In times, when the world is seeing a cascade of trends and innovation, the focal point for most industries is ‘sustainability’. For many the term may be a cliche but in its core focuses on meeting existing needs without depleting the essential resources for future generations. These include resources that are environmental, social, and economic.  

Almost all the industries use resources be it agriculture, manufacturing, construction, or consumer goods. It's no secret that the natural resources are dwindling with increase in population and demand. The same report states that by 2060, almost 60% increase in resource use can disrupt efforts of climate control and lead to wide scale 

Sustainability is a broader term with a holistic approach to the environmental, social, and economic impact of a company’s operation. A new buzzword among its ranks is ESG, that focuses on aspects on how a company can manages risks and sustainability related issues. 

This article discusses the importance of ESG, its elements, what it means to textile industry, and the solutions that can help textile brands adopt the sustainable practices. 

What is ESG?  

ESG stands for Environmental, Social, and Governance. It is a set of standards used to evaluate a company's operations and assess activities regarding sustainability and ethical issues. The ESG factors include everything from the company’s carbon emissions to governing policies, and ethical practices.  

The ESG criteria help a business determine how to  

• Interacts with the environment  
• Manage relationships with employees, suppliers, and communities; and  
• Govern initiatives and programs that support accountability and transparency. 

Today the ESG standards serve as a benchmark in driving environmental sustainability, fostering fair labor practices, and ensuring strong corporate governance. 

Overview of the ESG Elements 

The ESG framework consists of three following elements 

Environmental

• The ‘E’ factor emphasis on how a company manages its environmental impact. This includes aspects like resource usage, carbon emissions, waste management, and water usage.  

Social

• The ‘S’ factor involves the company’s internal social practices. The issues like worker safety, human rights, workplace diversity, child labor, and community engagement. 

Governance

• The ‘G’ factor revolves around the company’s operations such as the leadership structure, compliance with laws and standards, transparency, hiring procedure, and stakeholder relationships.  

The Growing Importance of ESG  

ESG is fast becoming essential in today’s global market across businesses, investors, and even governments. Adopting the ESG standards not only mitigates environmental risks but also adds to the diversity and potential opportunities.  

An ESG Global Study by Capital Group stated that 89% of global investors are adopting ESG practices. Also, 43% of those investors stress that the decision is due to reputational concern and client expectations. It’s no surprise that investors want to be part of a company that values and have a concern for the environment and society at large. Consequently, ESG provides guidelines to evaluate a company on its sustainable and ethical practices.  

Besides this, ESG adoption can help avoid the economic, social, and ecological risks that can be significant and instead result in long term return. For instance, using renewable resource will result in low carbon emission. Similarly, making employee centric policies regarding health and safety will help avoid lawsuits and malpractice.  

In this information and digital age, ESG standards help to make businesses accountable and disclose their efforts on sustainable and ethical practices. The ESG framework helps to stay transparent in times where corporate social responsibility matters the most and comply with local and international laws.  

The ESG Criteria  

The ESG criteria are factors used by investors and stakeholders to assess how well a company manages its environmental, social, and governance activities. The goal is to determine the long-term sustainability, and impact on both society and environment.  

Before investing, ESG criteria is used to evaluate a company’s performance and identify room for improvement.  

The key details of each ESG element that make up the criteria are

Environmental

• Detail report on carbon emissions 
• How the resources such as raw material are consumed 
• How much waste is produced and how it is managed 
• Use of any renewable energy in production 

Social

• The office or factory working conditions 
• Policies to safeguard against misconduct, or abuse 
• How to bring diversity 
• Prevent unsafe practices and child labor 

Governance

• Company’s leadership, and hierarchy 
• The stakeholders  
• Internal processes and transparency  

What ESG Means to the Textile Sector  

The ESG framework works and impacts on companies differently depending on their sector or industry. For example, evaluating ESG criteria for a mining company will be different than that of a construction company.  

The ESG criteria for a mining company will focus on resource extraction and its impact such as land reclamation, water usage, and pollution control. Conversely, the criteria for a construction company will involve sustainable business practices, energy efficiency, worker safety on job site, and waste management.  

The textile is one of the largest industries and one that impacts the environment in more ways than one. It includes the 8% to 10% of the total global carbon footprint, the 20% global water pollution due to dyeing and other finishing products, and 1.92 million tons of textile waste is produced every year.  

Textile manufacturers have to manage an intricate supply chain comprising a network of suppliers, distributors, and retailers. With sustainability issues looming large, no wonder ESG standards are a focal point. 

By implementing ESG standards, a textile brand can  

• Meet the growing concerns and reduce the environmental footprint 
• Ensure ethical supply chains and safer working conditions.  
• Build trust with customers, investors, and regulators,  
• Drive CSR initiatives and programs to achieve long-term sustainability and growth. 

Impact of ESG on the Textile Sector 

Environmental Impact  
The environmental impact of the textile industry is significant, particularly in terms of water consumption, waste generation, and carbon emissions. ESG principles encourage brands to reduce their ecological footprint by adopting sustainable materials, minimizing water usage, and embracing circular economy models.  

Social Impact  
Social responsibility within the textile industry addresses fair labor practices, worker safety, and ethical treatment. ESG compliance promotes safe working conditions, fair wages, and transparency in supply chain operations. 

Governance Impact  
Good governance in the textile industry involves transparent decision-making, ethical management, and strong leadership practices. This includes ensuring fair pay, responsible sourcing, and clear accountability throughout the supply chain.   

Triple Tree Solutions and How It Can Help Comply with ESG Regulations 

Triple Tree Solutions offers a comprehensive suite of digital supply chain management tools that can greatly aid textile companies in complying with ESG regulations. By utilizing ColordesQ, QUONDA, and TrackIT, companies gain real-time insights into their supply chain, improving environmental sustainability, social responsibility, and governance.  

QUONDA

It uses real-time data collection and analysis to help brands optimize their textile supply chain processes. QUONDA digitizes the quality inspection process that reduces errors, time and resource wastage considerably. With complete visibility to inline and final inspections, you can minimize the overhead costs, and make timely decisions.  

TrackIT

Features like time and action calendar, on-time performance (OTP) scores, and production updates help to monitor the status of the purchase orders, detect delays, and mitigate potential disruptions before they occur. The transparency provided by TrackIT is vital for ensuring timely production and reducing waste, both of which are essential for environmental sustainability under ESG criteria. 

ColordesQ

This tool optimizes color production processes that significantly reduces the material waste and minimizes the water and energy consumption. By enhancing color management and improving production efficiency, ColordesQ helps brands reduce their environmental footprint while maintaining high-quality standards in production. 

READ: How Track IT helped a Leading Textile Manufacturer Achieve Supply Chain Efficiencies 

Conclusion  

In 2025, the textile industry faces mounting pressure to integrate ESG practices into its operations. As consumers demand more sustainable and ethical products, and governments introduce stricter regulations, companies must prioritize environmental sustainability, social responsibility, and strong governance. 

Ready to take the next step in ensuring sustainability, ethical practices, and strong governance within your supply chain? 

Contact Us Now and Learn how we can support you towards a more responsible and transparent future.