinity and drought tolerance.
14
PakistanAn M
OU
with the Agriculture Extension
Departm
ent (AED) of Punjab and Sindh,
which w
as signed in the first Quarter of 2017,
was a key step tow
ards national embedding
in Pakistan. Based on the MO
U signed, AED
w
ill be involved in the implem
entation in one district in Sindh and tw
o districts in Punjab.
Implem
enting Partners (IP) Capacity
Building
This quarter, IP capacity building was
conducted with 127 participants from
6 IPs, m
ost were Producer U
nit 2(PU
) managers.
There were 2 IP refresher training courses
and 2 qualification training sessions (for new
IP Staff) completed.
The Pakistan National Stakeholders C
ouncil M
eeting took place on 3 May 2017. The
meeting w
as attended by a broad spectrum
of stakeholders, ranging from governm
ent representatives, BC
I Implem
enting Partners, such as W
WF and C
ABI, Industry Associations, Academ
ics, and farmers. The
meeting provided a platform
for stakeholders to discuss the challenges and opportunities associated w
ith forming the basis for a longer
term national plan for Better C
otton in Pakistan.
For the 2nd Quarter, the Pakistan team
have kept busy w
ith the early-season information
collected from all projects to update
projections made before planting. As per the
pre-season forecast, there is no major shift in
target numbers.
Lena Staafgard, BCI’s C
hief Operating
Officer, visited Pakistan in M
ay. During
her visit, she met w
ith the BCI IPs w
orking in Pakistan, along w
ith key suppliers and m
anufacturers operating in Pakistan. It provided a good opportunity for her to visit cotton fields in one of the project areas and m
eet the field implem
entation team, including
small and m
edium farm
ers and cotton w
orkers -- both male and fem
ale -- in the field, not only w
atching the planting, but also participating and getting her feet w
et.
2A p
roducer u
nit e
quate
s to
3000 s
mall
holder farmers
15
Other N
ews Includes
Moving forw
ard with the Pakistan C
entral C
otton Com
mittee (PC
CC
) – operating under the Pakistan M
inistry of Textile Industry cooperative relationship. A proposal for the release of funding from
the G
overnment to PC
CC
for implem
entation of Better C
otton Standard System is in
review and approval is expected in 3rd Q
3 of 2017.
PCC
C has proposed to im
plement BC
SS in one project in Punjab and one in Sindh. Base w
ork on the project will be started late
in 2
017 a
nd a
ctu
al im
ple
menta
tion in
the
crop season 2017-18.
Continuing to w
ork with public sector
organizations and 3 MO
Us signed (one
with the public-sector agriculture university
and two w
ith Agriculture Extension D
epartment (AED
) of Punjab & Sindh) in 2016 and early 2017. M
essage related to BC
I production principles, is part of the AED
message for cotton farm
er for 2017 cro
p s
eason.
Increasing knowledge sharing through an
IP platform is developing. A new
s bulletin consisting of new
s, key activities and field level good practices from
all IPs, are shared w
ith all Projects on monthly basis
with a quarterly m
eeting of representatives from
all IPs. Representatives share current
activities, key issues, practical solutions and future plans. The m
eeting is conducted in field area in one of the BC
I project and hosted by one of the BC
I IPs.
Activity on the Australian Departm
ent of Foreign Affairs and Trade (D
FAT) funding started and 3 new
projects began which are
directly linked with the D
FAT funding which
covers 50,000 farmers.
BCI is w
orking to implem
ent new criteria in
the upcoming revised standard on w
ater stew
ardship together with several partners
in Pakistan. This includes two separate
partnerships: a) collaborating with G
IZ, the G
erman Textile Alliance and BC
I IPs to
imple
ment w
ate
r ste
ward
ship
prin
cip
les
in their projects and support watershed
stakeholder engagement m
anaged by G
IZ and; b) together with the Sw
iss organisation H
elvetas, the Alliance for W
ater Stewardship, W
WF-Pakistan and
IKEA we are able to engage further projects
and also benefit from existing w
ater-focussed program
mes already in place
within the W
WF/IKEA partnership
Mem
bership services and support are being provided to BC
I mem
bers and potential new
mem
bers in Pakistan and for East Asia. 16 new
mem
bers and BCT users
from Pakistan, have been inducted in first
6 months of 2017
16
Kazakhstan
Now
halfway through the second year
of Better Cotton in Kazakhstan, 145
new farm
ers, mainly sm
allholders, are participating in the Better C
otton programm
e this season, tripling the num
ber reached in 2016-17. The 2017-18 sow
ing period has now
been c
om
ple
ted.
