Readiness of SMEs in the Indian Textile Industry to Embrace ESG Practices

Introduction
ESG (Environmental, Social, and Governance) considerations have rapidly
ascended to the forefront of global investment priorities. ESG ranks top five for
business performance beyond financial metrics. This trend is partly driven by the
United Nations' Climate Action initiatives aimed at achieving Net-Zero
emissions, coupled with ambitious environmental targets set by nations
worldwide.
In 2020, the European Union took a significant step by drafting regulations that
require companies to disclose their performance against ESG benchmarks,
signaling a move towards transparency and accountability in corporate practices.
The textile industry, known for its substantial environmental footprint, is at a
critical juncture where integrating ESG principles into its operations mitigate its
ecological impact and also enhance its competitiveness in the global market. This
article investigates the critical role of ESG in transforming the textile industry,
emphasizing the necessity of adopting sustainable practices that align with global
sustainability goals, consumer expectations for ethical and responsible
production and challenges.