M&S, Co-op and Finlays among the first to sign the commitment
Leading UK retailers, manufacturers and traders have expressed support for building a fairer and more resilient global food system through pre-competitive collaboration.
The moves comes as the UK government published its new trade strategy, which features a real-life example of how companies can collaborate through Fairtrade’s Shared ImPact business model to deliver for people in the UK and overseas, and for their businesses, amid increasing pressures on global supply chains due to climate change, economic instability, shifting regulation and a volatile trade system.
The Fairtrade Foundation said it submitted evidence earlier this year to the Department for Business and Trade to encourage a trade strategy that supports social, economic and environmental sustainability and helps drive progress towards the SDGs.
As a key innovation within the trade strategy, the Fairtrade Foundation recommended a commitment to support pre-competitive collaboration between businesses to protect human rights, tackle climate challenges and drive sector-wide changes.
The Shared ImPact Initiative achieves its goals through a “pre-competitive arrangement” under which the Fairtrade Foundation identifies pools of producers who are able to provide additional product on Fairtrade terms.
The foundation said retailers have welcomed Shared ImPact as a solution that enhances supply chain transparency, ensures fairer prices, and fosters stronger relationships between producers and buyers.
Signatories of Fairtrade’s joint statement of commitment also recognise the urgent need to transform procurement practises within supply chains to achieve both environmental and supply resilience, and producer equity.
They acknowledge that addressing climate change and human rights requires collective action rather than individual efforts.
Retailers will also benefit through enhanced reporting and sustainability credentials, aligning with increasing regulatory requirements in the UK and EU, the foundation said.
Signatories so far include M&S, the Co-op and Finlays.
Kerrina Thorogood, partnerships director at the Fairtrade Foundation, said: “We’re delighted that so many retailers, manufacturers and traders welcome the need for precompetitive collaboration to address key sustainability challenges – including Shared ImPact – and that the UK government recognises the value of pooled sourcing and long-term commitments with our essential producers as key tools to address critical sustainability, resilience and livelihood concerns related to cocoa, bananas and coffee.
“We plan to share our experience and learnings as we roll out Shared ImPact over the coming months to help improve industry understanding of the benefits of pre-competitive collaboration.”
