The global manufacturing industry is going green and it is not a ‘maybe’ anymore. From the basics of the 7Rs—Rethink, Refuse, Reduce, Reuse, Repair, Regift, Recycle—to the complexities of building entirely sustainable supply chains, this green shift is not only huge, but a necessity that no manufacturing base can afford to ignore. Yet, the shift is not without its hurdles. Every green initiative not only requires mindset change but also impacts the bottom line, requiring careful financial management.
India, aiming to become a global manufacturing leader, must align with international standards. The urgency cannot be undermined as India competes with neighbouring countries to meet global benchmarks and capture market share, especially as big brands pledge to cut greenhouse gas emissions to ‘net zero’ and ensure traceable supply chains. Also, the fashion industry sees most emissions from upstream activities like material production and processing. Therefore, manufacturers need to up their sustainability game—not just for the planet, but because it’s good for business too!
Over two decades into the sustainable whirlpool, some hard lessons have been learnt. Perhaps the most critical is that jumping straight in to the ‘trend’ can be tough and costly, so a more planned and gradual, step-by-step approach with regular updates is key to sustainable success.
Defining the strategic long-term roadmap of sustainability, beyond the obvious
According to Mili Majumdar, Managing Director of GBCI India and Senior Vice President of Research and Innovation at USGBC, there has been an increased interest in green buildings from the garment and textile sector. She cites the government’s net zero emissions mandate by 2070, mandatory ESG compliance for listed companies and incentives for decarbonisation as key drivers.
Milli noted that the USGBC will introduce LEED v5 in early 2025. While LEED v4.1 focuses heavily on operational and embodied carbon, LEED v5 will emphasise on three key impact areas: decarbonisation by targeting reductions in operational, embodied, refrigerant and transportation emissions; quality of life by enhancing health, well-being, resilience and equity for building occupants and ecological conservation and restoration by emphasising strategies that limit environmental degradation and contribute to ecosystem restoration.
“Addressing sustainability in isolation is not enough. We need to integrate it with other crucial concepts like equity, health and the well-being of people who occupy buildings,” explained Mili Majumdar.
Building on this insight, Katharina V. Mayer, Director CRM Sub-Indian Continent, Bluesign Technologies AG, stated, “Sustainability integration is gaining currency in India.” The bluesign® system unites the entire textile manufacturing chain to reduce the industry’s ecological footprint. Instead of focusing on finished product testing, it analyses all input streams—from raw materials to chemicals—using an ‘Input Stream Management’ process.
| “Sustainability is a journey, not a milestone. Quantifying ROI for manufacturers investing in the bluesign system partnership may not be suitable. However, qualitatively, it offers significant market visibility.” Katharina V. Mayer, Director CRM, Sub-Indian Continent, Bluesign Technologies AG |
Katharina acknowledged stakeholders’ growing understanding of sustainability. For instance, the German Agency for International Cooperation (GIZ) initiated the Best Available Techniques (BAT) for the Indian textile industry, collaborating with industry stakeholders and government institutions to streamline chemical usage based on EU and German experience.
Sajindranath A K, FLOCERT’s Certification Manager for Asia-Pacific, notes a rise in cotton textile companies registering for Fairtrade certification in Asia, notably in India. Many farmers have formed producer organisations for certified sustainable cotton. FLOCERT, a leading social auditing and certification body, provides Fairtrade certification and verification services for social, trade and environmental standards.
According to Anuj Sharma, Deputy Country Director, Forest Stewardship Council (FSC), India, “Use of alternate sustainable fibres such as viscose, lyocell and modal, collectively called Man Made Cellulosic Fibres (MMCF) are increasingly being used in garment manufacturing.” The FSC is a non-profit organisation that covers more than 150 million hectares of certified forests and provides forest certification system.
Echoing similar sentiments, Ajay Pradhan, Senior Marketing and Business Development Manager, The Woolmark Company, India, said, “The use of natural materials like merino wool and natural dyes is also gaining momentum.” The Woolmark Company collaborates with Australia’s 60,000 woolgrowers to research, develop and certify Australian wool.
No looking back as the benefits of going green are too huge to ignore
One of the immediate benefits of going green in business is cost savings, even if not always in the short run. “Green buildings designed from the start are more cost-effective,” said Milli, further stating, “For example, investing in an energy-efficient factory can significantly reduce initial air conditioning costs due to lower energy loads, resulting in upfront capital expenditure savings.”
