Responsible CashmereRound Table (RCRT)

Panel on herders’ challenges and COVID-19 response.

Thursday, May 21, 2020

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Welcome by Anne Gillespie, Textile Exchange

Panelists:

• Naïs Roy PUR Projet in Afghanistan and

Javlon Hamdamov, Oxfam Afghanistan

• Shinenemekh Volooj, Manager of MSCP,

UNDP

• Stuart Anstee, South Gobi in Mongolia and

Guillaume Touati, AVSF

• Ayoshi Ayongxi, International Cooperation

Committee of Animal Welfare (ICCAW) in

China

• Una Jones, Sustainable Fibre Alliance

Agenda

Responsible Cashmere Round Table (RCRT)

The RCRT, as a neutral platform for

cashmere buyers to learn about and

understand the issues, opportunities, and

solutions, brings the industry together to

create a common understanding of the

needs of all stakeholders, look for

alignment on what solutions are needed,

and work with the industry players to

drive action.

RCRT online community on the HUB

• The HUB is Textile Exchange

membership portal

• You don’t have to be a Textile

Exchange member to use and benefit

from the HUB

• Access meeting slides in the Library

• It is a place where Textile Exchange

Round Table participants continue their

involvement with the Round Table

community on daily basis, in addition

to the scheduled meetings

• https://hub.textileexchange.org/home

Market Sector Advisory Group(formerly the International Buyers’ Group)

Mongolia’s Sustainable Cashmere Platform

SUSTAINABLE CASHMERE NATIONAL PLATFORM

Platform Management

Team

Steering CommitteeTechnical

Working Groups

Consensus on Sustainability

Market Access

Capacity Building

Incentives and Financing

Enabling Environment

Technology

Advisory Committee

Office of the President of Mongolia

Mongolian Wool and Cashmere Association (MWCA)

Mongolian National Federation of Pasture User Groups of Herders

Ministry of Environment and

Tourism (MET)

Ministry of Food, Agriculture and Light Industry (MOFALI)

UNDP

FAO

Advisory Committee representative** Will rotate between different programs active in Mongolia

International Buyers’ Group

Plenary Meeting

• The Market Sector Advisory Group(MSA Group) is a small group (max 15) representing companies that buy cashmere from Mongolia. It will play an important role in supporting the MSCP to meet its objectives.

• As the lead of the MSA Group, Textile Exchange will coordinate and lead regular discussions with the MSA Groupand represent its position in communications with the different groups that form the MSCP.

• Membership will be assigned to companies, and we aim to have a balance of members from the full range of regions and sectors.

• It is expected that all members are actively purchasing cashmere from Mongolia.

MSA Group

Expectations of the Market Sector Advisory Group include

• Commitment to Mongolia Sustainable Cashmere Platform values

• Support the Platform objectives and work

• Commitment to attend and engage in at least 75% of IBG web-based meetings

• Commitment to read materials sent and provide feedback when requested

Activities of the Market Sector Advisory Group include

• Provide input on definition and concept of ‘Sustainable Cashmere’

• Provide input on design of a benchmarking tool or similar concept to link brands to programs

• Provide input on new incentives and financing mechanisms to support herders

• Support the work of the Steering Committee and Technical Working Groups, specifically: consensus on sustainability, market access, incentives and financing, technology solutions

Full details of expectations and activities can be found in the TOR for the MSA Group

Benefits of joining the Market Sector Advisory Group include

• Ensuring robust linkages are built between dialogues and work taking place in Mongolia, and international market requirements for your sector

• Play a role in developing a definition and concept of sustainable cashmere that can work for the private sector and reflect the needs of brands and manufacturers

• Being able to co-create action plans and related interventions, ensuring operational, quality, communications and claims requirements are built in

• Demonstrable commitment to the sector and consumers of your company’s interest to support sustainability in the Mongolian cashmere sector

RCRT MEETING

AFGHANISTAN CASHMERE PROGRAM

MAY 21, 2020

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CONTEXT : INTRODUCTION ON THE

