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