U.S. Cotton Sustainability

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1 U.S. Cotton Sustainability Mr. Ted Schneider President, Cotton Council International Chairman, COTTON USA Sustainability Task Force Sourcing USA Summit November 12-15,

2 COTTON USA OBJECTIVES o To be the supplier of choice for mills, manufacturers, brands and retailers who are committed to only buy cotton that is produced with sustainable and responsible environmental, safety and labor practices. o We want to make a difference and drive change to make the world a better place for future generations. 2

3 WHERE WE ARE TODAY Today, we would submit that the U.S. produces the most sustainable cotton of any country in the world for the following reasons: 3

4 1. THE U.S. FARMER IS A FAMILY THAT LIVES ON THE LAND THAT THEY FARM o o o Our cotton is produced by over 18,000 family farmers who operate as small businesses and have farmed the land for decades. 97% of all U.S. farms are family owned. (NASS) The majority of our farmers own the land and live on the land that they farm. Land is their single biggest asset. (NASS) Without land that consistently produces high quality crops, they would go out of business. This land will be passed on to their sons, daughters and grandchildren. 4

5 2. THE U.S. HAS A HIGH RATE OF ADOPTION FOR PRECISION AGRICULTURE o Precision Agricultural Management is a combination of modern technologies used by U.S. cotton farmers which manage for the variations of the soil, nutrient requirements, plant stresses and optimizes inputs. o 69% of cotton growers used at least one precision aid technology in 2015 (Daystar et al (2017) Cotton sustainability BioResources 12(1), ) 5

6 3. U.S. COTTON IS HIGHLY REGULATED U.S. cotton production is governed by a stringent regulatory system. Food safety, environmental, and workplace regulations are strictly enforced by federal and state agencies: Environmental Protection Agency U.S. Department of Agriculture Occupational Safety and Health The penalties for non-compliance are both civil and criminal. We are subject to audit and inspection by both state and federal officials at any time. 6

7 4. MEASUREMENT o No other country in the world has a more comprehensive system of sustainability measurement. o Field to Market works across the entire agricultural supply chain for continuous improvement. Its work is grounded in science based tools and resources, system wide collaboration and transparency. o It uses a Fieldprint Calculator Platform to measure the environmental impacts of crop production and identify opportunities for improvement. 7

8 FIELD TO MARKET : THE ALLIANCE FOR SUSTAINABLE AGRICULTURE IS A DIVERSE COALITION OF ORGANIZATIONS. 8

9 U.S. COTTON S SHRINKING FIELDPRINT Land Use Greenhouse Gas Emissions Soil Conservation 5 Yr. Avg Yr. Avg Yr. Avg Yr. Avg Energy Use Irrigation Water Use Field to Market (2016 V3). Environmental and Socioeconomic Indicators for Measuring Outcomes of On-Farm Agricultural Production in the United States; Summary Report: Second Report (Version 3), December Available at: 9

10 35 YEARS OF REDUCED ENVIRONMENTAL IMPACT Land Use Soil Loss Water Energy GHG 31% 44% 82% 38% 30% Source: Field to Market 2016 Environmental and Socioeconomic Indicators Report. Available at: 10

11 WHERE WE ARE GOING IN THE FUTURE o Many global brands have recognized U.S. cotton as sustainable or responsibly-produced. o The U.S. cotton industry is working to expand the recognition of U.S. cotton and address any concerns from the textile supply chain. 11

12 COTTON USA SUSTAINABILITY TASK FORCE o Through the work of the COTTON USA Sustainability Task Force, the cotton industry looks to build on past success by focusing on continuous improvement. o Two Main Work Products of the Task Force o Set national goals for key environmental metrics o Develop a Protocol focused on farm-level activities 12

13 NATIONAL GOALS FOR 2025 Field to Market s National Metrics Improvements by 2025 Reduce Land Use (Acres per Lb of Fiber) 13% Increase Fiber per Gallon of Water (Irrigation Efficiency) 18% Reduce Greenhouse Gas Emissions (LB CO2 per Lb of Fiber 39% Reduce Energy (Btu/Lb of Fiber) 15% Reduce Soil Loss (Tons/Acre) 50% Increase Soil Carbon (% of Fields) 30% 13

14 BY ACHIEVING GOALS, U.S. COTTON WILL CONTINUE TO SHRINK OUR FOOTPRINT Land GHG Water year goal Energy Soil 14

15 HOW DOES U.S. COTTON ACHIEVE THESE GOALS? o Continued adoption of new technologies o Producer-funding of new research that will advance best farming practices o Industry associations actively engaged in educating farmers o Continued adoption of best management practices o Expanded use of resource efficiency tools such as the FieldPrint Calculator o DEVELOPMENT OF THE U.S. COTTON TRUST PROTOCOL 15

16 U.S. COTTON TRUST PROTOCOL o Individual Farmer Enrollment o Standards & Measurement o 3 rd Party Verification o Data Passed to the Textile Supply Chain o Pilot with the 2019 Crop 16

17 INDIVIDUAL FARMER ENROLLMENT 17

18 STANDARDS FOR BEST MANAGEMENT PRACTICES (9 CATEGORIES MORE THAN 100 QUESTIONS) SOIL CONSERVATION & SOIL HEALTH NUTRIENT MANAGEMENT WATER MANAGEMENT & QUALITY CROP PROTECTION (Integrated Pest Management & Pesticides) HARVEST PREPARATION BIODIVERSITY AND WILDLIFE HABITAT FIBER QUALITY AND TRACEABILITY LABOR AND WORKER RELATIONS FARMSTEAD MANAGEMENT 18

19 MEASUREMENT o One of the requirements of the Protocol is for the producer to adopt the use of a data tool that allows for quantitative measurement of key sustainability metrics. o An example is the Field to Market tool named the FieldPrint Calculator. This tool allows a famer to put their inputs every year into a system that measure the environmental impacts of crop production and identify opportunities for improvement. 19

20 VERIFICATION o Validate accurate use of the on-line enrollment tool such as the selfassessment questionnaire, letter of commitment and the data tool. o A random and statistically valid sample of the producers in the Protocol would be generated each year and those farms selected for an independent third party verification of their questionnaire and data. 20

21 DATA TO THE SUPPLY CHAIN o Objective is to provide merchandiser with the ability to pass data to the textile supply chain o Focus on flexibility to meet the needs of the customer and traceability 21

22 PILOT IN 2019 o The Protocol is a work in progress o IT development by The SEAM in Memphis o Seeking critical feedback from farmers, merchandiser, mill, brands, retailers and NGOs 22

23 SUMMARY o U.S. cotton is committed to making a difference in sustainable agriculture for the future and for driving change and continuous improvement. o We want U.S. cotton to be part of your supply chain and we want to work with you to improve the environment. 23

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