News and press releases

FTAO welcomes two new board members

As of 1 July 2024, FTAO welcomed Magdalena Śliwińska and Prasanna Kumar G N as new board members. They are succeeding Peter van Dam and Madelaine Njeri Muga. The FTAO warmly thanks the engagement and commitment of Peter and Madelaine and their valuable contributions to our work! An overview of the new constellation of the FTAO board can be found here.

Magdalena and Prasanna Kumar are excited to join the FTAO board:

Magdalena: I am happy to join the FTAO board because I am convinced that Fair Trade constitutes a very important element of sustainable transition. I hope to support the realisation of the FTAO mission using my experience on European integration, EU competition policy and sustainable markets.”

Prassana: I have been involved in Fair Trade since 2008 actively and because I am also a small producer, I understand the problem of a producer at the very base level and the hurdles’ he is facing from production to marketing. I have taken some positions at the administration level and NAPP board as well as FTI and had dialogues, debates and discussions to address these issues and to make it easy. When I got an offer to become a board member of the FTAO, I thought it was the best platform to bring these issues and find some of the best answers to FTI and the large FT community.”

The FTAO is looking forward to the future collaboration!

Open Letter to EU Decision-makers on the EU contribution to the UNFCCC COP29 and the advent of a Global Green Deal

To:
President of the European Commission, H.E. Ursula von der Leyen
President of the European Parliament, H.E. Roberta Metsola
Head of Presidency of the Council, H.E. Prime Minister Viktor Orbán
Ministers of Environment of the EU Member States
President of the European Economic and Social Committee, H.E. Oliver Röpke
President of the Committee of the Regions, H.E. Vasco Alves Cordeiro

Brussels, 10 July 2024

Your Excellencies, We, the undersigned, representatives of more than 2,000 Fair Trade organisations in the international Fair Trade movement, believe that the upcoming UNFCCC COP29 in Baku will mark a turning point in taking forward global efforts to meet the Paris Agreement’s objectives. In deciding to initiate the New Collective Quantified Goal (NCQG) initiative at COP26, UN parties committed to setting new conditions for boosting means of implementation and placing global justice at the core of the international efforts towards climate change mitigation and adaptation. Enhancing ambition (1st pillar of action of the COP29 Presidency) is integral to enabling global action (2nd pillar of action of the COP29 Presidency). However, it is increasingly clear that meaningful progress towards mitigation and adaptation is impossible without concrete steps on global justice and finance. To remain a global leader in climate action, the EU must go to Baku with a concrete agenda of boosting climate finance for Southern countries and of global justice integrated into the EU’s own climate and trade policies.

With the 1.5°C objective slipping beyond reach, bigger steps are urgent. This implies urgently enhancing National Determined Contributions (NDCs) and following up on the UAE consensus, but none will stand any chance to progress if COP29 isn’t setting the pace for a more profound and fair global transformative agenda. The Fair Trade Movement urges EU leaders attending COP29 to take inspiration for concrete action in the Call to Action for a Global Green Deal we issued in February in cooperation with SOLIDAR. Lowering emissions to achieve the objectives of the Paris Agreement is a global effort and Southern countries must be given the means to both reduce emissions and to protect their people from harsh climate impacts that they have not caused themselves. The Global Green Deal is an outline of fairer cooperation between the EU and its partner countries towards exactly this end. SMEs and farmers in Low and Middle Income Countries (LMICs) are not merely trading partners to the EU – under the right conditions, they are drivers of positive change towards more sustainable production. Fairer financing and fairer sharing of the burden of climate risks are needed to boost entrepreneurship of alternative business models and future-proof SMEs that are a vital component of a new, sustainable economy.

The Global Green Deal proposes five key policy changes:

  • Enhancing access to quality, affordable, and long-term financing for EU partner countries in the Global South, in particular through a reform of the Global Financial Architecture,
  • Incorporating a mandatory Just Transition strategy into the Green Deal, Promoting policy consistency for sustainable development by further reforming EU Trade policy and reducing negative spillover effects,
  • Integrating Fair Trade practices and supporting Fair Trade Enterprises to balance benefits across international supply chains,
  • Transforming the Green Deal into a catalyst for revising the EU economic model towards sustainability.

Similar calls have been made for an improved European Green Deal such as the European Pact for the Future. The Global Green Deal[ 1] is, however, unique in addressing the consumption externalities of the EU model – which clearly obstructs EU partner countries in building their own climate resilience – and the absolute need to redistribute mitigation and adaptation efforts across the international community. The potential of and the need for a Global Green Deal is clear to us from the massive support from ambassadors of countries in the Global South, where this reality is a daily experience. A group of African ambassadors has officially invited the Fair Trade Movement to present the Global Green Deal at their next meeting in November. High-level political representatives and MEPs similarly recognise and support this set of measures.

