Salient Issue

Water & Biodiversity

About 70 percent of the freshwater withdrawn for human use is directed toward agriculture, reducing the availability of water for people, animals and other plants. Farming can also have significant adverse impacts on biodiversity, where agrochemicals cause pollution or deforestation changes natural habitats, weather patterns or the water cycle.

Water consumption is particularly high in cotton, rice and sugar cane; these thirsty crops often require intensive irrigation. Rice production – concentrated primarily in Southern and Southeastern Asia – uses around 40% of the world’s irrigation water. Per one kilogram of crop produced, typical water consumption for cotton, rice and sugar cane exceeds 7 thousand, 3 thousand and 1,5 thousand litres, respectively.

The production of wine, flowers, bananas, and several other fruit and vegetable varieties are also water intensive. Local water shortages have been blamed on flower farms in Ethiopia, Kenya and Ecuador. In Chile, water scarcity is severe in regions where wine grapes and fruit are grown. In Peru’s Ica Valley, where farmers produce high volumes of fruits and vegetables for export, communities only have access to water for a few hours a week. In Mexico, avocado-related water extraction has reportedly opened up subsoil caverns that may increase the risk of earthquakes.

Waterways and land may be polluted by water from pesticide-treated fields or water used for processing if insufficiently treated. Documented cases of water pollution abound from across the world and in numerous commodities. Runoff from coffee processing in Central America affects the water and soil quality for neighbouring communities. Banana plantations along the Caribbean coast have damaged estuaries and coral reefs. Wastewater from textile factories in India, China and Indonesia have affected local fish and shrimp populations.

Gold mining also damages soil, air and waters with the spread of toxic wastes, including mercury, arsenic and cyanide.

Biodiversity is at highest risk in areas of high density monocropping. Monocultures reduce biodiversity both in the crop area and in the surrounding areas, because fertilizer and pesticide use is typically high. Pesticide application can contaminate surrounding land, waterways and human habitats. 

It is estimated that less than 1% of the pesticides applied on flower farms and banana plantations reach their target, leaving the rest to pollute the local environment. Most of the world’s coffee and tea is also produced in monocultures with a high use of agrochemicals.

Deforestation reduces habitats and changes microclimates, which can further reduce biodiversity. Full-sun cocoa production in West Africa has spurred deforestation and drastic reduction of habitats for a number of animals, from chimpanzees to elephants and flying squirrels. 

In coffee and tea production, climate change is increasingly pushing farmers to shift production to higher elevations where climate is still suitable. This propels further deforestation. 

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According to research

Compared to other cocoa farmers in Ghana, Fairtrade farmers showed a higher understanding of environmental topics.

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Action

Fairtrade's response

Fairtrade certified organisations work in many tropical areas with a high biodiversity value. The two countries with the highest number of Fairtrade certified organisations, Peru and Kenya, are biodiversity hotspots.

Agriculture relies on many services provided by biodiversity, including pollination, groundwater and a stable microclimate. Smallholder agriculture can be very biodiversity-friendly, as it eschews large monocultures and often maintains diverse crops, vegetation and habitats. 

Fairtrade encourages and incentivizes organic production and agroecological measures with a focus on soil health, decreased use of agrochemicals, and a reduced water and carbon footprint.

Among Fairtrade’s salient issues, biodiversity is the area with the clearest need for stronger policies and activities. To achieve this, Fairtrade has established a new Centre of Excellence and adopted a new strategy for climate and environmental work.

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According to research of cocoa production in Peru

Fairtrade certified organisations provide greater incentives for farmers to maintain environmentally friendly practices.

Fairtrade's response in detail

1. Preventive and mitigating measures

Fairtrade utilises a variety of tools to maintain and protect1 biodiversity and water sources at farm and plantations level. The Fairtrade Standards are one of the tools. They include several requirements related to biodiversity and water, including:

  • Prohibition of most harmful agrochemicals. Fairtrade certified farmer organisations, plantations and traders must maintain a list of pesticides used on their own or their members’ fields, refrain from using chemicals on Fairtrade International’s Red List of prohibited chemicals”, and implement a plan for reducing the use of chemicals listed as Orange. 
  • Reduced use of agrochemicals. To reduce pesticide and herbicide use, Fairtrade certified plantations are required to monitor main pests, consult external experts, and utilize alternative ways for controlling pests and weeds. Certified farmer organisations are encouraged to train their members on alternative methods of pest management and weed prevention. To reduce risks related to fertilizers, plantations are to safely store fertilizers and only apply them in amounts that correspond to the nutrient need of the crop.
  • Buffer zones. Plantations need to maintain buffer zones around water bodies, human habitats and protected areas, where agrochemicals are not used, to protect biodiversity and people’s health.
  • Sustainable water use. Both plantations and farmer organisations need to identify the source of irrigation water. Plantations must also implement procedures to make efficient and rational use of water sources. Further, where local water resources are strained, plantations are encouraged to engage with authorities or local initiatives to find solutions to water shortages.
  • Waste management. Plantations must establish a waste management plan that includes strategies and timelines for waste reduction, recycling, reuse and disposal alternatives. Farmer organisations are encouraged to train their members to reuse organic waste.
  • Protecting plants and animals. Wild harvesting of Fairtrade products must not endanger the survival of the collected species, rare or endangered species must not be collected, and alien invasive species must not be introduced.

Please see the page on climate change for further information. In total, environmental criteria account for one quarter and one third  of all requirements for farmer organisations and plantations, respectively. In recent years, Fairtrade has expanded the number and scope of environmental criteria for all farmer organisations, and particularly for those producing coffee or cocoa. We are currently reviewing and strengthening the environmental requirements for all traders, all plantations, and bananas. 

Obviously, standards requirements and auditing are insufficient to address biodiversity loss and water risks. This is why Fairtrade also addresses these issues and their root causes in a range of other ways:

  • Training on good agricultural practices, including biodiversity conservation and sustainable management of water resources, is increasingly offered to farmer organisations and plantations. These trainings, organised by Fairtrade Producer Networks in Africa, Asia and Latin America, raise farmer awareness on how farming practices relate to environmental problems, for example how the clearing of forested land can decrease crop pollination. A recent study on Fairtrade’s impact2 has shown mixed results regarding farmer organisations’ awareness and performance on biodiversity issues.
  • Projects can help strengthen good agricultural practices in high-risk areas. The Alliances for Sankofa project, for example, combines measures to promote biodiversity, diversify incomes, and promote dynamic agroforestry among cocoa farmers in Ghana. Farmers are encouraged to stop burning organic matter and to reduce the use of agrochemicals. The project directly benefits the 2,900 cocoa farmers and is supported by a Fairtrade cocoa processor, who also pays the living income reference price for the cocoa.
  • Collaboration among supply chain actors. Fairtrade promotes and facilitates collaboration, encouraging retailers, brands and traders to co-invest in environmental projects.
  • Multistakeholder collaboration. Fairtrade is increasingly participating in environmental collaboration. For example, Fairtrade participates in the development of OECD/FAO's Deforestation Due Diligence Handbook and co-founded a Food for Biodiversity initiative in Germany.
  • Partnerships. Fairtrade has ongoing collaboration with many environmental organisations, including International Union for Conservation of Nature (IUCN), Centre for International Forest Research (CIFOR), Alliance for Biodiversity International and the Earthworm Foundation.
  • Advocacy work. To address the root causes of biodiversity loss, Fairtrade advocates for legislation and binding international treaties on climate change, bringing in the perspective of smallholder farmers. For example in the negotiations on EU Deforestation Regulation, Fairtrade has highlighted the needs of cocoa and coffee smallholders in the negotiations on EU Deforestation Regulation.

At the export, import and manufacturing stages, Fairtrade’s environmental interventions are laid out in the Fairtrade Trader Standard. This Standard requires companies to be aware of applicable legislation on land use, biodiversity, use of water and wastewater, and show no evidence of violations. Compliance with these requirements is checked in audits if there are any prior indications of non-compliance3

In addition, traders must comply with Fairtrade’s pricing and Premium requirements, which allow farmer organisations and plantations to invest in environmental sustainability.


1: Mitigating measures reduce the likelihood of an adverse impact (UNGP Interpretive Guide, p. 12)
2: Mainlevel Consulting, 2022, Assessing the Impact of Fairtrade on Poverty Reduction and Economic Resilience through Rural Development.
3: Indications can be obtained e.g. via allegations made by third parties or via observations during trader audits.