BCI’s Im
plementing Partner, Louis D
reyfus C
ompany (LD
C), organised field visits w
ith farm
ers to provide training on the benefits of a new
seed variety, and on new fertilisation
techniques. Farmers, agronom
ists and LD
C staff also participated in a training
programm
e on BCI principles, agronom
ic techniques and pest m
anagement,
conducted by Sarob Consum
er Cooperative,
our Implem
enting Partner from Tajikistan.
Farmers in Kazakhstan have w
orked on developing their individual im
provement
plans for the 2017 season.
Southern Africa (M
ozambique,
South Africa and M
adagascar)In the Southern H
emisphere, the season
was com
ing to an end, with harvest activities
starting, and the focus was on concluding
the Assurance Programm
e. In the 2nd quarter in Southern Africa the team
s have selected, trained and contracted auditors for verification visits. The 2nd Party C
redibility
Checks w
ere also conducted and a selection of third-party verifications w
ere shadowed
by the BCI team
for assurance purposes. R
efresher training courses were delivered
for Producer unit (PU) m
anagers and field facilitators.
TajikistanBC
I’s Implem
enting Partner, Sarob, added a new
area and group of farmers in the
northern part of Sughd province. This work
was c
om
ple
mente
d b
y th
e re
cru
itment a
nd
training of additional Field Facilitators to provide im
plementation services in tim
e for this season’s sow
ing period. Sarob also provided training services to an Im
plementation Partner in Kazakhstan, along
with another organisation that is intending
to join the programm
e there. A BCI Brand
Mem
ber visited Tajikistan and is working w
ith a local textile com
pany to pull Better Cotton
into
its s
upply
chain
.
17
TurkeyW
ith cotton seed planting and sowing taking
place during Q2, BC
I’s Strategic Partner, IPU
D, designed an 18-m
onth project on child labour in cotton production. The project is being developed in partnership w
ith the Fair Labour Association (FLA), H
&M and Inditex,
with additional brands expected to join and
support the work. This project builds upon
preparation work and training conducted
in 2016 with the FLA. Projects like this add
value to the Better Cotton Im
plementation,
and form part of our focus on continuous
improvem
ent.
United States
Four new U
S organizations signed BCI
implem
entation agreements in Q
2, enabling them
to form and m
anage groups of participating U
S farms, as part of the U
SA group assurance pilot. This brings the num
ber of such groups to 8 in total, which
are managed by cotton m
erchants, marketing
cooperatives and ginners. O
ver 400 farms in 14 U
S states are participating in BC
I, for 2017, tripling US farm
participation for the third consecutive year.
To respond to this rapid growth, BC
I has trained and approved additional 3rd party verifiers, and added a new
USA program
me
officer position to help with assurance and
other related tasks.
Significant improvem
ents were m
ade in the scheduling, tim
elines and supporting tools for group m
anagers, which is m
aking im
plementation of the group assurance
model m
uch s
mooth
er.
Outreach to academ
ia is underway; civil
society and government outreach requires
more attention going forw
ard.
4 new G
roup Managers (equivalent to IP)
have been signed-up, which w
ill translate into triple the farm
/lint numbers from
last season.
West A
frica (Mali and Senegal)
The new grow
ing season started with a joint
meeting to align and plan key activities for
the c
otto
n s
eason w
ith a
ll partn
ers
in M
ali
and Senegal (FNPC
, APRO
CA, C
MD
T, SO
DEFITEX).
18
Media C
overageFor the second quarter of 2017, BC
I had 147 m
edia impressions, of w
hich, 94% w
ere positive. This represents nearly a 100%
increase in overall im
pressions from the Q
1 2017. This increase is due to the extensive coverage that BC
I received through our involvem
ent in the Prince of Wales
Sustainable Cotton C
omm
unique and the C
otton 2040 Initiative and from the G
lobal C
otton Conference.