The proposals rely heavily on the well-documented experience of Fair Trade and its ability to foster regenerative agriculture, sustainable production and consumption patterns, and social and environmental justice. Fair Trade enterprises across the world not only allow producers, workers and farmers to receive stable and fair incomes, they also drive effective societal and economic change since their business models allow them to prioritise environmentally and socially sound practices over profit-maximisation. The Fair Trade Movement has managed to raise public awareness and concern on the intertwined social, economic and environmental values of our societies and whether they are being upheld by business conduct and state policy. From practical engagement of citizens as consumers through the vast network of Fair Trade Towns and Universities, we have learned the importance of aligning hearts and minds with practical action on the long journey towards climate neutrality.

The current geopolitical instability is a clear signal that international relationships must be strengthened and reformed to enable a truly cooperative approach to climate action. The EU has a political and moral responsibility to recognise that its climate leadership will only be meaningful with more and better support to developing countries in their climate efforts. The types of fairer and closer cooperation – through the private sector as well as on the state level – outlined in the Global Green Deal are vital components of such support. The Fair Trade Movement calls on the EU to transform the European Green Deal into a Global Green deal by:

  1. Substantially reducing the externalities embedded in EU policies to enable non-EU stakeholders more leeway in addressing climate change themselves.
  2. Aligning its COP29 position with the principles of fairness, equity and efficiency contained in the Global Green Deal
  3. Ensuring that its sustainability laws are implemented in ways that further support the green transition in a fair and just way in its partner countries.

The Global Green Deal can trigger the re-creation of an enabling space for CSOs, local and indigenous communities, ethical business models, SMEs, trade unions and citizens from North and South to contribute to achieving international climate goals. Placing it at the centre of the EU agenda in Baku will demonstrate a strong, credible and legitimate position in the ensuring negotiation.

Looking forward to working with you on advancing fairness and equity. We remain at your disposal for any further information you may need.

Yours faithfully,

Jorge Conesa Managing Director, Fair Trade Advocacy Office

Mikkel Kofod Nørgård Regional Coordinator, World Fair Trade Organization Europe

Leida Rijnhout Chief Executive, World Fair Trade Organization

Sandra Uwera Murasa Global CEO, Fairtrade International

[ 1] The Committee of the Regions adopted on 19 June 2024 an opinion on a Global Green Deal that also focuses on the international dimension of the climate efforts

CORPORATE SUSTAINABILITY DUE DILIGENCE DIRECTIVE KEY TOTACKLE HUMAN RIGHTS AND ENVIRONMENTAL IMPACTS BUT SUPPORT FOR IMPLEMENTATION IS NEEDED

Brussels, 24 April 2024 – Today the European Parliament voted in favour of a landmark piece of legislation that will make it mandatory for large companies in the EU to address impacts on human rights and the environment in their operations and supply chains. This law will put living income, living wages and responsible purchasing practices on the agenda of all large corporations.

It’s important to celebrate the achievement and to clarify accompanying measures to make implementation possible and impactful. To support the next stages the Fair Trade Advocacy Office, Fairtrade International, Rainforest Alliance and Solidaridad published a paper on information and (financial) support for smallholder producers around the world.

Living incomes, responsible purchasing, and no space for cut-and-run

Key elements in the CSDDD are the recognition of Living Wage and Living Income as human rights that companies need to take into account, as well as the clarification of the importance of addressing the impact of the company’s purchasing practices. Another key improvement is the clarification that disengagement from suppliers under the law should only happen as a last resort and in a responsible manner. Finally, we see stronger wording on meaningful stakeholder engagement, which is crucial for impactful human rights and environmental due diligence

Support and information are needed for proper implementation

As we move towards implementation, suppliers in general, and smallholders in particular, cannot be expected to shoulder the burden of this directive’s ambition by themselves. Therefore, it is crucial that:

  • The guidelines and model contract clauses are built on internationally recognised norms and guidance and make it clear that it is not a proper implementation to put cost and responsibilities for human rights and sustainable production on suppliers without adequate support.
  • The EU and Member States commit to provide financial support and information to different supply chain actors, civil society, and producers throughout the world. We believe that the EU Delegations play a key role in ensuring that farmers, workers and civil society organisations can use this law and that supply chain actors in vulnerable positions do not get left without support.

