Acknowledging Supply Chain Limitations Scott Tannen, founder and CEO of Boll & Branch, articulated this dilemma during the festival, stating, “These are massive organizations that have been producing these commoditized products for generations. The supply chain systems they rely on were inherited from previous generations, creating a culture that discourages inquiry.”
He noted that employees who dare to question established practices often face resistance, particularly when financial considerations—such as the impact of supply chain modifications on profit margins—come into play. In contrast, Tannen founded his bedding company in 2014 without the constraints of an inherited supply chain, allowing him to build one from the ground up with a focus on sustainability and social responsibility.
Building a Responsible Supply Chain Boll & Branch commenced its journey with a deep examination of cotton, understanding the significant human and environmental ramifications of its production, particularly in the developing world. “The reality is stark,” Tannen explained, pointing to the tragic consequences faced by cotton farmers in India, where unmanageable debt—often exacerbated by the high cost of genetically modified seeds—has led to distressing outcomes, including suicides. Additionally, conventional cotton farming practices rely heavily on pesticides and fertilizers that pose risks to both human health and the environment.
In contrast, organic cotton emerges as a more sustainable choice. “That became our first choice,” Tannen affirmed. “And that choice leads to another, creating a cascade of responsible decisions.” By systematically pursuing “better” alternatives, Tannen was able to construct a responsible supply chain from the ground up, an endeavor that would have been far more challenging had he attempted to retrofit an existing supply chain.
Transparency and Accountability Boll & Branch took the unprecedented step of controlling every facet of its supply chain, transporting cotton directly to spinners and dyers, eschewing the middlemen commonly employed by larger corporations. On its website, the company empowers customers to trace their products' journey by entering a lot number, revealing where the cotton was sourced, spun, and woven. “This transparency not only aids in quality assurance but also fosters accountability,” Tannen noted. “A product cannot enter our system unless every detail is accounted for.”
Tackling Challenges in Chocolate Production The issue of supply chain ethics extends beyond the bedding industry. The chocolate sector, too, is fraught with challenges related to environmental and human welfare. Tony’s Chocolonely is a brand committed to eradicating child labor from chocolate production, both within its own supply chain and across the industry. Joke Aerts, representing Tony’s Open Chain—a collaborative initiative aimed at helping chocolate brands source cocoa ethically—emphasized the critical role of traceability.
Tony’s rigorously tracks and discloses cases of child labor within its supply chain. While the industry average for cocoa-related labor is approximately 46%, Tony’s figures reveal that less than 4% of its laborers are affected.
Facing Uncomfortable Truths However, this commitment to traceability often unveils harsh realities. When Tony’s Open Chain collaborates with new cocoa cooperatives, it often uncovers higher instances of child labor. Through remediation efforts, including offering living wages and establishing long-term contracts, the initiative seeks to help suppliers transition away from exploitative practices.
This year, Tony’s Open Chain plans to onboard eight new cocoa cooperatives. “I fully expect our next impact report to reveal thousands of cases of child labor,” Aerts admitted. “But our goal is to identify these instances so we can work with families to resolve them. That’s the leading indicator we want to highlight. Yes, we’re discovering child labor, but more importantly, we’re addressing it.”
The Importance of Transparency While many brands may choose to conceal uncomfortable truths, fostering a sustainable supply chain necessitates a culture of honesty. “Everyone is aware of the issues, but the question is whether you’re being transparent about them,” Aerts stated. “More importantly, what actions are you taking to effect change?” This commitment to transparency and proactive engagement is the cornerstone of building a more ethical and sustainable supply chain, essential for brands aiming to navigate the complexities of modern procurement and consumer expectations.