2. Remediating measures

Loss of biodiversity affects farmers, farm workers and their communities in many ways. Their livelihoods are strongly dependent on thriving biodiversity, healthy habitats and ecosystems. Decreases in biodiversity have an adverse impact on their rights to food, clean air and water, health, culture, and even the right to life4.

Fairtrade’s primary approach for reducing the adverse impacts of dwindling biodiversity is support for income diversification. Diversification strategies within fields, between fields and across landscapes are often regenerative, synergistic and multipurpose, and can bolster ecosystem functions within resilient agricultural production systems.

Agroecological practices, including regenerative practices, can generate additional critical ecosystem services by maintaining biodiversity across agricultural lands and increase connectivity for biodiversity. There is no evidence that diversified production systems compromise food security – many agricultural diversification practices provide multiple complementary benefits; recent Fairtrade-commissioned studies5 have confirmed this.


Remediation refers to the process of counteracting or fixing a human rights violation through measures that can include apologies, restitution, rehabilitation, financial or non-financial compensation, and punitive sanctions, as well as preventing the repetition or further cases of harm (UNGP Interpretive Guide, p. 12).
4: UNEP and OHRHR, 2021 Human Rights & Biodiversity
5: Mainlevel Consulting, 2022. Assessing the Impact of Fairtrade on Poverty Reduction and Economic Resilience through Rural Development.

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According to research on Belize

Fairtrade allows sugar farmers’ associations to better provide agronomic and environmental services to their members.

