Request for Proposals: Transparency in the Apparel Supply Chain in Brazil Deadline to submit proposals: Sunday - March 11, 2018

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1 Request for Proposals: Transparency in the Apparel Supply Chain in Brazil Deadline to submit proposals: Sunday - March 11, 2018 PART I GENERAL INFORMATION 1. C&A Foundation C&A Foundation is a corporate non-profit foundation that aspires to a fair and sustainable apparel industry in which everyone can thrive and fashion is a force for good. The foundation works to address the deeply rooted challenges of the sector by offering technical and financial support to initiatives, as well as by partnering with stakeholders through five global programs: Improving Working Conditions Eradicating Forced and Child Labor Accelerating Sustainable Cotton Circular Economy in the Apparel Industry Strengthening Communities This Request for Proposals (RFP) is run by C&A Foundation in Brazil and fits within our Improving Working Conditions program in the apparel supply chain. To increase accountability within the apparel industry and thereby improve working conditions across the apparel supply chain in Brazil, this program has a three-prong strategy: a) Increase accountability in the apparel industry through more transparent and traceable supply chains through the disclosure and dissemination of data and information; b) Enable and respect apparel worker voices so their rights are protected and guaranteed; c) Conduct advocacy to create or change norms or policies to guarantee decent working conditions. The proposals for this request should address the first strategy: Increase accountability in the apparel industry through more transparent and traceable supply chains through the disclosure and dissemination of data and information with a focus on Brazil. To learn more about the C&A Foundation in Brazil, please visit: In Brazil, C&A Foundation is referred to as Instituto CA. 2. Background Context A complex maze of production units, subcontracted factories and sourcing agents has emerged across numerous countries, including Brazil. Multiple stages between material sourcing, production and retail make the apparel supply chain opaque and leads to a complex international apparel industry where monitoring and tracing is challenging at all tiers of production from cotton fields to retail outlets. The Challenge: Transparency and Working Conditions The lack of transparency in the system has contributed to persistently poor working conditions and weak systems of accountability. Brands, buyers, governments and consumers are often unaware of how materials are sourced and the conditions under which items are produced.

2 Even when data about working conditions is documented by factories and buyers, often this information is not shared with key stakeholders who are better-positioned and more likely to pressure for improvements, such as workers themselves, government authorities, and civil society. To this end, information about how decisions affect working conditions are unknown, and decision-makers often do not have the information, tools, and incentives to create change. A Solution: Credible, Accessible and Transparent Data to Create Change We know that efforts to improve the well-being of workers are strengthened when working conditions are made public. When making this information available, we give tools and incentives for stakeholders at each stage of the apparel supply chain to prioritize choices that can improve working conditions. Public disclosure enables an improvement in working conditions namely in two ways: 1) Credible, accessible and transparent data allows for decisions based on facts and evidence that perhaps were previously unknown. For example, supplier feedback can help brands understand how their urgency in around final product delivery can affect overtime in the factory. Making this information public also can lead to impact beyond one factory or brand as others within the supply chain may analyze and review their practices. 2) As public disclosure becomes common practice, working conditions become a priority within the industry s supply chain. A critical mass adopting transparency measures creates an expectation of accountability amongst all in the sector, which allows a comparative analysis across stakeholders and establishes new standards for behavior. To this end, the main stakeholders must demonstrate that they have good working conditions to continue leading the market, bringing others along to do the same and thereby creating momentum for the issue to become a priority throughout the apparel supply chain. PART II REQUEST FOR PROPOSALS: Transparency in the Apparel Supply Chain in Brazil The apparel industry is becoming increasingly open about working conditions. In response to demands for greater transparency, an increasing number of brands and industry groups have begun disclosing information on this issue. However, disclosing information on its own does not automatically lead to better working conditions. Given this challenge, the C&A Foundation seeks innovative strategies that use data and information to catalyze systemic change in working conditions across the apparel industry in Brazil. 1. Eligibility Non-governmental organizations, research and academic institutions, industry associations, institutes and foundations, and media outlets (independent, innovative and investigative vehicles) can send proposals. (Note: The C&A Foundation does not support individuals without institutional links). Organizations can be national or international, but international organizations must have a history of work in Brazil and/or at least 50% of the budget must be designated to a national partner organization based in Brazil. 2. Scope of the Request for Proposals (RFP) To address transparency in the supply chain of the apparel industry in Brazil, proposals must develop and/or implement programs that accomplish the three items below (either through its direct work or through a partnership with another organization): a) Disseminates precise publicly disclosed data or information about the apparel industry (or data and information that could be made public as part of the project) from credible sources about issues that affect (directly or indirectly) working conditions in Brazil (WHAT)

