Adopting Environmental, Social, and Governance (ESG) principles is becoming increasingly significant for businesses globally, and the Indian apparel sector is no exception. As one of the world’s largest textile and apparel producers, India’s apparel industry plays a crucial role in the global market. However, with growing awareness about sustainability and ethical practices, stakeholders are now emphasizing the need for ESG-focused strategies to foster long-term growth and success in this sector.
Environmental Responsibility: Embracing Sustainable Practices
The Indian apparel and textile sector has been a significant contributor to environmental challenges such as water pollution, energy consumption, and waste generation. To address these issues, prominent apparel industry stakeholders and brands are embracing sustainable practices in the apparel value chain as part of their ESG strategy. From sourcing eco-friendly raw materials to minimizing the use of water and chemicals in production, companies are deliberately reducing their carbon footprint.
Innovations in sustainable fabrics such as organic cotton, recycled polyester, and eco-friendly dyes are gaining traction. Indian brands are also adopting circular economy models by focusing on recycling and upcycling, thus extending the lifecycle of garments and reducing textile waste. Some apparel companies have set ambitious targets to achieve carbon neutrality and implement renewable energy in their supply chains. The move towards sustainable practices aligns with global ESG standards and resonates with environmentally conscious consumers.
Social Responsibility: Promoting Ethical Labor Practices
Social responsibility is another key pillar of ESG in the Indian apparel & textile industry. Historically, the sector has faced scrutiny over labour rights, including concerns about low wages, poor working conditions, and child labour. To combat these issues, apparel companies adopt more ethical labor practices, ensuring fair wages, safe working environments, and workers’ access to social welfare programs.
Many Indian apparel manufacturers are now certified by organizations like the Fair-Trade Association as part of ethical supply chains. These certifications ensure that workers receive fair wages and are provided with a safe and healthy workplace. Companies are also investing in skill development programs for workers, empowering them with better opportunities for growth and development.
Empowering women in the workforce is another area where the Indian apparel sector is progressing rapidly. With many garment workers being women, companies focus on gender equality initiatives, promoting leadership opportunities for women, and ensuring equal pay.
Governance: Enhancing Transparency and Accountability
Governance in the Indian apparel & textile sector revolves around transparency, accountability, and ethical decision-making. ESG frameworks encourage companies to adopt strong governance practices that benefit shareholders and uphold ethical standards for all stakeholders, including employees, consumers, and local communities.
Many apparel companies are enhancing their governance structures by adopting international ESG reporting standards, such as the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB). These frameworks enable companies to track, measure, and report on their ESG performance, providing transparency to investors and consumers.
Furthermore, some Indian apparel companies are taking proactive steps by forming ESG committees at the board level to ensure that environmental and social factors are integrated into their business strategies. By focusing on responsible governance, these companies mitigate risks and build trust with their stakeholders.
Conclusion: A Sustainable Future for the Indian Apparel & Textile Industry
Integrating ESG principles in the Indian apparel sector is no longer just an option but a necessity. With growing pressure from consumers, investors, and regulators, companies prioritizing sustainability, ethical labour practices, and strong governance will likely thrive in the long term.
As India continues to be a major player in the global apparel market, embracing ESG will help the industry stay competitive, foster innovation, and positively impact the environment and society. By adopting ESG-focused strategies, Indian apparel companies are paving the way for a more sustainable and ethical future, contributing to the more significant global effort of responsible business practices.
(Disclaimer: The views expressed in the article above are those of the author Dr. A. Sakthivel, Chairman, Apparel Made-ups and Home-furnishing Sector Skill Council. The matter and intent of this article has not been edited by skillreporter.com. Skill Reporter shall not be responsible for any person/ organization directly or indirectly.)