Compliance criteria

Water use and biodiversity in Fairtrade Standards

StandardCriteria
Type
Year
Small-scale producer organisationYou have trained your members on integrated pest management, including pest and disease monitoring, alternative ways to control pests and diseases, preventive measures and measures to avoid pests and diseases building up resistance to pesticides.D3
Small-scale producer organisationYou and / or your members using herbicides in the production process implemented the following elements of an integrated weed management approach: • Gain knowledge of the weeds that affect the productivity of the crop and of the conditions that favour and hamper the development of the weeds. • Gain knowledge of the parts of the fields where the crop is affected by the weeds. •Prevention of the spreading of the weeds by non-chemical means (labour, mechanical or thermic means) •Use of alternative control techniques, mulches or cover crops in order to control and reduce the weeds. •Application of herbicides must be focused on areas where the weeds are present and affect the crop. •No use of herbicides in canals, in buffer zones protecting rivers or watersheds, in protected or high conservation value areas or in buffer zones intended to protect people’s health. (Banana producers and individual members) (includes dried bananas and banana pulp)C0
Small-scale producer organisationYour members demonstrate that pesticides are applied based on knowledge of pests and diseases.D6
Small-scale producer organisationYour members have equipment to handle accidents and spills in the areas where they prepare or mix pesticides and other hazardous chemicals, so these do not seep into soil or water.D6
Small-scale producer organisationYour members plan their spraying in such a way that no or very little spray solution is left.D6
Small-scale producer organisationYou have compiled a regularly updated list of the pesticides that are used by members on the Fairtrade crop that indicates which of those materials are in the Fairtrade International Hazardous Materials List (HML), Part 2 (Orange List) and Part 3 (Yellow List); and includes at a minimum: • Name of the active ingredient and commercial brand name and • Crop on which they are used; • Name of targeted pest or disease;C0
Small-scale producer organisationYou and the members of your organisation do not use the materials on the Fairtrade International HML part 1 (Red List) on all Fairtrade crops that your organisation is certified for and also on the fields where they are grown (see Annex 2).M0
Small-scale producer organisationPesticides prohibited in the HML Part 1 (Red List) are clearly marked "Not for use on Fairtrade crops".C0
Small-scale producer organisationYou have developed a procedure to ensure that members do not use on the Fairtrade crops any material that appears on the Fairtrade International HML part 1 (red list). The procedure includes activities that raise your member’s awareness of the HML.C1
Small-scale producer organisationYou minimize the amount of herbicides used by members through other weed prevention and control strategiesD3
Small-scale producer organisationYou and the members of your organisation use materials in the Orange List on Fairtrade crops only under the following conditions: a) You fulfill the specific conditions of use specified in Part 2 of the HML. b) The material is only used i) as part of avoiding pesticide resistance buildup in pests, ii) in rotation with less harmful pesticides, iii) as part of IPM that includes non-chemical control measures. c) You have developed and implemented a plan for reducing/phasing out the use of the materials. The plan includes information on - the type of material (technical name/active ingredient (a.i.), formulation (% of a.i.), commercial name), - the quantity used (spray concentration (a.i. /ha or in % or ppm etc.) and total consumed a.i./ha/year), - actions taken for reducing/phasing out the material including details of other non-chemical controls which are part of the IPM strategy.C0
Small-scale producer organisationYou have made all members and workers - even those not directly handling pesticides and other hazardous chemicals - aware of the hazards and risks related to these materials.C3
Small-scale producer organisationYou are informed about the situation of the water sources in your area. In case local environmental authorities or other entities consider your water sources as being depleted, or in a critical situation, you have to engage in a dialogue in order to identify possible ways to be involved in research or solution finding.D6
Small-scale producer organisationYou have trained your members on measures to use water efficiently including the following topics: a) Estimating how much water is needed to irrigate and/or process Fairtrade crops b) Measuring (or estimating) how much water is extracted from the source c) Water quality for irrigation or processing d) Measuring how much water is used for irrigation and/or processing e) Providing maintenance to the water distribution system f) Adopting as applicable, methods to recirculate, reuse and/or recycle water.D3
Small-scale producer organisationYou handle waste water from central processing facilities in a manner that does not have a negative impact on water quality, soil health or food safety.D6
Small-scale producer organisationYou have trained your members about waste water and the health risks it bears as well as prevention of risks and treatment methods of waste water and their implementation.D6
Small-scale producer organisationYou have identified and listed all sources of water for irrigation and processing of Fairtrade crops.C3
Small-scale producer organisationYour members follow practices that improve water resources management.D3
Small-scale producer organisationYou have educated your members on re-using organic waste through the implementation of practices that allow nutrients to be recycled. The organic waste is only burned if required by applicable legislation.D3
Small-scale producer organisationYou and your members do not intentionally use genetically engineered seed or planting stock for Fairtrade crop(s).C0
Small-scale producer organisationYou have implemented practices to avoid GM contamination in seed stocks.C0
Small-scale producer organisationYou and your members take measures to protect and enhance biodiversity.D6
