H&M and Zara Linked to Deforestation, Rights Abuses and Land-Grab; Asian Suppliers Sourcing Dirty Cotton from Brazil with Better Cotton Label

UK nonprofit Earthsight’s investigations reveal nearly a million tonnes of tainted cotton from some of the most notorious estates in Brazil to clothing manufacturers in Asia, and being supplied to fast fashion behemoths H&M and Zara.

Long Story, Cut Short
  • The indictment is that of the two organisation’s cotton sourcing policies, but neither buys this cotton directly—they source their clothes largely from garment suppliers based in Asia.
  • Among those responsible are SLC and Horita — the former the country’s largest cotton producer, and the latter, among the top six in the country operating on at least 140,000 hectares of farmland
  • Earthsight’s investigators posed as foreign investors to infiltrate the worlds of Brazilian agribusiness and European fashion.
The climate impact has been enormous: clearing Cerrado vegetation for agricultural production generates as much carbon per year as the annual emissions of 50 million cars.
Crime of Fashion The climate impact has been enormous: clearing Cerrado vegetation for agricultural production generates as much carbon per year as the annual emissions of 50 million cars. Thomas Bauer / Earthsight 2023

Cotton used by fast fashion behemoths H&M and Zara has been linked to largescale deforestation, land grabbing, human rights abuses and violent land conflicts in the Brazilian Cerrado.

The accusations against the two European fashion giants have come in a damning report—Fashion Crimes: The European Retail Giants Linked to Dirty Brazilian Cotton—by Earthsight.

The indictment is that of the two organisation’s cotton sourcing policies, but then neither buys this cotton directly—they source their clothes largely from garment suppliers based in Asia. 

It took UK nonprofit Earthsight’s investigators a year to analyse satellite images, court rulings, shipment records and going undercover at global trade shows to trace nearly a million tonnes of tainted cotton from some of the most notorious estates in Brazil to clothing manufacturers in Asia.

They found that H&M and Zara’s suppliers source cotton grown in the western portion of the Brazilian state of Bahia by two of the country’s largest producers: SLC Agrícola and Grupo Horita (Horita Group). SLC and Horita’s cotton production in western Bahia—a part of the Cerrado biome that has been heavily impacted by industrial-scale agribusiness—is linked to a number of illegalities.

The cotton of Brazil

Cotton is important to Brazil. It is now the world’s second largest exporter and expected to overtake the US as the number one cotton supplier by 2030. In the decade to 2023, Brazil’s exports more than doubled. Almost all this cotton is grown in the Cerrado.

The Cerrado region is a biodiversity hotspot. It is made of dramatic plateaus and lush valleys covering a quarter of the country, and is home to 5% of all the world’s species, including the giant anteater and giant armadillo. A quarter of this unique land has been lost to agricultural expansion in recent decades. Nearly a fifth of the Cerrado’s species, including the maned wolf and blue-eyed ground dove, face extinction due to habitat loss. Those lands are now vast cotton and soy monocultures.

The report says: “Local residents showed Earthsight dry riverbeds and lost springs. Agribusinesses in western Bahia extract nearly two billion litres of water per day. They pay this back by dumping 600 million litres of pesticides on the Cerrado every year. The climate impact has been enormous: clearing Cerrado vegetation for agricultural production generates as much carbon per year as the annual emissions of 50 million cars. Cotton production has an extremely high carbon footprint compared to other commodities due to the heavy use of pesticides for its production.

“Local civil society told our investigators it is hard to find a single largescale cotton or soy farm in all of western Bahia that is not the result of land grabbing. This report will show that corruption, violence and government neglect have helped transform.”

Among those responsible are SLC and Horita. The former owns 44,000 hectares of cotton plantations in western Bahia alone, and is the country’s largest cotton producer. The latter, among the top six in the country operates on at least 140,000 hectares of farmland in the region.

The Earthsight report says the Horita Group and SLC Agrícola are emblematic of a broader reality of export-oriented agribusinesses inflicting harm on the Cerrado, its traditional communities and the climate.

