Wool integrity schemes on the rise

By Victor Chesky

There are a number of integrity verification schemes operating throughout the wool industry worldwide. These schemes can broadly be divided into two categories; schemes operated by players within the wool industry itself such as wool export companies; and external independent schemes, such as Responsible Wool Standards (RWS), Global Organic Textile Standard (GOTS), and Global Ecolabelling Network (GEN). International wool industry standards and certifications are not new. The Woolmark Company’s quality certification has been guiding consumers for over 60 years. What is new, however, is the demand by the consumer at retail for information beyond just quality and fibre performance. Now the focus includes good environmental credentials and ethics all the way to the finished product. Most integrity schemes aim to provide authenticated information from the farm that grows the wool on sustainable land, and treats its animals and people to accepted standards, and also provide greater information about the wool that is processed - using clean water, bio-degradable chemicals, and renewable energy sources. These schemes are all backed up by a block chain infrastructure that transmits this verifiable and certified information along the supply chain from farm to hanger.

This article provides information about some of the integrity schemes available around the world. It looks at their objectives and explores whether the wool industry would be better served by a single scheme accepted by all within the industry.

Michael Modiano, of Modiano topmaking comments, ‘we are in favour of integrity schemes but believe it’s important for the industry to converge towards common standards. It would be confusing and counterproductive to have a plethora of schemes representing different interests and varying levels of reliability and robustness. We are seeing an increase in demand for RWS accreditation and have therefore joined this scheme. We also have EU Ecolabel accreditation which ever more of our clients trust.’

Eric Durand of Lempriere Bulgaria also comments that ‘we have seen a growth in demand for RWS certified tops and now around 20% of our top production in Bulgaria is RWS certified’. Each manufacturing stage has its own interest, or lack of interest, regarding the integrity schemes best suited to them. In addition wool producing countries are each embracing their own localised integrity scheme options. There is no shortage of opinions within the industry as to which schemes are most suitable , and as the availability of certified wool is limited, large users must source from a number of

schemes to access the quantity of happy with any integrity scheme certified fibre they need. as long as it provides information Some insist that independent that is accessible and reliable. certification is more objective Interior textile products, such and will be better accepted by as carpet and upholstery, that consumers. Others believe that use crossbred wool, have not industry certification is just as experienced the same consumer reliable as long as the information pressure for environmental is freely available for anyone to certification as finer wools. trace the wool right throughout However this is now changing. its journey from farm to finished Major retailer IKEA announced product. that its stores will only sell Perhaps it would be fair to suggest products that contain RWS that the retail consumer will be certified wool. A laudable gesture,

“To better understand the process of sheep farming and wool processing Südwolle Group operates its own Mount Hesse sheep farm in Victoria, Australia. Rather than blindly following the varying approaches taken by the growing number of schemes now available Südwolle Group has chosen to approach this issue to better understand the reasons behind their requirements. ‘Wool Integrity Schemes are very important to us’, says Südwolle Group. ‘They establish guidelines and criteria for the entire wool industry, and environmentally and socially responsible production should be in all our interests!’ “Our Mount Hesse team feels that we have a responsibility to not only have a production system that suits our own goals but also the values and aspirations of the global community that utilise our products such as our raw wool’, says farm manager David Kininmonth. ‘’Schemes like ZQ and RWS open up a holistic view of our farm as part of this community and the gives us guidelines that allow us to go some way towards meeting if not aspiring to achieve the standards set out. The standards have made us review every aspect of our production system so that not only are our sheep happier and more productive but our staff are also working in a safer more collaborative work place.”

but New Zealand is the biggest producer of crossbred wools and to date it has less than a dozen RWS certified farms. UK also has a limited number. So, surely there are not enough to supply IKEA and other large retailers that may pursue this same path. number of companies in New Zealand offering alternative integrity schemes for crossbred wools. Bloch & Behrens NZ markets its wool under the Wool Integrity NZ scheme, and New Zealand Wool Services International offers its traceable Purelana brand. Operating in New Zealand, Schneider Group offers Authentico and Chargeurs Luxury Materials offers Nativa, as all-round integrity schemes. New Zealand Woolscouring Ltd, the only scourer in New Zealand, is both RWS and GOTS certified. New Zealand Merino offers QZ certification for NZ Merino wool. Few would disagree that environmental issues are fundamentally important. Nevertheless the objectives at retail are to deliver to consumer demand, and still safeguard brands from unfair vilification from animal rights groups. It is for these reasons that retailers and brands favour more independent certification from outside the industry, such as RWS, that is more widely accepted worldwide. Woolgrowers, on the other hand might favour local certification that is more manageable and cheaper to implement. Topmakers, spinners, and weavers, in the middle of these two pressure groups, need to navigate the varied and numerous landscapes of integrity schemes available.