AFGHANISTAN CASHMERE PROGRAM

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AFGHANISTAN CASHMERE PROGRAMCONTEXT : THE AFGHAN CASHMERE SUPPLY CHAIN

SOCIO-POLITICAL CONTEXT• Heavy socio-economic challenges, slow growth and

increased poverty• Continued insecurity and political instability

CASHMERE CONTEXT• Third largest cashmere producing country in the world after

China and Mongolia, producing around 7% of the global rawcashmere

• Vulnerable cashmere supply chain and limited knowledgeand resources of herders

• Low quality of fiber and lack of incentives for improvement• Very limited infrastructures and processing capacity

© Joël Van Houdt

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AFGHANISTAN CASHMERE PROGRAMCONTEXT : PRESENTATION OF THE PROGRAM

Other impacted provinces: Samangan, Baghlan, Takhar, Badakhshan, Farah, Badghis and Ghor

As part of Burberry’s responsibility agenda for 2017-2022 and particularly the goal to “Positively impact one million people in the communities that sustain Burberry’s business and the wider luxury industry”, the Burberry Foundation has partnered with Oxfam and PUR projet to launch a 5-year program in Afghanistan to support social and economic empowerment of cashmere-producing communities.

PROGRAM OBJECTIVES• Community resilience and empowerment• Sustainable livelihoods and revenue diversification• Development of market linkages and incentives

KEY FIGURES• 2 provinces directly impacted, 7 provinces indirectly impacted• More than 300,000 beneficiaries targeted

LOCAL PARTNERS

HERAT

BALKH

KEY ACTIVITIES• Cashmere Policy Framework• Cashmere awareness raising through media broadcasting• Trainings to communities• Selective Breeding to improve the quality of the fibre• Strengthening animal health care through paravet services• Creation of collective action organizations (CAOs)

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Covid 19 and Cashmere: Discussion

• “Sourcing executives indicate that the crisis has already led to steep cuts in sourcing volumes. The impact will hit hardest

in the second quarter of 2020, when two-thirds of fashion-sourcing executives expect a cut in volumes of at least 20 percent.”

• “… estimate that revenues for the apparel and footwear sectors will contract by 27 to 30 percent in 2020 year on year with even deeper declines in some subsectors and geographies following five years of

positive growth

• Most sourcing executives are adopting a mixed approach to managing existing orders, including reducing the number of orders, reducing quantities per order, and canceling finished-goods orders.

Suppliers, meanwhile, face difficulties in fulfilling orders because of shutdowns, shortages of raw materials, lack of labor, cash-flow issues, and difficulties in reaching shipping ports

• More than half of sourcing executives have applied temporary staff measures to help manage operating costs, including

salary reductions, furlough, temporary layoffs, and deferred compensation.

McKinsey & Company – May 6, 2020 Report

Time for change: How to use the crisis to make fashion sourcing

more agile and sustainable

Change will happen

“The COVID-19 pandemic offers an opportunity to accelerate transformation toward a demand-driven supply-chain model and sustainable sourcing.”

• … 76 percent of the international sourcing community … believe that the COVID-19 crisis will accelerate flexibility and speed over the next year. Crucial ingredients in a demand-driven supply chain include segmented

assortments with smaller batch sizes, increased transparency, removal of functional silos,

utilizing highly efficient processes supported by tools and analytics, and making use of dual sourcing and nearshoring..

• Almost three-quarters … expect to forge closer relationships with suppliers, partnering on issues like end-

to-end process improvement, finding new investment models, and making industry-wide progress toward social and environmental sustainability.

• many of these changes will require a rethinking of corporate culture and measures to drive accountability and

incentivize change. Most importantly, companies should redouble their efforts to develop ecosystems with innovation partners and experiment with new collaboration models.

Has COVID-19 affected your herders?

Using a case of an individual herder family, can you talk about impact the current situation will

have on their lives?

How does the impact present itself at the community level?

