The Fairtrade Foundation’s sustainable retail initiative ‘Shared Impact’ has received a green light form the Competition and Markets Authority (CMA).
The Foundation submitted it for assessment to the CMA under its Green Agreements Guidance open-door policy, which aims to help businesses understand how they can collaborate on environmental goals without falling foul of competition law.
In response, the UK regulator has stated that at this stage, it does not have concerns about the model: it concludes that “the Shared Impact initiative is unlikely to raise competition concerns”.
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Shared Impact will enable UK grocery retailers operating at the same level in supply chains to take collective action on enhancing sustainability and resilience in supply chains in partnership with Fairtrade farmers.
CMA chief executive Sarah Cardell said the approval of the Shared Impact initiative will help grocery retailers “further improve the green credentials of the Fairtrade products they place on shelves”.
Fairtrade Foundation head of public affairs Alexander Carnwatch commented: “Expanding on the existing way we work with our retail partners, the new model allows them to target salient risks in their supply chain, drive forward a more resilient food sector, work together to advance shared goals, and fund real, lasting change in partnership with farmers and workers.”
