Hard Identity Preserved (HIP) Chain of Custody Explained

Why Traceability Defines the Future of Sustainable Textiles

In the textile industry, sustainability without traceability has no credibility. Brands can only make reliable environmental claims if they can verify the exact origin and journey of their materials.

That is why chain of custody systems have become the backbone of trustworthy sustainability standards. Among them, the Hard Identity Preserved (HIP) Chain of Custody model — used by the Regenerative Cotton Standard® (RCS) — sets one of the highest benchmarks for transparency and data integrity.

This article explains what the HIP model is, how it works, and why it provides brands with the level of proof now required by both consumers and EU regulators.

What Is a Chain of Custody System?

A chain of custody (CoC) system is the documented process that tracks a product or raw material through all stages of production, processing, and distribution. In the context of cotton, it ensures that sustainability claims about a fiber’s origin are verifiable and not based on assumptions.

Different CoC models exist across the industry:

Model	Description	Example
Mass Balance	Certified and non-certified materials can be mixed. Certificates are transferred administratively.	Common in large commodity supply chains
Segregation	Certified and non-certified materials are physically separated but may lose identity at batch level.	Typical for organic or sustainable cotton systems
Identity Preserved (IP)	Materials from a specific source remain fully separated and traceable throughout the chain.	Applied in high-value or specialty supply chains
Hard Identity Preserved (HIP)	The strictest form — every batch is uniquely identified, fully traceable, and verified.	Used by the Regenerative Cotton Standard® (RCS)

Understanding the Hard Identity Preserved (HIP) Model

The HIP Chain of Custody ensures uninterrupted traceability from the farm to the finished product. Every transaction involving RCS-verified cotton is documented, verified, and linked to a unique identifier.

Core Principles of HIP

1. Physical Separation: RCS cotton is never mixed with non-certified cotton at any point in the supply chain.
   
2. Unique Batch Identification: Each shipment receives a unique ID that remains attached through ginning, spinning, weaving, and garment production.
   
3. Transparent Documentation: All actors record data in standardized systems that can be audited.
   
4. Third-Party Verification: Independent auditors confirm that all CoC requirements are met.

This ensures that a garment labeled “made with 100% RCS-verified regenerative cotton” can be backed by hard evidence — not by statistical averages or paper certificates.

Why HIP Matters for Brands

1. Proven Authenticity

With HIP, brands can prove the exact origin of their cotton — down to the farmer group or cooperative. This eliminates doubts about whether their materials genuinely meet regenerative criteria.

2. Compliance with New EU Regulations

The EU Green Claims Directive and Corporate Sustainability Reporting Directive (CSRD) require brands to substantiate all sustainability claims with verifiable data. HIP delivers the chain-of-custody evidence these laws demand.

3. Risk Mitigation

HIP significantly reduces the risk of supply chain fraud, substitution, or greenwashing. Because every batch is tracked individually, it becomes nearly impossible to mislabel or mix uncertified materials.

4. Consumer Trust and Brand Value

Consumers increasingly expect transparency. When brands can demonstrate real traceability, they gain long-term trust and differentiation in the market.

How HIP Works Across the Supply Chain

Supply Chain Stage	What Happens Under HIP	Verification Step
Farming	Regenerative cotton grown by verified smallholder farmers	Field audits and data recording
Ginning	Cotton is separated, labeled, and assigned a unique batch ID	Documentation and verification by AbTF partners
Spinning	RCS cotton processed separately; batch IDs maintained	Cross-checking with supplier records
Fabric Production	Yarn converted into textiles under HIP protocol	Process verification
Brand / Retail	Finished goods labeled as RCS-verified	Final certification and transaction check

The result is a closed information loop where every product’s history is documented and auditable.

The Role of the AbTF Transparency Standard

The Aid by Trade Foundation (AbTF) created the Transparency Standard to define the operational requirements for all organizations involved in the HIP model.

This standard specifies:

• Data management and reporting formats
  
• Labeling and documentation requirements
  
• Frequency of audits and verification procedures
  
• Obligations for traders, mills, and brands

By adhering to this framework, every participant in the supply chain contributes to the same, verifiable transparency system.

Benefits of HIP for Retailers and Brands

Business Area	Benefit of HIP
Regulatory Compliance	Provides full documentation to meet EU Green Claims and CSRD requirements
Reputation Management	Strengthens credibility and prevents greenwashing accusations
Operational Efficiency	Streamlined data flow and traceable supplier relationships
Supply Chain Security	Minimizes substitution risk and ensures quality integrity
Customer Engagement	Enables transparent storytelling and digital product passports

HIP vs. Mass Balance Systems

Many existing cotton standards use mass balance models, which allow certified and non-certified cotton to be mixed. While administratively simpler, they limit the level of proof a brand can claim.

Feature	Mass Balance	Hard Identity Preserved (HIP)
Material Mixing	Allowed	Not allowed
Traceability Level	Aggregate / system level	Batch / product level
Claim Accuracy	Approximate	Exact
Audit Complexity	Lower	Higher, but more reliable
Regulatory Readiness	Limited	Fully compliant with EU data and transparency expectations

Brands preparing for stricter regulations and increasing consumer scrutiny should prioritize HIP or equivalent systems to safeguard their sustainability communication.

Conclusion: HIP as the New Gold Standard for Cotton Traceability

The Hard Identity Preserved (HIP) Chain of Custody represents the highest level of traceability currently achievable in cotton supply chains. For brands and retailers, it is more than an operational system — it is a strategic asset that supports compliance, protects brand reputation, and builds lasting trust.

By adopting RCS and its HIP model, companies can ensure that every sustainability claim they make is backed by verifiable evidence — from cotton field to final product.

In an era where credibility defines competitiveness, HIP is not just a technical detail; it is the foundation of responsible, future-proof sourcing.