3 By publicly disclosed data we mean information that is: - Specific to a named factory and or brand - Is standardized to enable comparison between peers and over time - That covers the whole industry, or a significant sector (not just one or a small number of companies) Information from one-off research reports, news articles or content of individual company s CSR reports are not considered data for the purposes of this RFP. Examples of potential issues: working conditions in factories, origin or manufacturing process behind a product, links between brands and factories, subcontracting between factories and third parties; brands buying policies; hiring practices across the industry; among others. b) Ensures that this data and information assists key stakeholders in Brazil or beyond to make decisions that promote positive changes in policies, practices and behaviors that affect working conditions in Brazil (WHO/HOW) Examples of potential stakeholders: workers, unions, brands, factories, investors, civil society, and government, among others. c) Catalyzes changes in the apparel industry that have potential to be systemic, impacting the industry as a whole in Brazil, beyond an individual factory or brand (unless it can be demonstrated that a change in one factory or brand would have such an impact that the others in the industry would follow suit, thereby leading to structural changes) (WHY) Examples of potential results: improvements in working conditions, new policies or additional resources to support additional monitoring of working conditions, investors prioritizing brands that have better practices, amongst others. *For more information on how the C&A Foundation views the connection between issues, stakeholders, and results, please see Annex 2 below. Proposals must also include: A gender perspective, describing the demands, needs, and impacts of women workers within the context of working conditions. Given the role of women in the apparel industry globally and in Brazil, our theory of change in regards to gender justice guides us to achieve and measure our results. A collaborative approach that includes alliances and partnerships that seek systemic change and to impact a greater number of stakeholders within the value chain (for example, unions, associations, collectives, consumer groups, farmers, cooperatives, companies, business groups, among others). Additional Observations: Research or data collection can be included in the project, but a strategy to ensure that this information is taken to key stakeholders to catalyze change in Brazil is essential. 3. Requirements & Evaluation of Proposals The request to the C&A Foundation must not exceed R$600,000 (not including co-funding). Projects with a budget higher than this amount must be co-funded by having the difference covered by another source. There is no minimum or maximum time period for the duration of the project. The estimated start date for projects is June 1, Proposals can be submitted in Portuguese or English, but must focus on changing working conditions in Brazil and must be written in the format developed by the C&A Foundation for this RFP.

4 Additional points that will be considered a plus: Innovative strategies; Strategies that involve different stakeholders, including workers in designing/implementing the project and/or establishing priorities. C&A Foundation will not consider proposals that: Do not use publicly disclosed information or data, or does not include the public disclosure of information or data as part of the project; Discriminates against a group of people or institutions; Discloses commercial information or information that does not have bearing on the improvement of working conditions within the garment, footwear, accessory or textile production; Focuses purely on research or data collection without a plan or mechanism to catalyze change in policies, practices or behaviors that improve working conditions in the apparel industry in Brazil; 4. Evaluation Process According to the criteria above and upon review of the proposals submitted per the format below, proposals will be scored in line with the following rating system: Is the problem that the proposal seeks to address well defined? Problem Analysis and Proposed Solution Is it important that the issue is addressed now, either due to urgency or saliency? Is the timing of the intervention adequate to generate impact? Given the challenges and opportunities surrounding the problem, will the strategic disclosure of data/information make a difference? 10 Strategy, Results & Impact Is there a clear strategy with specific objectives and a realistic methodology? Are the expected results achievable and measurable? Does the initiative take advantage of learning and successes of other similar efforts and go beyond what has already been implemented previously (i.e. does it reflect a qualitative advance in the field of transparency instead of reinventing the wheel)? Is the proposal innovative, representing something new that has catalyzing potential? Is the approach transformative and systemic, capable of affecting policies, practices and behaviors of the industry as a whole? (i.e. it does not address the issue factory-by-factory or brand-by-brand)? How will the impact be sustained beyond the period of funding by the C&A Foundation? 25

5 Collaboration & Partnerships Systemic change often depends on collaboration to generate the impact needed for transformation. Does the proposal have these partnerships or foments collaboration amongst partner organizations, and other stakeholders to generate the desired impact? If there is not a strong component of collaboration, does this compromise the effectiveness of the initiative? 20 Expertise & Experience Is the team responsible for the project competent and qualified to implement the proposal? Does the organization have a history of results in this area? Have the roles of each partner been well allocated according to their expertise and experience? 15 Cost Is the proposed budget proportional to the planned activities and the expected results? If the amount requested does not reflect the full amount to implement the project, is there cofunding confirmed from another source or is this being sought? 10 Fit with C&A Foundation s Strategies Do the objectives and activities seek to increase public access to and quality, quantity, analysis and dissemination of data and information relevant to working conditions in the apparel industry in Brazil? To what extent is gender equity and the empowerment of women incorporated in this proposal? Is at least one of the C&A Foundation s key performance indicators (KPIs) included in the proposal? 20 Total of possible points Timeline for the Request for Proposals (RFP) Deadline Monday, February 5th Action Request for proposals launched Friday, March 9th Deadline for applicants to send general clarifying questions that will be answered via begin to be published online weekly every Friday in English and Portuguese on our website ( Questions should be sent via (instituto@institutocea.org.br) with the subject header: Question RFP Transparency 2018

