Sustainable Textile Supply Chains: ESG Practices & SDG Alignment
A comprehensive framework for integrating Environmental, Social, and Governance practices throughout Aditya Birla Textiles' supply chain while advancing the United Nations Sustainable Development Goals.
Today's Agenda
ESG Fundamentals
Overview of our ESG strategy and its importance in the textile industry
Supply Chain Integration
Detailed exploration of ESG practices across 7 key supply chain segments
SDG Alignment
How our ESG initiatives advance specific UN Sustainable Development Goals
Implementation Roadmap
100-day rollout plan with actionable milestones and expected SDG impacts
By the end of this presentation, you'll have a comprehensive understanding of how to implement and measure ESG initiatives that create both business value and positive environmental and social impact.
ESG Framework: Creating Sustainable Value
Environmental
Sustainable fiber sourcing, chemical management, water conservation, emissions reduction, and circular resource use
Social
Fair labor practices, workplace safety, gender equality, and community investment throughout our global operations
Governance
Transparent reporting, supply chain traceability, compliance verification, and accountability systems
ESG approach is tailored specifically for textile supply chains, with measurable metrics and verification protocols aligned with global standards and emerging regulations.
Forests, Pulp & Fibers: Sustainable Raw Materials
ESG Practices:
  • Maintain CanopyStyle "Dark Green" leadership for deforestation-free MMCF
  • Complete pulp origin disclosure and traceability
  • Increase sourcing of Better Cotton Initiative (BCI), Organic, and Recycled Claim Standard (RCS) cotton
  • Implement fiber-specific sustainability KPIs with quarterly verification
SDG 12: Responsible Consumption
Sustainable fiber sourcing reduces resource depletion and waste
SDG 13: Climate Action
Deforestation-free MMCF prevents carbon emissions
SDG 15: Life on Land
Protecting biodiversity and forest ecosystems
Cotton Sourcing: Supporting Farmer Livelihoods
Current Challenges:
  • Water-intensive conventional cultivation
  • Chemical pesticide dependency
  • Smallholder farmer economic vulnerability
  • Climate change impacts on yields
Our Approach:
  • Convert 75% of cotton to BCI, organic or recycled by 2025
  • Implement farm-level traceability systems
  • Provide technical assistance to smallholder farmers
  • Premium pricing for sustainable cotton varieties
This initiative directly supports SDG 8 (Decent Work and Economic Growth) by improving smallholder farmer livelihoods while reducing environmental impact.
Chemicals & Auxiliaries: Safety First
ZDHC Gateway Products
Source only chemical products listed in the Zero Discharge of Hazardous Chemicals Gateway
Chemical Inventory
Maintain comprehensive live chemical inventory with Safety Data Sheets (SDS) for all substances
MRSL Compliance
Strict enforcement of Manufacturing Restricted Substances List compliance across all operations
These chemical management practices advance SDG 3 (Good Health and Well-being) by reducing worker and consumer chemical exposure, SDG 6 (Clean Water) by preventing toxins in wastewater, and SDG 12 through safer chemical management practices.
Water & Effluent Management: Protecting Vital Resources
ESG Practices:
  • ZDHC Wastewater Guidelines v2.2 compliance mandatory for all wet processing facilities
  • Continuous operation of Effluent Treatment Plants (ETPs) with no bypass allowed
  • Microfiber monitoring through Total Suspended Solids (TSS) proxy measurements
  • Implementation of closed-loop water reuse and recycling systems
40%
Water Reduction
Target for water use reduction in dyeing operations by 2025
80%
Water Recycling
Goal for water recycling and reuse in wet processing
100%
ETP Compliance
Required compliance rate with ZDHC guidelines
Water Management: SDG Alignment
SDG 6: Clean Water and Sanitation
Our water management practices ensure safe discharge and maximize water reuse, reducing pressure on local water supplies by up to 40% compared to industry standards.
SDG 12: Responsible Consumption
Implementing circular water practices transforms this resource from a linear to circular model, establishing closed-loop systems that minimize freshwater withdrawal.
SDG 14: Life Below Water
By preventing hazardous chemicals and microfibers from entering waterways, we protect marine and freshwater ecosystems from textile industry pollution.
Our comprehensive water program represents one of the most significant environmental impacts in textile production, with benefits extending to communities surrounding manufacturing facilities.
Energy & Climate: Decarbonizing Operations
ESG Practices:
  • Facility and process-level energy metering to identify optimization opportunities
  • Boiler fuel switching from coal to biomass or natural gas
  • Rooftop solar Power Purchase Agreements (PPAs) to increase renewable energy share
  • Verified Scope 1, 2, and partial Scope 3 emissions disclosures under BRSR-Core and CSRD frameworks
SDG Alignment:
  • SDG 7: Affordable and Clean Energy through renewable adoption
  • SDG 9: Industry, Innovation and Infrastructure via cleaner industrial processes
  • SDG 13: Climate Action through systematic greenhouse gas reduction
Labor & Safety: Protecting Our People
Fair Employment
Contracts in local languages with clear terms
Rigorous age verification to prevent child labor
Grievance Systems
QR code + hotline reporting channels
Anonymous submission protections
Safety Protocols
Regular fire safety drills and inspections
Comprehensive safety equipment
Higg FSLM
Facility Social and Labor Module assessments
Continuous improvement framework
These practices support SDG 8 (Decent Work) through fair wages and safe conditions, SDG 5 (Gender Equality) via equal opportunity policies, and SDG 10 (Reduced Inequalities) by protecting migrant labor rights.