Retailer and B
rand Marketing
Com
munications
For the second quarter of 2017, BCI
approved 9 On-Product M
arks for BCI
Retailer and Brand M
embers’ use on end-
product swing tags. BC
I has approved 41 off-product claim
s for BCI R
etailer and Brand M
embers, spanning w
ebsites, in-store signage, print m
aterials, social media,
sustainability reports, and videos. D
uring Q2, tw
enty-six (26) Mem
ber induction m
eetings were conducted for BC
I Retailer
and Brand Mem
bers.
The Com
munications Team
is working on
corrective action plans with a handful of
brands to ensure that all BCI m
arketing com
munic
atio
ns a
re c
onsis
tent w
ith th
e
BCI C
laims Fram
ework.
Com
munications
Ala
n M
cC
lay, C
EO
and P
rince C
harle
s, J
une 2
017
19
Com
munications Task Force
A Com
munications Task Force M
eeting took place on 16 M
ay 2017, in Berlin. Nine brand
mem
bers participated in the meeting.
The th
ree to
pic
s d
iscussed w
ere
:
Measuring and reporting on the im
pact of sourcing,
Updates to the C
laims Fram
ework, and
Recent m
edia attention as well as crisis
com
munic
atio
ns p
repare
dness.
BCI continues to w
ork closely with retailer
and brand mem
bers through one-to-one m
eetings, webinars and conference
calls, in order to implem
ent new im
portant com
munications activities, create a
public relations plan and develop a crisis com
munication infrastructure. A new
BCI
Fact Sheet was c
reate
d a
nd d
istrib
ute
d to
brands to support continuity in messaging.
On p
roduct m
ark
: C&
A C
hin
a, 2
017
Country H
arvest Reports
The Com
munications Team
is working
with the Standards & Assurance and Supply
Teams to coordinate the publication of
country-specific cotton Harvest R
eports through the year, as H
arvest data is finalised. BC
I will release the reports from
the 2015/16 season in Q
3/Q4 as they are subm
itted country
by c
ountry
.
20
Donors and Supporters M
eetingThe first D
onors and Supporters Meeting w
as held 15 M
ay 2017, prior to the BCI M
embers
Meeting. Attendees w
ere comprised of
current, past and prospective donors and supporters of BC
I, along with the BC
I Country
Managers and them
atic managers.
The purpose of the First BCI D
onors and Supporters M
eeting was to: i) present the
unique aspects of the Better Cotton Initiative,
ii) describe BCI progress to date in m
eeting the 2020 targets, iii) listen to the priorities and com
mitm
ents of participants towards
the sustainable transformation of the cotton
sector by participants, and iv) provide a platform
for attendees to express views on
the ways forw
ard to deliver better cotton and transform
ing the sector.Som
e of the key points raised by meeting
participants include, inter alia,
The trend of precompetitive private public
partnerships such as BCI is grow
ing and governm
ents highly support them as a
powerful tool for change and in m
eeting sustainability agendas.
There is a strong need for BCI to highlight
results delivered in the field more w
idely, and on a m
ore regular basis. For example,
the field stories help raise awareness
to consumers globally and to retail and
bra
nds a
nd th
eir c
usto
mers
.
Recognition of organisations supporting
the BCI initiative is vital. This includes
government funding, as it is im
perative for th
em
to re
port d
onatio
ns to
taxpayers
and
explain how their funding has been used to
meet their developm
ent priorities
Shared values are an important concept
and trend in sustainable development. The
objective is to bring government and profit
making private sector businesses together
to bring about positive social impact. BC
I’s w
ork with the cotton sector represents a
good example of shared values by the
reta
iler a
nd b
rand m
em
bers
.
Collaboration, clarity and inform
ation is needed to distinguish how
the different sta
ndard
s re
late
to e
ach o
ther a
nd c
otto
n
production. BCI and its w
ork with Strategic
Partners, helps the public to clearly unders
tand th
e re
latio
nship
betw
een
sta
ndard
s a
nd e
nsure
s th
e c
redib
ility
and integrity of the work is not im
pacted.
The business model of BC
I fosters change through the dem
and and uptake for Better C
otton. The demand and
uptake by retailers and brands for Better C
otton provides farmers w
ith a more
stable market.
