The Better Cotton Initiative (BCI) confirmed on Tuesday that it now operates as a regenerative standards system, completing a two-year restructuring that includes revised principles, a technology acquisition and stricter field-level assurance.

The shift matters commercially: BCI's standard already covers more than one-fifth of cotton grown worldwide, and its version 3.2 principles took effect in April. The restructure does not ban synthetic pesticides or chemical fertilisers outright, but farmers must phase out highly hazardous pesticides over time. Mandatory soil health, cover cropping, biodiversity and integrated pest management measures now sit at the core of the standard.

"When nature thrives, farmers thrive," BCI CEO Nick Weatherill said in a statement. "And when retailers and brands support those conditions through their sourcing and investment, they help build more resilient supply chains and future-proof the supply of cotton."

What changes for suppliers?

BCI says the move aims to "bridge the gap" between corporate sourcing ambitions and field-level realities through "genuine partnerships" with farmers backed by verifiable results. The organisation has revamped its investment, capacity strengthening, assurance and impact measurement activities to prioritise regenerative farming.

The new system strengthens the existing requirement that farmers demonstrate continuous improvement, placing greater emphasis on regenerative agriculture when setting and meeting targets. Suppliers to brands sourcing BCI cotton should expect tighter data demands and clearer outcome metrics.

Regenerative cotton differs from organic: it targets soil health, biodiversity, carbon capture and water retention rather than banning synthetic inputs. Because "regenerative" has no single legal definition, conventional farms can adopt regenerative practices — cover crops, no-till farming — while still using synthetic pesticides and GMO seeds. Proponents argue this gives farmers more flexibility than standard organic certification.

What is behind the timing?

The relaunch follows mounting scrutiny of BCI's certification credibility, most notably watchdog group Earthsight's April 2024 exposé. That report criticised BCI for certifying cotton linked to illegal deforestation, land-grabbing and environmental violations in Brazil's Cerrado region. H&M and Zara, two of the biggest high-street brands, were implicated in the supply chains concerned.

BCI, then trading as Better Cotton, said a third-party audit found no breach of its standards at the investigated farms, but pledged expanded due diligence requirements and closer collaboration across standards bodies and certification schemes. Then-CEO Alan McClay said: "We welcome the scrutiny of organisations such as Earthsight as they help to shine a spotlight on areas where both farm and regulatory oversight need to improve."

What has BCI bought and verified?

BCI has acquired the team and technology behind Co:Farm from agritech company Materra. The deal builds digital infrastructure to speed up field-level data collection and cut the administrative burden on growers and implementing partners.

"Co:Farm is more than a technology acquisition," chief commercial officer Alia Malik said in a statement. "Very few organisations can take an innovation proven with 10,000 farmers and scale it across one of the world's largest farmer networks."

BCI also commissioned agricultural consultancy SureHarvest to benchmark its framework against standards from RegenAgri, REEL, Textile Exchange and others. SureHarvest found BCI's standard "already aligned well with widely recognised regenerative practices and outcomes," particularly Principles 2, 3, 5 and 6. BCI closed remaining gaps before releasing version 3.2 in April.

One live pilot shows the model at scale. The Gujarat Regenerative Agriculture Project, launched with H&M in India in 2025, trains and supports more than 12,000 farmers in western India. More than 1,760 growers have received incentive payments to date, and 1,700 metric tons of traceable BCI lint cotton have been linked to H&M's supply chain.

BCI will formally launch the regenerative standards system at this week's Textile Exchange Conference in Vancouver, Canada, hosting sessions on regenerative agriculture, industry readiness and scaling.

The takeaway: Cotton buyers and their tier-one suppliers must now map whether their programmes meet the revised 3.2 criteria — phase-out plans for highly hazardous pesticides, soil health and biodiversity measures — or risk losing BCI certification status.