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Empowering SMEs for a Green Future: the WFTO’s Environmental Solutions Hub

At the heart of what we do at the World Fair Trade Organization (WFTO) lies a commitment to fostering fair and sustainable trade practices worldwide. We work closely with Small and Medium-sized enterprises (SMEs) that put the Fair Trade business model and sustainability at the heart of their operations, support them, guide them and create opportunities for them to populate our economy. We believe that SMEs are the future and that, despite their size, their impact can be truly global.

That’s why in February 2024, WFTO travelled to the 6th session of the UN Environment Assembly, focusing on how multilateralism can help tackle the triple planetary crisis of climate change, nature and biodiversity loss, and pollution and waste. Alongside the Green Economy Coalition (GEC), Ubuntoo and SEED we issued a call for new ways to catalyse multilateral action for environmental sustainability through green and Fair Trade MSMEs.

Photo credits: UNEA-6

The Role of Green and Fair SMEs in Our Economy

In a world where corporate accountability should be the norm, it’s the Small and Medium Enterprises (SMEs) that are leading the charge. SMEs constitute the largest population of economic actors both locally and globally, generating the most employment and securing the vibrancy of communities and local economies.

Despite their smaller size, SMEs are often at the forefront of innovative and sustainable business practices. They are community-centric, paying fair wages, and maintaining shorter supply chains. Their proximity to their communities allows for greater adaptability and innovation, compensating for their limited scale. We believe that championing SMEs is essential for achieving the long-overdue ecological and social transition our world needs. By supporting SMEs, we can build a more equitable, sustainable, and resilient economy for all.

Photo credits: (1) Manos del Uruguay, (3) Purna Nepal

Challenges for SMEs are hindering sustainable development

Despite their significant potential to drive change and innovation, however, SMEs face numerous obstacles that prevent them from fully embracing sustainability practices and contributing to a more sustainable future.

One of the main challenges for SMEs is access to resources and funding. Unlike large corporations, SMEs often lack the financial resources and access to capital needed to invest in sustainable technologies, practices, and resources. Limited access to funding makes it difficult for SMEs to adopt environmentally friendly processes, develop green products, or expand their businesses in a sustainable way.

Another challenge is the lack of awareness and expertise in sustainable practices, often tied to regulatory and compliance regulations. Many SMEs may not have the knowledge or capacity to implement sustainable initiatives or comply with environmental regulations. This can result in missed opportunities for cost savings, efficiency improvements, and competitive advantages in the market.

A Hub for Sustainable, Green Solutions: accessible to everyone, everywhere 

The WFTO Environmental Solutions Hub aims to address this gap between the potential of SMEs and their challenges by providing a central platform where SMEs can access a wide range of resources, expert advice, and practical tools for implementing sustainable business practices. By leveraging the collective intelligence of the Hub’s network and the expertise of organisations like WFTO-verified Fair Trade Enterprises, SMEs can overcome the challenges they face and unlock new opportunities for positive impact.

Resulted of the collaborations between the Green Economy Coalition, SEED and Ubuntoo, the WFTO Environmental Solutions Hub offers an opportunity to any SME which wants to improve its practices for a greener, fair and sustainable business: 

  • An innovative AI-powered sustainability consultant at your fingertips, vetted by industry professionals. This feature will serve as a valuable tool, equipping you with the knowledge and insights needed to enhance your environmental performance effectively. Available in English, Spanish, Portuguese, Arabic, French, German, Hindi and Mandarin!
  • Practical sustainability solutions tailored to your business needs, covering aspects such as energy efficiency, waste reduction, sustainable sourcing, and eco-friendly packaging.
  • The latest developments in environmental sustainability with our News tab will provide you with access to valuable insights and guidelines on both EU and non-EU compliance measures such as CSRD, CSDDD, ESRS, Green Claims Directive and more.

Would you like to learn more about it? Then you can join our webinar on the 8th of May, 15h00 CEST and address any questions you might have!  Register at this link: https://us06web.zoom.us/j/86771516489?pwd=2wyTEPzVbrN4dvmVM2Nbob8jYkIn1q.1

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17th international

FAIR TRADE SUMMIT

17-20 SEPT 2024 – CAPE TOWN 

We are thrilled to invite you to our upcoming International Fair Trade Summit, set to take place in the vibrant city of Cape Town, from the 17th to the 20th of September 2024.

