1、Cotton 2040 Impact ReportAccelerating systemic change towards a just and regenerative cotton sectorCotton 2040Published November 20232Cotton 2040ContentsForeword.3Executive summary.5Introduction to Cotton 2040.8Key achievements.11How we approached measurement and outreach.16Challenges.19Stakeholder

2、engagement and outcomes 21Learning and recommendations.25What next?.Resources and tools2931FOREWORD3Cotton 2040Cotton is an indispensable part of our daily lives from the clothes we wear to the textiles within our homes and businesses.Yet,in the midst of its ubiquity,an intricate supply chain remain

3、s hidden across producing,processing,manufacturing,consuming,and end-of-life that brings this remarkable fibre to fruition.In spite of the pervasiveness of cotton in our lives,and the central importance of it to many worldwide,the cotton value chain is simultaneously at risk from the climate emergen

4、cy and also afflicted with socio-economic inequalities.For a staggering 350 million people worldwide,cotton is more than a crop;it is their lifeline,a source of livelihood.Meanwhile,for the rest of us,the story behind the crop is often overlooked.Cotton 2040s impact extends far beyond its conclusion

5、 in 2023,leaving a powerful legacy in the global cotton industry through the resources and tools created,and by asking the industry to imagine and adopt transformative behaviours that are more commensurate with the needs of both people and planet.Of course,the past eight years have not been without

6、their wins and hard lessons.Theres no panacea here,although pathways to building a far more future-fit value chain and industry are clearer.Hannah CunneenCotton 2040 Project DirectorForum for the Future4Cotton 2040The reflections in this report are insights shared in service to the many stakeholders

7、 across Cotton 2040,across all cotton-growing regions,and in the knowledge of just how much harder it will become to rely on cotton if we dont collaboratively challenge the status quo with great depth and urgency.EXECUTIVE SUMMARY5Cotton 2040The systemic social,environmental and economic challenges

8、that exist within the cotton industry were the impetus for the Cotton 2040 initiative,a multi-year collaboration convened by Forum for the Future,and involving partners and stakeholders from across the cotton value chain.This report provides the concluding updates from the Cotton 2040 initiative,sha

9、ring key findings from the three focus areas and four topline recommendations to make cotton a climate resilient,agriculturally regenerative,and socially equitable crop.The impact of Cotton 2040 is evident in the success stories of the initiatives participating brands and retailers.One participating

10、 brand,for instance,initially lacked concrete goals but,inspired by Cotton 2040,now aims to achieve 100%sustainable cotton sourcing by the end of 2023.M&S embarked on its sustainable sourcing journey in 2012 and,with the support of Cotton 2040,achieved 100%sourcing from Better Cotton,Fairtrade,or Or

11、ganic and Recycled certifications by 2019.Similarly,Burberry,an active participant since 2015,has committed to sourcing 100%certified organic and traceable cotton by the 2029/30 financial year,currently sourcing 31%certified organic cotton and conducting a traceability pilot.Ramatex,another particip

12、ant,has not only shaped itssustainability strategy with the help of Forum but also expanded its efforts into various sustainability strands,including innovations in other fibers and labor rights initiatives,showcasing the enduring impact and wide-reaching influence of Cotton 2040.Provided in this re

13、port is a set of tools and resources freely available to support accelerated action by those engaged in this important commodity,and particularly to enable private sector action.Understanding the current and future risks to cotton that climate change presents was focus area one.In partnership with W

14、TW,we developed the Global Cotton Climate Risk Tool to identify key climatic hazards across cotton growing regions.With a deep-dive analysis of the relationship between socio-economic inequalities and climate vulnerability in cotton growing and producing regions in India,we clearly demonstrated the

15、need for comprehensive future-facing approaches to climate adaptation and resilience-building in the cotton value chain in allregions worldwide.The Global Cotton Climate Risk Tool provides the basis upon which to take informed action:in building socio-economic adaptive capacity,regenerative and resi

16、lient agriculture,and in identifying where socially just transitions will need to occur.Focus area two focused on sustainable cotton standards for industry making them more comprehensible,harmonising sustainability impact metrics embedded across them through the Delta Framework,and by6Cotton 2040bui

17、lding brand capacity to better navigate the standards.This helps brands to align their own level of ambition and commitment with the varying levels of ambition towards just and regenerative outcomes that the different standards represent.The level of transformational change needed for the cotton val

