Since 2017, Solidaridad Europe and Pesticide Action Network UK (PAN UK) have published their annual Cotton Ranking – a look at the top cotton consumers among international clothing brands and retailers and their sourcing practices. The number of companies has increased from 37 in 2017 to 82 in 2023.
The ranking analyzes their public goals and strategies, the proportion of sustainable cotton and the transparency of their supply chain. The most important finding this year: only nine fashion companies are doing the necessary to take action against unsustainable cotton, while the vast majority (89 percent) “is opaque and unsustainable and makes little progress in improving working conditions,” according to one press release.
Only nine companies purchase cotton almost exclusively from certified sources
“Much of the cotton purchased by large companies does not even meet the requirements of basic certification, which means that it is not possible to verify that the source meets the minimum standards,” is the devastating result.
Only 9 of the 82 largest clothing companies in the world that use cotton source 99 percent or all of their cotton from certified sources such as the Better Cotton Initiative, organically grown cotton or recycled cotton: Decathlon, H&M, Ikea, Adidas, Columbia, Marks & Spencer, C&A, Lojas Renner and Puma. “All the other companies don’t even achieve that: 30 companies achieved a grade of zero in the ranking.”
Five companies made it into the low to high 90s percentages namely Tchibo, Bestseller, Tom Tailor, Levi Strauss and Punto FA in descending order. Only three companies are in the 80s group, including Grupo Guararapes with brands like Riachuelo, Wolens and Pool Original, which uses 89 percent cotton from more sustainable sources. Others are Fruit of the Loom (87 percent) and Zalando (84.4 percent).
Six companies are in the 70’s percentages – Hugo Boss AG, Gap, Inc, Marc O’Polo, Walmart Stores, Inc, Esprit Holdings Ltd and the Benetton Group. Only American Eagle Outfitters (65 percent) and Asos (61 percent) are in the 60’s group, while all other companies source less than 60 percent of their cotton sustainably or from certified sources.
Many companies such as Target, Amazon.com, Inditex, Kering, Nike and even the Otto Group do not report on the use of certified cotton, do not mention the standards they use or provide no or incomplete numbers or percentages.
More than a third (30) of the companies surveyed – including Fast Retailing, Forever 21, New Yorker, Shein, Under Armor and Victoria’s Secret – do not report using certified cotton at all, suggesting that there may not be any.
“Complex trading realities” are no reason for non-sustainable procurement
For the first time, the 2023 Cotton Ranking will be accompanied by a research entitled “Cotton and Corporate Responsibility” published by the newly founded Sustainable Cotton Hub, which aims to bring together experts from organizations working in and around the cotton sector , such as Solidaridad and PAN UK.
In the study, the organizations refute the argument used by many companies that complex trade realities are an obstacle to progress and make clear recommendations to at least get started: such as investing in smallholder farmers’ climate adaptation, updating purchasing practices to include better ones Ensure cotton farmers are paid and transparency in cotton sourcing.
“Given the resources available to big brands, unsustainable cotton is actually a conscious choice. A bad decision. But we don’t have to put up with it. Brands and retailers can make new choices. They can choose more transparency in their operations and in their delivery operations. You can choose to tackle the complex issue of fair reward instead of using it as an excuse. And they can choose to work with all actors along their supply chain instead of hiding behind intermediaries,” comments Solidaridad Europe’s Tamar Hoek.
Smallholders are at the end of the cotton chain
The latest Cotton Ranking and Cotton and Corporate Responsibility Research show the negative impact of current corporate practices on cotton growers and the environment. Low profit margins force farmers to work for less pay and use hazardous agrochemicals to stay above the poverty line.
Thus, the small farmers who make up the majority of the world’s cotton producers currently live on the brink of poverty and do not receive a decent income and wages. In addition, they have no access to training and no support for climate adaptation.
“As the looming impacts of climate change are likely to reduce or destroy yields in all cotton-growing regions, smallholder farmers will be unable to ensure reliable production and will be pushed even further into poverty,” the report says.
Chemicals are another problem: “Almost half of smallholder cotton producers are poisoned by pesticides every year. Zero poisoning from pesticides is possible today if textile and clothing companies decide to take responsibility for their supply chains and increase their investments to support the transition to agro-ecological cotton production,” stresses PAN UK’s Rajan Bhopal.
New Sustainable Cotton Hub
Further information on these and other topics along the cotton supply chain can be found on the website of the newly established Sustainable Cotton Hub.
“The aim is to highlight the sustainability challenges of cotton production and examine the multitude of economic, labor and environmental factors that contribute to this. Specifically, the platform will always provide recommendations on how key stakeholders can address these critical issues,” the organizations explain. Future contributions will cover topics such as climate change, nature and inequality.