BCI provides a unique traceability solution
through physical segregation to the ginner and m
ass balance over the supply chain.
Meetings and C
onferences
21
BC
I 2017 Global C
otton C
onferenceThe first BC
I 2017 Global C
otton Conference
was held from
17-18 May 2017. It w
as attended by nearly 300 participants from
37 countries from
businesses, international organisations, governm
ents, non-governm
ental organisations, academics,
farmers and other experts from
the cotto
n s
ecto
r.
This inaugural conference provided an ideal platform
for dialogue, to create connections and w
ork together towards m
ainstreaming
sustainable cotton. The diversity of partic
ipants
underlin
ed th
e e
norm
ous
potential for change that the industry can affect by joining forces. BC
I has grown rapidly since the first
Better Cotton harvest 7 years ago. In the
2015/2016 season over 12 % of cotton
globally is produced according to the Better C
otton Standard System or its equivalent.
As the industry makes progress tow
ards m
ainstreaming, BC
I is adapting our busin
ess m
odel a
nd its
resilie
nce s
o th
at th
e
system can continue to m
eet the needs of farm
ers around the world, in vastly different
geographies, climates, econom
ic and political contexts, at a scale of m
illions.
Alan McC
lay, CEO
of BCI, opened the
conference by describing BCI’s substantial
achievements m
ade in 2016. He said, “W
e are m
aking a call to action to consumer-
facing and supply chain businesses to join together in supporting m
ore sustainable cotton sourcing, and w
e are enthusiastically looking forw
ard to working w
ith other cotton standards and program
mes to accelerate the
transformation of the cotton sector.”
He noted that there is enough supply,
and complem
entarity between different
sources of more sustainable cotton to m
eet the dem
ands of complex global supply
chains. Working together collectively is a
foundational principle for transforming the
cotto
n s
ecto
r to b
e m
ore
susta
inable
.
Following M
r. McC
lay was the opening
keynote speaker Alan AtKisson, Founder & C
EO, AtKisson G
roup. Mr. AtKinsson
provided a valuable and mem
orable presentation on Sustainability Transform
ation is H
appening. He pointed out how
the work
of BCI clearly plays a valuable role in helping
the public and private sector meet the U
N
Sustainable Developm
ent Goals. Although
incremental change is not sufficient to m
ake a transform
ation or to meet the targets set
out under the 17 SDG
s. Grow
th and change needs to be exponential. H
e presented evidence and critical lessons learned about how
to be an effective agent of change and how
to effectively work together to accelerate
the transformation of the cotton sector.
Ala
n M
cC
lay, C
EO
, BC
I
Ala
n A
tKin
sson
22
Joost Oorthuizen, Executive D
irector, IDH
The Sustainable Trade Initiative, presented a num
ber of successful partnerships of the ID
H. The session gave an overview
of the BC
I Grow
th and Innovation Fund, and p
oin
ted th
e n
ext s
tep to
susta
inability
.
To reach out 2020 goals and beyond, additional institutional funding is needed to help BC
I scale up towards the training
of 5 million farm
ers.Plenary panels focused on increasing know
ledge of the portfolio of more
sustainable cotton available to comm
ercial businesses; highlighting how
BCI is joining
forces with others, such as Australia and
Aid
by T
rade F
oundatio
n to
ensure
supply
over 23 geographies. This overview w
as com
pleted with a poignant view
of changes taking place at field level as experienced by farm
ers and field level actors.The Farm
er panel is one of the revered panel discussions of the participants. The panel is com
prised of farmers w
ho work daily in the
cotton field. (see photo)The C
onference breakout sessions put the spotlight on three segm
ents of the cotton value chain: field level, supply chain and consum
er-facing aspects. Field Level breakout sessions included topics ranging from
“Mitigation and Adaptation to C
limate
Change in C
otton Production: The Role
of Sustainability Schemes”, to “M
aking Sustainability W
ork for All: Experience from
wom
en’s empow
erment program
mes”.
