Fair Trade C E R T I F I E D

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1 Fair Trade C E R T I F I E D Every Purchase Matters. Apparel & Home Goods Program

2 What is Fair Trade? Safe Working Conditions Guarantee of safe factory working conditions Advancement of People Direct mechanism to improve worker livelihoods Protection for the Planet Focus on environmental stewardship Consumer Activation Celebrate responsible sourcing practices with your consumers

3 By the Numbers - Fair Trade USA Founded in Fair Trade Farmers Certified Product categories 1,200+ Companies selling Fair Trade Certified products 2m+ farmers & workers in 72+ countries impacted $350m+ Community Development Funds sent back to farmers and workers since % Consumer awareness of the Fair Trade Certified label in the U.S.

4 Fair Trade USA APPAREL & HOME GOODS PRODUCT CERTIFICATIONS The Apparel and Home Goods Program provides three certified product options for brands: COTTON: Product made with Fair Trade Certified Cotton FACTORY: Product made in a Fair Trade Certified Factory FULL PROGRAM: Product made with Fair Trade Certified Cotton in a Fair Trade Certified Factory Cotton farm is certified by Fair Trade and cotton farmers receive a premium to use for social and economic investments. Factory is certified by Fair Trade and factory workers receive a premium to use for social and economic investments. *Products sourced on Fair Trade Terms from Certified Suppliers can be labeled accordingly

5 Fair Trade USA Factory Program 30k+ workers impacted in 12 countries Farmers $2.3m+ Community Development Funds sent to workers through Fair Trade Premium since 2011 $1.4+ Community Development Funds sent to workers through Fair Trade Premium in Million Fair Trade Certified Factory Products 34 Fair Trade Certified Factories

6 Fair Trade USA APPAREL & HOME GOODS BRAND PARTNERS

7 How Fair Trade Factory Certification Works: Worker Health & Safety The Fair Trade Premium Worker Empowerment Consumer Activation Fair Trade Certified Factories are audited against the Fair Trade Factory Standard, which assures safe working conditions, proper pay and benefits, etc. In addition to the cost of goods, brands pay a Premium for each Fair Trade Certified product. These funds, called the Fair Trade Premium, accumulate and are placed into a worker-managed bank account. Workers use the Premium money to fund projects that best address their community s greatest issues and needs. Fair Trade engages consumers and raises awareness about the need for ethically traded products; the Fair Trade Consumer-Facing Label enables consumers to easily identify and purchase quality products that align with their values.

8 FT USA Factory Program WORKER HEALTH & SAFETY Fair Trade USA Factory Standard Fair Trade USA Social Compliance Requirements Covers all the International Labor Organization (ILO) requirements and is based on SA8000 Prohibited Forced Labor Prohibited Child Labor Freedom from Discrimination and Abuse Freedom of Association + The Fair Trade Certified Difference: Beyond Compliance Economic Development Fair Trade premium: 1-10% FOB Worker Engagement Worker trainings, grievance procedures, and Fair Trade Committee Women s Rights Equal pay and rights for women Fair Trade USA drives best-inclass worker health and safety at factories through the Fair Trade Factory Standard. In addition to ensuring safe working conditions, the objective of the standard is to increase empowerment, economic development social responsibility, and environmental management. Factories are audited against the Fair Trade Standard annually. Legally Required Wages and Benefits Health and Safety Protections Standard Work Hours and Mandatory Breaks Environmental Management Reducing water, waste and energy usage To view the Fair Trade Factory Compliance Criteria, click here.

9 FT USA Factory Program FAIR TRADE PREMIUM & WORKER EMPOWERMENT Fair Trade Premium to Workers: The Fair Trade Committee Fair Trade ensures an additional financial Premium to workers on every certified item. The Fair Trade Premium is a mechanism to directly improve worker livelihood and enable a journey to living wage. Examples of Fair Trade Premium Projects: Health and sanitation projects Childcare facility Bicycles for workers Cultural celebrations Medical programs or health insurance policies Savings accounts & investment schemes Coupons for basic household Items Hot plate and cookware sets Etc. Workers at Fair Trade Certified factories democratically elect their co-workers to represent the greater worker voice on a Fair Trade Committee. This Committee meets throughout the year with factory management to discuss issues at the factory. They also conduct worker surveys to identify community needs and propose Premium project ideas. The Fair Trade Committee is responsible for effective management of the Fair Trade Premium fund. A Fair Trade Committee Meeting at a Certified factory in India

10 FT USA Factory Program WORKER EMPOWERMENT: FAIR TRADE PROJECT PLANNING FT COMMITTEE MEETINGS FT WORKER TRAINING & SURVEY IMPLEMENTATION ANALYSIS & IMPLEMENTATION OF FT PROJECT FAIR TRADE PREMIUM PROJECT PLANNING: Example from a factory in Pakistan FT USA Field Staff meet with the FT Committee to train them on their role as a FT representative. They survey the workforce to understand the community s priority issues. The FT Committee then decides on a few top project ideas to meet these needs. FT Committee introduces the FT Premium project ideas to workers. The entire workforce votes on their favorite project(s) to be implemented with the Fair Trade Funds. Results are reported out to the worker community. The FT Committee uses the FT Premium fund to implement the project(s) they selected. EXAMPLE OF SURVEY VOTING PROCESS HEALTH CLINIC RUN WITH FAIR TRADE PREMIUM

11 FT USA Factory Program CONSUMER ACTIVATION As the marketplace moves towards authenticity, wellbeing, sustainability and social purpose, consumers now seek low-touch ways to live out their values. Fair Trade Certification provides brands a direct mechanism to improve reputation and build consumer trust. Fair Trade connects every day purchases with consumer values. Consumer Values: % of Consumers that Identify with the following Statements: 91% Whenever possible I try to purchase products or services socially and/or environmentally responsible. 89% I would like to see more of the products, services, or retailers I use support worthy social and/or environmental issues. 82% 85% I would likely to switch brands to one I have a more positive image when a associated with a good cause company supports a social or environmental issue. *Statistics taken from NMI 2015

12 Fair Trade USA THE FAIR TRADE CERTIFIED LABEL 67% of American Consumers Recognize the Fair Trade Certified Label In 2015, there were approximately: 42 million Fair Trade Certified products on the market 1,200 brands selling Fair Trade Certified products 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Awareness of the Fair Trade Certified Label is growing: USA GENERAL POPULATION 34% 38% 55% 59% 67% 0% GLOBAL: 45% 48% 53% New Media Institute 2015

13 Pathway to Brand Partnership CONSUMER ACTIVATION Examples of simple ways to celebrate your work with Fair Trade with consumers: PRESS RELEASES SOCIAL ANNOUNCEMENTS FAIR TRADE LANDING PAGE PRODUCT CATALOGUE Additional marketing engagement provided by Fair Trade USA: ANNUAL CAMPAIGNS GRASSROOTS MOVEMENTS BRANDING & MESSAGING POS MATERIALS & SALES TEAM FAQ

14 Fair Trade Certified Messaging EXAMPLE: PATAGONIA *Watch Patagonia s short film about their involvement in the Fair Trade Program

15 Fair Trade Certified Messaging EXAMPLE: WEST ELM *Watch West Elm s video about Skyline Exports, a Fair Trade Certified Factory

16 Fair Trade C E R T I F I E D Every Purchase Matters. To learn more about FTUSA s Apparel and Home Goods certifications, please contact:

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