Extended Producer Responsibility (EPR) in Textiles: How ERP Helps?
The textile industry produces 92 million tonnes of waste every year globally while being responsible for 10% of global carbon emissions. It is also believed, if not controlled, the textile industry will double its carbon emissions reaching 50% by 2030!
To control the amount of textile waste produced and reduce the industry’s contribution to carbon emissions, sustainability has taken center stage. Manufacturers across the globe are being urged to adapt to environmentally friendly practices in their manufacturing processes.
One of the most significant steps toward ensuring the textile industry becomes more sustainable is the implementation of Extended Producer Responsibility (EPR). As per this regulatory framework, as published by European Commission (EC) in July 2023, textile manufacturers are held accountable for the entire lifecycle of their products.
While EPR is reshaping how textile companies operate, it is challenging for manufacturers to comply to EPR regulations. This is where Enterprise Resource Planning (ERP) systems come into play.
In this article, we will explore how ERP systems can help textile manufacturers integrate sustainability into their core operations, comply with EPR regulations, and pave the way for a greener future.
Understanding EPR in Textile Industry
Landfilling and incineration have been common waste disposal methods used by the textile industry. However, these methods are no longer sustainable as they contribute significantly to environmental degradation.
The introduction of EPR in textile industry solves this problem!
This policy is designed to hold manufacturers responsible for the environmental impact of their products throughout their entire lifecycle. This includes everything from raw material sourcing and production processes to how products are disposed of or recycled once they reach the end of their useful life.
Consequently, manufacturers are now forced to find ways to minimize environmental harm, whether through recycling, repurposing materials, or reducing waste at the source. Textile manufacturers are also encouraged to design products with a longer lifespan, use materials that are easier to recycle, and implement more sustainable production techniques.
The implementation of the EPR policy has also made way for a shift from the linear “take-make-dispose” model to a circular economy. Under this, more sustainable materials are used for manufacturing, products are reused or repurposed, and most importantly – manufacturers are considering sustainability at every step of their operations.
Growing Momentum for Textile EPR in the USA
Textile waste in the USA has surged by 80% in weight since 2000, with only about 15% of discarded clothing recycled or reused. The remaining 85% is incinerated or landfilled. This contributes substantially to greenhouse gas emissions and environmental degradation.
California became the first US state to adopt an EPR program for textiles with the passage of Senate Bill 707. Signed by Governor Gavin Newsom in September 2024, this landmark legislation aims to reduce textile waste and promote recycling across the state.
The success of California’s EPR law could encourage similar national initiatives, creating a pathway toward unified EPR standards. By holding producers responsible for the entire lifecycle of their products, these policies support circular practices like recycling, repair, and resale, ultimately making sustainable options more accessible to businesses and consumers alike.
Challenges for Textile Manufacturers Under EPR
Before implementation of EPR framework, the disposal of textile waste rested with authorities. Thanks to the policy, this responsibility has now shifted to producers.
While EPR holds the potential for fostering innovation in recycling technologies, product design, and manufacturing processes – textile manufacturers face several challenges:
1] To ensure 100% compliance of EPR policies, manufacturers must have full visibility of their products. This requires accurate tracking of materials from sourcing to post-consumer disposal.
2] Companies must deal with the complexities of collecting, sorting, and recycling textiles, which often involves coordinating with third-party recyclers and managing reverse logistics.
3] Textile dyeing industries face challenges due to the discharge of large volumes of effluents containing harmful chemicals and dyes, requiring investment in sustainable dyeing practices and advanced wastewater treatment to comply with EPR regulations.
4] Consumer participation is crucial for EPR success, but awareness and engagement in sustainable behaviors remain limited.
Challenges for Textile Manufacturers Under EPR
An ERP for textile manufacturers is designed to streamline every aspect of the manufacturing process. It integrates data from all departments enabling business owners to get full visibility of their processes and take data-driven decisions.
ERP promotes sustainability across textile manufacturing operations by offering real-time insights and automated controls, making it easier for companies to meet their EPR obligations.
Some of the key ways in which ERP helps include:
1] Supply Chain Transparency: Offering increased transparency across the supply chain is at the core of an ERP system. Manufacturers get end-to-end visibility and easily track raw materials, production processes, and final products. As a result, companies can monitor the environmental impact at each stage and ensure sustainable sourcing practices.
2] Automated Waste Tracking: ERP systems automate the tracking of waste, helping textile companies measure and manage the discharge of harmful chemicals. With the help of this data-driven approach, manufacturers can easily comply with EPR guidelines on waste reduction and wastewater treatment.
3] Product Lifecycle Management (PLM): Manufacturers can seamlessly integrate ERP with a PLM tool to facilitate the monitoring of lifecycle of products – from design to post-consumer disposal. Therefore, they can improve recyclability, durability, and responsible disposal according to EPR goals.
4] Efficient Resource Management: An ERP software for textiles is a great help when it comes to optimizing resources such as water, energy, raw materials, etc., based on usage patterns. Reduction in resource wastage results in lowered environmental footprint for manufacturers helping them meet sustainability targets outlined in EPR policies.
5] Dedicated ESG Module: With the rising importance of sustainability in textiles, several ERP systems now come equipped with a dedicated ESG module. This module helps in tracking sustainability metrics, including carbon emissions, water usage, and waste reduction efforts. Textile manufacturers get a centralized platform using which they can monitor and report environmental impact, ensuring compliance with sustainability goals.
ERP in textiles will continue playing a vital role in driving sustainability. With growing consumer awareness and regulations becoming stricter, textile manufacturers must embrace innovation to meet compliance demands. ERP systems are at the forefront of this transformation, providing the necessary tools to streamline processes and enhance transparency throughout the supply chain.
The future of EPR in textiles relies on the integration of efficient systems like ERP. Adopting these solutions will help manufacturers not only comply with EPR requirements but also support the transition to a circular economy, ultimately leading to a more sustainable industry.