In the Supply Chain breakout sessions,
conversations ranged from “U
nderstanding Pricing M
echanisms in the Supply C
hain”, to “C
hain of Custody Im
pacts on Production & Logistics” and m
ore. Finally, the Consum
er Facing breakout sessions included “C
ompeting for the C
onsumer: T-Shirts
or iPhones?”, the interesting “Consum
er C
hoice: Benefit or Burden”.The closing keynote speaker w
as Jason C
lay, Senior Vice President, Food & Markets
at WW
F, and one of the original influencers of the BC
I business model idea. Jason
Clay presented the dilem
ma faced by food
and comm
odity markets. H
e explained that the speed of change is not fast enough to stop the dow
nward spiral of m
arket stability and agricultural land protection. O
ne of the key issues he discussed is affecting global com
modity m
arkets is fraud and illegal activity. From
5 to 44% of target
globally traded comm
odities are produced illegally. This illegal activity can be financially dam
aging but also physically damaging
from illegal use of hazardous chem
icals at elevated levels that are harm
ful to humans
and animals, illegal inputs to the process of
food and agriculture production, dangerous additives and m
ore.F
arm
er P
anel re
pre
sentin
g B
razil, T
ajik
ista
n, M
ozam
biq
ue a
nd C
hin
a F
arm
ers
, Sourc
e B
CI 2
017
23
For cotton, BCI is an um
brella system helping
to reduce risks to the cotton producer and through the supply chain. H
e mentioned it’s
better together and the shift from com
petition to joining hands as evidenced through the BC
I conference. He said it w
ill be important
in the near future for the Better Cotton or
similar standards to develop a price finding
mechanism
for cotton, that there is not a price prem
ium, the m
arket must see Better
Cotton and other equivalent standard grow
n cotton as an asset, BC
I needs to help the sector by prom
oting and leveraging long- term
investments, e.g. m
achinery, climate
adaptation, there is a need to set up an insurance fram
ework for side sellers and
a need to develop a global language for traders w
ho trade Better Cotton and
equivalent standards.
To access the conference presentations and additional content, click here.
Annual M
embers’ M
eeting, 16 M
ay, Berlin
The BCI 2017 Annual M
embers’ M
eeting w
as a global gathering of mem
bers. This year it took place one day prior to the first public BC
I 2017 Global C
otton Conference.
The aim of this m
eeting was to provide all
current BCI m
embers w
ith, inter alia, relevant organisational updates on overall strategy, Better C
otton supply, mem
bership benefits, and governance.BC
I staff presented functional updates on the w
ork of the Secretariat. Key messages
included updates on Better Cotton supply by
country, updates for funding of the Grow
th and Innovation Fund, progress updates on the new
mem
bership value proposition, the new
BCI m
ember claim
s framew
ork, progress report on the BC
I Standard Review, and the
launch of the new BC
I Annual Report.
Dow
nload the Annual Mem
ber Meeting
pre
senta
tions here
.
photo
pla
cehold
er A
lan A
tKin
sson]
24
To reach 5 million farm
ers and capture 30%
of global production by 2020, substantial investm
ent into the GIF is critical. Through
increased engagement w
ith our current and potential donors, BC
I continues to grow its
donor and supporter network and inspire
fruitful, long-term partnerships.
BC
I Grow
th and Innovation FundThe second quarter of the year m
arks a period of reflection and planning w
ithin the G
IF. A report on the operations on the first year of the Fund is currently in developm
ent, and w
ill be p
ublis
hed in
Q3. T
he re
port
will feature inform
ation on the Fund’s governance structure, highlight field-level activities in each of the seven BC
I GIF-
funded countries, and expand on the Fund’s Innovation Strategy. Project proposals for 2018 BC
I GIF grants
will be subm
itted by the end of August.
Financial Report of the G
rowth and
Innovation FundThe Accounting year for the BC
I Grow
th and Innovation Fund is from
1 April until 30 M
arch. 2016. Bearing this in mind, the results
until 30 June presented are a ‘forecast’ in anticipation of the audit report, scheduled for publication in August 2017.