18、ue chain to be resilient in a changing climate and which supports and mainstreams sustainable production and livelihoods requires new ways of thinking,acting,and doing business.This was the focus of focus area three,in which we developed and trialled new business models.Within the context of a burge

19、oning ecosystem services market,we designed regenerative cotton protocols that were trialled with US cotton farmers across 2300 acres in four states.Farmers were incentivised to adopt these protocols through financing mechanisms and technical support,and participating brands committed to purchasing

20、the cotton quantity produced through the pilot.Systemic impact can be challenging to identify,quantify and attribute,so through the Cotton 2040 initiative we developed a rubrics framework to assess impact in progressive businesses,to help them lead the charge and inspire others by better articulatin

21、g progress and impact.In this report we share this impact framework as well as sharing impacts and outcomes across communications and outreach,and partnerships all critical pillars for success in a multi-stakeholder collaboration.We share7Cotton 2040some of the challenges we experienced during Cotto

22、n 2040 notably lack of alignment across the value chain,and a lack of shared clarity on what ambition for change that is commensurate with the level of the issues faced looks like in practice.Finally,we share our four key recommendations which are centred around:1.Enabling the shift from standards a

23、s an end goal to being the start of a journey to traceability,and moving towards the mass-scaling of much more sustainable ways of producing cotton.2.Raising the level of ambition around cotton standards to better enable brands and retailers to lead change.3.Calling for a shift in consumer mindsets

24、and narratives,which in turn will enable SMEs to also lead and adopt in the face of much-needed change.4.Calling for transition finance and de-risking options which enable producers to start and scale regenerative agriculture.Cotton is at risk,and with it the livelihoods of many millions of people a

25、cross the world who rely upon it.We hope that these findings,and the tools and resources that underpin them,will continue to create and accelerate change towards a resilient,regenerative and just cotton sector.INTRODUCTION TO COTTON 20408Cotton 2040Cotton,a key global commodity,spans 31%of textile f

26、ibre use and occupies 2.5%of arable land.Produced annually across 80 countries,worth$50 billion USD,it supports 350 million people.Climate change and human rights challenges threaten its future.Sustainable practices offer a solution,but oftentimes,industry-wide coordination is lacking.Cotton 2040 wa

27、s an eight-year initiative(2015-2023)by international sustainability non-profit Forum for the Future which aimed to accelerate progress and maximise the impact of existing sustainable cotton initiatives,bringing together over 50 leading international brands and retailers,sustainable cotton standards

28、,traders,over 15 processors and farmers,and other stakeholders across the value chain.Cotton 2040 envisaged a sustainable global cotton industrywhich is resilient in a changing climate;which uses business models that support sustainable production and livelihoods;andwhere sustainably produced cotton

29、 is the norm.This report provides four recommendations from the Cotton 2040 initiative to create and accelerate change towards a resilient,regenerative and just cotton sector.We extend our gratitude to all the partners,participants,and supporters who have been instrumental in making Cotton 2040 a su

30、ccess.A special thanks to our funders,Laudes Foundation,for their generous support and commitment to driving positive change in the cotton sector.Disclaimer:The Cotton 2040 initiative included industry stakeholders such as producers,manufacturers,brands,retailers,cotton standards,programmes,traders

31、and textile processors.The content,impact,and insights within this report have been made possible by the generous funding provided by the Laudes Foundation.The observations and suggestions in this report solely represent the perspective of Forum for the Future,and not of its partners.9Cotton 2040INT

32、RODUCTIONTO COTTON 204010Cotton 2040“Cotton 2040 was conceived because the story of cotton needed to change.There are too many fragmented initiatives not speaking to each other,no agreed metrics for reporting,and brands not understanding their last tierproducers.Climate change and poor returns for f

33、armers pose risks to the future of cotton.”-Anita Chester,Head of Fashion Materials,Laudes FoundationKEY ACHIEVEMENTS11Cotton 2040Cotton 2040An overview of the initiatives key achievements.There is worryingly little climate-related information and coordination across the cotton sector on how to resp

34、ond to current and forthcoming impacts to the industry.When the initiative first set out to discuss climate mitigation and adaptation needs in order to achieve resilience,it quickly became apparent that people and organisations knew climate change was impacting cotton producers and yields,but the da

