Responsible Cashmere Round Table (RCRT) - Thursday, March 19, 2020 - Textile ...
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Responsible Cashmere Round Table (RCRT) Thursday, March 19, 2020
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Agenda 1. Welcome 2. RCRT Online Community (Taylor Bittenbender) 3. International Buyers' Group (Anne Gillespie) 4. UNDP Mongolia Country Office (Nashida Sattar) 5. Convergence.Tech (Erik Zvaigzne) 6. Sustainable Fibre Alliance (Zara Morris-Trainor and Una Jones) 7. Chainpoint (Alexander Ellebrecht and Marcel Verstappen) and Green Gold (Enkh-Amgalan) 8. What’s next
Responsible Cashmere Round Table (RCRT)
The RCRT, as a neutral platform for
cashmere buyers to learn about and
understand the issues, opportunities, and
solutions, brings the industry together to
create a common understanding of the
needs of all stakeholders, look for
alignment on what solutions are needed,
and work with the industry players to
drive action.
RCRT online community on the HUB
• The HUB is Textile Exchange
membership portal
• You don’t have to be a Textile
Exchange member to use and benefit
from the HUB
• It is a place where Textile Exchange
Round Table participants continue their
involvement with the Round Table
community on daily basis, in addition
to the scheduled meetings
• https://hub.textileexchange.org/home
UNDP Mongolia Country Office
Speaker: Nashida Sattar, Deputy Resident RepresentativeTraceability through technology:
sustainable cashmere pilot in Mongolia
Erik Zvaigzne, VP Product Innovation
12Technology:
A catalyst for
change
13“ We must develop a comprehensive and
globally shared view of how technology is
affecting our lives and reshaping our economic,
social, cultural and human environments.”
- Klaus Schwab, Founder and Executive Chairman
World Economic Forum
14Sustainable Cashmere
Pilot Project
(2019)
15One part of the project...
1. Train herders and cooperatives
on sustainability issues and
sustainable practices
2. Grant access to a digital toolset to
allow registration of their cashmere
Start generating some of the
missing traceability data
16Blockchain getting a lot of attention in
supply chains...
17Blockchain = MAGIC!!
A new kind of data store that creates
unalterable and highly resilient data
+
Modern Distributed
Cryptography Computing
18Blockchain doesn’t replace
databases outright.
It augments them.
It coordinates different players, technologies, and disconnected
systems around transactions and events.
19A need for more transparency and traceability in the cashmere supply chain
20Our pilot solution...
HF RFID Tags
* Identification of bales
* NFC cards
* Packing slips
Mobile Phones Blockchain
* Common mobile Android devices * Public infrastructure
* Onboard NFC capabilities
* Tamperproof store of data
* Transparent and trustworthy
21High simplicity, automatic data collection.
Minimize room for data entry error while still
involving stakeholders.
22Why we chose this...
RFID / NFC
Mobile
Phones
+
shared public data Other data
store and web 23How we collected data...
24What this enables...
25Data can create...
Strategic Transparency for
insights for buyers to help with
Intervention sourcing decision and
incentives
Accountability with formalized
recognition of efforts, opportunity
for 26
better market accessResults (2019 Pilot)
Initial Extended
● Tsaagan-Ovoo, ● SFA staff trained
Bayan-Uul, Norovlin ● Shinejinst & Zavkhan
● 471.0kg of cashmere ● Almost 5 tonnes total
While sustainable cashmere program factors remain
challenging, the technology concept has potential
27What we learned.
28Processing is the next consideration...
Finding the right incentives for
everyone 29Tagga
Tags
nts
Verifiable
Optical or Data
digital
Spectral interchange
credentials
Analysis and analytics
How much assurance is enough?
30+
cooperation
31Technology doesn’t
create sustainability.
People do.
32Questions?
