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What is Fairtrade? Is It Sustainable?

Sustainable Fashion

Last Updated on July 25, 2024

By now, you’ve probably seen the label “Fairtrade” on a lot of products. But what exactly does it mean? And how does it correlate to sustainability? 

Coffee is perhaps the most well-known Fairtrade item. But many items can be certified Fairtrade, such as bananas, ice cream, rice, flowers, cotton and sports balls – to name a few. 

The Fairtrade certification essentially means workers are paid living wages and work in safe environments.  

As an environmentalist, people matter just as much as planet: We can’t save one without the other. So that’s why it’s important to approach environmental living from an intersectional point of view. Everything is connected.  

For our items to be truly sustainable, the people who make them must also be accounted for. That means fair working hours that pay the bills, adequate work breaks, and safe environments where workers can unionize or be protected.   

Many workers in the garment industry are required to put in 14 to 16 hours per day, seven days a week, and endure verbal and sometimes even physical abuse from managers. Oftentimes, workers are exposed to harmful substances while working without enough ventilation. 

But we can change this by voting with our dollars and supporting brands that treat workers right. That’s why looking for the Fairtrade certification matters. Here’s everything you need to know about the Fairtrade certification. Plus, my favorite brands that sport it! 

what is fairtrade in simple terms? 

In simple terms, the Fairtrade certification ensures that workers in a company’s supply chain are paid and treated fairly.  

While the Fairtrade certification is mostly used on food items, like bananas, cocoa, and coffee, it can also be used to certify certain materials, like cotton.  

There are rigorous standards set in place for the Fairtrade certification. After thorough evaluation, such as in-person meetings with workers and work-site inspections, the certification is earned. This must be repeated annually to maintain the Fairtrade certification.

Here’s a look into the three main standards that must be met to hold a Fairtrade certification. 

economic 

Producers know that regardless of what is happening with the market, they can cover their costs of production because manufacturers will at least pay the Fairtrade Minimum Price. This includes traceability of the product through record-keeping as well as transparency in trade relations.  

Also, providing a fixed Fairtrade Premium is required to provide farmers and workers with additional money to invest in improving the quality of their business and community. They can use this premium to build schools for children, libraries, or even bridges that make it easier to cross dangerous areas. 

This certification also requires pre-financing to producers who request it, which helps stabilize their operations.  

environmental  

This emphasizes ecological and agriculturally sound practices, such as responsible water and waste management, preserving soil fertility and biodiversity, and minimal use of pesticides and agrochemicals.  

Fairtrade prohibits the use of several hazardous materials and GMOs. While Fairtrade does not require organic certification, it does promote organic production by rewarding with higher Fairtrade minimum and premium prices for organically grown products.  

social  

Fairtrade ensures workers have a voice within their companies. Democratic self-organization (typically in cooperatives), transparency, participatory decision-making, and non-discrimination (including gender equality) are required.  

However, forced labor and child labor are strictly prohibited under the Fairtrade standards.  

why is fairtrade important? 

Fair trade is important because it helps address these issues within the trade industry. Lets dive into just a few, and the ways Fairtrade is helping. All the statistics below are taken directly from the Fairtrade website.

gender inequality 

Women in the agricultural communities often don’t have control of the money the earn. They down own any land or crops, and have limited access to education, training or supplies. Plus, when they try to apply for credit, they are often discriminated against.

Fairtrade is changing this by focusing on increasing women and girls’ human, social, financial and physical capital. 

They do this through: 

  • No discrimination on the basis of gender or marital status 
  • Zero tolerance of behavior that is sexually intimidating, abusive or exploitative 
  • No testing for pregnancy when recruiting workers 
  • Programs to support historically marginalized groups like women 
  • Developing a gender policy, over time 

child labor rights and safety 

160 million children are involved in labor globally. Child labor stops young people from being able to go to school, play with their friends and get the nutrition and care they need. 

However, the Fairtrade Standards prohibits children under the age of 15 from being employed. Additionally, minors below the age of 18 cannot undertake work that jeopardizes their education or development. Children are only allowed to help on family farms under strict conditions. And the work must be deemed age-appropriate and done outside of school hours.

workers rights 

An estimated 40.3 million people are in modern slavery. Workers—people working on large farms or in factories that do not own the business—face incredible adversity in the Global South. 

Thankfully, Fairtrade actively works to prevent forced labor through local and international prevention policies. They also train farmers, workers and managers on human rights. Additionally, they support the creation of local youth-inclusive, community-based monitoring and remediation systems.

poverty 

736 million people are living in extreme poverty worldwide. Many farmers and workers live on less than $2 per day and depend on a single source of income from a cash crop. On top of that, farmers typically just get one paycheck per year—after the harvest. This means that they have to stretch this one payment for all business and household needs like transportation, food, clothing and school fees for the entire year.   

To reduce poverty, fairtrade certification provides a minimum price that aims to cover the cost of sustainable production. It’s a safety net for farmers and workers in case market prices fall below sustainable levels. 

Plus, they offer Fairtrade Premium, an additional lump sum that producer organizations receive. Members democratically decide how to spend the money to better their local communities. From upgrading equipment, to creating clinics – this puts power back in the hands of the people. 

climate change 

Climate studies predict that by 2050 coffee, tea, cocoa and cotton will be so severely affected that production in some areas will even disappear. 

Fair trade helps mitigate climate change by: 

  • Providing Fairtrade Premium – which is often used to plant trees, transition to clean energy, or better prep farms for climate change. 
  • Offering Fairtrade Carbon Credits so farming communities can access carbon finance to tackle the effects of climate change through renewable energy, energy efficiency and forestry projects. 
  • Sticking to strict environmental standards (as stated above). 

gzw approved fairtrade brands 

I’ve rounded up a list of brands that utilize fairtrade ingredients, materials, and/or factories in their production process that get the Going Zero Waste seal of approval. All these brands make alcohol that tastes great and reduces the impact on the planet. 

I’ve gone ahead and highlighted some of my favorite features of each brand, but it isn’t an exhaustive list. Be sure to check out their websites for more information.  

1. conscious step

  • Sustainable sock company for men + women
  • Fairtrade cotton
  • Vegan-certified 
  • Global Organic Textile Standard (GOTS) certified
  • For every pair sold, $1 is donated to a charity of your choice

2. terra thread

  • Sustainable bag brand
  • Fairtrade certified factories + cotton
  • Handmade from organic GOTS certified cotton 
  • Each purchase gives back to Feeding America 
  • Made without GMOs, toxic dyes or chemicals 
  • B Corporation 

3. pact

  • Clothing basics, underwear and socks for both men, women, kids, and babies 
  • Manufactured in Fairtrade certified factories  
  • Made from organic cotton which uses up to 95% less water than conventional cotton, and doesn’t contain the harsh chemicals, bleaches or dyes that conventional cotton uses 
  • Recyclable paper bags for packaging products 

4. cotopaxi

  • Sustainable adventure gear
  • Most of their logowear and hats are made in a Fairtrade certified facility
  • Made from deadstock + recycled materials 
  • Net zero commitment
  • Repair + trade-in programs
  • Every bag is one of a kind – employees are given creative control to determine its unique color scheme 

5. kooshoo

  • Sustainable + plastic-free hair accessories
  • Fairtrade rubber + cotton
  • GOTS certified organic cotton + non-toxic dyes
  • Plastic-free packaging + shipping

So, what do you think of this certification? Will you be looking for it from here on out? Let me know in the comments!

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