6 Sunday, March 11th Deadline for applicants to send proposals, which must be written in the format provided by the C&A Foundation for this RFP available on its website and sent via with the subject header: Proposal RFP Transparency 2018 Monday, March 26th Deadline to notify applicants whether they have been pre-selected and for the Foundation to send feedback to those who have been pre-selected Friday, April 20th Friday, May 11th Deadline for pre-selected applicants to send revised proposals; those above R$400,000 must be presented to the Investments Committee in early May (date to be confirmed) Final decisions announced 6. Additional Clarifications Proposals sent after the deadline (Sunday, March 11th) will not be reviewed. Clarifying questions are welcome and should be sent the following with the subject: Question RFP Transparency General questions and answers will be published online weekly every Friday at:

7 Format Proposal for RFP: Transparency in the Apparel Supply Chain in Brazil Deadline to submit proposals: Sunday - March 11, 2018 Please fill out this format proposal in no more than ten pages. When sending the proposal via please copy a representative of each partner organization who is participating and write in the subject header: Proposal RFP Transparency PART 1: GENERAL INFORMATION Title of initiative One sentence description Geographic focus, if applicable Number of expected beneficiaries Name of leading organization and details of contact person Duration Start and end date for requested funding Other partners and details of at least Other partners participating in the initiative one contact Total cost (in Brazilian reais) Total estimated cost of the initiative Funding requested (in Brazilian reais) Amount of request to C&A Foundation Resources from other sources beyond the C&A Foundation (financial Cofunding (in Brazilian reais) 1 and technical) PART 2: CONTEXT OF THE PROBLEM a) Describe the problem your initiative seeks to address. What are the risks and opportunities for change and why will the public disclosure of data and information make a difference? (150 words, maximum) b) Why is it key to address this problem now? What would happen without this initiative? c) Are men and women affected differently by the problem you describe? If so, how does this happen and why? PART 3: DESCRIPTION OF THE INITIATIVE a) Summarize how the initiative will address the problem described above. What is the strategy? Describe in detail the activities, expected results and assumptions upon which you base your strategy. Please include the information below and any other information that demonstrates how this initiative fits the RFP: Public data/information (and sources) that will be used, how this information is accessed, and why these are the most relevant for your strategy; Key stakeholders for your strategy, why these are important to address the issue, how your initiative will reach these stakeholders and how the stakeholders will use the information. Policies, practices and behaviors your initiative proposes to implement or change (and any further results expected from this change). b) It is important for us to understand the risks your initiative might face. Mention what you consider a risk to accomplishing the expected results. Is there a risk of unwanted consequences or results? How do you plan to mitigate all these risks? 1 Cofunding is defined as financial resources and in-kind resources that go beyond what is submitted as a request to the C&A Foundation and directly support the implementation of the initiative and achieving the expected results. For example, assistance, loans, investment in participation, in-kind support.

8 c) How will the initiative address the issue 2b on gender? How does your initiative promote gender justice? d) How will those most directly affected by working conditions (especially workers, farm producers, victims/individuals at-risk of forced labor, among others) be incorporated in the design of the initiative and the setting of priorities? e) How will the initiative build upon what already exists and also be innovative? How can your initiative take advantage of learning from other similar efforts and go beyond what was already tested? f) Given the C&A Foundation s mission to accelerate the transformation of the apparel industry, why should it fund your initiative? PART 4: RESULTS a) Briefly describe how policies, practices and behaviors included above will have a systemic and structural impact on the apparel industry in Brazil. What will be the role of civil society, state and business sectors in this process? To explain your collective impact approach, please include a summary of the roles of each of these and your trajectory working with them. b) How could your initiative be replicated throughout the apparel industry? c) Describe briefly how the initiative will contribute to one or more of the key performance indicators (KPIs) of the program Improving Working Conditions listed below. Please include at least one of the four indicators. 1. Number of workers benefiting from better working conditions and wages 1.1. Number of factories making changes to improve working conditions 1.2. Number of changes made by factories to improve working conditions 1.3. Number of stakeholders making changes to improve working conditions 1.4. Number of changes made by stakeholders to improve working conditions 2. Number of mechanisms to disclose information and transparency used by the industry to improve working conditions 2.1. Number of people or organizations that use these mechanisms 2.2. Number of organizations evaluated by these mechanisms 2.3. Number of companies/brands that changed their practices around working conditions 2.4. Number of consumers who changed their habits or behaviors 3. Number of key stakeholders collaborating to implement a Project or due to a project 4. Number of policies developed or enforced that foster good working conditions d) We apply a gender justice lens to all our work. Please include how your initiative will contribute to one or more of our gender justice KPIs: 1. Number of women leading efforts to improve working conditions 2. Number of gender responsive workplace policies and practices, including policies on gender-based violence 3. Percentage reduction in reported experiences of gender-based violence e) How will these results be sustained after the C&A Foundation s funding cycle? PART 5: ORGANIZATIONAL BACKGROUND a) Describe why your organization is the best placed to implement the initiative and explain your trajectory in this area. b) If this proposal involves partners, what are the roles, responsibilities and functions of each one?

