1. 1 Better Cotton Kerem Saral BCI Supply Chain Manager 2014

2. 2 BCI Chain of Custody & Traceability System  Mass-balance system for all members Concept & application & implications  Better Cotton Tracer  Traders  Spinners  Retailers

3. 3 What is a Better Cotton Claim Unit? BCCU = Better Cotton Claim Unit »The units of conventional cotton that can be substituted for equivalent units of Better Cotton - Due to Mass Balance »1 BCCU represents 1 kilo of physical Better Cotton

4. Separate chapters for each actor 4 Better Cotton CoC Guidelines

5. 100% BC Bale Products with associated BCCU (Better Cotton Claim Units) BCI membership not required Ginner Monitoring Guidelines SEGREGATION MASS-BALANCE ADMINISTRATIVE BCI membership not required but encouraged Retailer clients monitoring requirements Registered BCI membership required Membership Code of Practice Trader Chain of Custody Guidelines Membership Code of Practice BCI membership required 100% Seed BC Farmer BTS Better Cotton Tracer Better Cotton Chain of Custody No Access

6. 6 Better Cotton CoC Guidelines – Gin Level Better Cotton is kept physically separate from conventional cotton at the gin level in all countries In order to create 100% Better Cotton Bales = Total available lint Better Cotton at a global level

7. 7 Better Cotton Conventional Cotton 100 Kilos of Brazilian Better Cotton Bales 100 Kilos of Brazilian Conventional Cotton Bales Mass-balance with Country Scope Trader’s warehouse in Brazil BC CC BC Purchase declaration from ginner + 100 BCCUs in trader’s account Sales declaration to a spinner - 100 BCCUs in trader’s account & +100 BCCUs in spinner’s account Volume In = Volume out 7 Better Cotton CoC guidelines - Traders

8. 8 Trader’s Purchase Declaration

9. 9 Trader’s Sales Declaration

10. 10 Spinning factory in Bangladesh Purchase declaration from ginner or trader +100 BCCUs in spinner’s account Sales declaration to a fabric mill -100 BCCUs in spinner’s account 10 Better Cotton CoC guidelines – Spinners Mass-balance with Site Scope Better Cotton Conventional Cotton 100 Kilos of West African Bales w/ BCCUS Better Cotton Bales 100 Kilos of Indian Conventional Cotton Bales Volume In = Volume out BC CC BC

11. 11 Spinner’s Purchase Declaration

12. 12 Spinner’s Sales Declaration (Combed Yarn)

13. 13 Spinner’s Sales Declaration (Carded Yarn)

14. LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 BCCU Transfers Online BCCU Transfer Ginners Traders Spinners Fabric Mills Garment Man. Retailer ODF BCCUs Physical Document Transfer

15. 15 Better Cotton Volume Claims by Retailers Yarn with BCCUs Yarn without BCCUs Product with allocated BCCUs (indicated on spinners’ ODFs) Total claims reported to BCI Retailer BCCUs Cotton Tracer

16. 16 Retailer and Brand BCCU Claims Spinner’s name and # of BCCUs are taken from the spinner’s ODF

17. 17 Can use ANY yarn made with ANY origin of cotton 17 Better Cotton CoC guidelines – Fabric Mills Mass-balance with Site Scope Yarn with BCCUs Yarn without BCCUs 100 Kilos of yarn with BCCUs from India 100 Kilos of yarn without BCCUs from Turkey Volume In = Volume out Fabric manufacturer in Turkey BC CC BC

18. Fabric Mill Challenge Fabric Mill Purchases 100 MT of yarn – ODF w/ 120,000 BCCUs to fulfil multiple retailers’ orders BCCUs must be reallocated to different fabric shipments –Allocates 20,000 BCCUs to Retailer A –Allocates 20,000 BCCUs to Retailer B –Keeps the rest of the BCCUs for future orders 18

19. LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 Purpose of the Better Cotton Tracer

20. 20 Thank you! Please contact us at any time to: Ask any questions regarding our traceability system Your account on Better Cotton Tracer To get a copy of this presentation Report troubles you identified in your BC supply chain Kerem Saral – BCI Supply Chain Manager kerem.saral@bettercotton.org Direct Line: +41-22-939-1293 Skype ID: keremsaral Manish Gupta - India Supply Chain Coordinator manish.gupta@bettercotton.org Muhammad Shuiab – Pakistan Supply Chain Coordinator muhammad.shuaib@bettercotton.org Leo Xiao - China Supply Chain Coordinator leo.xiao@bettercotton.org