Milli cited a CBRE analysis of 20,000 US office buildings, revealing that the average rent for LEED-certified buildings, denoting high energy efficiency, is 31 per cent higher than non-certified ones.
However, looking at sustainability solely through profitability and cost savings is myopic. “If green features are an afterthought, you always end up discussing ROI because sustainability wasn’t planned from the beginning,” explained Milli. “But in reality, there is no need for an ROI concept here. Green buildings improve well-being, like visiting a doctor where you do not ask about the ROI of medicine. People in greener buildings are more productive, which is not easily quantifiable but supported by numerous studies.”
Ganesh Kasekar, South Asia Representative for the Global Organic Textile Standard (GOTS) highlighted, “Consumers dislike brands making false ethical or ecological claims – the Soil Association found 70 per cent of UK adults would abandon such brands due to greenwashing.”
Katharina V. emphasised, “Sustainability is a journey, not a milestone. Quantifying ROI for manufacturers investing in the bluesign system partnership may not be suitable. However, qualitatively, it offers significant market visibility.”
Anuj Sharma, adding to the thought, said, “Investing in certifications like the Forest Stewardship Council (FSC) can bring substantial returns. Benefits include market access to segments favouring certified products and the ability to charge higher prices. A recent IPSOS survey found 46 per cent of consumers recognise the FSC logo, with 80 per cent trusting brands displaying it.” He also mentioned, “Sustainable initiatives drive material and process innovation, opening up new business opportunities.”
However, some experts argue that the industry still treats sustainability as an add-on, primarily viewing it as a short-term cost. “We often overlook the cost of non-compliance. There is an urgent need to foster a culture of sustainability in the textile industry, rather than treating it as just another demand from brands or regulations,” stated Prasad Pant, Competence Centres Director, ZDHC Implementation Hub (South Asia) Pvt. Ltd. ZDHC is a comprehensive method for assessing the amounts of hazardous chemicals that a company discharges in wastewater streams.
Consumers prioritise price and design in their buying decisions. While organic materials and ethical production practices are valued, consumers are hesitant to pay a premium for them. Manufacturers face the challenge of effectively communicating about their ‘sustainable products’ to consumers, often relying on labels or traceable QR codes, which may not be sufficient. “How many consumers would know that their crease-resistant garment might contain formaldehyde, a carcinogen,” questioned Prasad, emphasising the need for manufacturers to proactively educate consumers on sustainability through simple narratives or storylines.
The biggest hurdle for sustainability – ‘Greenwashing’Greenwashing, misleading the industry with false claims that a product or brand is environmentally friendly – is a growing menace. A recent European Commission study found over half of green claims in the EU were vague or unsubstantiated. To combat this, Milli stresses the importance of consistent and transparent performance disclosures. Third-party verification is essential to ensure reported operations align with reality. Milli noted, “In LEED v5, consistent performance data is mandatory for new buildings, ensuring transparency and accountability.” To combat greenwashing, Ganesh Kasekar outlined strategic measures. These include the implementation of the Global Trace-Base for certifying goods’ traceability and mandatory registration in the GOTS Farm-Gin Registry for farmers. Limiting raw cotton travel to 500 km to certified gins enhances efficiency and safeguards against vulnerabilities. Additionally, GOTS has intensified unannounced audits at high-risk gins and introduced risk-based due diligence in version 7.0. This latest version also permits recycled organic fibres, while upholding vital requirements like organic fibre content and bans on harmful chemicals. The public consultation for GOTS 7.0 is set to commence in April 2025. The sustainable practitioners should provide enough documentary support to showcase their activities and engage a clear-cut Monitoring and Evaluation audit to measure the outcomes of their practices. There are established impact data analytics available to exhibit their intent, output of the practice and impact metrics, emphasised Katharina V. “Under the European Union’s Green Claims directive, any sustainability claim will need to have third party verification to prevent greenwashing such as bluesign®. bluesign® APPROVED label ensures materials are made with bluesign®APPROVED safe