OCS IWG CallTerms of Reference

July 30, 2019

• Introductions• Housekeeping & Reminders• Review of Terms of Reference Feedback• Follow-up and Next Steps

Agenda

Anti-Trust Statement

Textile Exchange convenes the textile community and values diversity of views, expertise, opinions,

backgrounds, and experiences. It is expected that members of this community will collaborate by sharing ideas, information, and resources of publicly available

information only and avoid discussions on price, strategic plans or other private and sensitive information.

Chatham House Rule

“When a meeting, or part thereof, is held under the Chatham House Rule, participants are free to use the information received, but neither the identity not the

affiliation of the speaker(s), not that of any other participant, may be revealed.”

OCS Revision Workplan*

Date Call Number Topic

July 2, 2019 1 Intro to IWG, Terms of Reference

July 30, 2019 2 Final Terms of Reference, Topics

August 13, 2019 3 Ginning / Post-Harvest Processing

August 27, 2019 4 Segregation of goods

September 10, 2019 5 GMO Testing Guidance

September 24, 2019 6 Input Verification

October 8, 2019 7 Substitution

October 22, 2019 8 Proposed Changes

November 5, 2019 9 Marketing & Awareness

November 19, 2019 10 Training

December 3, 2019 11 Monitoring & Evaluation

*subject to change

Objectives of the IWG:• Define the goals, objectives, and theory of change for the OCS, to be expressed in the OCS Terms of Reference. • Review the criteria of the OCS and draft a revision of the standard, in accordance with the OCS Terms of Reference. • Support interpretation decisions and minor revisions following the release of the updated OCS. • Support the monitoring and evaluation of the Standard against the goals identified in the OCS Terms of Reference. • Support the success of the Organic Content Standard through identifying risks and opportunities.

Textile Exchange Responsibilities:• Provide support and administer the process of the revision• Keep us in line with best practice• Maintain transparency of the process

IWG Member Responsibilities:• Represent your sector• Participate and provide feedback• Respect other IWG members

Decision-making• To vote, you need to sign the charter.

Charter

The OCS Terms of ReferenceGuiding Document

Needs JustificationTerms of Reference

Needs Justification

National Organic Standards (farm)

Organic Content Standard (supply chain)

Global Organic Textile Standard

Scope Agriculture Supply Chain Supply ChainThird-party verification Yes Yes Yes

Minimum content percentage

n/a 5% organically grown content 70% organically grown content

Chain of custody TCs issued Segregated mass balance (TCs) Segregated mass balance (TCs)

Social No No YesEnvironmental Yes No YesChemical Yes No Yes

ScopeTerms of Reference

• Can the chain of custody verification include non-certified materials?• No, because the scope of the standard cannot include materials outside of the scope. The scope only covers

organic materials.

• Should we include social?

• Should we include social and environmental? • No, because that would compete with GOTS. • The non-covered products are those that meet strict social, environmental, and chemical requirements, but do not

meet the 70% minimum.

• Could we work more closely with International organic standards?• No, this role is fulfilled by IFOAM.

• Should the farm be addressed in a stronger way? How to address traders between farm and gin?• This is identified in the risk assessment section.

Scope Feedback

• How do you plan to measure “consumer confidence” and “consumer recognition”?

Monitoring and Evaluation

• Farms should be covered by certification• Traders should be covered by certification

Risk Assessment / Risk Plan

• Can we add a note about traceability/transparency within the standard? Given risks like trader fraud, would it be beneficial and help to bolster the standard?

• No, traceability is not guaranteed with multiple input sources.

Goals & Objectives

The goal of the Organic Content Standard is to increase organic agriculture production.

The objectives of the Organic Content Standard are to:• Provide the industry with a tool to verify the organic content of the products they purchase.

• The OCS fulfils an important function as a Business to Business tool for ensuring the chain of custody of certified organic material. By ensuring that this process is overseen by third party certification the likelihood of fraud and substitution is decreased.

• Provide companies with a trusted tool to communicate organic content claims to the industry.• Consumer demand for organic products is an increasing global trend. By providing a system for identify

preservation of certified material, consumers are able to make informed choices and show their support for organic agriculture.

• Provide organic fiber farmers with broad access to the global organic market for their products.• By limiting the scope to content claim only the OCS allows for the positive impacts at farm level to be recognized

and rewarded, extending the market access and opportunities available to the organic farmers.

The Role of the OCS

• Can you discuss more about organic cotton credit trading?

Unintended Consequences

• Suggest to remove the Indian Standard for Organic Textiles (ISOT). – Agreed

Other

Next Steps

OCS Revision Workplan*

Date Call Number Topic

July 2, 2019 1 Intro to IWG, Terms of Reference

July 30, 2019 2 Final Terms of Reference, Topics

August 13, 2019 3 Ginning / Post-Harvest Processing

August 27, 2019 4 Segregation of goods

September 10, 2019 5 GMO Testing Guidance

September 24, 2019 6 Input Verification

October 8, 2019 7 Substitution

October 22, 2019 8 Proposed Changes

November 5, 2019 9 Marketing & Awareness

November 19, 2019 10 Training

December 3, 2019 11 Monitoring & Evaluation

*subject to change

Ginning (Post-Harvest Processing)

A2.1b The OCS requires all Organizations to be certified beginning with post-harvestprocessing sites through to the seller in the final business-to-business transaction.

• Remember the guidance on helpful feedback. Please provide reasons for your changes.

• We plan to remove the manual requirement that a gin cannot be OCS and GOTS certified once the CDS is active and monitoring volume.

• Is there anything missing?• What about non-cotton crops?

• Deadline: August 9th

Feedback on Post-Harvest Processing

TextileExchange.org

© Copyright Notice

This presentation is protected by U.S. and International copyright laws.

Textile Exchange welcomes you to use slides from this collection for your presentations on the condition that:• The slides are not altered from the way it is presented in its original format, this includes changing colors and style.

• The Textile Exchange logo should not be removed.• Adding logos and/or content is not permitted without written permission from Textile Exchange.

• Any presentation using this content or any form of this content should acknowledge Textile Exchange as the author.

Thank you