BC
I Grow
th and Innovation Fund (BC
I GIF) U
pdate
Income
2017 (EOY) B
udget2016 (EO
Y) Forecast
Brought forward from
20162’078
Brought forward from
BCFTP
1’770
Institutional funders
IDH
2'0
00
3’000
BMZ
2'0
00
DF
AT
350
RB Foundations
211
164
Volume Based Fees (VBF)
3'2651'393
Tota
l incom
e9'904
6'3
27
Source: BCI, Q
2, 2017
BC
I and the B
CI G
lobal and Innovation Fund Finance U
pdate
25
Expense2017 B
udget2016 Forecast
Contribution to IPs
7'0
10
4'2
01
China
632
636
India3'1
62
2'0
76
Pakistan2'850
1'2
04
Turkey28
17
Tajikistan12
49
Mozam
bique (2 seasons)298
189
Senegal29
30
Oth
er c
ontrib
utio
ns
Learning & Innovation Fund200
Strategic Country D
ev Fund150
BCI C
redibility1'0
00
BCI D
emand
240
Other general expense / Audit
6548
Total Expense8'665
4'249
Fund Balance1'238
2'078
Com
ments on Fund
For 2017, the BCI G
IF has contracted K EUR
7,010 in project support for Im
plementing
Partners (IPs). This is a 67% increase
compared to 2016, keeping BC
I on track for its 2020 targets.This grow
th was enabled by tw
o key developm
ents: a) two new
grants (BMZ
at K EUR
2,000 and DFAT at K EU
R 435)
awarded to the fund and b) a 2016 doubling
in Better Cotton declarations by R
etailers and Brands w
hich generated higher Volume
Based Fee (VBF) income for the Fund.
The GIF budget includes funding for activities
to stimulate Learning and Innovation, support
new country start-up activities, and the
BCI C
redibility and Data M
anagement
Service fees.A sm
all number of BC
I Retailer and Brand
Mem
bers continue to fund Implem
enting Partners and their project w
ork directly. This is carried out under an agreem
ent with BC
I w
hich runs until end of 2017. Beginning in 2018, all farm
er support contributions will
be raised via the volume based fee (VBF).
The total direct contribution to IPs from BC
I R
etailer and Brand Mem
bers amounts to K
EUR
1,000.
26
Summ
aryExpenses YTD
are aligned with the Budget.
While there are a sm
all number of deviations
from the Budget, including advisory services
on comm
unications, a boost to the teams
for delivering field level assurance and new
IT development projects, BC
I has reduced planned expenses on several budget lines, m
ainly comprised of delayed or cancelled
recru
itments
.
Additionally, a small num
ber of re-allocations have been im
plemented to better align
activities and investment w
ith annual priorities. O
verall, the BCI Secretariat
expenses are in line with Budget total,
while the Q
2 income forecast is above plan.
Income Statem
ent (K EU
R):
YTD tim
e = 50%Q2 2
017
YTD A
ctuals2017
Budget
%
YTD
Tota
l
Income
5'3536'926
77%
Operating
Expenses-2'781
-6'6
61
42%
Operating
result
2'572265
Fin
ancia
l
expenses
-54-1
21
44%
Net R
esult2'518
144
Source: BCI, 2017
BC
I Secretariat Financial Statement
27
Com
ments on the B
udgetIncom
e is traditionally high at the beginning of the year, additional M
embership and
Cotton Tracer incom
e will decrease as w
e enter the second half of the year. R
emaining
income is expected to com
e mainly from
grant revenue released and credibility in
com
e.
With 42%
, the expenses are lower than
the 50% tim
eframe but the difference is
narrowing. The 2017 rate is com
parable to previous years. Expenses increase tow
ards the end of the year due to delivery of field activities (Assurance) in the N
orthern H
emisphere.
Source: BCI, 2017
28
Mem
ber Income &
Cotton
Tracer User Fees C
omm
ents on Incom
e
Mem
bership Fees and Tracer User Fees
The 2017 YTD revenue is already above the
2017 budget. This positive result is mainly
due to
an in
cre
ase in
recru
itment to
ward
s th
e
end of 2016, thus generating more revenues
than expected for 2017. New
mem
bers have been joining according to the BC
I stated target since the beginning of 2017.The im
plementation of the BC
I new fee and
mem
bership structure is in progress. The projected im
pact will be lim
ited this year.
Grant incom
e Q2
Total grant income secured in contracts to
date is K EUR
1,185 for 2017.R
evenue from donor grants is released w
hen th
e re
stric
ted in
com
e is
spent a
nd a
llocate
d
to the grant as per the donor requirements.
Other Incom
eActuals to date consist m
ainly of sponsorship and attendance revenue from
the Global
Cotton C
onference. How
ever, attendance fees w
ere slightly below target but the target
set for sponsoring income w
as met.