We elaborate on these recommendations in our recently published paper Supporting implementation of the EU Corporate Sustainability Due Diligence Directive in global supply chains involving smallholders and their communities.

The law’s genesis was complex and curvy

The human rights and environmental due diligence that will now be mandatory builds on internationally recognised norms developed by the UN and the OECD that have existed since 2011, as well as established good practice and guidelines.

In February 2022, the European Commission published a legislative proposal inspired by an Own Legislative Report by the European Parliament in 2021. The draft law had big potential but lacked clarity on some key elements, thus risking negative unintended consequences for smallholders and other actors in global supply chains, whom the law is set out to protect.

Much thanks to the hard work of the European Parliament, these elements were addressed, and we now have a law with much better potential to lead to positive change for smallholders, workers and artisans around the world.

Despite the last-minute disregard to the negotiations from some member states with unilateral changes to weaken the final text in March, the CSDDD marks a key step forward for business accountability.

 

Quotes:

Daniel Amponsah, Asunafo North Municipal Co-operative Cocoa Farmers (Ghana): “Living income is a human right and as producers we appreciate the EU for recognizing that and making it known in the CSDDD. This means companies we work with will be committed to ensuring poverty among farmers is reduced. We however call on EU again to make sure there are measures to support the implementation of the CSDDD.”

Meri Hyrske-Fischer, Fairtrade International: “With the CSDDD and similar due diligence initiatives gaining traction globally, I look forward to a growing number of companies to start looking at their business models, purchasing practices, codes of conduct and contracts to ensure alignment with responsible business conduct norms.”

Catarina Vieira, Solidaridad: “The CSDDD requires companies not only to avoid human rights and environmental issues in their value chains, but to fix them. With the right accompanying measures in place, smallholder farmers around the world can expect to be supported in addressing the root causes of unsustainable practices, such as poverty.”

May Hylander, Fair Trade Advocacy Office: “We celebrate this key step and urge the European Commission to develop clear guidance on key topics such as purchasing practices, meaningful stakeholder engagement, and how to respect the right to living wages and living incomes to ensure proper implementation. It is imperative that the costs and responsibilities do not end up only on the shoulders of suppliers.”

Christian Hohlfeld, Rainforest Alliance: “Today’s landmark legislation marks a crucial step towards corporate accountability. However, for the CSDDD to make a real difference, we need strong backing and practical measures. Let’s stand by and support smallholder farmers to ensure the costs of investing in sustainability are proportionally shared along the value chain, and farmers have the means to improve their practices for human rights and the environment.”

A DILUTED EU DUE DILIGENCE LAW IS STILL BETTER THAN NONE

Fairtrade International and the Fair Trade Advocacy Office statement on the agreement of the Corporate Sustainability Due Diligence Directive at the Committee of the Permanent Representatives of the Governments of the Member States to the European Union (COREPER).

Brussels, 15 March 2024 – Today, EU Member states finally agreed to give green light to the Corporate Sustainability Due Diligence Directive (CSDDD) during the meeting of the COREPER.

The Directive, still subject to the European Parliament approval, will be a diluted compromise which was only possible after a frustrating process that has severely undermined the credibility of the EU’s legislative process.

“We regret that the political agreement reached in December 2023 was not honoured”, said Meri Hyrske-Fischer, Human Rights Advisor at Fairtrade International. The directive will only apply to very large companies (moving from the 500 employees’ threshold to 1000; and from a €150 million turnover to €450 million). Additionally, the notion of high-risk sectors has been removed from the scope and concessions have been made on application times: Only large companies with more than 5000 employees and a turnover of more than €1500 million must start applying the provisions in 2027, followed by a staggered approach until 2029). “The people and planet deserve better and faster action from our leaders,” concludes Hyrske-Fischer.

Despite these drawbacks, after weeks of uncertainty and against the ticking clock, the COREPER outcome is better than leaving the meeting room without a deal.

The CSDDD provides certainty and sets expectations and requirements that are likely to become mandatory to a much larger group of companies in future. Also, it avoids the potential chaos of navigating a patchwork of national due diligence laws and establishes a common legal framework to level the playing field.

On a positive note, Fair Trade organisations commend the recognition of living income as a human right alongside living wage in the Appendix of the CSDDD, making it a right that companies directly covered by the directive must respect.