erik@convergence.tech
33The SFA Cashmere Standard Our 2030 Strategy, China Programme and Traceability Pilot for SFA-Certified fibre Una Jones (CEO) and Zara Morris-Trainor (Operations Manager) Responsible Cashmere Round Table, Meeting #8, Thursday 19th March 2020
Who we are
The SFA is a non-profit, standard holding and
capacity building organisation
Founded in 2015, we represent a global Our vision is a future where cashmere is produced in a
alliance of supply chain actors, stakeholders way that minimises environmental impact,
and industry experts and have offices in both the
UK and Mongolia safeguards herder livelihoods and meets
high welfare standards
Our mission is to ensure the long-term
viability of the cashmere sector by
promoting the SFA Cashmere StandardOur approach
Market-led and grassroots
Inclusive and process-based - sustainability is a journey, not a destination
We work with: herder organisations to build trust
and encourage collective governance
processors to promote environmentally-
friendly washing and dehairing
manufacturers, brands and retailers to
raise awareness and encourage responsible
sourcing
Government, policy makers and delivery partners
to influence policy and increase the adoption of
responsible practicesThe SFA Cashmere Standard
SFA Codes of Practice
Codes of Capacity
Three codes of practice covering the certification of raw fibre: Practice Building
1. Rangeland Stewardship Results & Assurance
Impact Mechanism
2. Animal Husbandry
Herder level Claims Chain of
Allowed Custody
3. Clean Fibre Processing
Processor level
(scouring and dehairing)The SFA Cashmere Standard
Codes of Practice
• Focus is on continuous improvement
• Three award levels to reflect compliance
• Gold level = fully compliant
Commit to Annual
Complete Initial Traffic Light SFA
SFA Code of assessment
training Assessment Report Certification
Practice of progressThe SFA Cashmere Standard
Capacity Building
Codes of Capacity
Our efforts are focused on: Practice Building
• Increasing compliance with the SFA Cashmere Standard
• Train the Trainer Programme (herders and processors)
Results & Assurance
• Traffic light reports (herders and processors) Mechanism
Impact
• Young Herder programme
• 21st Century Herder vocational programme
Claims Chain of
• Increasing economic security and resilience of herding communities Allowed Custody
• Better market connections
• Low-interest loans
• Fibre added-value initiatives
• Disaster preparation
• Improved governanceThe SFA Cashmere Standard Assurance Mechanism Credible assurance of compliance with our codes of practice. A three-step process: ✓ 1st party self-assessment ✓2nd party independent assessment ✓3rd party external assessment
IMPACT REPORT
The SFA Cashmere Standard Jan 2019 to Jan 2020
The Sustainable Fibre Alliance (SFA) is a global multi- OUR VISION:
RESPONSIBLE CASHMERE PRODUCTION
Results and Impact
stakeholder network with a mission to ensure the long-
term viability of the cashmere industry. As a standard
holding body, we promote the SFA Cashmere Standard
• Monitoring our the
to encourage results and evaluating
adoption of responsible cashmere
ourproduction
impact ispractices
vital tothat
ourare
success
better for people, livestock
and the environment. Our theory of change describes
• theory
Ourour of change
pathway provides
to achieving a
our long-term vision and
framework
provides afor monitoring
framework and and evaluating our
for monitoring
evaluating
progress our progress
toward toward
our desired our outcomes and
outputs,
desired outputs,
impacts. Using keyoutcomes
performance and
indicators (KPIs), in this
impacts.
report we present an overview of our key results and
achievements for the year January 2019 to January 2020.
Output KPIs
35 herder organisations registered with the SFA “We are responsible for preserving the
35 herder organisation leaders provided training important value of this vast cultural heritage
12 herder organisations SFA-Certified for both for the next generation of herders. The SFA
rangeland stewardship and animal husbandry Cashmere Standard helps us do this”
The SFA Cashmere Standard is influencing: – Mongolian herder, 20192030 Strategy: Our roadmap to greater impact
THE SUSTAINABLE SFA 2030 STRATEGIC STATEMENT
FIBRE ALLIANCE
Creating a sustainable cashmere value chain
We will “develop & implement the SFA
Cashmere Standard” and “incentivise
and build capacity for compliance”
2030 across cashmere-producing regions. A
“strong business process”, and a focus
STRATEGY on “effective communications” and
“stakeholder collaboration” will help us
Through our work with the
to achieve our ultimate objective of extended cashmere supply
DRAFT FOR CONSULTATION – DECEMBER 2019
“traceable, SFA Certified cashmere”.
chain, SFA is contributing to
11 of the Sustainable
Development Goals2030 Strategy: SFA China Programme
2030 Strategy: SFA China Programme 2019 scoping mission in Inner Mongolia resulted in: • Initial focus on animal welfare on-farm, with potential to extend to transport and slaughterhouses in the longer-term • Potential partnerships with stakeholders, including government, veterinary training and NGOs • A proposal for how SFA and partners can promote continuous improvement in animal welfare on-farm • An outline strategy for delivering support to cashmere producers and delivering SFA certified cashmere by 2021
2030 Strategy: SFA China Programme
2020 2021 2022
▪ Draft, consult & issue CoP ▪ Initial farm accreditations ▪ Farm accreditations
▪ Develop training curriculum ▪ Review of CoP and ▪ Expanded training, farm
accreditation procedures inspections & audits
▪ Pilot implementation:
o Train para-vets & herders ▪ Expanded training, farm ▪ Review programme
o Farm inspections inspections & audits performance & develop
o Sample audits strategy for long-term
