Dr A. Sakthivel, Chairman,
Apparel Made-Ups & Home Furnishing Sector Skill Council
The Indian garment industry is not an exception to the growing importance of firms worldwide embracing Environmental, Social, and Governance (ESG) concepts. India’s garment sector is vital to the global market since it is one of the biggest producers of textiles and clothing worldwide. However, stakeholders are now highlighting the necessity of ESG-focused initiatives to promote long-term growth and success in this industry due to increased awareness of sustainability and ethical standards.
Environmental Responsibility: Embracing Sustainable Practices
Environmental problems like trash production, energy use, and water contamination have been greatly exacerbated by the Indian clothing and textile industry. As part of their ESG strategy, well-known brands and stakeholders in the garment sector are adopting sustainable practices throughout the apparel value chain to solve these problems. Businesses are consciously lowering their carbon footprint by decreasing the use of chemicals and water in production, as well as by obtaining environmentally friendly raw materials.
Sustainable fabric innovations like recycled polyester, organic cotton, and environmentally friendly colors are becoming more and more popular. By emphasizing recycling and upcycling, Indian manufacturers are also embracing circular economy concepts, prolonging the lifespan of clothing and cutting down on textile waste.
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 labour 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
In the Indian garment and textile industry, governance is centered on openness, responsibility, and moral judgment. Strong governance procedures that benefit shareholders and respect moral principles for all stakeholders, including workers, customers, and local communities, are encouraged by ESG frameworks.
By implementing global ESG reporting standards like the Sustainability Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI), many clothing firms are improving their governance frameworks. By allowing businesses to monitor, assess, and communicate their ESG performance, these frameworks give investors and customers transparency.
In order to make sure that social and environmental considerations are incorporated into their business plans, some Indian clothing firms are also taking the initiative and creating board-level ESG committees. These businesses reduce risks and foster stakeholder trust by emphasizing responsible governance.
Conclusion: A Sustainable Future for the Indian Apparel & Textile Industry
It is now essential, not simply a choice, for the Indian apparel industry to include ESG principles. Companies that prioritize sustainability, ethical labor standards, and solid governance are likely to prosper in the long run due to mounting pressure from investors, consumers, and regulators.
Adopting ESG would help the industry remain competitive, encourage innovation, and have a good influence on the environment and society, especially because India is still a big participant in the global garment market. Indian clothing firms are laying the groundwork for a more ethical and sustainable future by implementing ESG-focused initiatives, which also contribute to the larger global movement toward responsible business practices.