“We welcome that under the provisions of the directive, companies will have to evaluate and mitigate the impact of their purchasing practices on human rights and the environment and are expected to contribute to living wages and incomes for workers and farmers,” states May Hylander, Senior Policy Officer at the Fair Trade Advocacy Office. Additionally, the CSDDD emphasises shared responsibilities, concrete support to suppliers and meaningful stakeholder engagement with potentially affected rightsholders. “These are much needed elements that have the potential to repair unbalances in value chains and make them more sustainable,” she concludes.

Fairtrade International and the Fair Trade Advocacy Office encourage the European Parliament to support the compromise.

For more information, please contact May Hylander at hylander@fairtrade-advocacy.org.

ENDS

EUROPE’S GREEN TRANSITION SHALL GO GLOBAL TO BE JUST AND FAIR TO ALL

Brussels, 29 February 2024 – Farmers protesting in the streets for living incomes could easily join unite in solidarity with their counterparts in the Global South. One in three workers[i] are employed in agriculture in most developing countries and, despite common belief, they do not reap significant benefits from trading with the EU. Furthermore, they are now forced to abide by the rules contained in the European Green Deal, which are not only hard to implement, but also threaten their livelihoods. Beyond farming, the EU needs to reconsider how it supports North and South producers to achieve environmental, social and trade justice in the context of the 2030 Agenda for sustainable development.

Today, SOLIDAR, the Fair Trade Advocacy Office (FTAO), Fairtrade International and the World Fair Trade Organization (WFTO) issued a powerful Call to Action to transform the European Green Deal into a Global Green Deal to make it more social, equitable, just and fair at the international level, and to recreate a common vision and commitment to its essential goals.

In its current form, the European Green Deal leads to environmentally and socially harmful impacts on the Global South and exacerbates, rather than eliminates, inequality and poverty. The Global Green Deal vision is of an inclusive European transformative agenda that firmly assumes its responsibilities vis-à-vis third and partner countries with regard to imposed externalities. The GGD is a Green Deal with an external dimension to guarantee a fair distribution of the transition costs between Europe and partner countries.

Today’s launch marks a pivotal moment in the discourse on adapting the EU flagship initiative to the social and political realities of a world in social and geopolitical turmoil. Low-income households and the disadvantaged were encouraged by populists to find fault with remedial environmental measures typified by the present European Green Deal. Setting this in a broader, global context and introducing aspects of fairness and justice will provide an antidote to the negative effects of populism and Euroscepticism. The GGD will also contribute to maintaining an international framework of law that is acceptable to all.

Professor Olivier De Schutter from UCLouvain and Sciences Po Paris lends his support to the initiative, which also received the generous contribution of the Sustainable Development Solution Network (SDSN). The Call To Action is the result of a year-long set of deliberations with like-minded organisations that have culminated in the event on “Just Transition for All: Why the European Green Deal needs to go Global” that was held at the European Economic and Social Committee on 23 January 2024.

The policy proposals contained in the Call To Action are available here.

 

QUOTES

Mikael Leyi, Secretary General, SOLIDAR: “The European Green Deal is definitely a major achievement for Europe, but it needs to be expanded and deepened through a strong external dimension to foster a Global Just Transition. We need a European society and a global order in which our needs do not threaten the needs of our neighbours. Where our needs do not destroy the planet.”

Sophie Aujean, Director of Global Advocacy, Fairtrade International: “No deal can really be called a Global Green Deal unless the very people who are most impacted – the climate-vulnerable small-scale farmers and workers in countries disadvantaged by unfair global trade structures – have an equal say in it. The Global green deal we’re calling for will enable a bold and fair transition in Europe and beyond”.

Eric Ponthieu, Strategy Director, Fair Trade Advocacy Office: “The European Green Deal has no future unless integrated with a binding set of Just Transition measures to support both EU and non-EU stakeholders. Public support across Europe for Fair Trade shows how this can be done, practically and effectively.”

Leida Rijnhout, Chief Executive, WFTO: “The EU Green Deal is not considering sufficiently what the impacts are for the Global South. Creating a green island is not what we want, and therefore the call for a Global Green Deal is necessary to guarantee that no harm is done to third countries and vulnerable groups like small scale farmers and small and medium enterprises”

Olivier de Schutter, Professor, UCLouvain & Sciences Po Paris: “The EU has pledged to align its external policies with the objectives of sustainable development: policy coherence for development now requires that it moves towards the Global Green Deal. This means reflecting it in its trade policies, and in the imposition on transnational corporations of human rights and environmental due diligence obligations in the vision of the Green Deal. This means placing globalisation at the service of the fight against poverty and climate mitigation, instead of allowing it to serve only to increase shareholder value.”

