What are the components of Better Cotton Chain of Custody Standard 1.0?

The Better Cotton Initiative (BCI) is a global non-profit organization aimed at improving cotton cultivation practices, producing in a moresustainable way, focusing on reducing environmental impact, improving livelihoods andeconomic development in cotton producing areas, and promoting better working conditions.

Many brands have their own sustainable cotton policies. For example, Nike requires thatall cotton used in its products be organic, recyclable, or certified by the Better Cotton Initiative (BCI) to ensure the sustainability and ethical practices of its entire supply chain.

Starting from October 1, 2023, version 1.0 of the Chain of Custody Standard has come into effect, and the transition period will continue until the end of May 2025. So, what are the components of version 1.0 of the Chain of Custody Standard?

Chain of custody model

There are a total of 4 types, including: balanced inventory, blended, 100% physically good cotton (from multiple source countries), and 100% physically better cotton (from a single source country).

Management system requirements

To ensure quality, consistency, and your company's ability to continuously improve and meet regulatory chain standards, please refer to: What are the requirements for a management system for better cotton?

Procurement, material receipts, storage, and production

Manage and record the procurement of good cotton in your business premises, and how these materials flow in your business premises.

Procurement: Enterprises should update all supplier information for products within the scope of this standard certification in a timely manner, including

• Name and contact information of each supplier

• Products and quantities supplied

• Applicable chain of custody models

Material receipt: Written evidence of the order, when purchasing good physical cotton or balancing inventory orders, one or more documents should be received from the supplier, including the following information:

• Buyer and seller information (company name, address, contact information)

• Product description (including the label 'Better Cotton' and the allocated Better Cotton Chain of Custody model)

• Product quantity

• Delivery/sales date

Sales invoices and contracts

• Transportation/shipping documents

Product storage and production: For the physical chain of custody mode, identification should be retained at all times.

Separation method: Create clear processes to demonstrate that the location has achieved separation, such as creating flowcharts/wall charts to display the isolation process. Ensure that employees understand and follow the process.

Sales and Shipping

Manage and record better cotton sales in your business premises.

The written sales documents should reflect the information input into the BCP. Every time a better physical cotton is sold and shipped or a balanced inventory order is placed, the enterprise should provide the buyer with one or more documents that include the following information:

a. The business names and addresses of both the buyer and seller

b. Product description (including the label 'Better Cotton' and the allocated Better Cotton Chain of Custody model)

c. Product quantity

d. Delivery/Sales Date

e. Sales invoices and contracts

f. Transportation/shipping documents

Input output accounting

Calculate the input and output of cotton well to ensure that no more is sold than purchased in your business premises.

Enterprises should always record the quantity of inputs and outputs - BCCUs and/or Kg - in each business premises (certified by this standard).

Enterprises should prepare an annual quantity summary report for all physical better cotton in each business premises, including inventory (input and output) and conversion factors.

Enterprises should keep files to ensure the accuracy of annual quantity summary reports, such as:

Warehousing: receiving records, invoices, purchase orders, weighing orders, inventory reports, purchase registration forms, delivery notes.

Production: Processing records, production records, batch records, quality/technical reports, conversion factors.

Outbound: transportation documents, invoices, sales contracts, transaction documents, weighing orders.