35、ta wasnt available to demonstrate where,what and who it was most deeply impacting.Cotton 2040 therefore set out to provide a global-first for the industry-a Global Cotton Climate Risk Tool which outlines key climatic hazards impacting cotton growing regions.The tool not only details data-backed conc

36、erns for the whole industry,but led us to important conversations with industry actors on a)the need for cross-sectoral collaboration,b)just transitions when making sourcing decisions,and c)the intersectionality and compounding impacts of cotton growing in the face of the climate emergency.We also p

37、ublished a Global Cotton Risk Report and one specific to India to accompany and give depth to our analysis.How to use these tools:There is no longer a question of how badly the cotton sector will continue to fare as the climate emergency is further realised.Instead,we can now focus on what we do wit

38、h that information to protect and promote ecological replenishment and equity.As an industry actor,you can use the Global Cotton Climate Risk Tool to see climate risk scores for twelve climate indicators.The Global Cotton Risk Report,and the India Analysis Report,provide research findings on the rel

39、ationships between physical climate risks and socio-economic vulnerabilities.ACHIEVEMENTS IN FOCUS AREA 1:Climate adaptation and resilience 13Cotton 204014Cotton 2040We saw considerable impact in demystifying the burgeoning industry of sustainable cotton standards to increase uptake of sustainable c

40、otton,primarily through three main interventions.1.The CottonUp guide-A digital resource signposting key information from leading global standards and codes,case studies of pioneering brands,and detailed guidance on terminology and producing regions.The website was translated into German and Japanes

41、e,and receives 50,000 visitors annually from countries from across the world,including India,Japan,Australia and the US.How to use this tool:If you work in the apparel industry,you can use the guide to develop and implement sourcing strategies,in particular across multiple sustainable cotton standar

42、ds such as organic,Fairtrade or the Better Cotton Initiative.2.Harmonising sustainability impact metrics through the Delta Framework-The first standardised way for commodity sectors to collect farm-level data,monitor and report progress on sustainability in the cotton industry,which was proposed to

43、the ISEAL Innovations Fund by Better Cotton.The project was developed together with the Global Coffee Platform(GCP),the International Cotton Advisory Committee(ICAC)and the International Coffee Association(ICO).How to use this framework:Read the framework for best practices,methodologies and tools o

44、n how private or public entities can effectively measure and communicate sustainability information to their stakeholders.3.Building the capacity of 11 brands at various stages of maturity in sustainable cotton procurement-In partnership with Anthesis,this resulted in the participating brands making

45、 commitments to increasing the volumes of sustainable cotton as well as implementing procurement.ACHIEVEMENTS IN FOCUS AREA 2:Increasing uptake of sustainable cotton 15Cotton 2040Forum worked closely with industry actors to identify the characteristics that uphold cottons current value chain and bus

46、iness model,and readily discussed whether these characteristics drive just and regenerative outcomes for all stakeholders.It was agreed that the cotton industry must operate in new ways in order to better protect people working within the industry,as well as the planet.The emergence of ecosystem ser

47、vices markets is one possible model that could offer both ecological replenishment and drive social equity,and was therefore chosen as a model to pilot out and learn from in Cotton 2040s final year of implementation.Forum partnered with key technical providers and networks to design the first“regene

48、rative”cotton protocols for the burgeoning US ecosystem services market and launched a pilot aiming to enable US cotton farmers to adopt regenerative practices through offering financing and technical support.Not only did our consortia design scope-three level protocols for regenerative cotton,this

49、pilot initiative aims to(a)better understand the motivations,benefits and improvements required by these new market models and marketplaces,(b)engage with and track the financial flows of such models,(c)build stronger collaboration,dialogue and regenerative commitments across the somewhat disparate

50、cotton value chain.The pilot works with cotton producers across Alabama,Arkansas,Texas,and Tennessee to trial the protocols on 2,300 acres by implementing regenerative practices,per the new protocols,such as water reduction methods,nutrient management,reduced tillage,and cover crops.Upon the conclus

51、ion of Cotton 2040,the initiative is now being further managed and monitored by private sector partners.The pilots cotton is being grown in the 2023 season,with outcomes being assessed in the late 2023 harvest,verified in 2024.Corporate buyers can purchase these verified credits to help meet their s