[i]https://www.fao.org/3/i2490e/i2490e01b.pdf

Press contact:

Fair Trade Advocacy Office
Eric Ponthieu
Strategic Director
ponthieu@fairtrade-advocacy.org

Solidar
Barbara Caracciolo
International Cooperation & Sustainable Development Coordinator
barbara.caracciolo@solidar.org

Fairtrade International
Rosamaria Mancini
Public Relations and Media Manager
r.mancini@fairtrade.net

World Fair Trade Organization
Leida Rijnhout
CEO
leida@wfto.com

World Fair Trade Organization – Europe
Mikkel Kofod Nørgård
Regional Coordinator
coordination@wfto-europe.org

A Just Transition for All: Why the European Green Deal needs to go Global?

Brussels, 22 January 2024 – Why do we need a Global Green Deal? What a Global Green Deal should look like? What are the pros and cons of transforming the European Green Deal (EGD) into a Global Green Deal to foster Just Transition worldwide?

These are some of the questions that will be discussed at the public event that SOLIDAR and the Fair Trade Advocacy Office (FTAO), in partnership with the European Economic and Social Committee, will host on Tuesday, 23rd January.

Policies formulated within the European Union have far-reaching consequences on third countries. Therefore, according to SOLIDAR and the FTAO, the internal and external facets of the Green Deal must be better integrated to prevent that the EU green transition occurs at the expense of workers and the environment at the global level. 

The European Green Deal (EGD) is definitely a major achievement for Europe. “Now, it needs to broaden and deepen with a strong external dimension to avoid any adverse impacts on partner countries and foster a Global Just Transition », said Mikael Leyi, SOLIDAR Secretary General. 

Marike de Peña, representing banana producers from Dominican Republic said “Smallholder farmers and workers are key actors in the green transition. Yet, they risk being left behind if their participation in the decision-making is not guaranteed and if public financial support is lacking”.

In line with the Policy Coherence for Development, the EU cannot afford to disregard the EGD’s impact on the Global South. EU Trade Policy can greatly contribute to promote social and environmental justice. Yet, more consistency is needed between the European Trade Policy, the EU development policy and the European Green Deal in line with the new approach to Trade and Sustainable Development and to the overarching principle of the Just Transition.said Tanja Buzek, Vice president of the EESC International Trade committee, member of Workers’ group.

SOLIDAR and the FTAO highlighted that only by turning global that the EU Green Deal will enable the EU to make further progress in achieving the Sustainable Development Goals by 2030.  

Eric Ponthieu, the FTAO’s Strategy Director, said: “The Fair Trade Movement can draw on decades of experience in establishing social and environmental justice through trade, both regionally and internationally. The next EU executive should promote Fair Trade and regenerative business models to enhance efficiency and public acceptability of the EU flagship climate policy”

The event will offer the opportunity to present and discuss the added value of transforming the European Green Deal into a Global Green Deal. 

SOLIDAR and the FTAO will keep working together with their respective networks, partners and allies to develop a common vision and realise a Global Green Deal that benefits people and the planet.

Press contact:

Fair Trade Advocacy Office (FTAO)

Eric Ponthieu
Strategic Director
ponthieu@fairtrade-advocacy.org

SOLIDAR & SOLIDAR Foundation

Barbara Caracciolo
International Cooperation and Sustainable Development Coordinator
Barbara.caracciolo@solidar.org

Framework of Cooperation between Sri Lanka Export Development Board and International Fair Trade Networks

Colombo, 10 January 2024– Fair Trade Advocacy Office joins hands with Sri Lankan Export Development Board, Fairtrade NAPP, and WFTO Asia in historic Framework of Cooperation Agreement.

The Fair Trade Advocacy Office is pleased to announce the signing of a groundbreaking Framework of Cooperation Agreement with the Sri Lankan Export Development Board, Fairtrade Network of Asia and Pacific Producers (NAPP), and the World Fair Trade Organization Asia (WFTO Asia). This historic collaboration aims to strengthen Fair Trade practices, foster sustainable development, and promote ethical trade in the region.

The signing ceremony, that took place on the 10th of January of 2024, marks a significant milestone in the commitment to advancing fair trade principles and supporting the economic empowerment of producers and workers. The partnership brings together key stakeholders in the Fair Trade ecosystem, uniting their efforts to create a more equitable and sustainable trading environment.

The Fair Trade Advocacy Office, as a leading advocate for Fair Trade policies at the European Union level, is enthusiastic about the collaborative potential of this agreement. By joining forces with the Sri Lankan Export Development Board, Fairtrade NAPP, and WFTO Asia, the Fair Trade Advocacy Office aims to amplify its impact in promoting fair trade practices, advocating for policy changes, and supporting the growth of Fair Trade initiatives in the region.

