Sustainability: A balancing act
Despite the widespread adoption of sustainable practices in manufacturing, concerns about upfront costs linger. Many overlook the long-term benefits of these investments. Divya Shetty analyses industry practices and their future advantages.
The textile industry is one of the major sectors in India with an estimated market value of $ 223 billion. However, the industry faces a significant environmental challenge due to its manufacturing operations. For instance, the manufacturing units are major consumers of water and thermal energy. In fact, energy accounts for 15 to 20 per cent of the sector’s total production cost.
To combat the negative impact on the environment, the industry is working towards striking a balance between profitability and sustainability. While the majority of companies recognise the potential benefits of incorporating sustainable practices into their manufacturing processes, there remains a small group of individuals who view it as a costly investment. However, it is crucial for these manufacturers to realise that this initial investment can prove to be profitable in the long term. Sustainable manufacturing is the integration of systems and processes capable to produce high-quality products and services by utilising less and more sustainable resources such as energy and material, being safer for societies, employees, consumers, stakeholders and being able to mitigate social and environmental impacts throughout its whole life cycle.
In a recent sustainability survey by Yarn Bazaar and Wazir Advisors, more than 80 per cent of key stakeholders are adopting sustainable manufacturing practices in some or other way (see Figure 1). Primarily these practices are driven by mounting pressure to improve energy efficiency, to reduce freshwater usage or improve usage of wastewater and to reduce hazardous chemicals in the production process, while building circular effluent management systems. As a result, Tier 1 (apparel), 2 & 3 (fabric and yarn) manufacturers alike are increasingly investing in sustainable technologies across dry and wet processes (ozone washing, digital printing), improving compliance through stringent certifications and benchmarks (ZLD, Higg, ZDHC) and re-constituting product portfolios with sustainable and circular products that are more durable and natural fibre-based. There is growing interest in both polyester and cotton-based textile-textile recycling to reduce waste output – primarily at pre-consumer or post-industrial waste stages. Also, the bottle to textile polyester recycling capacity has shot up and is claimed to be a flourishing market. (see Figure 2) These initiatives are supported by gradual phasing out of coal-based power consumption with manufacturers switching to renewable sources of energy in an effort to reduce overall environmental footprint.
Figure 1: Global fashion brands that have declared major commitment towards sustainability.
Source: Wazir Advisors and The Yarn Bazaar’s Sustainability Survey Report 2023
Aniket Dani, Director-Research, CRISIL Market Intelligence & Analytics, says “Manufacturers are responding to consumer demand by enhancing transparency and traceability in their supply chains. Opting for organic cotton cultivation, avoiding synthetic fertilizers to promote soil health could also be an area of focus. The adoption of these sustainable practices varies among companies, reflecting the industry’s on-going evolution in response to the focus on sustainability globally.”
Companies are aggressively adapting eco-friendly measures to stay uptight in the ever-competing market and are trying to get the necessary certifications to win the confidence of its stakeholders. N Chandran, Chairman, Eastman Exports Global Clothing, explains, “We use sustainable raw materials which are certified by GOTS , OCS ,GRS, and Oekotex among others. At Eastman Exports, we have entered into an agreement with a company to recycle those pre-consumer cutting waste –especially for white and pale colours. On a trial basis, we have sent 500 kg of waste to them. We have adopted Zero Liquid Discharge system (ZLD) in our dyeing and printing Mill. More than 90 per cent of water is recycled and again reused in production.”
The fashion industry is also seeing a shift from conventional practices towards more sustainable manufacturing practices. Amar Nagaram, Co-Founder, Virgio, states, “Many bigger export houses have resorted to environment and people friendly practices such as sourcing locally, switching to renewable energy, energy and water efficient manufacturing plants, using eco-friendly packaging materials, reducing/recycling waste, fair wages, good working conditions etc.”
Figure 2: Bottle-to-textile polyester recycling capacity is set to cross 1600 KTPA by 2030.
Source: Wazir Advisors and The Yarn Bazaar’s Sustainability Survey Report 2023
Jayanth Kashyap B, Investment Lead, Good Fashion Fund, also opines, “I believe this perspective of sustainable manufacturing, whilst applicable to all industries, is quite important to the Indian textile industry. A more granular view to dissect sustainability adoption would be across input management, manufacturing operations and product development.”
Even research institutes and associations across India are encouraging their members and students to be more environmentally conscious while manufacturing the textile products in future. Gaggan Bhatia, Associate Professor- Department of Fashion Business, Pearl Academy, comments, “Through the procurement of eco-friendly products like recycled polyester and organic cotton, the industry is reducing its reliance on hazardous chemicals. For instance, organic cotton protects the environment and the health of farmers by doing away with the use of hazardous fertilizers and pesticides. In the same vein, recycled polyester lowers the need for fresh polyester manufacture, conserving waste, and energy.”