52、upply chain sustainability targets,and-critically-must commit to purchasing the cotton quantity produced through the cotton pilot.Ongoing lessons are being gleaned throughout 2023 and 2024,with further ambitions for scaling and replication in the 2024 growing season.To learn more about the pilots,re

53、ad our infographic providing key insights,or get in touch with Hannah Cunneen.ACHIEVEMENTS IN FOCUS AREA 3:Business models HOW WE APPROACHED MEASUREMENT AND OUTREACH16Cotton 2040Forum worked with the Laudes Foundation through an iterative design process to put in place a robust framework for Monitor

54、ing,Evaluation and Learning(MEL)for Cotton 2040.The co-designed rubrics framework supported progress towards outcomes,put impact front and centre throughout the programme,and focused on two areas in particular:1.Progressive businesses lead the change,which encourages others to follow and lays the fo

55、undation for systemic change:Cotton 2040 worked towards aligning key players in the cotton system on the change needed,catalysing collaborative action to adapt to the changing climate,and empowering brands to embrace sustainable cotton.2.Redefined value to refocus the system on what really matters:C

56、otton 2040 aimed at a shift towards industry-wide consensus on the data and approaches needed to inform strategy,alongside new business models and practices that demonstrate a shift in how value is defined.17Cotton 2040Such a strong impact and MEL framework is a useful way for the industry to think

57、about impact:it moves the dial for market transformation beyond the widespread assumption that engaging internal stakeholders and communicating success alone bring sufficient value.That being said,external communications and outreach,as well as partnerships and collaborations,played a critical role

58、in the Cotton 2040 initiative.Communications and outreachHaving a skilled communications team based in the UK,India and Singapore helped extend the reach of insights and tools to support changemakers even beyond Cotton 2040.Since 2016,we have showcased Cotton 2040 at at least one major industry conf

59、erence each year,excluding the gap due to COVID-19 restrictions.Webinars,roundtables and masterclasses have been attended by at least 780 people since 2020,mostly around climate adaptation.Media coverage and reach,most notably on the climate risks analysis report and toolkit,has been strong across m

60、ainstream,trade,business,insurance and sustainability titles in key cotton-producing regions,including China,India,Pakistan and the US.Partnerships and collaborations have extended our reach further.18Cotton 2040Partnerships and collaborationWe fostered strong partnerships with Anthesis,WTW,Ecosyste

61、m Services Markets Consortium,the US Cotton Trust Protocol and Textile Exchange.Our delivery partners had a high level of ambition,were collaborative on design,delivery and problem solving,and have been highly communicative.They brought different perspectives,provided complementary technical experti

62、se,and unlocked conversations.We also had strong reciprocal relationships with steering group and working group members,who engaged on multiple levels(e.g.one-to-one discussions,conferences,communities of practice,initiatives).This supported cross-learning and reach.Lastly,Forums unique approach to

63、change-making was a major success factor for Cotton 2040.Forum applies two core approaches:system change and futures.The use of both futures and system change in design and delivery directly contributed to Cotton 2040s progress towards outcomes.At the project-inception stage,Cotton 2040 was designed

64、 using insights from Fashion Futures and Cotton 2040 scenarios in addition to systems diagnosis and stakeholder engagement.This enabled a strong vision grounded in evidence and understanding of the current system and likely scenarios.Meanwhile,system change is another important part of Forums approa

65、ch.Feedback from Cotton 2040s working groups and participants in activities such as the climate adaptation roundtables highlighted that system-change tools and frameworks supported thinking on how change happens.The rubrics impact framework above was well-suited to system-change initiatives such as

66、Cotton 2040.CHALLENGES19Cotton 2040The main challenges experienced by the Cotton 2040 initiative stem from working within a cotton sector that is unconducive to change.Various systemic and external challenges also presented themselves during this time period.Piloting business models is challenging w

67、hen there is no alignment between brands,retailers,standards or civil society organisation on how to define regenerative in relation to cotton production.In addition,established standards are important to brands and retailers to report on how they are meeting their commitments,but these do not inclu

68、de regenerative definitions or requirements.The standards that do include regenerative criteria-Regenerative Organic Certified and RegenAgri-are expensive.The Xinjiang human rights crisis was a major external factor in the progress towards sourcing sustainable cotton.Our response was to design a cap

