Better Cotton (formerly the Better Cotton Initiative, or BCI) has long positioned itself as a sustainability-driven organization, focusing on improving cotton farming practices worldwide. Until recently, its assurance system was based on a mass balance approach, enabling Better Cotton to be sourced and traded without requiring physical traceability throughout the supply chain. However, Better Cotton is now shifting towards a certification-based model, which marks a significant transformation in how its sustainability claims are substantiated. This shift aligns with emerging regulatory trends in Europe, the UK, and the USA, where governments are tightening due diligence requirements and emphasizing traceability in supply chains.
The Shift to Certification
The adoption of a certification paradigm by Better Cotton introduces a more robust system of oversight. Certification will require supply chain actors to comply with stricter sustainability criteria, including verifiable environmental and social impact metrics. This transition is expected to enhance credibility, improve traceability, and ensure that claims associated with Better Cotton are backed by independent verification processes.
While this move strengthens sustainability assurance, it also implies additional compliance burdens for businesses that have traditionally relied on the mass balance system. Companies in the textile sector will now need to adapt their sourcing practices, integrate certified Better Cotton into their procurement strategies, and maintain thorough documentation to support claims of sustainability.
Regulatory Drivers for the Change
The shift towards certification is not occurring in isolation. It reflects broader regulatory changes taking place across key markets:
- European Union: The EU’s proposed Corporate Sustainability Due Diligence Directive (CSDDD) and the upcoming Green Claims Directive impose stringent requirements on companies to verify environmental and social standards within their supply chains. The certification model aligns Better Cotton with these regulations, providing a framework that helps companies meet compliance obligations.
- United Kingdom: The UK has introduced mandatory due diligence requirements under the Environment Act 2021, particularly for commodities linked to deforestation risks. Certification schemes such as Better Cotton’s new model offer a means for businesses to demonstrate compliance and mitigate reputational risks.
- United States: The Uyghur Forced Labor Prevention Act (UFLPA) places restrictions on imports linked to forced labor, particularly in cotton supply chains. A certification-based approach enhances supply chain visibility, providing documented assurance that cotton is sourced responsibly and ethically.
When is Better Cotton Certification Required?
Better Cotton’s certification will be mandatory in specific circumstances, particularly where regulatory compliance or market demands necessitate enhanced traceability. This includes:
- For Brands Selling in Regulated Markets: Businesses operating in the EU, UK, or the USA that must comply with due diligence laws will require certified Better Cotton to substantiate sustainability claims.
- For Companies with Sustainability Commitments: Brands that have pledged to use sustainably sourced materials will need to integrate certified Better Cotton to ensure alignment with sustainability targets.
- For Public Procurement Contracts: Governments increasingly require certified materials in procurement tenders, making certification essential for suppliers seeking public contracts.
- For High-Risk Supply Chains: Companies sourcing from regions with labor rights concerns or environmental risks may require certification to meet internal risk mitigation policies.
Conclusion Better Cotton’s transition to a certification-based model represents a significant evolution in sustainable textile sourcing. This move not only strengthens the credibility of Better Cotton’s sustainability claims but also aligns with emerging regulatory frameworks demanding greater accountability in global supply chains. While this shift imposes new compliance challenges, it also provides businesses with a structured approach to meeting legal and market requirements, reinforcing their commitment to responsible sourcing. As the regulatory landscape continues to evolve, certification will likely become an indispensable tool for ensuring both compliance and sustainability in the cotton sector.