▪ Expand training materials presence in China
(incl. ICT-based)
✓ SFA Certified fibre ✓ SFA Certified fibre
available available2030 Strategy: Traceable SFA Certified fibre
Chain of Custody
Codes of Capacity
• Traces SFA Certified fibre through the supply chain Practice Building
• Goal is to ensure the accuracy of claims
regarding the content of SFA Certified fibre in a final Results & Assurance
product. Impact Mechanism
• Links to certification of herder organisations and fibre
processors Claims Chain of
Allowed Custody
Processor2030 Strategy: Traceable SFA Certified fibre
HERDER-LEVEL SUPPLY CHAIN-LEVEL
SFA Certified
raw fibre
Herder Organisation Processor Trademark
Certification Certification SFA Claim
Rangeland Animal Clean Fibre
Stewardship Husbandry
CHAIN OF CUSTODY CERTIFICATION2030 Strategy: Traceable SFA Certified fibre
Claims Allowed
Training &
Codes of
Capacity
Practice
“SFA Certified” means: Building
✓Environmentally friendly
Results & Assurance
✓Socially responsible Impact Mechanism
✓High welfare
Claims Chain of
Our chain of custody will allow users to make Allowed Custody
product claims regarding the presence of
SFA Certified cashmere in their products and
to use the SFA Certified logo.2030 Strategy: 2020 Traceability Pilot Full segregation with minimum threshold • Also known as BATCH-LEVEL MASS BALANCE • Maintains physical segregation of certified product until the final point of mixing • Certified and non-certified fibre can be mixed • Mixing is controlled and recorded, so the proportion of certified content in each final product is known. • We have selected a minimum threshold of 30%
2030 Strategy: 2020 Traceability Pilot
FLEXIBLE MODEL FOR DIVERSE MEMBERSHIP:
As long as users are compliant with the SFA Chain of Custody Guidelines, any
physical content between 30 and 100% is permitted2030 Strategy: 2020 Traceability Pilot • In 2019, we partnered with UNDP Mongolia to trace SFA fibre up to first-stage processors using Convergence.tech blockchain technology • In 2020, we will continue this collaboration to trace fibre all the way to the final garment • four ‘goat to coat’ pathways • Reflect common supply chain routes that are relevant for our Mongolian and international membership base • Participation only available to SFA herders, registered supply chain actors and SFA Members
2030 Strategy: 2020 Traceability Pilot
SFA Herders Scouring/Dehairing + Processor/Manufacturer/Retailer (MONGOLIA)
PATHWAY 1
SFA Herders Scouring/dehairing Processor/Manufacturer/Retailer (UK)
PATHWAY 2
SFA Herders Scouring/dehairing Spinning Manufacturer/Retailer (UK)
PATHWAY 3
SFA Herders Scouring/dehairing Processor/Manufacturer/Retailer (CHINA)
PATHWAY 4
ProcessorFID Tags Digital Credentials
2030 Strategy: 2020 Traceability Pilot
+ RFID CoC
1. Digital credentials issued using
a ‘One Time Password’ scheme
2. 6-8 digit unique identifier
Working with Convergence to design a
generated
mobile phone system based on:
3. Identifier written on bags of
cashmere
1. Digital Credentials and
4. Existing RFID based solution
2. RFID tagging technology takes over in UB
Developing the
st lead time (4-5 Risk: Shortest traceability
lead time (2-3 R
system
risk (field tested) weeks), lowest risk (no physical ri
tags) p2030 Strategy: 2020 Traceability Pilot
What would success look like?
1. Batch-level mass balance found to be an appropriate model for SFA cashmere
2. Blockchain technology is user friendly and works successfully in the field
3. Logistic challenges are identified
4. SFA Members able to make credible claims
5. Information gained to expand the scope of our chain of custody from 2021
6. Able to share our experience and lessons learned with the cashmere sector to increase the
transparency of the supply chain and drive greater volumes of certified fibre through to
final productTHANK YOU any queries please email admin@sustainablefibre.org
“Responsible Cashmere“
Marketplace
Alexander Ellebrecht, ChainPoint
Ts. Enkh-Amgalan, Green Gold Project Manager
Marcel Verstappen, ChainPoint Project ManagerFOR STANDARDS FOR BRANDS
Fibre trade Mongolia (current situation)
Chinese fiber traders/ Mongolian Buyer, e.g. retail
processing plants processing plants
Market Place
Mongolian processing plant Trade
acts as subcontractor
Chinese middlemen Mongolian middlemen PUGs herders marketing cooperatives
(70% of cashmere sales) (20% of cashmere sales) registered in the Responsible Nomads
(10% of cashmere sales)
Responsible
Nomads
Herder households (total
production 9000 tons (20% of Product flow
world total cashmere)How to buy Responsible Cashmere
Marketing Traceability
Responsible cooperative system
Cashmere data on Marketplace
PUG level
Confirm available Offer will be shared with
volume (offer) buyers at start page, map 1:1 contact
Volume per and via email
cooperative (Soum)
to be sold
Transaction report for
buyer
Buyers can respond to offer Negotiations,
Cooperative confirms
(parts or total volume of a Sampling, Deduction of stock at
deal → Deal made
cooperative) Payments Marketplace
Buyer Marketing Deduction of stock at
cooperative Traceability systemRetailer profile
Offer search option (example)
Get insight in origin and PuG performance
Respond to offer (example)
Deal confirmation
How can I get involved?
1. 1:1 sessions to get a better understanding of the Green
Gold offer
2. Get onboarded to Green Gold
3. Opportunity to buy responsible Cashmere (May)Next Steps
• Statement of support:
https://www.jotform.com/TextileExchange/undp-
statement-of-support
• Expressions of interest for IBG:
ResponsibleCashmere@TextileExchange.org
• Next RCRT meeting: May 21st, 2020
• To support our work, contact us at
ResponsibleCashmere@TextileExchange.orgThank you
TextileExchange.org
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