69、acity building programme to teach participants that sustainable sourcing is a continual improvement process,of which certification is a minimum entry point.However,the crisis meant that the time was not right to engage investors and we missed the opportunity for outreach to this key stakeholder grou

70、p as a result.Economic headwinds and disruption due to COVID-19,inflation and cost of living increases have made fundraising difficult.One example of how this affected progress is that,while traceability and transparency became a priority over the lifetime of Cotton 2040,and there was interest in a

71、traceability pilot from participating brands,Forum did not have the resources to capitalise on this,or to adapt content of the existing programme to cover traceability substantively.The financial difficulties within the cotton industry itself.Retailers through to cotton producers,alike,were and cont

72、inue to be realised as Cotton 2040 came to a close.Many businesses and cotton actors look to secure as much financial resilience as possible,rather than looking to rise to the much-needed challenge of experimenting and innovating,when really the climate emergency requires bolder and more intentional

73、 commitment and action.Navigating the intricate landscape of context,language,and cultural differences poses a significant hurdle for international initiatives like Cotton 2040.While we had strong participation across several countries,Forum is a predominantly English-speaking organisation and this

74、created challenges in engaging some stakeholders,for example,in Turkey,Pakistan,India,and Brazil.There are also cultural differences,for example,in India and Pakistan you need to work through the public sector to achieve systemic transformation,rather than Forums usual audiences of the investment co

75、mmunity or the private sector.“The system right now is unconducive.Individual grants are making small contributions.The system is moving in fashion but still unconducive.”-Litul Baruah,Senior Programme Manager,Laudes Foundation20Protein Challenge Southeast AsiaSTAKEHOLDER ENGAGEMENT AND OUTCOMES21Co

76、tton 2040Stakeholders and their rolesThe initiative aimed to convene cotton industry actors together to drive impact through collaboration,knowledge exchange and collective action on common challenges.As such,the design of the project involved a wide range of stakeholders that evolved as the program

77、me did.The programme identified several stakeholder groups that would be critical to engendering transformation.These included:1.Pioneering fashion brands and retailers both multinationals operating globally and those in key regions such as North America and Asia(predominantly Japan and India)that h

78、ave a higher proportion of power and opportunity to change,acting as catalysts and influencers on the rest of the industry.2.Cotton standards,industry organisations(Textile Exchange,CEEW)and NGOs/non-profits that often act as the conduit between the consumer-facing brands and the cotton-producing fa

79、rmer communities.3.Representatives from farmer groups and producer organisations providing the perspective of on-farm challenges and on the frontline of climate challenges.4.Supply chain actors such as cotton processors and manufacturers,commodity traders and financial actors including investors and

80、 development institutions.The initiative had multiple routes for engagement with stakeholders:1.Working groups the structure of the later stages of the project brought together diverse industry actors into working groups that provided oversight,advice and support to focus areas that included alignin

81、g on sustainability metrics,building awareness of the need for and convening around potential pathways in which to employ climate adaptation action,and conceptualising future-fit business models befitting of the industrys needs.These working groups also built capacity and dialogue in systems thinkin

82、g(which underpins Cotton 2040),and critique approaches and assumptions.2.Participation in roundtables and sessions Forums roundtables on climate adaptation in 2021-2022 saw stakeholders take part in discursive and collaborative meetings that were global and spanned each segment value chain.The round

83、tables were designed to be participatory in order to gain insight from the industry on the impacts of climate change within the industry,from farming communities to processing facilities and beyond.3.Attending masterclasses and capacity building opportunities Industry facing webinars and interactive

84、 sessions that brought together stakeholders to present and discuss challenges and opportunities relating to climate resilience and adaptation across a variety of broader topics.22Cotton 2040Success stories from participating brands and retailersExamples showcase efforts that will continue beyond Co

85、tton 2040 both relating to cotton and to adjacent issues such as regenerative agriculture and labour rights:M&S started its sustainable sourcing journey in 2012.They provided 25,000 in match funding to Cotton 2040 in 2017-18 as part of their ongoing partnership with Forum across a range of sustainab

86、ility issues.They achieved 100%sourcing from Better Cotton,Fairtrade,or Organic and Recycled certifications in 2019.They are members of Textile Exchange.They recently completed a regenerative agriculture pilot with Forum and their UK potato farmers which they are now expanding more widely across the