What actions are the communities taking?

What actions is your organization taking to mitigate the impacts?

What are the short term measures needed?

What are the long term measures needed?

Next Steps

• Statement of support:

https://www.jotform.com/TextileExchange/undp-

statement-of-support

• Expressions of interest for MSA:

ResponsibleCashmere@TextileExchange.org

• Next RCRT meeting: July 16, 2020 – to be

confirmed

• To support our work, contact us at

ResponsibleCashmere@TextileExchange.org

TextileExchange.org

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IMPACT OF COVID-19 & MITIGATION

MEASURES

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Cases of Covid19 reported as of May 19, 2020.High concerns around testing, health care capacity. High concerns about herders specifically, living in remote areas (far fromhospitals).

7,653

AFGHANISTAN CASHMERE PROGRAMIMPACT OF COVID-19 IN AFGHANISTAN

Covid-19 has exacerbated the humanitarian needs already high due to ongoing protracted conflict, climatic and economic shocks,chronic poverty, unemployment.

People in need of immediate, lifesaving assistance in May 2020 / 9.4m in January 2020.35m out of 37.6m people in need of emergency social safety net. 13.39 million people are in acute food insecurity including more then9 million in crisis phase and 4.3 million in emergency phase, the worst figures in 4 years. (1)

14 M

Inflation in food markets Food prices have already risen up to 30% in Kabul+20 %

Households who rely on casual labor reporting decreased incomes and interruption of flow of remittances. Women, children & PWD are among the most affected. 70 %

Purchasing power for pastoralists, likelihood for the herders to struggle to buy and sell produce. Purchasing power has decreased by 21% for casual laborers. (2)- 13 %

(1) Source: IPC report(2) Source: WFP vulnerability analysis mapping (March 2019)

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AFGHANISTAN CASHMERE PROGRAMIMPACT OF COVID-19 ON THE AFGHAN CASHMERE SUPPLY CHAIN

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Afghan cashmere processing factories closed end ofMarch due to lockdown restrictions. Local buyers arecurrently not buying cashmere (source: Traitex andAfghan Fibres international)

Low demand for cashmere resultingin very low cashmere price offeredby middlemen:

Herders may result to selling their cashmere with shornhair to middlemen, or might be unable to sell thecashmere at all

Disturbed global cashmere market and reduceddemand for cashmere from most international buyers

~ 10 USD / kg30 USD / kg in 2019

AFGHANISTAN CASHMERE PROGRAMCASE STUDY

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More generally• Adoption of negative and harmful coping

strategies by households, herders;• Reported increase of gender-based violence

(GBV) cases.

MRS. GOL AFROZMrs. Gol Afroz is a 28-years-old widow, mother of threechildren. She owns 20 goats.Due to Covid19 restrictions, she and other herders cannottake their products to the central markets. Cashmere price isonly 15$ this year as compared to 32$ of last year and thereis no real market demand.Mrs. Gol Afroz had to sell 3 of her goats to buy food andother items for the household. She is in dire need of cash,food, PPE and very importantly cashmere marketing support.

From another female community member:

“This virus is really dangerous. I have never seen such a disease in my lifetime, but in our community, poverty is another disease, it is as dangerous as this virus and if people continue staying home this way, a lot of families could die because of hunger.”

Oxfam report, April 2020.

AFGHANISTAN CASHMERE PROGRAMCOMMUNITY ACTIONS

• The level of awareness about Covid19 variesfrom community to community.

• Some communities have established theirown grain reserve banks and are supportingvulnerable families.

• In Herat people have been trying to continuedaily life and ways to earn a living.

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© Joël Van Houdt

AFGHANISTAN CASHMERE PROGRAMIMPACT MITIGATION

• All staff visits to communities and project activitiesrequiring to gather more than 10 people weresuspended in Balkh and Herat.

• PPE equipment was purchased for all beneficiaryhouseholds and key actors involved in the project.