Talking to wool industry players it is hard to see a clear majority view that could create a unified scheme - growers, exporters, and some topmakers see external certification as an unnecessary extra cost. It can also be a logistical and administrative nightmare to implement when dealing with 100,000 wool growing farms in Australia alone. Surely the main issue is how to effectively transmit verifiable data throughout the production chain in the most cost effective way.

The reality is over 70% of the world wool clip is processed in China. 60% of products made from this wool are for the domestic Chinese consumer. Many of these consumers lag behind their international counterparts in concern for the environment and sustainable production. But the growing disposable income and buying trends of China’s domestic consumer suggest they will catch up soon enough. The growing need for integrity schemes and certification is not just an issue of animal welfare, but an acknowledgement that selling a wool product needs a story, and if that story is open to negative messaging it is damaging to the industry. The further along the production chain toward fabric and garment manufacturers and retail, the greater the need for environmental accreditation. If you adopt the basic economic principle that the customer is always right then the industry must find a way to convince the consumer that wool is a natural fibre with excellent environmental credentials and ensure that this distinction is plainly evident. But in doing so a way must be found to ensure that an increase in fibre cost does not reach a level that will see consumers walk away from wool all together.

Independent Schemes

The Responsible Wool Standard

(RWS) scheme is gaining a foothold worldwide. It is a voluntary standard that provides an opportunity for farmers to demonstrate their best practices, and is a means for brands to build trust with consumers. It is operated by Textile Exchange, a global nonprofit organization incorporated in Texas USA in 2002, initially designed to save the cotton industry from accusations of worker exploitation and abuse. This scheme has specific standards in relation to wool and mohair fibre. RWS certification ensures that wool comes from sheep that have been raised with respect to their Five Freedoms, that the land has been managed responsibly, and validates the source of the material for all

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products. Any player, at any stage of the wool production chain, from wool grower to topmaker, spinner, or weaver, can seek RWS certification. Using the same certification throughout the production chain simplifies the flow of documentation, and is this is why it is gaining wider acceptance.

Global Organic Textile Standard

(GOTS) is a worldwide textile processing standard for organic fibres, including ecological and social criteria, backed by independent certification. The GOTS standard defines organic status of textiles, from raw materials, through environmentally and socially responsible manufacturing, to labelling, and providing a credible assurance to the end consumer.

At all stages of processing organic fibre products must be separated from conventional fibre products and clearly identified. All chemical inputs (e.g. dyes, auxiliaries and process chemicals) must be evaluated and meet basic requirements in toxicity and biodegradability/eliminability, prohibition use of toxic heavy metals, formaldehyde, aromatic solvents, functional nanoparticles, genetically modified organisms (GMO) and their enzymes. The use of synthetic sizing agents is restricted; knitting and weaving oils must not contain heavy metals, bleaches must be based on oxygen (no chlorine bleaching), and Azo dyes that release carcinogenic amine compounds are prohibited.

Version 6.0 was published on March 19, 2020, 15 years after the launch of the 1st Version. GOTS relies on a dual system to check compliance with the relevant criteria consisting of on-site auditing and residue testing. OEKO-TEX® - STANDARD 100 by OEKO-TEX® is one of the world’s best-known labels for textiles tested for harmful substances. OEKO-TEX® consists of 18 independent research and test institutes in the field of textile and leather ecology in Europe and Japan with contact offices in more than 60 countries. The independent OEKO-TEX® partner institutes are entitled to conduct appropriate laboratory tests or company audits in accordance with worldwide standardised guidelines. These comprehensive product and process tests guarantee risk management, consumer and environmental protection, as well as legal conformity. The test criteria are globally standardised and are updated at least once a year on the basis of new scientific information or statutory requirements. EU Ecolabel is a label of environmental excellence that is awarded to products and services meeting high environmental standards throughout their life-cycle: from raw material extraction, to production, distribution and disposal. Established in 1992 and recognised across Europe and worldwide, the EU Ecolabel promotes the circular economy by encouraging producers to generate less waste and CO2 during the manufacturing process. The EU Ecolabel criteria also encourage companies to develop products that are durable, easy to repair and recycle and provides guidelines for companies looking to lower their environmental impact and guarantee the efficiency of their environmental actions through third party controls.