87、ir supply chains.Burberry was an active participant during scoping and early phases of Cotton 2040(from 2015)as well as being a working group member for FA2 and FA3.They are members of Textile Exchange.The company has partnered with Forum since 2013,and Forum CEO,Sally Uren,was a member of Burberrys

88、 Responsibility Advisory Committee from 2016-2021.In 2017,Burberry made a commitment to source all its cotton sustainably by 2025.They have since shifted and expanded that commitment to have 100%of cotton certified organic and traceable by the 2029/30 financial year.The company currently sources 31%

89、certified organic cotton and has started a traceability pilot.More details,and reference to their involvement in Cotton 2040,can be found in their 2022/23 annual report.Ramatex worked with Forum to shape its sustainability strategy in 2018 and continues to work on both strands(people and planet)thro

90、ugh innovation in other fibres(Circular Leap Asia and Tackling Microfibres at Source),and labour rights(Through their Eyes).Ramatex also funded the scoping phase of Forums Future of Responsible Recruitment in Malaysia initiative,which focuses on migrant workers,and they are now a member of the emplo

91、yers cohort in the programme.23Cotton 2040“When we first started,we had no goals,now we have a target of 100%sustainable cotton by the end of 2023.Cotton 2040 gave us confidence to set targets and work out how to achieve it,including which cottons to consider sustainable.”-Participating brand“It was

92、 great to hear the common challenges,and where the industry was moving to,it enabled strategic decisions and really brought home the understanding of where the cotton was coming from”-Participating brand“I always valued the meeting up and the conversations,the exchange of ideas,and that leading to a

93、lignment in language and approach-the Cotton 2040 provided that space and opportunity for personal interactions,sharing challenges and opportunities”-Steering group memberPrivate sector actorsIncluding the Ecosystems Services Market Consortium,US Cotton Trust Protocol and luxury apparel brands remai

94、n engaged with one another in the ecosystem services market pilot.The ongoing relationship and discussion bodes well for continued learning,refinement and eventual replication and duplication of regenerative and equity-focused work in cotton in the US and abroad.The pilot continues to generate a lot

95、 of interest with other apparel companies,actors working in the regenerative agriculture sector(across food and fibre),and the media.24Cotton 2040LEARNING AND RECOMMENDATIONS25Cotton 2040Too often the focus is largely on behaviour change at farm level,with little to no understanding of what is requi

96、red to enable that change in each context from the rest of the value chain.This means that there are limited levels of engagement and support for action across value chain actors.This is an important point for the industry to consider.We need to find ways to evolve adaptation conversations and resul

97、ting actions so they support just and regenerative outcomes,and avoid siloed responses that are likely to create unintended consequences that are not just or regenerative.The Cotton 2040 masterclasses were a first response to this need,but additional support is required to continue progress.You can

98、watch the masterclasses to learn more about practical insights-on supply chain risk,transition risk and decarbonisation,liability risk,governance and people,and insurance-on the cotton and wider apparel sector.1Value chain actors need to enable the shift from standards as an end goal to being the st

99、art of a journey to traceability,and move towards the mass-scaling of much more sustainable ways of producing cotton.Landscape initiatives enabling restoration and adaptationOver the course of Cotton 2040,several organisations involved in the initiative,such as Better Cotton and Laudes Foundation,de

100、veloped a focus on landscape-based approaches.In place of narrowing the focus on improved on-farm practices or certification,for example,“landscape”or“jurisdictional”approaches de-silo sustainability issues to instead focus on a range of critical sustainability issues across a production landscape,c

101、ombining ecological regeneration with livelihood projects and other developments.In addition,initiatives taking this approach will often aim to look beyond a single supply chain,work with existing interventions in the region and work closely with communities,civil society and local government active

102、 in the area.Private sector involvement has been historically very low at the landscape-level,however they merit investigation from progressive businesses looking to achieve sustainability and commercial goals.Potential benefits include improving reputation and building a license to operate,building

103、 far greater traceability of raw materials,reduce resource scarcity or community risk disruption,and meet regulatory requirements.I can also assist in achieving commensurate climate adaptation and social justice needs within your value chain.There is a need for companies to think holistically about

104、adaptation and their sustainability goals,aligning that with business benefits and working with their supply chain partners to ensure effective delivery.26Cotton 2040Learnings from Cotton 2040 have informed four key recommendations for wider change efforts in the cotton industry.Raising the level of