• Efficient communication network created between theproject staff and project bodies and actors to shareessential information on the cashmere supply chain andCOVID-19. Herders were encouraged to harvest theirfibre and store it.

• Continued dialogue with key cashmere players toinvestigate short and long-term market linkages.

• Humanitarian response coordinated by Oxfam todistribute food and basic necessities to vulnerablepopulations.

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AFGHANISTAN CASHMERE PROGRAMSHORT AND LONG-TERM MEASURES NEEDED

SHORT-TERM MEASURES PLANNED• Continuing the dialogue with cashmere buyers to understand

demand and market prices for cashmere• Continuing to raise herders’ awareness around cashmere and

goat management• Funding proposal for immediate support of CAOs to cover the

costs of the cashmere that is not being sold this year –therefore providing an income source to herders, helping tosupport them through any potential food crisis as a result ofthe lockdown period

LONG-TERM MEASURES NEEDED• Strengthening market linkages with national and

international cashmere actors• Strengthening the CAOs economic viability and resilience by

diversifying the income sources for farmers• Continuing the work on cashmere quality improvement to

increase the competitiveness of Afghan fibre and its resilience in crisis situations

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AFGHANISTAN CASHMERE PROGRAMCONTEXT & KEY FIGURES

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Joint presentation by AVSF and South Gobi Cashmere Program

Impacts of Covid 19

37

Covid 19 related RISKS on livestock sector and pastoral communities

While Mongolia is still preserved from the outbreak thanks to strong and early action of government, potential virus spreading might hit harder animal husbandry sector

38

Covid pandemic has triggered:

• Major shift in policy and resources allocation full attention to preparedness/response management.

• Govt deprioritized surveillance and service delivery (expected recurrent FMD (Foot and Mouth Disease) and PPR (Peste des Petits Ruminants) outbreaks-impacts on animal health & welfare and herd productivity might be considerable)

• In case of Covid-19 outbreak:

• Government lockdown measures (e.g- ban of intra and inter-provincial travels) might hinder transhumance and tremendously impact animal nutrition and herd productivity

• WHO and MoH (Ministry of Health) consider that Covid would spread fast in rural areas. Pastoral communities have little awareness of Covid dangers and capacities to apply sanitary preventive measures.

IMPACTS of Covid 19 on Herders

Covid 19 pandemic impacts all players in the cashmere supply chain. The impacts on herders are however more far reaching for sustainability aspects of the supply chain.

39

• Herders’ main cash income - 95% from cashmere sale.

• After the cashmere sales - Herders pay debt from the previous year or from longer term loans

• Indebtedness vicious cycles might considerably worsen

• Prices for raw cashmere – 50-60% lower than the previous year

• Herders have no to limited ability to store raw cashmere in the hope that the price will rebound.

MITIGATING the impacts

Mongolian government (Gov.t) capacity to mitigate the economic impacts of Covid 19 is limited.

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Gov.t original proposal did not workand had negative impacts

Gov.t considered policy

• Provide soft loan to 20 companies (3% interest rate)

• Setting a base price of 100,000 MNT/KG

• Announced 20,000MNT/KG subsidy for herder that sell to selected processors aligned with a Gov.t loan scheme.

• Yet, there is still no clarity on how to implement this policy

Gov.t has little capacities to

(i) prioritize and safeguard livestock healthcare input supplies and health

services;

(ii) carefully monitor socio-economic impacts on pastoral communities and take

appropriate measures to ensure that basic living conditions are met;

(iii) refocus livestock products export strategy on meat export and take

opportunity of ASF-related increasing Chinese demand for meat;

(iv) raise awareness of pastoral communities and provide them with mobile

health and veterinary services.

MITIGATING the impacts

Mongolian government (Gov.t) capacity to mitigate the economic impacts of Covid 19 is limited.

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Short and long term Implications

The impacts of Covid 19 could have a significant long term impact onsustainability related initiatives if not correctly managed.

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• The economic impacts reinforces the viewpoint that large herd sizes (often in excess of the grazing capacity of the rangeland) is the best way to avoid financial hardship associated with downturns in the cashmere market.