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REACH is a European Union regulation concerning the registration, evaluation, authorisation and restriction of chemicals. It came into force on 1st June 2007 and replaced a number of European Directives and Regulations with a single system. Although REACH does not apply to other countries outside the EU, it is an international reference for other countries. For example, Switzerland is not part of the EU but generally accepts EU regulations. BLUESIGN technology provides independent monitoring from material from factory to final product. It provides expertise in chemistry and textile production, as well as specialist services to oversee a robust system of factory auditing and certification. This Swiss company is involved at every step in the supply chain—from chemical formulation to finished product—to keep chemicals of concern out of the process. Main areas of certification are resource use including water, energy and chemical use; occupational health and safety; water and air emissions for standards for pollution control; and consumer safety with an emphasis on chemical safety requirements for textiles.

Schemes by International Wool Companies

Two main schemes operating in all major wool growing countries are Authentico by G. Schneider Group and NATIVA™ Chargeurs Luxury Materials. Regulation 2092/91). Customers can choose organic wool, nonmulesed wool, or RWS certified wool. All G Schneider Group processing mills are GOTS and RWS certified. NATIVA™ by Chargeurs Luxury Materials certifies every step of the supply chain, from farm to brand. It has a presence from grower to mill, and industry partners including spinners, processing fine wool, cashmere, vicuña, silk, and other animal fibres at its eight processing mills around the world. The Group also manages 13 farms in Australia, New Zealand, Argentina, and cooperatives in Mongolia and Peru, most of which are GOTS certified. Authentico certified wool comes from 400 selected wool growers from Australia, New Zealand, and Argentina. All farms are audited by Control Union. CU is an independent, internationally operating organization that carries out inspections and issues certificates for sustainable production methods based on EU organic requirements (EEC weavers, knitters and garment makers. Nativa™ certification recognises animal welfare, land management and environmental sustainability and protection, as well as social responsibility. Chargeurs Luxury Materials sources its fibre from Australia, NZ, USA, Uruguay, and Argentina, and processes wool into tops in the USA, Uruguay, Argentina, and

“Devold of Norway says ‘Sustainability is not a trend. It is the very foundation that Devold is built on. It is about a strong belief that nature has the answer to the climate problem caused by the textile industry. It all comes down to choosing natural materials that degrade after use. All Devold garments are traceable and over 60% can be traced all the way back to the farm where the wool came from. You can find the farm on the garment’s label. We source our wool from 3 farmers in Australia, 2 farms in Argentina, and 15 farms in New Zealand. Devold is REACH standard compliant for use of chemicals and chlorine free TEC treatment. All products are Oeko-Tex certified and all cut-offs from its textile production is recycled, and sold and used in new products.”

China.

Australia

80% of world merino wool is produced in Australia, in particular superfine merino, increasingly used in active and leisurewear, where the issues of environmental integrity accreditation are increasingly more important.

The National Wool Declaration (NWD) was introduced in 2008 to provide information to users and buyers of Australian wool. The NWD is a voluntary Declaration from woolgrower about information that cannot be objectively measured, namely Mulesing Status and Dark and Medullated Fibre Risk (DMFR).

The information from the NWD is transferrable along the pipeline and is used by buyers of Australian wool. Following its inception, there has been increased interest in the NWD along the wool pipeline, in particular for Mulesing Status Verifications. NWD data is passed on to Australian Wool Testing Authority (AWTA) where it is published on Test Certificates and stored in AWTA Central database. This process occurs for virtually all wool which is presale tested by AWTA.

The SustainaWOOL™ Integrity Scheme was established in Australia in 2015 by New England Wool. Today it is managed by the Australian Wool Exchange Limited (AWEX) to provide accreditation for sustainability standards within the wool production system in Australia. SustainaWOOL™ has over 1,000 accredited wool grower members. Over one-third of all accredited SustainaWOOL™ growers produce non-mulesed wool.

Wool Solutions, a wool brokering company in Tasmania became RWS certified 12 months ago. ‘We now market well in excess of 1 million kgs of RWS certified wool annually’, says Alistair Culvert. ‘We have a strong engagement with many downstream wool processors along with wholesale and retail companies. By engaging with brand partners and retailers we are able to deliver better value to both buyer and seller; in many cases for little or no extra cost. ‘It has always been our view that we need to collaborate with our ultimate customers to drive improved financial outcomes for farmers. The commodity approach may be fine and suit some, but in our view this is never going to drive true engagement and excitement about a product on which all of our livelihoods depend. Unfortunately, the broader wool industry was slow to react to the increasing demand from consumers to better understand everything there is to know about the products they consume. At that time the industry was devoid of a verification or assurance certification that could represent farmers in a way that didn’t compromise other aspects of their business.

