Better Cotton is set to implement a new Chain of Custody (CoC) Standard—previously called the “CoC Guidelines”—that would see sweeping changes to the requirements that apply to all registered organisations operating in the Better Cotton supply chain.
- The new CoC is being described as the "biggest change to Better Cotton’s Chain of Custody model in over a decade."
- The public consultation on the new CoC Standard is now live and is expected to conclude on 25 November.
The New Standards: The proposed new standard is based on the final recommendations made by the Chain of Custody Task Force that has worked to examine and recommend changes to version 1.4 of the CoC Guidelines in order to provide opportunities to physically trace Better Cotton.
- The Task Force includes Better Cotton’s member representatives from across the supply chain, including retailers and brands, ginners, spinners and traders.
- Among other proposed changes, the draft introduces three new traceability models (in addition to Mass Balance): Segregation (Single Country), Segregation (Multi-Country) and Controlled Blending.
- Management system requirements have been harmonised, making it possible for suppliers to operate multiple CoC models at the same site.
Public Consultation: In consultation with key stakeholders, Better Cotton periodically reviews and revises its CoC requirements to ensure its ongoing relevance, ability to connect demand with supply of Better Cotton, and support and incentivise farmers to adopt more sustainable practices.
Better Cotton wants to understand how ready supply chains are for this change, what support is needed, and whether the CoC Standard is feasible for suppliers.
The Two Models: The Better Cotton CoC Guidelines incorporate two different chain of custody models: product segregation between the farm and gin and mass balance beyond the gin.
- Product Segregation Model: Between the farm and the gin, the Better Cotton Standard System requires a product segregation chain of custody model. This means that farmers and ginners need to store, transport and process Better Cotton (seed cotton and lint cotton bales) separately from any conventional cotton. This ensures that all Better Cotton bales produced by participating gins are 100% Better Cotton and can be traced back to licensed Better Cotton farmers.
- Mass Balance Model: After the cotton leaves the gin, Better Cotton uses a mass balance chain of custody model. Mass balance is a volume-tracking system that allows Better Cotton to be substituted or mixed with conventional cotton by traders or spinners along the supply chain while ensuring that the amount of Better Cotton sold never exceeds the amount of Better Cotton purchased. Better Cotton uses this model because supply chains are complex and mass balance helps to simplify the process while still delivering direct benefits to farmers, which is why it has been so effective at driving demand for sustainable practices worldwide.
Going Full on Traceability: Better Cotton is now looking at how it can develop mechanisms that support ‘full traceability’ throughout the entire supply chain.
- Full traceability would allow Better Cotton to, at minimum, determine the country in which the seed cotton was produced and identify the businesses involved in its transformation to a finished good.
Moving forward with this goal will happen in four distinct phases:
- Set up and planning,
- Development and piloting,
- Stakeholder engagement and roll-out,
- Monitoring compliance and maintaining performance.