• Loss of herders from the supply chain could result in short term lack of supply will intern put pressure on herders to increase herd sizes to capitalize on increased demand and higher prices in the future.

• Increasing herd size contribute to increasing pressure on rangelands, additional efforts in managing common rangeland resources and wildlife.

• Decreased buying power might lead to poor capacities in purchasing livestock healthcare supplies and basic commodities, in turn directly impacting herd and pastoral management capacities.

• Most vulnerable herders, too heavily impacted, might quit animal husbandry, potentially increase illegal hunting of wildlife, and illegal gold mining and even potentially drive herders from the land into cities.

What can brands do?As major players in the supply chain brands should contribute topreserve the socio-economic fabric constituting the substrate of theentire supply chain

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➢ Brands can channel financial resources through the sustainability initiatives and or specialized organization to support;

➢ Contribute to sustainability incentives that are provided to herders independently to price negotiations;

➢ Roll out awareness raising campaign (on sustainable cashmere production?)towards herders

➢ Support pastoral communities and herders’ cooperatives for income generation and economic diversification

➢ Implement Water Access Sanitation Hygiene actions and delivery of sanitary inputs and protection equipment

➢ Put in place combined health & veterinary mobile services

Thanks to our partners

44

AVSF and the South Gobi Cashmere project would like to say thanks to our donorsand project partners. Without them our initiatives would not be able to moveforward

AVSF• The Union of Sustainable Cashmere

Cooperatives• European Union• French Facility for Global Environment

South Gobi Cashmere• Kering• Oyu Tolgoi LLC• Wildlife Conservation Society• Vet Net• Wildlife Friendly Enterprise Network• Stanford University’s Natural Capital Project• NASA

Thank you!Questions and Comments?

Impact of the Epidemic on Herders & Coping Measures

Ayoshi

ICCAW President

Epidemic data in

Inner Mongolia

18

Current

cases

209

Total

cases

Up till May 14th 2020

1. Does Covid-19 have any impact on herders?

With strict management and control of the government

and joint efforts of the whole society, the epidemic has

been under effective control. Since May, the total number

of newly confirmed cases has been in single digit.

Due to the epidemic impact, sales of garments

declined, leading to the cancellation or delay of

most export orders, resulting in a sharp fall in

cashmere prices. Compared with 2019, the

price of cashmere harvested by shearing falls

by about 26% and that of cashmere harvested

by combing falls by about 24%.

230

330

170

250

0

50

100

150

200

250

300

350

套子绒 原绒

Comparison in cashmere prices

2019 2020Unit：yuan/Kg

Purchasing price of cashmere has been much affected

There are restrictions in herders going to work in other areas, although the proportion of migratory

workers in the pastoral area is not high.

Inconvenient transportation and price inflation has resulted in a shortage of local forage supply, rising

prices of forage and difficulty in selling livestock and buying kids or calves.

The medical service has been affected, in turn, having a negative impact on herders in having

appropriate medical treatment.

To some extent, Covid-19 has affected the living standard of herders：

2. The impact of Covid-19 on an individual herder family

10.8 million

mu of pasture

286 herder

families

18,000 heads

of animals

The farming system is mainly free-range farming

combined with supplementary feeds. Mostly, the

livestock is slaughtered and sold in autumn and winter,

so the sales haven’t been negatively affected. On the

contrary, due to rising beef prices, the economic

benefits have been increased. Last winter, the beef

price was about 70 yuan/kg, and currently, the beef

price is about 81 yuan/kg. As a result of the epidemic,

consumers pay more attention to food health and

animal welfare.

During the quarantine period, most herders learn about

cattle farming techniques through online platforms,

such as Wechat, in order to improve their farming

skills and production efficiency.

Take the case of Erdos Hangjinqi Cooperative for Nomadic Herders

Take strict controls, strengthen and improve prevention measures. Carry out extensive work in

public guidance, monitoring and early warning, and emergency response measures, etc.

