In our continuously changing industry, the value of authenticated data and supply chain transparency plays a crucial role in promoting sustainable cotton cultivation, now more than ever. It goes beyond meeting consumer demand for sustainability - it's about ensuring competitiveness and compliance with evolving regulations.

For our growers, precise data is a powerful tool. It enhances farming practices, boosts productivity, and helps improve environmental impact. Furthermore, a transparent supply chain paves the way for better market access and considerable cost savings over time.

Our U.S. Cotton Trust Protocol, a voluntary program designed specifically for U.S. cotton growers, provides a traceability platform for all U.S. Cotton. The robust system of data capture, aggregation, and reporting forms the backbone of the Trust Protocol, reinforcing our efforts towards sustainability. Last month, we had the opportunity to publish our third annual report, highlighting the strides our growers have made in advancing sustainable cotton production in the United States. Some personal highlights include:

• Sustainability metrics tracking: Our robust data capture system enables us to track improvements accurately on the six key sustainability metrics – land use, soil carbon, water management, soil loss, greenhouse gas emissions, and energy efficiency. Despite challenging growing conditions, the 2022-23 crop year saw continued improvements across all these metrics compared to a 2015 baseline. These improvements were achieved through the adoption and implementation of sustainable growing techniques such as regenerative agriculture practices.
• Increase in grower participation: The significant increase in grower participation, reaching a milestone of 1.7 million planted cotton acres enrolled (representing 23% of all harvested cotton acres), demonstrates the program's growth and commitment to supply chain transparency. This achievement ensures a consistent supply of sustainably grown cotton, backed by verified data. 48% of Protocol growers have also opted to participate in our U.S. Climate Smart Cotton Program, demonstrating their ongoing commitment to sustainable practices.
• Membership growth: The addition of over 2,000 supplier members and more than 40 global companies, including Ralph Lauren, Levi Strauss & Co., Macy's, and J.Crew, signifies a broad recognition of our commitment to verified data and supply chain transparency.
• Unparalleled supply chain transparency through Protocol Consumption Management Solution (PCMS): This transparency tool has enabled 19 brands and retailers to track more than 39 million finished products against 24 thousand purchase orders. As a result, 7.3 million kilograms of U.S. Cotton and Protocol Cotton have been consumed by our brand and retailer members. Our platform has captured over 1.3 billion kilograms of Protocol Cotton and corresponding environmental metric data, equivalent to 5.5M bales.

Traceability is integral in the fashion and textiles supply chain as it brings transparency and accountability to the production process. With verified cotton growing data and supply chain transparency, the Trust Protocol is poised to help members in complying with regulations such as the EU Corporate Sustainability Reporting Directive (CSRD). Our team actively monitors and evaluates program data alignment, aiding members in meeting disclosure requirements in areas such as climate, pollution, water, biodiversity, and worker well-being.

At the Trust Protocol, we aim to provide brands and consumers with a clearer picture of the source of their cotton, offering insights into the growers who cultivate it and the measures they implement to improve their environmental impact. We are optimistic about the opportunities ahead and look forward to collaborating with our counterparts across the fashion and textiles industry to advance sustainable cotton production.