Abigail Radcliffe
Case Western Reserve University - Weatherhead School of Management
Chris Laszlo
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Cotopaxi is an outdoor adventure company that has recently developed the Kusa Collection, a line of apparel whose insulation is made of recyclable poly-blend materials and llama fibers. The llama hair is sourced from Bolivian farmers, providing them with decent work as well as education on ways to sustain their source of income. The entire supply chain in Bolivia works to improve the well-being of the animals and workers involved, while decreasing the environmental impact of production.
Cotopaxi's Kusa Collection is a line of outdoor adventure apparel that addresses global poverty alleviation and connects people across borders. A large portion of South American countries such as Bolivia have economies that revolve around llama farming, and the Kusa Collection makes use of the existing infrastructure to create innovative outdoor gear with natural insulation. The clothing line uses a knitted combination of poly-blend recycled plastic fibers and llama hair to create a product that is softer and blocks wind better than wool. The technical advantages of using llama fiber comes from its hollow nature, which allows it to be self-insulating, hypoallergenic, and able to keep in warmth even when wet.
The native people of Bolivia have known the valuable properties of llama hair for generations, and Cotopaxi partnered with an existing WRAP (Worldwide Responsible Accredited Production) certified group to help the Kusa Collection to emerge. The partnership is beneficial because it allows farmers to stay on the land that their families have worked for centuries, and workers to continue Bolivia's strong tradition of knitting. All of this contributes to the company's sense of purpose to create innovations that are "Gear for Good." Not only does the Kusa Collection support decent work for people in Bolivia that are already skilled in their trades, but it also fosters a connection between the people buying the product and those making it - inspiring a taste for adventure and opening people up to different cultures.
The company's CEO and founder Davis Smith grew up in South America where llamas are "a symbol of strength and inspiration and have supported the livelihoods of Andean populations for thousands of years." Since the creation of the company two llamas - Coto and Paxi - have lived on the campus in Salt Lake City, and observation of them is what sparked the inspiration for the Kusa Collection. The llamas' hair keeps them warm even in the coldest winter: would it be possible to harness that and apply it to outdoor gear? After researching and testing the fibers, the design team discovered that they could utilize it to make a product that was unlike any of its competitors. The discovery of the insulating power of the fiber led to the creation of the Kusa Collection, which aligns with one of Cotopaxi's three pillars that create a passageway out of poverty. In the communities that the company works with in Bolivia, the livelihoods of people are supported by the jobs created within the supply chain and the purchasing power that the company wields.
The overall impact of the Kusa Collection is rooted in the company's goal to provide a sustainable pathway out of poverty by focusing on three different pillars: education, health, and livelihood, which are all connected. The overall health and well being of the animals and workers is supported both by education provided by the company and its partners, and by the sustainable income the company has created. Running the company with the goal of "general public benefit" has had a benefit to the business as well, and allowed them to gain capital to be used for new innovations or partnerships with different communities.
The Kusa Collection has "one of the highest performing lines" for Cotopaxi because it addresses issues that its customer base thinks are important, such as environmental conservation, within its supply chain. The newest sweater in the product line demolished it's Kickstarter goal of $20,000 by raising over $323,000 before the campaign had even ended. This support not only shows that there is a monetary benefit to the business, but also that people recognize the quality of the products that are made and the good business model that Cotopaxi operates under.
Cotopaxi benefits the environment by using recycled plastics as the base of their poly-blend fibers that are woven with the llama hair to form insulation in their gear. They also work with their partner in Bolivia to recycle and reuse 70% of the water used during production of the sweaters and use only natural gas as heating to reduced carbon emissions. The environmental effort is made from beginning to end of the Kusa Collection, from the low environmental impact dyes used on the fibers to the biodegradable bags used for shipping. They have also taken steps to create a code of conduct regarding clean energy and production that they will expect all their partners to comply with.
The social benefits that are created by the product line include giving about 200 farming families the ability to stay on their land and continue farming instead of having to go elsewhere to find income. In the recent past, market demand for llama fiber had been decreasing, and people had been leaving to pursue mining which can have negative effects on their health. By using their purchasing power to buy from these farmers and teaching them the benefits of using live-sheared fleece as opposed to killing the animals, they are providing them with a sustainable income that also protects the well being of the animal. In addition, their partner group in Bolivia employs a workforce that is about 80% women, many of whom are the sole income provider in their family. They also provide good working environments, health/retirement benefits, and food subsidies for these workers, while regularly visiting the suppliers to ensure that they are creating a lasting impact of social responsibility.
By the social and environmental benefits explained above, the Kusa Collection meets two UN Sustainable Development Goals: Decent Work and Economic Growth and Responsible Consumption and Production. The company standard set by Cotopaxi to source the fiber from farming families in the region supports job creation and entrepreneurship for those farmers. This policy, coupled with a workforce comprised of 80% women supports the UN sub-goal to achieve full and productive employment and decent work for all women and men. Finally, the recycling of water and use of natural gas for heating in production facilities helps work on substantially reducing waste generation by the year 2030 through prevention, reduction, recycling and reuse.
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Lindsey Kneuven, Chief Impact Officer