While ensuring safety, production resumption has been promoted. Provide epidemic prevention

materials and production materials for herders as much as possible, assist herders in resuming

work, help herders in sanitizing and cleaning, prevent the occurrence of multiple affection in

gatherings. Make efforts in epidemic prevention & control and economic development at the same

time.

3. Response at the community level

In April, an online training session on farm animal welfare

techniques was held for herders.

Online platforms such as Tik Tok and WeChat are used to promote

epidemic prevention knowledge, animal welfare knowledge and

animal husbandry techniques.

4. Actions taken by ICCAW

On April 19th, through Tencent live broadcast, ICCAW

explained about animal welfare knowledge such as

disease control and nutrition supply to herders, and

interacted with herders online.

1. Make sure that the spring production is carried out orderly. In the pastoral and semi-pastoral

areas, the spring kids are born starting from March. It’s necessary to ensure the supply of

forage. The local agencies shall coordinate the allocation of forage, strictly control the

market price of forage, and ensure the smooth transportation of production and living

materials in pastoral areas.

2. Organize scientific research institutes, vocational colleges and agricultural companies to

participate in the technology promotion and service system in the pastoral and semi-pastoral

areas. Encourage excellent herders to join in the technical promotion team. Improve the

animal husbandry skills with professional and practical guidance.

5. Short-term measures needed

3. On one hand, guide the production mode innovation in animal husbandry through promoting

the system of livestock kept by substitutes so as to recruit more workforces; on the other

hand, carry out training in production techniques for herders, support the surplus workforces

in finding other employment, support social entrepreneurship, and promote urbanization in

the pastoral area.

4. Make full use of online platforms such as Tik Tok and WeChat to guide production. Carry

out training in disease prevention, nutrition supply, lamb care and interact with herders as

much as possible.

5. Short-term measures needed

Technical personnel of Ordos Animal Husbandry

Station went to a pasture in Ejinhoroqi to provide

technical guidance. They marked the newborn kids

with eartags, weighed the birth weight and made

registration.

April 2020

Technical personnel of Bayannur Animal Husbandry

Station went to a white cashmere goat breeding farm in

Wulatzhongqi and provided technical guidance. They

selected some breeding sheep for production

performance measurement and registration, and put

forward suitable breeding plans based on data analysis.

Pilot project of cashmere goat quality & efficiency improvement by multiple local governments

Continue to improve infrastructure and boost urbanization in pastoral areas. Based on rational

planning, make sure that the roads, electricity, networks in every village and every household are

connected.

Improve the existing policies in pastoral and semi-pastoral areas. Continue to implement the

grassland ecological subsidy and reward policy, promote industrial transformation and upgrading,

and improve regional development capacity; accelerate the market promotion of animal husbandry

insurance, and improve the risk management capacity of animal husbandry.

Improve the market conditions and the supply chain. Guide and support the slaughtering and

processing companies, build online trading platforms for animal products, and improve the

logistics. Ensure that there are finished livestock in all seasons. Increase the added value of animal

products and increase employment opportunities.

6. Long-term measures needed

Sustainable Fibre AllianceCreating a Sustainable Cashmere Value chain

21.05.2020

Panel discussion: RCRT meeting -Cashmere sector COVID-19 Impact

• 5 provinces

• 6 soums

• 104 herdersArkhangai Khovd

Umnugobi

Uvurkhangai

Tuv

Uvurkhangai

COVID-19 Impact and Herders Livelihood Survey

50 10

1212

911

Survey coverage

COVID-19 Impact and Herders Livelihood Survey

Did you experience any food shortage during lockdown? (or have you are were

you able to buy food stuff during lockdown)

Has COVID affected your household’s income?

61%

39%

YES NO

87%

13%

YES NO

What percent of your household income depend on cashmere sales?