We are excited to embark on this journey of collaboration with esteemed partners who share our dedication to Fair Trade principles. This Framework of Cooperation Agreement signifies our collective commitment to fostering sustainable development, empowering communities, and promoting fair and ethical trade practices in Sri Lanka and the EU,” said Virginia Enssle, International and Institutional Relations Manager at the Fair Trade Advocacy Office.

Download the Press Release here.​​

For more information, please contact Virginia Enssle at enssle@fairtrade-advocacy.org

EU Makes Due Diligence Mandatory: It is now time to make it meaningful

Brussels, 14 December 2023 Today marks a significant milestone as a political agreement was successfully concluded on the Corporate Sustainability Due Diligence Directive (CSDDD). This groundbreaking directive will require companies operating within the EU to undertake mandatory human rights and environmental due diligence throughout their value chains.

Just a few years ago, the prospect of mandatory due diligence legislation was merely a dream for most human rights defenders, civil society organisations, academics, and frontrunners companies. Now, this historic moment has arrived, marking 12 years since the approval of the voluntary guidelines for responsible businesses, the UN Guiding Principles on Business and Human Rights (UNGPs).

We are happy that there will finally be a legal obligation for companies to do Human Rights and Environmental Due Diligence in their value chains. If implemented in the right way, and despite big shortcomings, this directive has the potential to be a key step towards more fairness in global supply chains,”  said May Hylander, Policy and Project Officer at the Fair Trade Advocacy Office.

While the political deal reached represents a considerable step forward towards corporate accountability, it falls short in many aspects: it leaves out a big part of the financial sector, applies only to very large companies, and while it does include civil liability, it fails to reverse the burden of proof, making justice for victims of corporate abuse hard to access.

The original proposal from the European Commission and the General Approach by the Council of the EU opened the door to cascading responsibilities and associated costs in the supply chain. This would lead to counterproductive effects of the law by leaving suppliers even more vulnerable. By strengthening some important elements such as meaningful stakeholder engagement, responsible disengagement, and the obligation to address purchasing practices, the final agreement has taken some steps in the right direction to address this. In addition, both the right to a living income and a living wage must be recognized in the law.

The new text makes a considerable shift to effective and transformative due diligence, by taking a stronger stance on the need to meaningfully engage stakeholders in the process and by mandating that business only terminate business relationships responsibly and as a last resort. This will ensure that companies work on solutions with suppliers, rather than opting for a cut-and-run approach that doesn’t resolve the issues they find” said Catarina Vieira, EU Policy Advisor for Solidaridad.

Yet, this is just the beginning.

Each EU member state will have to transpose the directive, which is a tremendous opportunity to eliminate the loopholes of the directive and ensure alignment with the UNGPs.

The imperative next steps

Guidance is essential for effective implementation. The directive mandates the Commission to draft guidance on several due diligence aspects. In our view, this needs to be developed in a consultative manner and based on due diligence guidelines from the OECD, including their sector-specific guidance. It should provide clarity on meaningful stakeholder engagement, responsible disengagement, fair purchasing practices, and effective strategies for achieving living incomes and living wages.  In these guidance documents, the Commission should emphasise that contracts are just one instrument within a company’s due diligence toolbox. Instead of traditional top-down requirements, these should also be drafted in collaboration and dialogue between buyers and suppliers, with shared responsibility for the respect for human rights and the environment.

Accompanying measures are crucial. The EU and its member states must prioritise providing financial and technical support to rightsholders and their representatives, vulnerable economic actors in global value chains (including smallholders and artisans), and to EU partner countries. EU Delegations in partner countries play a pivotal role in this regard, as focal points and providers of support.

Accompanying measures are essential for the directive to be implemented in the best way: for all actors to have sufficient information, for rightsholders to be empowered to use it to address corporate misconduct, and for smaller suppliers in partner countries to be supported in implementing the changes that are needed,” said Meri Hyrske-Fischer, Human Rights Advisor at Fairtrade International.

Last but not least, the implementation must be ambitiously taken up by companies. They should take the lead in establishing due diligence processes that involve open dialogue with suppliers and other stakeholders, making genuine efforts to bridge living wage and living income gaps, and critically evaluating their business models and purchasing practices. In short, start taking co-responsibility and not externalising the risk management costs to their suppliers.

