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Market transformation investing in Better Cotton New Delhi-August 2014.

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Presentation on theme: "Market transformation investing in Better Cotton New Delhi-August 2014."— Presentation transcript:

1 Market transformation investing in Better Cotton New Delhi-August 2014

2 In the next 40 years, more food and fibers will be produced than so far in the history of mankind

3 Business has great leverage Top 200 multinationals 15 key commodities 35 most threatened regions

4 Sustainable cotton: 3% of world production Data over 2012. Source: State of Sustainability Initiatives Review (2014)

5 BCI: young initiative with high growth rates 71% of the sustainable cotton in the world market is Better Cotton

6 Second generation standard Based on performance metrics and continuous improvement Benchmarking leads to scale, for instance: o Brazil: 7% world production o Australia BMP: 2% o USA: 14% o XPCC: 3% Ownership by national associations and government (Turkey, Mozambique, Brazil)

7 There is a scalable investment vehicle Better Cotton Fast Track Fund BETTER COTTON FAST TRACK FUND (€50-60 million over 5 years) Goal: 1.5 million MT Lint of Better Cotton by 2015

8 “By 2018 the adidas Group has committed to using 100% ‘Sustainable Cotton’ in all its brands.” “By 2020, the company wants all of the cotton used in its products to come from sustainable sources.” “We signed on to the BCFTP in 2011 with the commitment to source 100 % more sustainable cotton by the end of FY20 ”

9 There is a scalable investment vehicle So far we have invested around €22 million, now reaching 1,4 million MT and 553,000 farmers. Over the years we brought down cost levels from 44 € /MT in 2009 to 4 € /MT in 2014 Target is to reach 9 million MT and 5 million farmers in 2020, roughly equivalent to 30% of world production Approximately €70 million needed for the transition, of which 25-30 million from B&R (compare that to annual USD 100 million into cocoa certification in Cote d’Ivoire only)

10 This investment helps you protect your brand and shareholder value

11 This investment helps you create value towards to consumer? CEO

12 Still Have Questions ? Contact: Pramit Chanda, IDH chanda@idhsustainabletrade.com +91 98111 09022 “By 2020, one-third of the world’s cotton production will be sustainable !”

13 Thank you chanda@idhsustainabletrade.com


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