0.0

20.0

40.0

20% 40% 60% 80-100%

16.3%

20.0%

26.3%

37.5%

20% 40% 60% 80-100%

Cashmere price

0

20000

40000

60000

80000

100000

120000

140000

160000

Ikhtamir Erdene Must Nomgon Bat-Ulzii Tugrug

Cas

hm

ere

pri

ce,₮

2019 2020

Source: Customs statistic; Mongolian Chamber of Commerce Source: SFA Herder Survey: COVID-19 Impact May 2020

Impact of covid-19 - please rank by importance 1-100

24.6%

11.5%

9.8%

54.1%

18%

8.2%

8.2%

9.8%

11.5%

0.0 20.0 40.0 60.0

Sending our children to school

Food and essentials

Take care of our health

Paying bank loan

Psychological problems

Bying gas for our car

Buying fodder for our animals this winder

Vaccination for our livestock

Repair and replenish livestock shelters

Problem situations

Impact of covid-19 – herder family level

1. Paying bank loan

2. Covering school fees and school costs

3. Taking care for the family’s health

4. Stress and anxiety due to uncertainty

5. Purchasing staple food and other essential items

6. Rehabilitating and warming of our animal shelters and barns this winter

7. Paying for the animal health services and vaccination

8. Storing animal feed and hay purchase

9. Paying for gas and petrol for our cars and motocycles

Are you thinking of moving away from herding to the city?

1 in 4 Herders are thinking of moving away from herding to the city

FACTORS AFFECTED ▪ Cashmere price instability and big fluctuation ▪ Land degradation ▪ Poor rural development▪ Reduction in the livestock productivity▪ Unjustified and sudden changes in the

Government policy and decisions

10. How can we support you?

Develop rural areas

Improve young herder education and skills

Conservation of pastureland and prevention from

degradation

Government policies and decisions should be appropriate and matching needs and circumstances

Support in livestock product productivity improvement

Livestock products sales and value addition

Herders subsidy

Cashmere Sector COVID19 Action Plan

Redefining Luxury in Cashmere through Sustainability

COVID-19 Action PlanSFA Covid-19 Working Group is being setup. This group will be coordinated by our Chair, Chas Hubbard, and its primary task will be to assist in the development of our COVID-19 Action Plan. Together, the group will address the following three questions:

1. Our immediate response:Action 1: Building Resilience and Adaptive Capacity of Herder Organisations

a) Herder Community Support programmeb) Disaster risk reduction fund

2. Supporting recovery: When the impacts and future approaches to the management of Covid-19 are more clear, how can the SFA, our members and other stakeholders help supply chain to recover?3. Transforming for an equitable and sustainable cashmere sector: In addition to

promoting the SFA Cashmere Standard, what new measures will be needed to support the transition toward a sustainable and equitable cashmere supply chain?

1. Consultation Covid-19 Action Plan and timeline will be consulted with members

2. Action PlanWorking Groupto be formed

3. Communique to Government -signed by fashion industry in May

4. Revision on Action Plan following consultation

5. Public Launch-

Cashmere Sector COVID Action Plan

Next steps – Action Plan-COVID19

The SFA invites our members and stakeholders to engage in delivering the

activities outlined in the Action Plan and where appropriate incorporate

them into your existing resourcing and sustainability plans that you have

within your supply chain.

SFA new way of engaging and training herding communities COVID Response

Stakeholder Collaboration

SFA AND ICCAW to Collaborate in CHINA- The SFA has signed a memorandum of understanding with ICCAW (International Cooperation Committee on Animal Welfare) to collaborate in jointly developing and implementing a code of practice in animal welfare and environmental sustainability of cashmere production, in China.

Mongolian Sustainable Textile Coalition was established. Within the Coalition, its members aims to create opportunities for dialogue, collaboration, mutual learning, and joint action in supporting progress of replicating sustainable consumption and production in wool and cashmere supply chain.

SFA Supports and fully engages with the proposed Cashmere Platform-SFA is committed to work in partnership with UNDP and collaborative with other organisations to increase impact on the ground.

THANK YOU