chemistry at system partner facilities with reduced impact on people and the planet,” said Katharina V. “Using a third party to assess compliance is an important factor in Fairtrade’s credibility. If an actor within the garment industry wants to verify their own claim or trades in products not covered by Fairtrade, FLOCERT can set up a scheme and offer customised claim verification,” said Sajindranath. He also mentioned that FLOCERT has implemented automated alerts in its reporting tool, enabling it to detect potential non-compliance in near real-time. “We are witnessing a surge in regulatory efforts, particularly led by the EU, which is setting clear guidelines for the fashion industry to combat greenwashing. However, there are concerns about the incomplete and inaccurate approach of methods like Product Environmental Footprinting (PEF), which may mislead consumers if not improved,” explained Ajay. He highlighted PEF’s failure to consider the negative impact of microplastics and fossil fuel-based fibres. Experts also stressed that the abundance of certifications in today’s market leads to greenwashing. “We had a recent example where certified organic cotton quantity was more than the actual organic cotton produced in India! The use of blockchain or other digital platforms would be a welcome measure. The EU is already working on a digital passport where the manufacturer of an article would need to declare the chemical ingredients in the article,” said Prasad. |
Manufacturers are responding to the urgency as global customers set goals
Manufacturers are increasingly prioritising sustainable practices in response to rising demands for eco-friendly products. Pranjal Goswami, CSO, Gokaldas Exports Ltd., a leading manufacturer and exporter of apparel that produces more than 90 million garments annually with an annual turnover of US $ 275 million, admitted that the push is now increasingly coming from the end clients’ vocal preference for sustainable options.
He highlighted the company’s diverse certifications, including SLCP, HIGG FEM 3, SMETA, GOTS, GRS, OCS, RCS, OEKO-TEX, BCI, ISO 9001:2015, REGENAGRI and FSC. “Our goals include achieving net-zero emissions by 2045, carbon neutrality by 2030, water positivity by 2030 and zero landfill waste by 2030,” claimed Pranjal.
Meanwhile, Sunil Jhunjhunwala, Co-founder and Director of Techno Sportswear Pvt. Ltd., an athleisure brand that ventured into garment manufacturing, stated, “We collaborate with suppliers that achieve zero liquid discharge in their manufacturing process. Additionally, we require that these companies use chemicals with ZDHC Level 2 certification or higher.” Their product category varies from men’s T-shirts, gym vests and jackets to women’s tights and pants to kids’ shorts and track pants.
The company has its own manufacturing unit in Tirupur which is reportedly producing 12 million garments annually with a workforce of 500 employees and generating an annual revenue of Rs. 300 crore. In May, Techno Sport became the first Indian brand to join bluesign as a system partner. “By accessing Bluesign’s expertise, we ensure compliance with stringent environmental and safety standards throughout the textile supply chain,” shared Sunil.
He also emphasised how sustainability not only reduces costs but also sets the company apart from competitors. “When crafting a TechnoSport product, we utilise just 0.5 litres of fresh water compared to the 10 litres used by other popular brands in Noida for their activewear T-shirts. Our minimal freshwater usage is attributed to our ZLD system. Furthermore, our Techno Sport T-shirt consumes 4 kg of CO2 over a wash life of 60 cycles, whereas a standard cotton T-shirt consumes 8 kg of CO2 over 30 washes.”
Voicing the opinion of the industry, P. Moghan, MD of Anugraha Fashion Mill Pvt. Ltd., a vertically integrated garment manufacturer, noted, “Sustainability is no longer a choice; it’s a necessity. Our clients, especially in Europe, prioritise sustainability in both our processes and products. Our sustainability efforts have earned praise from existing clients and attracted new ones.”
With a daily production of over 15 million garment pieces, its primary export markets include France, South Korea and the Netherlands. The company holds ISO 14001, ICS, BSCI, Amfori BEPI, OEKO-TEX, GOTS, OCS, GRS and DISNEY FAMA certifications. Over 76 per cent of its energy comes from green sources and its Vattamalai unit in Tamil Nadu boasts LEED GOLD Certification for Green Building Infrastructure. It employs low-liquor dyeing machines to minimise water consumption and gas-powered compacting machines to reduce coal and carbon emissions. Its goal is 100 per cent green energy consumption and carbon-neutral processing, achieved through solar power generation and enhanced processing technology.