Small-scale producer organisationYou and the members of your organisation have maintained buffer zones around water bodies and watershed recharge areas and between production areas and areas of high conservation value, either protected or not. Pesticides, other hazardous chemicals and fertilizers are not applied in buffer zones. Ecological corridors are protected or restored with natural vegetation.D6
Small-scale producer organisationYou and the members of your organisation that carry out wild harvesting of Fairtrade products from uncultivated areas assure the sustainability and survivability of the collected species in its native habitat.C1
Small-scale producer organisationYou have informed your members so that no collection or hunting of rare or threatened species takes place.D3
Small-scale producer organisationYou have educated your members so that alien invasive species are not introduced.D3
Small-scale producer organisation (Soybeans)Contracts between buyers and producers indicate that accidental and technically unavoidable GMO contamination is tolerated up to levels defined in the applicable national or international regulations, whichever is stricter. Contracts specify which regulation applies.C0
Organisation with hired labourThe company has access to guidance from an expert in integrated pest management (IPM) strategy.C0
Organisation with hired labourThe company has received guidance from an expert in integrated pest management (IPM) strategy.C0
Organisation with hired labourAt least one alternative control other than pesticide application has been implemented. (Not applicable to crops that are organically certified)C0
Organisation with hired labourAt least one preventative measure other than pesticide application has been implemented. (Not applicable to crops that are organically certified)C0
Organisation with hired labourThe company monitors main pests and diseases of the Fairtrade crop. (Not applicable to crops that are organically certified)C0
Organisation with hired labourThe company has established a level of damage beyond which the need to use chemicals is justified. (Not applicable to crops that are organically certified)C0
Organisation with hired labourThe company avoids the build-up of resistance of pesticides. (Not applicable to crops that are organically certified)C0
Organisation with hired labourThere is an overview map of the plantation with buffer zones marked and covers all areas where there is a risk of drift to sensitive areas e.g. water bodies, human habitat, protected areas etc.C0
Organisation with hired labourThe company is equipped to handle spills and possible accidents effectively (for example with absorbent material) in areas where pesticides or other hazardous chemicals are prepared or mixed for use.C0
Organisation with hired labourSeepage into the soil or water supply is avoided in cases of spills.C0
Organisation with hired labourThe company plans the spraying in such a way as to have no or very little spray solution leftover.C0
Organisation with hired labourMaterials on the Fairtrade International Hazardous Materials List (HML) Part 1 (Red List) are not used by the company on the Fairtrade crop(s).M0
Organisation with hired labourOnly pesticides registered for use in the country are used on the Fairtrade crops.C0
Organisation with hired labourPesticides prohibited in the HML Part 1 (Red List) are clearly marked "Not for use on Fairtrade crops".C0
Organisation with hired labourA documented procedure is in place to ensure that materials on the Fairtrade International HML Part 1 (Red List) are not used on the Fairtrade crop.C0
Organisation with hired labourDecisions to use herbicides are based on presence of weeds and lack of alternative controls.C0
Organisation with hired labourHerbicides are only one element of an integrated strategy against weeds and used in spot applications. (Only applicable if herbicides are used)C0
Organisation with hired labourYou have compiled a regularly updated list of the pesticides used and indicate which of those materials are on the Fairtrade International HML Part 1 (Red List), Part 2 (Orange List) and Part 3 (Yellow List); including at a minimum: • Name of person who applied the pesticides; • Name of the active ingredient and commercial brand name and • Amount of pesticide used; • Method of application; • Crop on which they are used; • Targeted pest or disease; • Date and site.C0
Organisation with hired labourThere are records of pesticide use for at least the last 12 months.C0
Organisation with hired labourYou use materials in the Orange List on Fairtrade crops only under the following conditions: a) You fulfill the specific conditions of use specified in Part 2 of the HML. b) The material is only used i) as part of avoiding pesticide resistance buildup in pests, ii) in rotation with less harmful pesticides, iii) as part of IPM that includes non-chemical control measures. c) You have developed and implemented a plan for reducing/phasing out the use of the materials. The plan includes information on - the type of material (technical name/active ingredient (a.i.), formulation (% of a.i.), commercial name), - the quantity used (spray concentration (a.i. /ha or in % or ppm etc.) and total consumed a.i./ha/year), - actions taken for reducing/phasing out the material including details of other non-chemical controls which are part of the IPM strategy.C0
Organisation with hired labourThe company applies fertilisers (inorganic and organic) in amounts that respond to the nutrient need of the crop.C1
Organisation with hired labourThe company stores fertilisers (inorganic and organic) in a way that minimizes the risk of polluting water.C0
Organisation with hired labour (Flowers)You consult with surrounding communities regarding real and perceived risks of water pollution because of the presence of the flower farm in the area, and then work to mitigate the risks.D3
Organisation with hired labourThe company knows where water used in irrigation comes from.C1
Organisation with hired labourAn inventory of sources (e.g. through maps/sketches illustrating the location of water sources) is available.C1
Organisation with hired labourThe company implements procedures to make efficient and rational use of water sources that include: . Prediction of volumes of water needed to irrigate the crop; . Measuring (or estimating) volumes of water extracted from sources and volumes actually used in irrigation and processing; . Providing Maintenance to the water distribution system; . Ways to recirculate, reuse and/or recycle water wherever possible.C1
Organisation with hired labourThe company is informed about whether water sources are being depleted, in a critical situation or under excessive pressure.D3