What steps can be taken to attain sustainability
To foster sustainability in the textile industry, it is imperative to consider various facets within the production chain. The following are key measures to be taken; Minimisation of environmental footprint: As awareness grows, there is a rising demand for companies that contribute to pollution mitigation. Intertek has developed leading science based-solutions that are helping buyers and suppliers become pioneers in products that are good for the planet. “We provide end-to-end solutions that include corporate sustainability certifications along 10 standards, ESG data and reporting, and operational sustainability services for the textile industry such as wastewater testing, MRSL testing and certification, RSL scan, biodegradability testing, microfiber testing, recycled polyester verification, textile exchange, zero waste to landfill, and chemical management programmes like ToxClear,” tells André Lacroix, CEO, Intertek Group. Similarly, Moglix offers a diverse range of sustainable materials, including organic cotton, recycled polyester, and recycled nylon, to our customers. We work closely with our suppliers to ensure that they adhere to sustainable practices in their production processes. “Approximately 25 per cent of the new products created by our team are sustainable, and we are dedicated to doubling this percentage over the next five years,” adds Amit Gupta, Director, Moglix.
Many companies have also realised off-lately the efficiency and cost-effectiveness of installing solar plant in their manufacturing unit. Trina Solar is one such company which offers high-quality and latest technology. Todd Li, President, Trina Solar Asia Pacific, comments, “Textile manufacturers are readily adopting solar energy to reduce operating costs and accelerate the scale of textile production. Solar adoption can vastly improve productivity and aid in income generation for textile manufacturers operating within rural micro-, small-, and medium scale enterprises.” The i-TOPCon technology by Trina Solar is a latest solar cell technology that provides a further boost to the cell’s efficiency, allowing modules to harvest more energy. Along with solar awareness, treating wastewater has also gained traction in the recent years. DuPont is getting the momentum in the wastewater treatment plant which is used in the Pre-treatment to RO for the wastewater treatment. “Textile units, especially dyeing industries, are actively seeking eco-friendly solutions. DWS products align with these requirements, making them highly sought after in the market,” informs Tushar Masurkar, Head-Strategic Accounts, DuPont Water Solutions-India.
Enhancement of working conditions: Sustainability is also not just about the environment alone. Adoption of sustainable practices has long been viewed with the lens of just reducing GHG emissions, but several manufacturers struggle to recognise that the people and communities (social) are equally important and is interconnected to the idea of sustainability. “Workers in the supply chain are the most affected due to lack of minimum wages, less than ideal or safe working conditions and lack of personal development opportunities to improve their livelihoods and general quality of life. Women, especially, tend to not progress past factory-level jobs to more managerial or supervisory roles and experience a wage gap in comparison to their male counterparts. This is an element of sustainability that is often perceived by some manufacturers as a ‘compliance’ aspect rather than a ‘holistic’ goal that can truly aid their sustainability journey beyond corporate social responsibility requirements,” informs Kashyap.
Ethical considerations in the supply chain: Ensuring that material suppliers and other entities within the supply chain adhere to the same sustainability standards as the manufacturing company is crucial. Observing the growing demand for sustainable and circular products, certain companies have loosely employed the term, creating a challenge for those genuinely committed to its adoption. “Green washing by fast fashion brands has made it even more difficult for consumers to appreciate genuine responsible brands. Lot of awareness needs to be created around why earth friendly practices and material are good for everyone; the entire ecosystem will have to develop to make good fashion accessible for all. Increased demand, right infrastructure, government policies, investments in innovations, collaboration and commitment from all stakeholders need to come together to solve it,” asserts Nagaram.
Birla Cellulose, one of the largest man-made cellulosic fibre (MMCF) producers globally, has embraced sustainability through its 5-pillar strategy. “Birla Cellulose has also launched commercial product ‘Liva Reviva’ where in it is using 30 per cent cotton waste in manufacturing MMCF. This approach has many fold benefits like reduction in use of dissolving wood pulp (which is turn is made from wood), utilisation of cotton waste which could either be landfilled or could go for down cycling. Along with this, it also reduces water consumption and carbon emissions, which are other sustainability challenges in textile industry,” adds Surya Valluri, Chief Sustainability Officer, Birla Cellulose.
Designing products with sustainability in mind: The design of sustainable products necessitates durability and high quality. Furthermore, the utilisation of sustainable materials and responsible production processes is essential. As per the Sustainability Report 2023, Polyester recycling has traditionally been the primary focus in circular textiles, however, recent trends indicate significant upsurge in cotton recycling as well, reflecting the industry’s evolving approach towards circularity. “Lifestyle brand Patagonia estimates that their supply chain accounts for 95 per cent of their carbon emissions. In order to be carbon neutral by 2050, the brand is now using regenerative organic cotton fields in India as well as growing fibre the way nature intended,” educates Bhatia. Not just Patagonia, numerous brands are producing products that support circularity and won’t contribute to landfill waste.
Challenges posed
The topic of sustainable fashion is intricate and multidimensional, involving social, cultural, and economic factors. Even if the idea of sustainable fashion is becoming more and more popular around the world, the fashion industry still faces several obstacles that must be overcome. Below are some major challenges that manufacturers face on their path to sustainability:
⦁ Lack of transparency in the textile supply chain.
