Cotton Certifier Finds No Evidence of Brazilian Farms Breaching Standards

Better Cotton, a cotton certifier used by major fashion retailers Inditex and H&M, has found no evidence that Brazilian farms breached its standards, despite allegations of deforestation and land grabbing made by the NGO Earthsight. An independent audit conducted by advisory firm Peterson concluded that three farms in the state of Bahia licensed to sell Better Cotton had not violated the certifier's standards and would not face suspension.

According to Better Cotton, the audit confirmed that the farms had not contributed to deforestation since at least 2008 and that there were no legal cases involving them since then. The group stated that it is now considering enhancing its due diligence on large corporate owners of cotton farms to strengthen its standards. Some companies could be at risk of losing their licenses if they do not keep up with evolving requirements.

The independent audit, commissioned by Better Cotton, focused specifically on the three farms in Brazil's Matopiba region that were licensed to sell Better Cotton. While the audit found no evidence of breaches of the Better Cotton Standard, the report acknowledged some challenges in Brazil's agricultural sector. It recommended that the ABR (Responsible Brazilian Cotton) program, which is recognized as equivalent to Better Cotton's standard, should evolve to become more focused on community needs, cultural values, and biodiversity conservation.

Why this matters: The allegations against the Brazilian farms certified by Better Cotton raised concerns about the effectiveness of sustainable cotton certification in preventing environmental and human rights abuses. The audit's findings, while clearing the specific farms investigated, highlight the need for certifiers to strengthen oversight and adapt standards to address broader issues in commodity supply chains.

Better Cotton, the world's largest sustainable cotton initiative, stated that its latest version of the Better Cotton Standard is the toughest yet and that it is committed to continuous improvement. The organization is considering carrying out direct due diligence on large corporate owners of cotton farms and encouraging stakeholder engagement to address the adverse impacts associated with cotton production. Inditex and H&M, who use Better Cotton, said they are in dialogue with the group to follow the results of the investigation and gain more understanding of its action plan.

Key Takeaways

• Better Cotton audit found no evidence of Brazilian farms breaching its standards.
• Audit recommended Better Cotton's standards evolve to focus more on community, culture, and biodiversity.
• Better Cotton committed to strengthening oversight and adapting standards to address supply chain issues.
• Inditex and H&M, Better Cotton users, are engaging with the group on the investigation results.
• The audit highlights the need for certifiers to improve oversight and adapt standards to address broader issues.