Source: BCI, 2017
29
Com
ments on the Expenses
63% of Q
2 expenses are for supply and d
em
and p
rioritie
s. T
his
inclu
des a
ll
mem
bership and supply chain services, country program
me oversight and execution
of Implem
enting Partner capacity building program
mes, national em
bedding, com
munications and standards & assurance.
It also includes support for the BCI claim
s fram
ework and global oversight of the
entire standard system. The ‘Finance
& Administration’ category includes all
governance and Council expenses.
2017 expenses are in line with budget and
year end forecast is expected to remain close
to original budget total.
Cash flow
continues to be strong in Q2
and is expected to remain at this level
until the end of the year. Income is above
the projected amount for 2017. The stable
cash flow is m
ainly due to mem
bership fees w
hich are only recognised as income
in the accounts according to relevant fiscal year.
O
ver the last 3 years, the trend indicates regular grow
th in line with our m
embership
and Better Cotton Tracer Account U
ser expansion (The Better C
otton Tracer User
fee is a non-mem
bership option for supply chain
acto
rs w
ho w
ish to
partic
ipate
in th
e
trade of Better Cotton w
ithout being a full m
em
ber.)
30 June 2017 Cash Flow
Source: BCI, 2017
30
A D
ay in the Life of an A
gricultural Advisor
In Tajikistan, farmers face challenges
including water scarcity and extrem
e weather.
In 2015-16, flood waters w
ashed away
newly planted seeds in the northern Sughd
region, and unseasonably high summ
er tem
peratures damaged cotton crops across
the country. Farmers also struggle to ensure
contracts, and safe working conditions for
seasonal cotton pickers.C
hamangul Abdusalom
ova has been an agricultural advisor w
ith Sarob, our IP in Tajikistan, since 2013, supporting field facilitators in delivering training and advice to farm
ers. An agronomist by training, she holds
field days to showcase new
technologies and runs practical dem
onstrations to help farmers
implem
ent each BCSS production principle.
She also provides important advice on decent
work. H
er day begins early, often at dawn in
the harvest season.“Agriculture does not have w
orking hours,” she says. “In Septem
ber, harvest season, I go to the field at 6am
and check how
farmers are getting on w
ith harvesting, and how
well they’re follow
ing the BCSS criteria.
For example, it’s im
portant that they don’t use plastic bags to store cotton, as this encourages m
oisture. After the harvest, I help them
to minim
ise losses by protecting the
cotton in transport and storing it in a dry spot. I also m
onitor whether farm
ers are providing seasonal cotton pickers w
ith drinking water,
and whether there are children or pregnant
wom
en in the field.”C
hamangul visits tw
o to three farmers a day,
advising farmers and w
orkers on how best
to address the issues they’re experiencing and im
plement best practices. H
er ‘toolkit’ of ideas and dem
onstrations varies during the season. For exam
ple, at the beginning of the cotton season, she helps farm
ers gauge the best m
oment to sow
seeds by m
easuring soil temperature and giving advice
on optimum
weather for sow
ing. Both farmers
and seasonal cotton pickers are keen to learn from
her, she explains.“W
hen workers have a m
oment to relax,
they often ask me questions about cotton
growing – everything from
the benefits of higher quality seeds or reducing soil acidity to identifying the insects they see in the fields,” she says. “O
ften, I run question and answer
sessions to address comm
on challenges, and I share all the inform
ation with m
y team, so
that other Learning Groups can benefit too.”
Story from the Field
31
Asked whether she has observed positive
changes on the ground, Cham
angul says she has seen evidence of farm
ers adopting both m
ore progressive environmental and social
practices, with positive results. “Beneficial
insects, and using non-chemical alternatives
to synthetic pesticides, helped BCI Farm
ers (com
pared to non-BCI Farm
ers) reduce their use of synthetic pesticides by 23%
in 2015-16.”“In the rural villages w
here I work, farm
ers are increasingly learning to dispose of pesticide bottles responsibly, rather than throw
ing them in the river,” she says. “This
is helping to preserve the quality of local w
ater supplies. Similarly, farm
ers are no longer grazing anim
als near areas due for pesticide spraying.I’m
also seeing farmers introduce ‘beneficial
insects’ and cultivate wild flow
ers and plants that ‘trap’ pest insects, w
hich is helping to
reduce th
eir re
liance o
n c
hem
icals
.