⦁ Limited access to sustainable materials like organic cotton and recycled fibres.
⦁ Resistance to move away from traditional manufacturing systems and processes.
⦁ Lack of clearly defined waste management policies.
⦁ Time-consuming and expensive certifications and accreditations.
⦁ Lack of motivation to invest in sustainability during recessions and shifting market conditions.
“The fast fashion trend, which promotes quick and cheap production of clothing, often at the expense of environmental and social considerations, is another significant challenge,” assesses Chandran.
Data from Open Supply Hub (OSH) reveals the complexity of textile (and garment) operations in the country with over 11,000 facilities across yarn, fabric and garmenting processes. While there are vertically integrated companies, majority of the fabric for instance is produced in small to mid-size decentralised looms where there is a general lack of private sector investment to scale the adoption of sustainable practices. The journey of sustainability transition requires a vision and a long-term roadmap, supported by existing competencies and upfront allocation and planning for operational costs and capital expenditure – which is predominantly debt-led.
One major challenge which all the manufacturers have expressed while implementing sustainable practices which is already mentioned above is ‘high investment.’ The transition to sustainable practices often requires a high initial investment in new technologies and processes. The cost of implementing sustainable practices can be high, and the return on investment may not be immediate.
“While some of the big manufacturers have been able to implement some sustainable practices, there is still a long way to go. The smaller and unorganised sector manufacturers find it difficult, even if they want to. The implementation, compliance and certifications come with a cost and longer lead times, and many sustainable raw materials have limited availability due to low demand, hence expensive,” expresses Nagaram.
Kashyap says, “While there are vertically integrated companies, majority of the fabric for instance is produced in small to mid-size decentralised looms where there is a general lack of private sector investment to scale the adoption of sustainable practices. The journey of sustainability transition requires a vision and a long-term roadmap, supported by existing competencies and upfront allocation and planning for operational costs and capital expenditure – which is predominantly debt-led.”
“Adoption of technologies and huge funds requirements are challenges the industry will face. This dilemma needs to be addressed by collective working among the industry value chain including the brands. In short term this may impact the financial performance of many companies, this may be worked out with extended stake holders especially governments and policy maker’s intervention,” suggests Valluri.
Balancing profit and planet
In recent years, the Indian textile industry has demonstrated a growing awareness and intent to embrace sustainable practices. Some companies have taken significant steps investing in technologies such as water recycling and energy efficiency as well as increased usage of non-hazardous chemicals in printing and laundry units. The government’s focus on green energy and the increasing demand for sustainable products have further incentivised this shift. However, challenges such as initial implementation costs, complex supply chains, and the need for education and awareness persist.
Deployment of AI and ML will help the industry to more productivity, improved quality, quick adoption of digitalisation along with sustainable practices shall position country’s textile industry in leadership position.
Despite these hurdles, the future looks promising in terms of sustainability. The industry is increasingly recognizing the importance of sustainable practices and is taking steps to incorporate them into their operations. For instance, many companies are focusing on input management as a preferred strategy to sustainability rather than just tailpipe management.
Moreover, the industry is witnessing a shift in consumer preferences towards sustainable fashion. There is a growing awareness among consumers about the environmental impact of the textile industry and a desire to make more conscious purchasing decisions. This growing demand for sustainable textiles is putting pressure on companies to adapt and incorporate more environmentally friendly practices into their operations.
In future, we can expect more companies to adopt sustainable practices. The industry is likely to witness increased collaboration and knowledge-sharing to drive innovation and accelerate sustainable practices. The adoption of circular economy practices, which focus on reducing waste and making the most of resources, is also expected to gain momentum.
The government is also supporting this initiative and has offered support and policies to the industry. The latest being the Sustainable Textile Policy 2023-2028 which came into effect from March 31, 2023 in Maharashtra. The objective of this policy is to increase the processing capacity of cotton from 30 per cent to 80 per cent in the next 5 years. The policy also envisages attracting investment of Rs 25,000 crore and employment generation up to 5 lakhs in next 5 years. Other state governments are also playing a role in motivating companies to transition into sustainable powerhouses.
A few years ago, the Indian Ministry of Textiles also launched Project SU.RE. – Sustainable Resolution to establish a sustainable pathway for the fashion industry to work towards achieving Sustainable Development Goals (SDGs) and long-term environmental, social, and corporate governance goals. Recently, India signed a co-operation agreement between the United Nations’ Environment Programme and The Cotton Corporation of India to ensure circularity and mainstream sustainability in the supply chain. The government is known to be considering incentivisation for the textile industry to foster sustainable practices and is launching an ESG task force to help prepare a road map for sustainable textiles.
It’s time for the industry to shatter the myth that embracing sustainability is an expensive endeavour. Instead, envision it as a savvy investment that guarantees future gains—think lower energy bills, slashed raw material expenses, and substantial environmental wins. Smart companies are choosing to wisely allocate resources into machinery and materials that not only curb carbon footprints but also hold the promise of long-term profitability.
