2020/21 Annual Report - U.S. Cotton Trust Protocol

The U.S. Cotton Trust Protocol (Trust Protocol) offers unrivaled transparency and visibility of cotton through the supply chain, backed by an unparalleled level of independently verified data from our grower members.

The Trust Protocol has made significant strides in its first year. We have established a new system for sustainably grown cotton from scratch. One that now counts over 560 organizations across the supply chain as members.

We are bringing quantifiable and verifiable goals and measurement to the key sustainability metrics of U.S. cotton production – building trust from field to fabric and enabling continuous improvement across the supply chain. And much more, as set out in our first Annual Report.

The Trust Protocol was designed to deliver a better future for U.S. cotton,
ensuring that it contributes to the protection and preservation of the planet,
using the most sustainable and responsible techniques.

- Dr. Gary Adams, President, U.S. Cotton Trust Protocol

About The Trust Protocol

To deliver maximum value, the Trust Protocol was designed to deliver data and supply chain transparency – two highly sought-after elements in sustainability reporting – that have been hard to come by to date. The initiative responds to this need, providing robust data on environmental impact and a system that tracks cotton through the supply chain.

In its first year, the Trust Protocol has sprung into action, putting into operation a robust mechanism to provide the verified, measurable data which is the foundation of our work. It has been a strong start. We have enrolled 300 grower members and approximately 950,000 cotton bales.

Growers

Brands &
Retailers

Mills &
Manufacturers

(including subsidiaries)

Membership

2020
BY THE
NUMBERS

In its first year, the U.S. Cotton Trust Protocol welcomed 37 global brands and retailers, with a goal of 100 global brands and retailers by end 2022.

Six
Metrics

The Trust Protocol’s six continuous improvement metrics in land use, soil conservation, energy use, greenhouse gas emissions, soil carbon, and irrigated water use align with the U.S. cotton industry’s 2025 national goals of decreasing greenhouse gas emissions by 39%, soil loss per acre by 50%, water use by 18%, and energy use by 15% while increasing soil carbon by 30% and land use efficiency by 13%

land use

soil conservation

energy use

greenhouse gas emissions

soil carbon

water use

2025

National Goals

decreasing
greenhouse
emissions by

0 %

decreasing soil loss
per acre by

0 %

decreasing water
use by

0 %

decreasing energy
use by

0 %

increasing soil
carbon by

0 %

increasing land use
efficiency by

0 %

Our Vision

Worker
well-being

Safe labor conditions and worker well-being are as equally important to the U.S. cotton industry as the environment, and United States’ workforce employment practices are held to a rigorous standard through regulations that include provisions for minimum wage, overtime pay, record keeping, child labor standards, migrant housing, access to uncontaminated water, protective equipment and medical assistance be provided in case of emergency. The Trust Protocol is working to driving continual advancement in worker well-being, as well as environmental stewardship, focusing on 12 safe labor criteria.

Timeline

GILDAN

“Cotton is our primary raw material, and we think that making sustainable products is key for us and our consumers. Every time I’ve been to a producer’s farm, I’m amazed at the technology and practices being implemented. By joining the U.S. Cotton Trust Protocol, we are excited about the potential to have access to program-level verified data that will help support our commitment to purchasing ethical and sustainable cotton,” said Chuck Ward.

“I want to learn from my end customers about what they need and how I can deliver a better product.,” said Rusty Darby. “Sustainability has changed significantly in my 57 years and now we are able to document and measure. We improve when we better understand each other’s priorities, changes and commitments.”

Gaining Insights from Either Side of the Supply Chain: Raw Material and Finished Product

In 2022, Next PLC became the first global retailer to successfully use the PCMS to track consumption of U.S. Cotton throughout their supply chain against live purchase orders.

As a retailer member, Next PLC is supporting the Trust Protocol’s aim of driving continuous improvement of social and environmental outcomes on U.S. Cotton farms. The program is capturing and reporting key environmental and social data under a farm level, science-based system and reporting those outcomes annually on an aggregated basis.

Next PLC Fully Tracks U.S. Cotton into Finished Products in 2022

PCMS
OVERVIEW

The Trust Protocol set out to design one of the most robust mechanisms available to track transparency through the supply chain. To do this, we created our own Protocol Platform and are collaborating with TextileGenesis to bring its blockchain technology to the system. Known as the Protocol Consumption Management Solution, it will be the first to offer article-level supply chain transparency. In mid-2021, we started initial pilot trials with five brands and retailers beginning, with full deployment of the PCMS envisioned for early 2022.

Trust Protocol grower members provide data on the six key sustainability metrics

Field to Market aggregates and analyzes the data. It is verified by Control Union Certifications North America

At the gin and mill, each cotton bale’s weight is verified and are minted, by kilogram, into Protocol Cotton Consumption Units via the TextileGenesis platform

The system continues to track the products right through the brand and retailer

When the brand and retailer receives their product, they receive the appropriate number of Protocol Cotton Consumption Units, which can be claimed in the system and a proportional amount of data on the six sustainability metrics can be claimed.

Trust Protocol grower members provide data on the six key sustainability metrics

At the gin and mill, each cotton bale’s weight is verified and are minted, by kilogram, into Protocol Cotton Consumption Units via the TextileGenesis platform

The system continues to track the products right through the brand and retailer

20/21 MAP OF
PARTICIPATION

- Dr. Gary Adams, President, U.S. Cotton Trust Protocol

About The Trust Protocol

(including subsidiaries)

Membership

2025

National Goals

Our Vision

Timeline

November

January

April

June

August

December

February

May

July