Labor & Safety: Beyond Compliance
Industry Challenges:
The textile industry faces persistent labor challenges including:
  • Informal work arrangements
  • Gender-based discrimination
  • Wage disparities
  • Inadequate health and safety measures
  • Limited grievance mechanisms
This approach goes beyond compliance by implementing proactive measures that empower workers, particularly women who comprise over 70% of the global garment workforce. We've seen a 65% increase in grievance reporting and resolution since implementing our new systems, indicating greater worker trust and engagement.
Logistics & Packaging: Circular Solutions
Recycled Content Targets
Minimum 30% recycled content for polybags and cartons, moving to 50% by 2025, with full chain-of-custody documentation
Route Optimization
AI-powered logistics systems reduce transport emissions by identifying the most efficient delivery routes and consolidating shipments
EPR Compliance
Extended Producer Responsibility program ensures proper handling of packaging waste through certified recycling partners
Returnable Packaging
Pilot programs for durable, returnable packaging systems that eliminate single-use materials for business-to-business shipments
These initiatives support SDG 9, SDG 12, and SDG 13 through innovative logistics, waste reduction, and transport emissions reduction.
Data, Traceability & Disclosure: Transparency at Scale
ESG Practices:
  • Unified supplier portal centralizing all ESG documentation (Higg FEM/FSLM, ZDHC reports, permits)
  • Transaction-backed traceability connecting materials to verified sustainable sources
  • Automated data collection and reporting for global sustainability frameworks (BRSR-Core, CSDDD, CSRD)
  • Regular third-party verification of data accuracy and completeness
These systems advance SDG 16 (Peace, Justice and Strong Institutions) through transparent governance and SDG 17 (Partnerships for the Goals) by facilitating collaboration with suppliers, auditors, and brands.
Cross-Cutting ESG Governance: The Foundation
1
2
3
4
1
Preferred Partners List
Elite status for suppliers with verified ESG excellence
2
Corrective Action Plans
90-day resolution timeline for non-conformance
3
ESG Scorecards
Environment (60%), Social (30%), Governance (10%) metrics
4
Supplier ESG Playbook
Comprehensive operational guidelines for all suppliers
The governance system creates clear accountability while providing suppliers with the tools and incentives needed to improve performance. This comprehensive approach supports SDG 12 by creating systemic supply chain sustainability and SDG 17 through partnerships for responsible sourcing.
Implementation: Key Success Factors
Executive Sponsorship
Senior leadership commitment with dedicated resources and clear accountability
Data Infrastructure
Robust systems for collecting, validating, and reporting ESG metrics
Supplier Engagement
Collaborative approach with capability building and shared incentives
Continuous Improvement
Regular assessment and refinement of strategies based on outcomes
SDG Impact Measurement Framework
Environmental Impact
  • Water saved: Million gallons conserved through recycling (SDG 6)
  • Forest protected: Acres preserved through sustainable fiber sourcing (SDG 15)
  • GHG reduction: Tons CO2e avoided through energy initiatives (SDG 13)
  • Waste diverted: Tons kept from landfill through circular programs (SDG 12)
Social Impact
  • Worker well-being: Increased scores on Higg FSLM assessments (SDG 8)
  • Female advancement: % of women in management positions (SDG 5)
  • Fair wages: % of workers receiving living wage (SDG 10)
  • Health improvements: Reduced chemical exposure incidents (SDG 3)
Governance Impact
  • Transparency: % of supply chain with full traceability (SDG 16)
  • Compliance: % of suppliers meeting all ESG standards (SDG 12)
  • Partnerships: Number of collaborative industry initiatives (SDG 17)
  • Innovation: Investment in sustainable technologies (SDG 9)
This comprehensive measurement framework allows us to track concrete progress toward SDG targets while demonstrating business value to stakeholders.
Case Study: Integrated SDG Impact
Supplier Transformation: Wet Processing Unit
A medium-sized fabric dyeing facility in Tamil Nadu implemented comprehensive ESG practices with remarkable results:
  • 40% water reduction through process optimization and recycling
  • 62% energy savings from efficient equipment and solar installation
  • 100% ZDHC compliance for all chemicals and wastewater
  • 15% productivity increase from improved worker conditions and training
SDG Impact:
  • SDG 6: 52 million gallons of water saved annually
  • SDG 7/13: 1,800 tons CO2e avoided
  • SDG 8: 35% increase in worker retention
  • SDG 12: 90% reduction in hazardous waste
Return on investment achieved in just 18 months through operational savings.
Beyond Compliance: Creating Business Value
Risk Mitigation
Proactively addressing emerging regulations (CSRD, CSDDD, FSDR) reduces compliance risks and potential penalties while preparing for stricter future requirements
Brand Relationships
Meeting and exceeding brand sustainability requirements creates preferred supplier status, securing long-term contracts and price premiums for verified ESG performance
Operational Efficiency
Resource efficiency initiatives in water, energy, and materials generate significant cost savings while improving production quality and consistency
The data shows suppliers implementing comprehensive ESG practices see an average 12-15% reduction in operating costs while gaining access to premium market segments willing to pay more for sustainable products.
Next Steps: Your ESG Journey