This political agreement is a milestone to make due diligence the norm in global value chains, potentially benefiting millions of rightsholders worldwide. However, achieving this requires full mobilization from the Commission, member states, and companies, as we anticipate a lengthy transposition and implementation process.” said Fanny Gauttier, EU Public Affairs Lead at the Rainforest Alliance.

Today signals a significant move toward corporate accountability and responsible business conduct. Now we call on the EU, member states and companies to use this momentum to drive the transformations that are needed to protect human rights and the environment around the world.

Download the Joint Press Release here.

 

Press contacts:

Fair Trade Advocacy Office

May Hylander

Policy and Project Officer

+46707536553

hylander@fairtrade-advocacy.org

Rainforest Alliance

Darla van Hoorn

Manager Global Media Relations
+31 (0)6 20 09 13 12

dvanhoorn@ra.org

Solidaridad

Eoghan Hughes

PR Officer

+31 (0) 6 11 33 90 88

eoghan.hughes@solidaridadnetwork.org

Fairtrade International

Meri Hyrske-Fischer

Human Rights Advisor,

+358 40 5959120

meri.hyrske-fischer@fairtrade.fi 

The Fair Trade Movement calls for urgent rethink on climate action ahead of COP28

Brussels, 9 November 2023 – The  Fair Trade Movement today calls on governments, businesses and world leaders to scale up joint efforts and take bold, immediate, meaningful and inclusive climate action before it is too late.

With less than a month until the UN COP28 climate change conference in the United Arab Emirates, Fairtrade International, the Fair Trade Advocacy Office (FTAO) and the World Fair Trade Organization (WFTO) jointly demand that financial pledges to support countries and communities most exposed to climate risks are met.

Climate change has become impossible to ignore, and so is the fact that its impacts are unfair and unequal,” says Sophie Aujean, Global Advocacy Director at Fairtrade International. “Our general conclusion is one of frustration with our global political leaders. The Fair Trade Movement is shouldering its share of responsibility to build a better tomorrow with determination, but the future of our planet depends on all of us. Tackling the climate emergency requires a shared approach.”

The three organisations – who together represent more than two million farmers, producers, workers and artisans in SMEs and cooperatives across the globe – believe climate finance can play a meaningful role – but only if current shortcomings are adequately addressed.  “To create meaningful and lasting impact, climate justice must be the foundation of all climate action, but the window of opportunity is rapidly narrowing and must be seized now,” says Charlotte Vernier, the FTAO Senior Coordinator and lead on Climate Change and Deforestation.

The Fair Trade Movement identifies several areas for immediate improvement which, it says, will significantly help climate finance delivering on its objectives.

  • With adaptation finance flows running at five to 10 times below the estimated needs, prioritising actions that both reduce greenhouse gas emissions (GHG) and help communities adapt is becoming more urgent than ever.
  • Remaining structural barriers need to be addressed – producers – especially small-scale women farmers – must have access to financial products and services that are tailored to their needs to allow them to become more climate-resilient and transition to sustainable agriculture. This includes flexible repayment terms, lower interest rates, and simplified application processes.
  • Finally, the loss and damage fund agreed at COP27 must not get bogged down in endless discussions about who pays what. The most climate-vulnerable countries already suffer disproportionately for a climate catastrophe which is not of their making.

Climate finance plays an important role but is not a magic wand,” warns however Vernier. “A multi-dimensional approach is essential to fully understand, prevent and cope with the consequences of the climate crisis were facing.” The joint statement makes clear that to achieve a genuine transformation, global leaders urgently need to look at the bigger picture and concrete ways to support smallholders, small businesses and artisans to shift towards climate resilient practices.

There can be no climate justice without trade justice, and vice-versa,” says WFTO Chief Executive Leida Rijnhout. “Fair Trade Enterprises are leveraging the change we need to shift from an economic system that thrives on exploitative and extractivist practices to a fair one, both for people and the planet. Through their business model, they are proving that alternatives do exist: if we follow their example, we have a concrete chance at achieving sustainable development.”

The active participation of local stakeholders – including farmers, workers and communities – is essential for designing, prioritising, implementing and monitoring efficient climate tools. “Farmers and farming communities are best placed to identify specific challenges and solutions in their local context,” explains Juan-Pablo Solis, Senior Adviser on Climate and Environment at Fairtrade International. “Farmersexpertise and traditional knowledge are key – but the transition to agroecology is unaffordable for most farmers due to unfair market prices and power imbalances in supply chains.”

For emerging supply chain laws to be truly transformational, global leaders and policymakers therefore need to step up efforts to break down remaining silos and efficiently link measures to facilitate decarbonisation with a global fight against inequalities and poverty” concludes Vernier.