‘This has led to the situation where commercial businesses have tried to “paddle their own canoe” to try and gain competitive advantage. Unfortunately, this has only confused Australian wool growers. Some have become members of numerous single faceted schemes, and often they have become disgruntled with all schemes.

‘To represent the best interests of both ends of the supply chain we needed to deliver the continuous improvement end consumers are demanding in a user-friendly verification scheme recognisable by industry as a whole and not just by individual processors or brands’, Alistair Calvert comments.

New Zealand

As mentioned earlier, crossbred wools have not come under the same pressures for environmental accreditation as merino wools. However, New Zealand wools are gaining a foothold in the activewear market, and therefore with the younger buyer, who is often more in tune to sustainability and environmental issues. And although the New Zealand wool industry does not have a unified certification

“In the last few years we have experienced a significant increase in customer requests for integrity scheme verification’, says Vincenzo Tumini, Marzotto Raw Material Purchase Director Marzotto Italy. ‘The Marzotto purchase system is built to ensure we have a constant supply of quality wools. The direct connection with farmers is a key point that enables us to transform the requests of final customers into best practices on the ground’, he says. ‘Our entire production process – from wool combing to dyeing, spinning, weaving and finishing, is certified GOTS and RWS. We also use Authentico and ZQ’. ‘We are raising awareness among wool associations and single farmers about the importance of increasing wool availability, and providing certifications demanded by brands and final customers. Looking at the whole industry we are waiting for a final assessment of a unique integrity scheme that will support market competition and provide information about fabrics – as well yarn or garments,’ says Vincenzo Tumini.”

scheme, individual companies have come on board. While mulesing is not generally practiced in New Zealand, the New Zealand government passed a law last year to prohibit this practice. Bloch & Behrens, a leading exporter of wool to European markets, launched Wool Integrity NZ™ in 2015 and now partners with many users of New Zealand wool around the world. The brand is based on visibility and transparency around important aspects such as animal welfare, wool quality, environmental sustainability and land management practices. It provides a transparent supply chain from farm to market. Purelana™ Red Band wool by New Zealand Wool Services International (NZWSI), the largest exporter of greasy and scoured New Zealand wool works to ISO 9001 and 14001 standards and has Eco Labelling, GOTS, and REACH certification. ZQ certified wool is a 3rd party audited certification, established in 2006 by The New Zealand Merino Company to provide a mark of integrity for farmers committed to the ethical production of wool. ZQ grower certification can be gained by merino, mid-micron, and strong wool growers from around the world who meet the standards in animal welfare and health, environmental sustainability, social responsibility, consistent fibre quality, and traceability to fibre origin. The ZQ programme is underpinned by long term forward contracts, providing brands and growers with certainty in fair and sustainable pricing, quality and availability.

ZQ is used by leading brands such as Allbirds, Icebreaker, Smartwool, Hugo Boss, Glerups, Best Wool Carpets and Egetaepper, who have established long term relationships with their grower suppliers.

New Zealand Woolscouring Ltd is the only wool scouring company in New Zealand, scouring over 50% of the New Zealand clip. ‘Our wool is the cleanest wool on the planet with the lowest level of fibre residue’, says Nigel Hales CEO. ‘We are accredited with RWS and GOTS. In addition,

by New Zealand law, we must be

able to trace the entire product that we receive back to the farm of origin. Our very comprehensive recording systems allow us to follow that wool though to export deliveries’.

South Africa

The Sustainable Cape Wool Standard (SCWS) is an industry owned standard and Cape Wools, as the representative industry body, provides market driven supply chain intelligence to offer assurance and trust for users downstream. ‘Wool is a brand and the trust we put in the wool brand starts on the farm. To ensure that trust can be established with the consumer, we need to ensure there is transparency across the entire supply chain, and this starts with a traceable source from the farm’, says Deon Saayman, General Manager Cape Wools.

