Cotton highlights natural capital as the new soil carbon

Through the late 1990s the cotton sector was beset with controversy about the amount of pesticide and water it used before industry reforms, such as varietal advances, allowed it to make massive improvements.

As part of this the industry pledged to conduct ongoing state of the industry reports to check how farmers were progressing in meeting environmental targets.

Last week the cotton industry released this joint industry environmental assessment, the fourth of its kind, conducted by independent natural resource management firm GHD.

The report, led by Cotton Australia, the Cotton Research and Development Corporation (CRDC) and cotton's Sustainability Working Group, had some key findings for the sector.

Chris Cosgrove, sustainability advisor to the CRDC, said the increased focus on agricultural sustainability and ESG (environment, social and governance) presented challenges and also opportunities for the cotton sector.

In particular, he said biodiversity could be an area to watch.

"There has been a lot going on with soil carbon over recent years, but investors and buyers are indicating they are equally interested in what is happening in terms of biodiversity," Mr Cosgrove said.

"This is something the cotton industry is looking at, how it can improve its natural capital on-farm and demonstrate its role to those outside the industry."

He said the industry needed to move fast.

"What we have seen when there is no action from the production sector is that it can be mandated in a form that does not necessarily reflect what is happening at a farmgate level, so it is critical the industry works to formulate some clearly measurable guidelines."

The soil carbon issue, where there are varying methodologies to measure the same thing, which can complicate matters."

Cotton industry officials said they would work to increase extension efforts to assist grower understanding and awareness of how they can increase their natural capital.

The report found that cotton producers were taking the challenge of decarbonisation seriously.

GHD observed that grower sentiment has changed with an increasing focus on carbon and emissions and urged a continuation of cross-sector work to establish indicators and targets for greenhouse gas (GHG) emissions and carbon storage while identifying the need for more information for farmers on energy, emissions and climate change.

Cotton Australia chief executive Adam Kay said the recommendation highlighted that the industry needed to do better in providing practical advice about what actions can be taken at a farmgate level, including standardised practices and measuring capabilities.

"There is a role for governments and scientific bodies in helping to fill the knowledge gap," Mr Kay said.

"The industry cannot on its own be responsible for climate information, however it is pleasing to note that growers are concerned about the issues and want to take action.

He said the sector was up for the challenge.

"The changes won't come overnight but they will happen, and we have the framework aligning internal and external stakeholders to ensure ongoing progress."

If the report findings are any indication Mr Kay's words may be more than empty rhetoric.

The assessment found the Australian cotton industry had delivered fully on four of the six recommendations in the previous 2012 Third Independent Environmental Assessment and has made significant progress on the other two.

The assessment also nominated 16 new recommendations which will be assessed in another ten years. The Australian cotton industry has accepted all 16 new recommendations, with all either currently being actioned or with strategic planning underway to inform the next steps.