Download the full joint statement here and a three-page summary here. Fairtrade International, the FTAO and WFTO will be at COP28 to support producers, farmers and workers in their fight for climate justice. For more information about Fair Trade movement side events, participants and interview opportunities, please contact Juan Pablo Solis at jp.solis@fairtrade.net.

 Contacts:

Fair Trade Advocacy Office

Charlotte Vernier

Senior Policy & Project Coordinator

vernier@fairtrade-advocacy.org

 

Fairtrade International

Sophie Aujean

Director Global Advocacy

s.aujean@fairtrade.net

 

WFTO Europe

Mikkel Kofod Nørgård

Regional Coordinator

coordination@wfto-europe.org

 

 

 

 

Include Social Aspects on Textile Labels: We respond to the new Textile Labelling Regulation

 

Update: For the EU consultation for the Labelling Regulation on 15 April, find FTAOs submission here.

Brussels, 28 September 2023 – The European Union is revising its rules on product labelling: what information should be included on garments and textiles. At present, this is limited to information on fabrics and care instructions. To improve working conditions for all workers in the supply chain, it is important to provide more information on the social side of the garment sector. Today, the Fair Trade Advocacy Office (FTAO) presents this position to the European Commission through a call for evidence. 

Until the 30th of September the European Commission opened a call for proposals. This legislative process is used to receive feedback on specific policies which will be used to update the policy, in this case the Textile Labelling Regulation. The FTAO argues that social information should be given on three different levels: country level, company level and information from the production sites. These three will be explained in more detail below. 

Human rights violations take place in the garment sector at a great scale: low wages, unpaid overtime, unsafe factories and (sexual) harassment, to name a few. One of the contributing factors to this is a lack of transparency. Consumers that want to make an informed choice and buy sustainable products have difficulty finding the right information. Workers that want to address problems don’t know who the buyer is and cannot reach them. Garment- and textile – labelling could help tackle this problem when used in the right way.  

How information should be presented 

It is important that the information is understandable and accessible to different stakeholders in garment supply chains, to consumers and for journalists to fact check information. Where possible, information should be provided on the label, detailed information could be provided through a QR code or other digital means. Information should be given for all tiers of the production process: from the raw material stage (cotton farms or other fibres), through the spinning-, weaving- and finally cut-make-trim (CMT) stage. 

Country specific information 

The country of origin can give some insights, as long as it is accompanied by specific information. This could be information on the minimum wage in a country and how this relates to a living wage. Ratified ILO- and UN conventions can also be informative, for example on migrant workers or supporting freedom of association. This does not mean that these problems will never arise, it is however an indication that there is an international system in place to address issues when they arise. How a country scores on the list on the ranking of trade union busting can also provide useful information. 

Company information: purchasing practices and complaints 

The purchasing practices of a company should be made clear as they can have a big influence on working conditions. Last-minute changes in delivery times or design could have significant repercussions for a factory: financially, if additional investments arise in the event of design changes, but also in terms of possible longer working hours, if delivery times are pushed forward. (Forced) unpaid overtime is not uncommon in these situations to compensate for the losses. A company should therefore pay a price that makes sustainable production and decent working conditions possible. To verify if this is the case, transparency is needed on the purchasing practices and contracts between the company and their supplier. If a company has a complaints mechanism, it should be clear what complaints they have received and how they responded to these cases. 

Working conditions and audits 

For the different stages of the production process, information should be provided on the average working hours, overtime (if present), health & safety conditions, committees that are active, real democratic trade unions present at the factory, collective bargaining agreements settled and information on types of employment contracts. Temporary contracts are common in the garment sector. This creates job insecurity for workers and influences other human rights. Some workers might not receive a new contract when they become pregnant or if they join a trade union. Farming raw materials such as cotton is often a seasonal job, making job security even lower. If these working conditions are verified by an auditing company, this information should be made public as well, in such a way that does not put workers or smallholder producers at risk.   

Aligning with other EU policies 

As a minimum we call for the Regulation to be in line with forthcoming Due Diligence legislation such as the CSRD and CSDDD (for example by including a link to the CSRD reporting on the company on/through the label). However, these directives have limits in terms of size of companies covered and type of information that are legally obliged to provide. In itself the Due Diligence legislation will not provide sufficient information for all pieces of garment for consumers to make an informed decision. Therefore, the information listed above should be added on/through the label.  

For any questions around our work on the Textile sector or Due Diligence legislation, please contact May Hylander at hylander@fairtrade-advocacy.org.