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                    A year into lockdown                                                                                                         AND RETAILERS’ CONFIDENCE IN SUSTAINABILITY
                                                                                                                                                       CONSUMER DEMAND IS LEADING BRANDS’



                 The higher demand for                                                                                                     Future of sustainable                      The impact of
                                                                                                                                           business practices
                                                                                                                                                                                      COVID-19
                                                                                                                                           Brand and retailer sustainability decision makers
                     sustainable products                                                                                                  in U.S. and UK see greater demand for sustainable   Despite COVID-19 brands and retailers have
                                                                                                                                                                                      increased investments in sustainability initiatives
                                                                                                                                           practices, predicting an increase in consumer
                                                                                                                                                                                      believing that the pandemic has brought to light
                                                                                                                                           spending in sustainable apparel.
                                                                                                                                                                                      how important sustainable and environmentally
                                                                                                                                           What are your company’s main areas of focus when it   friendly products are to customers.
                                                                                                                                           comes to environmental and sustainable initiatives for
                                                                                                                                           the next 12 months? Select up to 3         What kind of impact has COVID-19 had on your company’s
                                                                                                                                                                                      proactive investments in or future commitments to
                                                                                                                                                                                      sustainability initiatives, partnerships or standards?
                                                                                                                                               42%          42%          40%          Positive                        63%
                                                                                                                                                                                      No impact                       15%
                                                                                                                                                Sustainable   Sourcing sustainably   Safe working   Negative          23%
                                                                                                                                             manufacturing –   produced raw   conditions
                                                                                                                                            reducing impacts   materials
                                                                                                                                            of chemicals, water
                                                                                                                                              and energy                              Since the COVID-19 pandemic, how has your customer
                                                                                                                                                                                      demand changed for environmentally sustainable
                                                                                                                                                                                      business practices and goods/services?
                                                                                                                                           To what degree is your organization planning to decrease   More demand
                                                                                                                                           or increase investments in external sustainability   than before           61%
                                                                                                                                           standards or protocols?
                                                                                                                                                                                      No change                       27%
                                                                                                                                             43%          40%             11%         Less demand                     12%
                                                                                                                                                                                      than before
                                                                                                                                              Increase     No change     Decrease
                                                                                                                                                                                      To what extent do you agree or disagree with the
                                                                                                                                           Over the next 12 months, do you expect an increase or   following statement? ‘I believe the Covid-19 pandemic has
                                                                                                                                           decrease in customer spending in sustainable apparel?   brought to light how important sustainable and
                                                                                                                                                                                      environmentally friendly products are to customers.’
                                                                                                                                             50%           22%           20%            69%           26%            6%
                                                                                                                                              Increase     No change     Decrease
                                                                                                                                                                                         Agree      Neither agree   Disagree
                                                                                                                                                                                                     not disagree








                                                                                                                                   customers – with two-thirds (61%) also noting that   said Dr. Gary Adams, president of the U.S. Cotton
            • 61% of brands and retailers say their customer   1,000 brands and retailers in the U.S. and UK to
            demand has increased for environmentally          determine the impact the pandemic has had on the                     there has been an increased demand for sustainable   Trust Protocol.  “We’re encouraged to learn that so
            sustainable business practices and goods/services.  importance of and investment in sustainability                     products.                                         many brands and retailers are looking to set new
            • Nearly two thirds (63%) believe that the pandemic   initiatives. As brands and retailers look to the future,                                                           standards for the industry, instead of simply following
            has had a positive impact on their company’s      there is a sense of optimism for increased consumer                  The research also found that 63% of brands and    what currently exists. As we work towards recovery in
            proactive investment in sustainability.           spending and investment in environmentally friendly                  retailers stated that the pandemic has had a positive   many sectors, systems like the Trust Protocol are
            • Half of brands and retailers are expecting to see an   practices – with 28% of brands and retailers                  impact on their company’s proactive investment in   available to provide the data needed to verify that
            increase in consumer spending on sustainable      committed to setting new industry standards for                      sustainability with the following main areas of focus:   sustainability targets are being met.”
            apparel over the next 12 months.                  sustainability.                                                      • Sourcing sustainably produced raw materials (42%)
                                                                                                                                   • Manufacturing sustainability and reducing impacts   As the vaccine roll-out picks up pace across the
                                                                                                                                   of chemicals, water and energy (42%)              world, consumers are beginning to think about the
            Consumers around the world have adapted to social   As the one year of many countries going into
            distancing measures and lockdowns over the last 12   lockdown approaches, the Trust Protocol’s research                • Safe working environments (40%)                 ‘new normal’, with half (50%) of brands and retailers
            months, with the way they dress, work, and shop   findings reveal that 69% of brands and retailers                                                                       expecting to see an increase in customer spending
            changing dramatically. The U.S. Cotton Trust Protocol   believe that the pandemic has emphasized the                   “It is undeniable that the pandemic has caused    on sustainable apparel over the next 12 months. They
            recently surveyed sustainability decision-makers at   importance of environmentally friendly products to               unforeseen challenges for brands, retailers and   attribute the most common drivers for this increased
                                                                                                                                   consumers alike – but this research reaffirms the   spending to a need for people to get back to normal
                                                                                                                                   commitment to a continued focus on sustainability,”   (62%) and that some consumers will have saved
               April/May 2021                                                                                                                                                                                   April/May 2021















                                                                                                                                                                                                       money during the pandemic (67%).

                                                                                                                                                                                                       As work continues towards delivering more sustainable options to meet growing consumer demand, findings
                                                                                                                                                                                                       show two thirds (65%) of brands and retailers agree that data is important to their future sustainability goals.
                                                                                                                                                                                                       The Trust Protocol will provide brands and retailers the critical assurances they need to show the cotton fiber
                                                                                                                                                                                                       element of their supply chain is more sustainably grown with lower environmental and social risk.

                                                                                                                                                                                                       The Trust Protocol is a system for more responsibly grown cotton that has committed to six areas of
                                                                                                                                                                                                       sustainability in line with the U.N. Sustainability Development Goals. It underpins and verifies sustainability
                                                                                                                                                                                                       progress through sophisticated data collection and independent third-party verification, enabling members to
                                                                                                                                                                                                       better track the cotton entering their supply chain.  Members also will have access to aggregate year-over-year
                                                                                                                                                                                                       data on water use, greenhouse gas emissions, energy use, soil carbon and land use efficiency.

                                                                                                                                                                                                       The Trust Protocol is included on the Textile Exchange’s list of 36 preferred fibers and materials that more than
                                                                                                                                                                                                       170 participating brands and retailers can select from as part of Textile Exchange’s Material Change Index
                                                                                                                                                                                                       program. The Trust Protocol also is working to align with existing standards in the cotton industry and is part of
                                                                                                                                                                                                       the Forum for the Future Cotton 2040 and the CottonUp guide.
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