How a holistic approach to sustainable practices can provide the Indian textile industry with a competitive advantage – Industry News

– By BM Sharma

Every year, the fashion and textile industries contribute billions of dollars to the global economy. Conversely, they have a negative impact on the environment. Around 20% of water pollution and 10% of greenhouse gas (GHG) emissions come from textiles. By 2030, GHG emissions from the fashion sector are expected to increase by more than 50%.

Heavy carbon footprint and sustainable practices

India is the world’s largest manufacturer of textiles and clothing, with the sector accounting for 2.3% of the country’s GDP. By 2030, the industry expects to touch $250 billion in textile production and $100 billion in exports. On the other hand, the textile sector generates 7,793 kilotons of waste. Of this total, 3,944 kilotons are post-consumer textile waste. Nearly 34% (1,347 kilotons) of post-consumer textile waste ends up in landfills, where some of it will take more than 200 years to decompose.

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As climate change becomes a grim global reality, more consumers want clothing manufacturers to offer fabrics based on sustainable processes. According to the India Sustainability Report 2023, 45% of respondents sought to adopt recyclable fashion, 49% aimed to adopt sustainable practices and 22% preferred recycled clothing. Therefore, major brands are accepting the importance of sustainability. More than 40 leading companies in India have committed to the SBTi (Science-based Target Initiative) framework to actively reduce GHG emissions. Likewise, the world’s largest brands are defining their GHG emissions reduction targets while seeking sustainable suppliers.

To promote sustainability, textile companies should focus on reducing scope 1, scope 2 and scope 3 emissions. Scope 1 concerns direct emissions from internal or controlled sources, which can be reduced by using renewable energy and by deploying energy-saving processes. Scope 2 concerns indirect emissions generated by purchased electricity which could be targeted through the transition to green energies. Scope 3 designates all other indirect emissions within the value chain, which require a global approach. This covers sustainable agricultural practices, environmentally friendly transportation and retail operations.

As Indian textiles move towards sustainable practices, several universal sustainability standards have served as guidelines in this journey. This includes the Global Organic Textile Standard, which provides a dynamic quality assurance system by inspecting and certifying the entire textile supply chain, while the Better Cotton Initiative promotes the responsible cultivation and consumption of cotton.

Nationally, the Ministry of Textiles has formed a task force to provide specific interventions to the industry. For example, the Textile Export Promotion Council supports sustainable practices through programs such as the Kasturi Cotton Bharat initiative, emphasizing quality and responsible governance in the Indian textile space. Given the growing climate threat, reducing emissions, implementing energy-efficient processes and advancing net-zero emissions targets are imperative to meeting India’s global climate commitments, including those mandated in the Paris Agreement for 2050.

Some integrated challenges and opportunities

However, the United Nations SDGs (Sustainable Development Goals) present both challenges and opportunities in adopting these strategies. For starters, almost 70% of Asian countries fall into the category of developing or least developed countries. This makes it difficult for them to allocate allocations for costly measures regarding climate change mitigation and adoption. Whether it is India, Bangladesh, Cambodia, Vietnam or Myanmar, these countries will struggle to adopt capital-intensive measures to strengthen the environmental sustainability of their textile industries, which contribute substantially reduce emissions and ecological degradation.

Around 59% of India’s textile waste is recycled every year, but the remaining 41% ends up in landfills or is disposed of improperly. Waste management can be difficult since there are no programs to manage post-consumer waste. The biggest obstacle lies in promoting recycling due to the complex challenge of sorting and separating recovered textiles, particularly because mixed clothing typically contains several diverse fibers as well as contaminants derived from dyes and colors. As fast fashion grows in importance, cotton mills mix polyester and viscose with cotton. This preserves economic viability while meeting the demand for cheap clothing, but ends up filling landfills with more volumes of discarded clothing.

Another challenge will arise in bridging the sustainability-related skills gap in the textile sector. Even though the country produces 25% of the world’s cotton, providing skilled talent for jobs in an eco-friendly ecosystem will pose inherent hurdles. Indeed, sustainability must be managed across the entire ecosystem of sourcing, sourcing, manufacturing, distribution and sales. Since the apparel sector has both organized and unorganized players, it is a difficult task.

As environmental awareness gains ground globally, manufacturers and consumers are gradually shifting from fast fashion to slow fashion. The latter is based on the concept of use, reuse and recycling of the circular economy. Similarly, the closed-loop system of the circular economy works by designing, manufacturing, using and managing clothing that circulates within consumer communities for the longest possible duration. Promoting maximum use of clothing ensures the least impact on the environment, as well as low waste generation and efficient use of energy, water and other resources throughout the product life cycle .

In addition, textile manufacturers are implementing a range of sustainability initiatives. These include an energy-efficient manufacturing process; water conservation and management; wastewater treatment and zero liquid discharge practices; and develop a collaborative and transparent supply chain network, ensuring sustainability throughout the production chain, from raw material sourcing to finished products.

Yet sustainability opportunities come with challenges, as eco-friendly clothing and raw materials can be expensive. To offset high costs, companies must find cost-effective decarbonization alternatives while boosting energy efficiency, optimizing supply chains and improving production processes.

To support sustainable fashion, the central government introduced the Handloom and Handicraft Development Program and the Sustainable Resolution Program (SU.RE). Additionally, the Saathi program of the Ministry of Textiles promotes sustainable textile production in partnership with private entities. In addition to this, the Center must also establish clear sustainability standards and introduce enabling policies that encourage sustainable processes and products.

Creating a sustainable textile industry requires a holistic approach combining innovation and a practical perspective to reduce resource waste through a circular economy model. Adopting a closed-loop system will benefit consumers and the community as a whole. Finally, a pragmatic model can ensure that the Indian textile industry adopts sustainable practices without losing its global competitive advantage.

(BM Sharma is the Joint Managing Director of RSWM Ltd.)

(Disclaimer: Views expressed are personal and do not reflect the official position or policy of Financial Express Online. Reproduction of this content without permission is prohibited.)