By adopting simple, cost effective pest
managem
ent techniques, they’re also saving m
oney and putting less strain on the environm
ent.”From
a social perspective, Cham
angul explains that farm
ers are increasingly stepping up to their responsibility to provide clean drinking w
ater for workers, particularly
during the harvest season. Additionally,
children are tending to help their parents only outside of school tim
e, with sim
ple activities such as looking after the w
ild flowers
bordering the field.“I hope that m
ore farmers w
ill join BCI in
Tajikistan because they will really see the
benefits, particularly as demand for Better
Cotton grow
s,” she concludes.
32
Better Cotton farm
ers are on a journey tow
ard more sustainable cotton production,
and BCI exists to provide them
an actionable fram
ework to do so. W
e expect that improved
practices adopted today will lead to positive
results and impacts tom
orrow for farm
ers, w
orkers, and comm
unities , as well as for the
secto
r as a
whole
.
As a data-driven organisation, BCI is
comm
itted to collecting and reporting on farm
-level results from the start. And as
engagement in producing m
ore sustainable cotton continues to expand, our system
s and approaches are evolving and innovating to m
eet tomorrow
’s opportunities. Following
are highlights from the second quarter
to demonstrate BC
I’s results and impact
activities:
Continued developm
ent of its centralised data m
anagement system
(BCI Project
Database) that w
ill be integrated with the
other systems across the organisation,
including BCI’s data visualisation tool,
Tableau. During the second quarter,
we launched the establishm
ent of the data storage com
ponent with expected
completion in the third quarter (last year,
BCI’s partners reported m
ore than 14 m
illion data points; this requires state of th
e a
rt syste
ms). O
nce h
isto
ric re
sults
data
are migrated, longitudinal results analysis –
looking at trends over time – w
ill be greatly facilitated. This developm
ent will enable
faster turnaround for Producers to see their results against their peers and their ow
n tre
nd lin
es a
cro
ss s
easons.
With the aim
to develop new tools for
reta
ilers
and b
rands to
com
munic
ate
about impact allocated to their sourcing
achievements (a 2017 organisational
priority), BCI conducted research into new
potential indicators and results reporting m
ethodologies. The objective is to offer value to the m
arket while ensuring the
credibility and feasibility of the Better C
otton Standard System.
BCI w
ill continue to measure w
hat matters
- farm level sustainability im
provements. In
the second quarter, we explored integrating
scientific modelling to m
ove beyond prim
ary indicators (i.e. from “N
-fertiliser use” to C
O2 eq. em
issions). The BCI team
researched tools that aggregate life cycle inventories and others that add a layer of m
onetisation to enable an understanding of return on investm
ent. We shared an
issue brief with a group of retailer and
bra
nd m
em
bers
that e
xpla
ins th
e u
niq
ue
position of BCI’s global approach to m
aking cotto
n m
ore
susta
inable
and h
ow
we
envision the evolution of our measurem
ent and reporting of the im
pact of sourcing Better C
otton. We also discussed the topic
at the Com
munications Task Force m
eeting in M
ay in Berlin.
Formalising BC
I’s Theory of Change (ToC
). A ToC
is a logical diagramm
e that defines an organisation’s vision and explains the steps believed to bring about that vision. Through causal pathw
ays, it connects activities w
ith results and impacts,
including assumptions and contextual
influences. The ToC aim
s to answer the
questions: what is the change w
e are w
orking for and what needs to happen for
change to come about?
BCI has an am
bitious vision while
operating in a complex environm
ent. D
eveloping a formal ToC
is therefore an im
portant exercise to identify the key investm
ents of human and financial
resources it will take to bring about our
desired change in the cotton production sector. The ToC
, expected to be made
public before the end of the year, will be a
living document and be regularly revisited
and te
ste
d.
Special Focus on Progress
Results, Im
pact and Learning Program
me
33
The chart indicates the volume of production
per country or benchmarked program
me like
ABRAPA from
Brazil.
The chart indicates the proportion, by region, of licensed Better C
otton farmers.
For further information about the report or BC
I activities, please contact: developm
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