Organisation with hired labourWhere water sources are being depleted, in a critical situation or under excessive pressure the company has engaged in a dialogue with the authorities or local existing initiatives in order to identify possible ways to be involved in research or solution finding.D3
Organisation with hired labourThe company makes use of the best available technology for irrigation in order to optimize the quantities of water applied.D6
Organisation with hired labourThe company handles waste water from processing facilities in a manner that does not have a negative impact on water quality, soil health and structure or food safety.C3
Organisation with hired labourThe company has a waste management plan that includes strategies and timelines for waste reduction, recycling, reuse and disposal alternatives.C1
Organisation with hired labourThe company uses organic waste in a sustainable way through the implementation of practices that allow nutrients to be recycled.D3
Organisation with hired labourAnimals are not fed with organic waste contaminated with pesticides.D3
Organisation with hired labourOrganic waste is only burned for sanitary reasons or if evidence is provided that this is a more sustainable method and if legislation or other applicable regulations allow this.D3
Organisation with hired labourThe company does not intentionally use genetically engineered seed or planting stock for the Fairtrade crop(s).M0
Organisation with hired labourThe company has established procedures including avoidance of parallel production of GM and Non GM crop, to ensure that genetically engineered seed or planting stock is not used for the Fairtrade crop(s) and has established practices to avoid GM contamination in seed stocks. (Only applicable if the risk assessment identifies potential risk of GMO)C0
Organisation with hired labourThe company has created and maintains buffer zones around water bodies and watershed recharge areas.C0
Organisation with hired labourThe company has created and maintains buffer zones between production and areas of high conservation value, either protected or not.C0
Organisation with hired labourPesticides, other hazardous chemicals or fertilizers are not applied in buffer zones.C0
Organisation with hired labourAny wild harvesting of Fairtrade products from uncultivated areas is done in a manner that assures the sustainability and survival of the collected species in its native habitat.C0
Organisation with hired labourThe company ensures that no collecting or hunting of rare or endangered species is undertaken.C1
Organisation with hired labourThe company ensures that no alien invasive species is or has been introduced.C1
Organisation with hired labourThe company participates actively in local or regional environmental projects or has a biodiversity plan.D3
Organisation with hired labourThe company evaluates the implementation of agro-forestry systems and agricultural diversification as applicable.D3
Organisation with hired labour (Bananas)You have implemented the following elements of an integrated weed management approach: * Gain knowledge of the weeds that affect the productivity of the crop and of the conditions that favour and hamper the development of the weeds. * Gain knowledge of the parts of the fields where the crop is affected by the weeds. * Prevention of the spreading of the weeds by non-chemical means (labour, mechanical or thermic means) * Use of alternative control techniques, mulches or cover crops in order to control and reduce the weeds. * Application of herbicides are focused on areas where the weeds are present and affecting the crop. * No use of herbicides in canals, in buffer zones protecting rivers or watersheds, in protected or high conservation value areas or in buffer zones intended to protect people’s health. (Only applicable if herbicides are used in the production process)C0
Organisation with hired labour (Flowers)The company protects the environment and the inhabitants of residential areas inside and surrounding the farm from harmful effects such as pesticide drift or exposure to other harmful substances with appropriate measures such as a safety distance from residential areas and houses to the greenhouses or pesticide application areas or suitable alternative measures, such as a physical safety barrier.C0
TraderYou do not use genetically-modified beet sugar in a Fairtrade product.C0
TraderYou do not use materials on the Fairtrade International Hazardous Material’s List part 1 (Red List) on Fairtrade products. You keep a regularly updated list of the pesticides that are used on Fairtrade products that covers the name of the active ingredients, commercial name, product on which they are used, the targeted pests and which of those materials are on the Fairtrade HML Part 1 (Red List), Part 2 (Orange List) and Part 3 (Yellow List). (As of 01/01/2018; applicable to all products except FSI cotton after ginning stage)C0
Trader-- You fulfil the specific conditions of use indicated in the HML AND -- You only use these material as part of avoiding pesticide resistance build up in pests, ii) in rotation with less harmful pesticides, iii) as part of Integrated Pest Management (IPM) and iv) include non-chemical control measures AND -- You have developed a plan for reducing/phasing out the use of these materials. The plan includes information on the type of material, the quantity used and total consumed, actions taken for reducing/phasing out the material including details of other non-chemical controls which are part of the IPM strategy. (Not applicable to FSI cotton after ginning stage) (Applicable if you use materials on the Orange List of the HML)C0
TraderYou use recycled or easily biodegradable materials for packaging as much as possible. (Not applicable to FSI cotton after ginning stage)V0
TraderYou comply with applicable legislation in relation land use and biodiversity and have obtained any necessary permission.R0
TraderYou comply with applicable legislation in relation to use of water (e.g. water sources, reuse of water) and have obtained any necessary permission.R0
TraderYou comply with applicable legislation in relation to handling waste water effluents and have obtained any necessary permission.R0
Trader (Plants)You take at least 20% of the volume of the growing media used for Fairtrade plants from alternative sources to peat.C0
Trader (Soybeans)Contracts with producers indicate that unavoidable GMO contamination is only tolerated up to the levels defined by the applicable national or international regulations (whichever is stricter) and specify which regulation(s) apply. (Payer)C0