Responsible Cashmere Round Table (RCRT)Meeting #3

Wednesday, June 26th, 2019

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1. Welcome & Introductions2. Insights from Mongolia3. UNDP Meeting Outcomes – Nicolas Petit 4. Brand role discussion5. Next Steps

Agenda

Welcome & IntroAll

RCRT

So far:

• > 100 individual stakeholders• Representation from NGOs (environmental and animal

welfare), supply chain, service providers and international organizations

• 26 global brands• Total brand value of $174 billion

We still need support!

We need the financial support of cashmere buyers not only to continue the work we are doing with the Responsible Cashmere Round Table, but also to signal that there is a strong level of industry support for clarity and action around best practices.

Insights from MongoliaTextile Exchange

UNDP Meeting OutcomesUNDP

UNDP GCP GLOBAL PORTFOLIO MAP

17

Dominican Republic

Cote d’Ivoire

Ghana

Paraguay

Peru

Ecuador

Costa RicaPhilippines

Indonesia

Papua New Guinea

Pineapples

Fisheries

Palm Oil

Cattle

Coffee

Cocoa

Soy

Cashmere

Liberia

Mongolia

NATIONAL COMMODITY PLATFORM

CONSENSUS BUILDING

Wednesday, 3 July 2019

COLLECTIVE ACTION FOR CHANGE

20

• National Action Plans

• Collective vision for the future

• Road map to guide investments and activities

BENEFITS OF PARTICIPATION

21

• Shared understanding and agreement of the problems that need to be addressed supported by credible data

• An agreed plan that brings value to all as it ensures coherent thinking and coordinated action, avoiding gaps and overlaps

• Greater insight and understanding of what other stakeholders need and how they perceive value from sustainable production

• Expanded network and better relationships with organisations that work on issues that mutually matter

• International and domestic public visibility on how sustainability problems are addressed at a national and systemic level

MULTI-STAKEHOLDER COLLABORATION FOR

SYSTEM CHANGEJune 12, 2019 Ulaanbaatar, Mongolia

AGENDA

O b j e c t i v e s• To advance positioning Mongolia as a leading

producer of Sustainable Cashmere by accelerating current efforts;

• To support the Government of Mongolia in the implementation of its Cashmere Program from a sustainability perspective;

• To jointly identify best mechanisms available for national dialogue and collective action for Sustainable Cashmere in Mongolia.

O u t p u t s• Agreement on priority themes calling for aligning

interest to be considered for future national dialogue and collective action;

• Agreement on potential mechanisms for national dialogue and collective action on Sustainable Cashmere in Mongolia;

• Individual commitment to actions to increase collaboration in the short to medium term.

MULTISTAKHOLDER PARTNERSHIPS

ADVANTAGES• Can address a more complex issue than you can tackle

alone

• Partners can access complementary skills and resources from each other

• Results will have broader ownership (more sustainable)

• Learning and collaboration increases chance of systemic change

LIMITS • Requires time and resources to design and implement

properly

• Can only work if there is sufficient representation from stakeholders

• Will often not deliver short-term success: patience is required

• Not easy to find funding for processes that are relatively open-ended and the topics of which may evolve over time

• Success is never guaranteed

MULTISTAKHOLDER PARTNERSHIPS

INITIAL STAGE: SOME COMMON PROBLEMS• Lack of trust between key actors - Misaligned interest

and agenda – no common vision

• Lack of shared understanding on key issues to be addressed for sustainable production

• Business case for engagement not adequately developed – resulting in weak buy-in

• Focusing on negatives rather than language of opportunities

• Sensitive issues are denied or avoided

• Weak representation – unbalanced group of stakeholders, key decision makers absent from the process and/or low market share representation

• Zero or fragmented collective action and investment

• Dialogue not adequately institutionalised / governance structures missing for continued dialogue

• Dialogue not necessarily leading to concrete outcomes – players not made accountable

• Unclear roles for government and private sector on how to participate

UNDP DEMAND ANALYSIS

Inadequate traceability

Quality deficiency

Competition from private traders (mostly Chinese middle men)

Unclarity about what constitutes SC

GROUP DISCUSSION –EXAMPLE OF THEMES

QUALITY TRACEABILITY

CONSENSUS ON SUSTAINABILITY

MARKET ACCESS

ECONOMIC INCENTIVES CAPACITY BUILDING

ENABLING ENVIRONMENT

METRICS AND CLAIMS

ACCESS TO FINANCE OTHERS

THEME 1: TITLE

OBJECTIVE(S):

TOPICS TO BE ADDRESSED:

THEME 2: TITLE

OBJECTIVE(S):

TOPICS TO BE ADDRESSED:

SCALES OF AGREEMENT EXERCISE

FIRST QUESTION

Do you agree with the 4 priority themes for future dialogue/collective action identified during group discussion this morning:1. Consensus on sustainability

2. Capacity building for all stakeholders across the value chain

3. Access to finance and incentives for suppliers

4. Market access

• Consensus on sustainability• Capacity building for all stakeholders across

the value chain

• Access to finance and incentives for suppliers

• Market access

AGREEMENT!

The Cashmere Supply Chain and the Roles of BuyersH&MTextile Exchange

Trader Washing

ProcessingBrand/Retailer

De-HairingCo-operativeHerders

Farms

Mongolia• Multiples standards and programs• UNDP is setting up the Sustainable

Cashmere Platform• Opportunity to create a framework that will

recognize the programs that deliver ‘sustainable cashmere’

Inner Mongolia (China)• Sustainable Cashmere

Standard under development by ABTF

WashingDe-Hairing

Mostly China

The Supply Chains

Brand/Retailer

“Sustainable Cashmere”

“Sustainable Cashmere”

“Responsible Nomads”

“Sustainable Cashmere”“Noble Fiber”

Trader Washing

ProcessingBrand/Retailer

De-HairingCo-operativeHerders

Farms

Inner Mongolia (China)• Sustainable Cashmere

Standard (ABTF) WashingDe-Hairing

Mongolia• Sustainable Cashmere (SFA)• Responsible Nomads (Green Gold)• Sustainable Cashmere (AVSF)• WCS• Noble Fiber (MWCA)

50 Shades of “Sustainable”

Brands/RetailersHerders

Government Support

Foundation Support

$

$

$

$

National Platform

Financial Incentives

Financial Premiums

Government

Processors

Herder Groups

NGOs

“Sustainable Cashmere”

Indicators

Roles for Brands

Upcoming Events

Responsible Cashmere Round Table (RCRT) Summit

Tuesday, October 15th | 9:00 AM – 1:00 PM

https://www.eiseverywhere.com/website/2614/home/

Visit https://textileexchange.org/responsible-cashmere-round-table/ to learn more

Next Steps

1. Development of roadmap for the establishment of the Sustainable Cashmere Platform in Mongolia – by UNDP in the coming couple of weeks

2. Tentatively follow-up meeting in August with key stakeholders to agree on high-level statement of intent for collaboration

3. Launch of platform in Q1 2020 4. Statement of support from brands for the platform during Textile Exchange

meeting in October 5. Next call: (TBD: last week of July) – we will be hearing from the different

initiatives and presentation of the UNDP Road Map

Next Steps

Thank you!

Email us at ResponsibleCashmere@TextileExchange.org

Or visit TextileExchange.org/Responsible-Cashmere

for more information

TextileExchange.org

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