The International Fair Trade Summit aims to bring together leaders, practitioners, and advocates from all corners of the globe to collaborate and promote Fair Trade practices. This edition promises to be a unique opportunity for participants to engage in enlightening discussions, exchange ideas, and forge partnerships that will shape the future of Fair Trade.

Register here to secure your spot!

WFTO Membership & Associate Types

  • Fair Trade Organisations (FTO)

    All trading members of WFTO. This includes all organisations that have more than half of their income and/or more than €100,000 in income from trade.

  • Fair Trade Support Organisations (FTSO)

    An organisation whose primary mission is to support Fair Trade and/or provide services to organisations that are or want to become Fair Trade Organisations.

  • Fair Trade Networks (FTN)

    An organisation which is an association of organisations committed to Fair Trade.

  • Individual Associates (IA)

    Individual Associates are supporters of the Fair Trade movement with limited rights. The WFTO Guarantee System does not apply to them.

  • Associate Organisations (AO)

    Associate Organisations align with WFTO’s values but after their application. They do not undergo monitoring and also have limited rights.

WFTO Guarantee System Monitoring Statuses

  • Candidates

    Candidates have been conditionally approved for membership but have not completed their first monitoring cycle under the WFTO Guarantee System. They have limited rights within WFTO. They may not use the WFTO Member Mark and Product Label or claim that they are monitored by WFTO.

  • Guaranteed Members

    Guaranteed members have met the WFTO Membership requirements and are monitored under the WFTO Guarantee System.

  • Member

    Organisations that have no or little income from trade go through a reduced version of the WFTO Guarantee System that does not include criteria related to trade. These organisations may use the WFTO Member Mark but cannot use the Product Label for any products they may be trading to support their mission. This status only applies to Fair Trade Networks (FTN) and Support Organisations (FTSO).

  • Renewal in Progress

    Members who are in the process of renewing their guaranteed status and are overdue on some requirements retain full rights while they work to meet the demands of the Guarantee System on an administrative or compliance level.

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WHO CAN APPLY

WFTO welcomes applications from established Fair Trade Organisations as well as organisations that support Fair Trade. Individuals in their capacity as researchers, writers, consultants and specialists in their field who can contribute solid skills, knowledge and expertise to WFTO and members are also welcome.

Add Your Heading Text Initial requirements for organisations:

  • Compliance with the WFTO 10 Principles of Fair Trade. Please have a look at the WFTO Fair Trade Standard for more specific information on compliance with these principles.

  • All applicant organisations must already be duly registered (as a legal entity) and active for at least one year.

Who can apply?

  • Fair Trade Organisations (FTO)

    All companies, partnerships, co-partnerships and other legal bodies – as determined by the legal provisions of the country of the member concerned – that are directly engaged in Fair Trade. They may be producers or northern or southern based trading FTOs for whom Fair Trade is the main activity. To qualify for FTO membership, income from sales (turnover) must account for 50% or more of the total income. Applications for FTO membership cannot be accepted from organisations with no prior sales history.

  • Fair Trade Networks (FTN)

    Legal entities whose primary function is to serve as national or international associations of Fair Trade producers and/or Fair Trade Organisations.

  • Fair Trade Support Organisations (FTSO)

    Fair Trade Organisations where trading is not the main activity (proportion of trade is less than 50% of total income). These organisations are engaged in Fair Trade indirectly, through activities that promote and support Fair Trade. These activities can include business counselling, finance, advocacy or networking.

  • Associate Organisations

    This is a special category for national or international organisations that are interested in supporting and promoting Fair Trade, including donor organisations. Organisations that do not meet the one-year legal existence requirement also fit in this group.

  • Individual Associates

    Individual researchers, writers, consultants and specialists in their field that can support WFTO. WFTO expects its individual associates to be active Fair Trade supporters whose experience and expertise in their own particular field can be of practical benefit to WFTO's members. To apply, please submit a curriculum vitae.

    While FTO, FTN and FTSO are entitled to full WFTO membership, organizational and individual associates have only limited rights.

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OUR PRODUCT LABEL

The WFTO Product Label is more than just a Fair Trade symbol. It signifies not only that the practices across the supply chain are checked against the WFTO Fair Trade Standard, but it also represents support to the battle against poverty and inequality. Products carrying the WFTO Label are made and traded by Guaranteed Fair Trade Organisations dedicated to the sustainable Fair Trade economy. Every purchase of products with the WFTO Label supports small producers and their communities.

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