105、 ambition for standardsIn earlier phases of Cotton 2040 we didnt have the data or research we do now-data that shows the extent of a)the negative social impacts of cotton production;and b)the impacts of climate change.Standards are just the starting point in this journey.Availability,pricing and cre

106、dibility of standards remains a question and fast fashion or larger multinational brands are most likely to commit to Better Cotton-which operated in Xinjiang until 2020-as it is the cheapest and easiest standard to implement.Metrics are improving and Better Cotton has a key role to play as it is of

107、ten the only standard in new markets e.g.Nigeria and Uzbekistan.Only attaining the minimum requirements offered by standards such as BCI will not get us to a just and regenerative cotton industry.It would be good to update the Delta Framework based on new data,both to increase dialogue and understan

108、ding on how standards differ,and to shift business thinking away from being standards agnostic.This would include building regenerative definitions into their protocols,and to align on a standardised view not only between themselves but also with brands,retailers and civil society.Updating the frame

109、work could also support a deeper shift for brands and retailers to see standards as just the starting point for deeper work on traceability.2We need to raise the level of ambition around cotton standards to better enable brands and retailers to lead change.Enabling the shift from standards as an end

110、 goal to being the start of a journey to traceabilityVerification of removal of forced labour/human rights abuses and use of agronomic practices is reliant on traceability.Whilst the importance of supply chain transparency is increasingly recognised,little progress is happening.In part this is due t

111、o the complexities of supply chains,verification issues and costs.Many brands and retailers also have small sustainable teams(e.g.1-2 people),driving a focus on regulation and standards rather than addressing more complex traceability needs.Traceability and supply chain resilience is also likely to

112、be a five to ten year journey.At a time when brands are facing more pressing short term challenges there is a need to:build the business case for traceability;offer businesses pragmatic advice on how to make that happen across the sector;join the dots to support transparency objectives.Brands and re

113、tailers are still siloed.They need to have the capacity to talk across their value chain(not just to one tier);provide better,affordable technology to support traceability;enable civil society to convene and support cross-sector collaboration;incentivise prioritisation of traceability(e.g.government

114、 and regulation such as the upcoming changes to EU directives);identify interventions that enable brands to address more than one issue e.g.ecosystem services approaches if they are done well.27Cotton 2040While SMEs are ambitious and agile,they do not have the same economies of scale and cost can be

115、 a barrier to change.There needs to be consumer buy-in to pay for the better practices and contributions that they make to uphold sustainability.This is not about expecting consumers to pay more in a cost of living crisis.Buying more and“bad”apparel is part of the problem that has got us to where we

116、 are in the first place degenerating landscapes,fragile supply chains,sustaining power inequities and social deprivation for workers.There is a need to shift to a narrative around buying local,and buying less but better good quality and longer-lasting with minimised eco footprints.One route to chang

117、ing consumer values and thinking is through new marketing that supports this new narrative and mindset to emerge.3We need to call for a shift in consumer mindsets and narratives,which in turn will enable SMEs to also lead and adopt in the face of much-needed change.Farmers need new forms of finance

118、to enable new types of investment because time horizons,risks and expected outputs and outcomes for regenerative agriculture are different when compared with conventional agriculture.This report outlines key insights and recommendations for further action for ecosystem services markets providers,pur

119、chasers and the organisations that support them.Brands also either need a way to buy accredited regenerative cotton through the mass balance approach,or we need to develop or develop a marketplace/supply chain that supports regenerative cotton i.e.that can enable buying of regenerative cotton outsid

120、e of the mass balance approach.4We need to call for transition finance and de-risking options which enable producers to start and scale regenerative agriculture.28Cotton 2040WHAT NEXT?29Cotton 204030Cotton 2040For further details on Forum,including more information on our Value Chains work,please re

121、ach out to Hannah CunneenThe legacy of Cotton 2040 serves as a testament to the power of collaborative action and strategic insight in reshaping industries for the better.While Cotton 2040 has ended,the urgency to create a resilient,regenerative,and equitable cotton sector has never been more eviden

122、t.The initiatives findings,tools,and resources are poised to accelerate industry-wide transformation.By embracing the recommendations and adopting a holistic approach,the cotton industry can transition toward a more sustainable future,safeguarding the livelihoods of millions while mitigating and rev