Earthsight’s investigators pored over thousands of shipment records, company reports, suppliers’ lists and websites. They discovered a stark reality: cotton tainted by deforestation, land grabbing and violence against traditional communities is ending up in the supply chains of the world’s two largest fashion retail chains: Zara and H&M.
Fashion Crimes: The European Retail Giants Linked to Dirty Brazilian Cotton Earthsight’s investigators pored over thousands of shipment records, company reports, suppliers’ lists and websites. They discovered a stark reality: cotton tainted by deforestation, land grabbing and violence against traditional communities is ending up in the supply chains of the world’s two largest fashion retail chains: Zara and H&M. Thomas Bauer / Earthsight 2023

Depredation unabated

Here are some excerpts from the report: 

In the municipality of Formosa do Rio Preto, Horita grows cotton, soy and other crops on a third of a mega estate called Estrondo. While different agribusinesses have plantations at Estrondo, the Horita Group—the largest landholder at the estate—has been closely linked to the violent land disputes pitting Estrondo against traditional communities that have inhabited the area since the 19th century.

One of the owners of the Horita Group, Walter Horita, has been named as a protagonist in a shocking corruption scandal. A Federal Police investigation has revealed the widespread sale—for large sums of money—of court rulings related to land disputes in Bahia, including those affecting the Horita Group. Phone conversations wiretapped by the police reveal Horita’s apparent attempts to influence judicial and political actors in Bahia, while there have also been reports of him transferring $1.2 million to a court official.

Both the Horita Group and SLC Agrícola have a brazen history of illegal deforestation and environmental infractions in western Bahia.

Satellite images analysed by Earthsight reveal a Horita farm embargoed by Ibama, a federal law enforcement agency, since 2008 due to environmental infractions—a measure to shut off a piece of land from further commercial exploitation and let it regenerate—has grown cotton repeatedly since 2017, in breach of the embargo.

SLC has an equally troubling track record. Its Piratini, Palmares and Parceiro farms, all of which grow cotton, lost at least 40,000ha of native Cerrado in the last 12 years. Despite a zero-deforestation policy adopted in 2021, the company was accused of clearing 1,365ha of native vegetation at its Palmares farm in 2022.

Ibama has fined SLC over US$250,000 since 2008 for environmental infractions in Bahia. The Norwegian pension fund divested from the firm in 2017 due to SLC’s links to environmental abuses.

From landgrab to fashion stores

This point onwards it was hard work for Earthsight’s investigators who posed as foreign investors to infiltrate the worlds of Brazilian agribusiness and European fashion. “They pored over thousands of shipment records, company reports, suppliers’ lists and websites. They discovered a stark reality: cotton tainted by deforestation, land grabbing and violence against traditional communities is ending up in the supply chains of the world’s two largest fashion retail chains: Zara and H&M.”

The Horita Group and SLC Agrícola were found to have directly exported at least 816,000 tonnes of cotton from Bahia to foreign markets between 2014 and 2023, according to shipment records. However, other sources suggest that the true total exports of the two firms could have been above 1.5 million tonnes—the difference being exported via intermediaries.

As many as eight Asian garment manufacturers were identified. They were using the cotton that Horita and SLC cotton had been exporting, while supplying H&M and Zara with millions of items of finished cotton garments on the other hand. The manufacturers are: Interloop Limited, Masood Textiles, Nishat Mills, Sapphire Group, Yunus Brothers Group, PT Kahatex, Jamuna Group and Noman Group.

The Earthsight report says the reason why this dirty cotton could make it to H&M and Zara is because they “rely on a fundamentally flawed ethical supply chain certification system called Better Cotton.” 

The cotton that the investigation linked to land rights and environmental abuses in Brazil all carried the Better Cotton label.

The Earthsight report is expected to create a storm, with everyone’s role in the dirty supply chain being questioned—from the cotton suppliers to the garment makers and from the fashion retailers to the Better Cotton ecosystem.

In the run-up to the publication of the report, a Reuters report said that Inditex has sent a letter dated 8 April to Better Cotton CEO Alan McClay “asking for clarity on the certification process and progress on traceability practices after the NGO Earthsight informed the retailer that producers with Better Cotton certifications were involved in land grabbing, illegal deforestation and violent acts against local communities,” according to a copy of the letter seen by Reuters.

All hell is about to break loose.

Subir Ghosh

SUBIR GHOSH is a Kolkata-based independent journalist-writer-researcher who writes about environment, corruption, crony capitalism, conflict, wildlife, and cinema. He is the author of two books, and has co-authored two more with others. He writes, edits, reports and designs. He is also a professionally trained and qualified photographer.

 
 
 
  • Dated posted: 11 April 2024
  • Last modified: 11 April 2024