‘We have successfully rolled out broader sustainability guidelines, based on the initial Cape Wools Code of Best Practice’. The guidelines are measured onfarm and based on the principles contained in various standards, including the RWS. The rapid growth in demand for RWS certified wool has probably made this standard the most recognised in the global textile sector and the Cape Wools standard will be a good measuring tool for producers. The assessment of a producer’s practices is a completely paperless process and will enable every farmer to be certified as sustainable, irrespective of the size of their farming operation. ‘The SCWSA is displayed in the sales catalogue’, he continues. ‘This creates the basis for a sustainable, traceable wool supply, integrated into a single platform, incorporating critical bio-security recording principles’. South Africa is the biggest producer of Mohair. The Responsible Mohair Standard (RMS) was officially launched in March 2020. Lindsay Humphries, General manager at Mohair South Africa, comments on its work with Textile Exchange and its RWS: ‘their approach was progressive, inclusive and thorough. The 24-month process saw engagement with hundreds of stakeholders, which included farmers, mohair traders, processors, spinners, luxury brands from across the world, as well as leading experts in sustainability standards and incredibly valuable input from the South African mohair industry’s own veterinarian’.

‘We understood that sustainability was not a quick-fix, but rather a journey in ultimately changing the underlying culture of the industry over time. 2009 saw the launch of the Sustainable Mohair Production Guidelines. A decade later we identified the need to adapt further. The first step in this new part of our journey was to find the right partners that were not only credible and respected internationally, but also had experience in developing and executing standards within natural fibre. Global fashion brands had to be included, as they represent a critical stakeholder within the value chain’.

Uruguay

Excellent environmental conditions have always created favourable growing conditions for wool growers in Uruguay. Ignacio Abella of SUL says: ‘the Uruguayan wool industry is committed to achieving the highest standards

of animal welfare. Uruguayan wool is 100 % mulesing-free and produced under the best animal husbandry practices according to the “Guidelines for ethical sheep production in Uruguay”. In recent years, some topmakers and greasy wool exporter companies have arranged with woolgrowers to achieve the GOTS protocol (organic wool) and the Responsible Wool Standard protocol (welfare of sheep and land they graze).’ According to Pedro Otegui of Lanas Trinidad, who has always been a champion of sustainable and environmentally friendly wool production, ‘we are convinced that people will behave differently in their day to day lives after COVID-19. In this new scenario we believe that the number of potential buyers willing to consume natural and renewable resource products over and above non-renewable man-made fibres will rise rapidly. Increased curiosity about the world around will see buyers wanting to know more about what they are wearing. This vision embraces concepts like Animal Welfare, Wool Traceability and Environmental Impacts among others’.

Argentina

Argentina is one of the five major wool producing and exporting countries in the world. The major sheep-producing area in Argentina is the Patagonia region in the south where there are around 10.5 million sheep, of which 75% are Merino. All major exporters of greasy wool and tops are certified “ Our commitment to sustainability comes from a deep love for the environment as well as for the local territory and its physical and natural resources, a bond that is the basis of the Group’s efforts to preserve the culture of wool and its manufacturing techniques’ - Francesco e Fabrizio Botto Poala of REDA says. “We have always listened to the market and we tried to anticipate the interests of the final consumers, as they become increasingly aware and informed. They are very interested in traceability, the origin of the raw materials, the treatments they undergo during processing and the well-being of those who work there. In 2009, Reda made an agreement regarding the acquisition of raw materials from New Zealand using ZQ certified farms. The certification ensures animal welfare, the wool is not mulesed, and there is full traceability of the wool’s path from the farm to the mill. In March 2015, Reda, through its Australian wool acquisition company, New England Wool, created the SustainaWool accreditation framework aimed at Australian growers. The fundamental philosophy is to promote the production of the best wool through a sustainable management of physical and natural resources while respecting animal wellbeing and tracing the entire path of the wool. Today SustainaWool is the accreditation system with the most farms in the world and is currently in the process of including RWS. Today more than ever, we have a duty to evolve and seek full-circle sustainability that looks at all aspects of the company, people, environment, finance, and suppliers. And that’s why we decided to start the process and have now become a B-Corporation. This social and environmental performance certification was obtained through an evaluation and control process that involved all areas of governance, employee relations, customer relations, role within the community and environmental sustainability of the processes and products, without any impact on any preexisting processes.”

and most with RWS. Lempriere Argentina and Fuhrmann (G Schneider Group) export greasy wool and tops that are RWS certified.

USA

The American Sheep Industry Association is not currently partaking in the Textile Exchange’s RWS program although there are a few companies in the US that do participate. ASI has been working on developing the American Wool Assurance (AWA) Program, an independent scheme that is appropriate for the American industry. The AWA has completed the initial phase of development and is currently undergoing review before the next development phase and plans are to have it finalized at the end of 2020/beginning of 2021.