WEBINAR ON DEMAND

ESG investing in fashion: A case of greenwashing?

Investors appear to be ill-informed as companies choose to bank on the better cotton initiative (BCI) in their drive for ‘sustainable sourcing’ of cotton

Charanjit Singh
Head of ESG
Investment Research

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Cotton, a key raw material for the textile industry, is considered one of the dirtiest crops. Over 75% of the world’s cotton needs are sourced from emerging markets, with the largest demand coming from the US, China, Europe and Japan. Many global apparel brands now claim to source a large share of their cotton supplies from sustainable sources. However, we are not convinced.

Key Takeaways:

    In this webinar, Charanjit Singh, our head of ESG Investment Research, highlights:

  • •   How investors appear to be ill-informed as companies choose to bank on the Better Cotton Initiative (BCI) and not on organic cotton in their drive for ‘sustainable sourcing’ of cotton

  • •   Key differences between organic cotton and the BCI farming process and reasons the belief that all BCI cotton is ‘sustainable’ is flawed

  • •   Insights into sustainability characteristics of BCI farming, based on independent third-party studies

  • •   Material differences between the true price and the market price of cotton given significant externalities of cotton farming

  • •   Way forward for investors to drive sustainable sourcing of apparel raw materials