123、ersing environmental impacts.Forum will take many key elements of Cotton 2040s learning forward into its Reconfiguring Value Chains work across its three strategic areas of focus:the Purpose of Business,Food and Energy.Current trends outline the critical need for reimagining and restructuring how we

124、 do business and relate to suppliers and consumers across value chains-including food,fibre,critical minerals,pharmaceuticals,transport,technology industries,and beyond.Forum has developed a series of visionary and practical pathways for businesses to adopt a just and regenerative mindset,whatever i

125、ts starting point.RESOURCES AND TOOLS31Cotton 204032Cotton 2040Reports,tools and guidesA snapshot of our thought leadership VideosA snapshot of extensive coverage secured across mainstream sustainability and trade pressReport:The first-ever Global Analysis of Climate Risks to cotton growing regions:

126、A high-level analysis of physical climate risks across global cotton-growing regions for the 2040s.Blog:From system shock to systems change:Why we need to transform commodity value chains(and what this means for cotton)Video:Cotton 2040-Collaborative action for a sustainable industryEcotextile News:

127、Cotton 2040 aims to take mission to next levelTool:Planning for Climate Adaptation:Resources and interactive risk explorer tool to understand the physical climate risk to cotton growing regionsPodcast:With a narrow window for innovation,will our food systems transform or unravel?Webinar:Introduction

128、 to Cotton 2040Sustainable Brands:How a practical guide to sourcing sustainable cotton could help transform the industry Guide:CottonUP Guide to sourcing sustainable cottonBlog:Reflections on World Cotton Day:Lessons learned from building uptake of sustainable cottonWebinar:CottonUP:how a new guide

129、can help fast-track your sustainable cotton sourcingSouth China Morning Post:Threat of heatflation looms large as climate change shrinks farm and seafood output,experts sayReport:Creating sustainable value chains:A case for action for piloting and scaling alternative business modelsBlog:Climate adap

130、tation and mitigation needs in the cotton sector:Five trends shaping the future of cottonMasterclasses:“Insights to Action”masterclasses on climate risk co-hosted with WTWNew York Times:How climate change is making tampons(and lots of other stuff)more expensivePaper:Innovative business models that c

131、an transform cotton supply chains:An outline of what a more resilient,regenerative,and just cotton supply chain can look likeBlog:The cotton industry is changing.But will it be viable in 2040?Working group meeting:Cotton 2040s final working group meetingMongabay:Blue jeans:An iconic fashion item tha

132、ts costing the planet dearlyAbout Forum for the FutureForum for the Future is a leading international sustainability non-profit.For more than 25 years weve been working in partnership with business,governments and civil society to accelerate the shift towards a just and regenerative future in which

133、both people and the planet thrive.As our environmental,social and economic crises intensify,the world is rapidly changing,with multiple transitions already reshaping how we all live and work.But will we go far enough,and fast enough?Forum is focused on enabling deep transformation in three game-chan

134、ging areas:how we think about,produce,consume and value both food and energy,and the purpose of business in society and the economy.Were working with ambitious and diverse change-makers to shift how they feel,think,act and collaborate to drive systemic change for sustainability.About Cotton 2040Cott

135、on 2040 was a multi-stakeholder initiative with a mission to facilitate the shift to a sustainable global cotton industry which is resilient in a changing climate;which uses business models that support sustainable production and livelihoods;and where sustainably produced cotton is the norm.It ran f

136、rom 2015 to 2023.The initiative was convened by Forum for the Future,with expert partners WTW,Anthesis and the World Resources Institute(WRI).Cotton 2040 aimed to accelerate progress and maximise the impact of existing sustainability initiatives across the global cotton industry,by bringing together

137、 leading international brands and retailers,sustainable cotton standards,existing industry initiatives and other stakeholders across the value chain.Learn more here.33Cotton 2040CreditsThis report was written by Hannah Cunneen,Neil Walker,Hannah Pathak,Martin Koehring,and designed by Tanya Grueneberger at Forum for the Future.For more information on Forums value chains work,please contact Hannah Cunneen h.cunneenforumforthefuture.org Forum for the Future,November 2023forumforthefutureForum for the FutureForum for the FutureforumforthefutureForum4theFuture34Cotton 2040