9 PART 6: FUNDING a) Provide a detailed budget by activity, with details on cofunding and resources that will go to partner organizations, if applicable b) Describe possible partners cofunding your initiative. If it is not possible to secure funding or if this is not being sought, please explain why this is the case. Thank you for your interest in partnering with the C&A Foundation.

10 ANNEX 1: TRANSPARENCY LANDSCAPE Public disclosure has long been employed as a means to achieve greater accountability. From food labelling, to the disclosure of finances of elected officials, transparency has improved services and performance. In some cases transparency has even led to a redistribution of power, enabling ordinary citizens and consumers to use knowledge to demand change. Perhaps the most notable organization to enable change through public disclosure is Transparency International (TI), whose work has resulted in anti-corruption laws and conventions, the prosecution of corrupt leaders, and holding companies accountable for their actions. More recently, the Panama Papers demonstrated the significance of the trend toward greater transparency with its revelation of shadowy financial transactions, many of which likely violated tax and money-laundering laws, and brought elected officials and other prominent individuals to account for their illegal or unethical behaviour. Within the apparel industry, most actors have been slow to embrace transparency, with some exceptions: Disclosure of production facilities by brands A small number of reputation-sensitive clothing brands have started to address this issue by featuring the names and locations of some or all of their production facilities on their websites. While this is encouraging, most of the disclosure is limited to first tier cut-and-sew units and direct suppliers (only a few leading brands are beginning to disclose tier 2 and subcontractors), and does not include information about the working conditions in the factories. Disclosure of working conditions information by MSIs, governments and civil society organisations The Fair Labor Association was the first institution in the apparel industry to post the contents of all of its independent assessment reports on their website ( However, only a portion of each FLA members factories are subject to FLA assessments each year and there is currently no easy way to compare the performance of companies or to follow trends. Reporter Brazil founded in 2001, has employed methods of investigative journalism to expose instances of forced labour, including in the apparel supply chain. Their work helped to establish the Brazilian Ministry of Employment and Labour s dirty list established in The dirty list is a register of employers (both people and legal entities) caught exploiting workers under abusive and coercive conditions. Between 2004 and companies were included on the list, including, but not limited to, apparel producers. Nearly all companies included on the list have suffered a market reaction due to their involvement being on the list makes you a risky investment. The Rana Plaza collapse in Bangladesh in 2013 revealed once again the extent to which brands lacked knowledge about the location and working conditions of their garment production. The tragedy led to the establishment of two new organizations that practice transparency The Bangladesh Accord on Fire and Building Safety, the Accord, and the Alliance for Bangladesh Worker Safety, the Alliance, as well as other organizations including Fashion Revolution, which developed the signature tag line: #whomademyclothes. The Accord and the Alliance disclose all factory inspection reports. Such public disclosure is enabling labour rights activists to hold brands accountable for factory remediation. However, the scope, is limited to fire and building safety, and only includes factories known to be producing for the Accord and Alliance members. Two programmes implemented under the International Labour Organisation s (ILO) Better Work programme, transparently disclose working conditions in factories audited under Better Work. Better Factories Cambodia publicly discloses working conditions for over 400 factories, and has been able to show double-digit improvements in working conditions resulting from this transparency. For example, the programme cites a 15% improvement on the proper payment of bonuses and allowances after public disclosure. This effort has demonstrated that longresisted changes can be addressed by introducing transparency.3 However, in both Better Factories Cambodia and Better Work Haiti the scope of transparency does not cover all items included in audit reports.4 Disclosure of purchasing practices To date, we know of no systematic disclosure of purchasing practices, despite research indicating the impact poor practices have on working conditions. However, the planned public BetterBuying.org web platform aims to shed light on purchasing practices so that they can be improved and factories will be better equipped to provide safe and fair conditions for worker

11 ANNEX 2 - RELATIONSHIP AMONGST ISSUES, STAKEHOLDERS, AND RESULTS

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