Similarly, Prit Mohinder Singh Uppal, MD of Pee Empro Exports, plans to reduce carbon emissions by 30 per cent in five years, decrease water usage by 40 per cent by 2030 and source 100 per cent of raw materials sustainably by 2025. He stated, “We hold certifications such as HIGGS, EUROPEAN FLAX, ZED, SOCIAL AND LABOUR CONVERGENCE, FSLM and prioritise vendors with OEKO-TEX certification.” Its clientele includes GAP, Abercrombie and Fitch, Old Navy, Esprit, American Eagle Outfitters, Cecil, focusing on exports to the USA and Europe.
Highlighting the growing demand for sustainable fabrics, Anshu Saxena, Director of Moissanite Apparels Pvt. Ltd., a part of the MAPL Group with manufacturing plants in Noida (Delhi-NCR), stated, “Clients in France, Spain, Netherlands, Italy, along with Australian customers, are now requesting OEKO-TEX certified fabrics and accessories, along with significant demand for ECO viscose and GRS Polyester. We expect that the USA will follow suit soon.”
Moissanite Apparels produces a wide range of products, including woven and knitwear, along with value-added features such as embroideries, beadwork, laces and hand and machine smocking. With an annual turnover of US $ 10 million, the company exports between 1.8 million to 2 million pieces annually. Holding certifications such as HIGGS, OEKO-TEX and GRS, it serves clients including Carrefour, Walmart, Macy’s, Guess, Street One, Marshalls, Cecil, Chicco and Humidity Lifestyle, amongst others.
| “Due to global awareness, 65 per cent to 70 per cent of our blended fabrics now use recycled polyester and cotton, a 40 per cent increase in just two years.” Nishant Aggarwal MD, Shivalik Prints |
Reflecting this trend, Nishant Aggarwal, MD of Shivalik Prints, a vertically integrated manufacturer and exporter of knitted garments, noted, “Due to global awareness, 65 per cent to 70 per cent of our blended fabrics now use recycled polyester and cotton, a 40 per cent increase in just two years.” With nine factories, US $ 240 million turnover and export of 50 to 60 million pieces annually, Shivalik is HIGGS 3.0 compliant and holds certifications like HIGGS, GRS, OEKO-TEX, WRAP, SMETA, ZDHC.
He added, “During audits, we include our raw material suppliers within our scope. We obtain relevant GRS certificates, OEKO-TEX certificates and similar documentation from our suppliers.”
He said Shivalik is digitising a Waste Management Project to support sustainability goals. It has developed a platform to capture waste collection data using tablets and mobile apps, allowing real-time tracking and adjustments to production processes to minimise waste.
Many others are also investing in technology to enhance sustainability. For example, C. Sanmukasundram, GM Corporate at SCM Garments Pvt. Ltd., highlighted their investment in cutting-edge solutions, including a back pressure turbine for electricity generation, MBR (Membrane BioReactor) technology for wastewater treatment and material reuse, a sulphate salt recovery system and the latest salt-free dyeing technology. The company, producing 10 million units per month, aims to shift to renewable energy by 2024 and has already reduced CO2 emissions by 90 per cent since 2018. Additionally, 35 per cent – 45 per cent of its materials are now recycled.
Ironically, brands still avoid paying premium for sustainability
Manufacturers are investing their own capital in sustainable initiatives and lament that brands are unwilling to pay a premium for these products. “Cost is a significant barrier. Premiumisation of sustainability has not fully taken root in the business landscape yet. Our challenge lies in justifying the higher costs, but we believe that as the market matures, the value of sustainability will become clearer and more accepted,” stated Pranjal.
“Although big retailers who value sustainable sourcing give us preference for order placement, we often bear the additional costs ourselves. This is primarily due to our internal goals of contributing back to Mother Earth. In the end, we face a difficult decision between cost and sustainability and we choose to favour the latter,” explained Nishant.
Echoing similar sentiments, Anshu said, “Clients are willing to pay for sustainable products, but not to full value.”
“Clients are investing more in sustainably sourced materials, but production still poses challenges,” noted C. Sanmukasundram, further adding, “Sustainable materials and processes can drive up production costs, sourcing reliable suppliers is challenging and adopting new technologies requires investments and operational adjustments. Keeping up with evolving environmental and social regulations is also a challenge.”
Reflecting maturity, Sunil justified the buyers’ stand and averred, “We do not believe that production of sustainable material should involve higher costs. It would largely depend on scale of production. The larger the scale, the more optimised the costs can be.” He mentioned that TechnoSport utilises polyester in its products, which is inherently more sustainable than other apparel fabrics.
