How iTexClouds Help you Track and Report ESG in Textile Industry?
The United Nations World Commission on Environment and Development defines Sustainability as ‘meeting the needs of present generations without compromising the ability of future generations to meet their own needs’.
And Environmental, Social, and Governance (ESG) being an important subset of sustainability is becoming a crucial part in the textile industry. This means, companies are expected to adopt practices that promote sustainability, ensure fair labor conditions, and maintain ethical governance. However, tracking and reporting these factors can be challenging because of the complexities involved and vastness of data. This is where textile companies are increasingly depending on ERP (Enterprise Resource Planning) systems to accomplish this task.
For example, iTexClouds is a powerful textile ERP software that has been developed to incorporate all the necessary modules and functionalities that help textile manufacturers simplify their business operations.
In this blog, we will explore how iTexClouds ERP software helps textile companies report ESG in textile industry. From environmental monitoring to ensuring social responsibility and maintaining governance standards, iTexClouds provides the tools needed to meet ESG goals.
What is ESG in the textile industry?
The textile industry is one of the largest industrial sectors and consequently has the largest impact on the environment and society. Shockingly, the industry produces 92 million tons of waste every year and also accounts for 10% of global carbon emissions! These numbers are alarming and indicate the negative impact of the textile sector on the earth. This is where ESG in the textile industry comes in.
With growing awareness among consumers, ESG is now more than a trend or a good-to-have for textile manufacturers. Recent data indicates that 78% of consumers are in favor of sustainability and 84% of consumers believe poor environmental practices will make them give up on the brand. This means more and more textile companies are now bound to embrace ESG in their manufacturing processes. What does this mean?
To put it simply, embracing ESG in textile industry means:
- Carrying out manufacturing activities that have significantly less negative impact on the environment
- Encouraging recycling and upcycling, and reducing waste through innovative production techniques
- Ensuring good working conditions for laborers in the industry
- Implementing ethical sourcing practices and ensuring transparency throughout the supply chain to avoid exploitation and child labor
- Designing products for longevity to promote circular economy principles
- Establishing strong governance frameworks that enforce compliance with environmental and social standards, promote corporate transparency, and ensure accountability through regular reporting and stakeholder engagement
What are the pillars of sustainability in textiles?
If you are wondering, what are the primary pillars of sustainability in textiles – it includes three major points:
- Environment – Informally called the planet, it focuses on involving business practices that cause less harm to our environment. This includes reducing carbon emissions, minimizing waste, using eco-friendly materials, and implementing energy-efficient processes. It is also considered the most difficult pillar when it comes to ESG reporting.
- Society – Alternatively referred to as people, this pillar focuses on ensuring fair labor practices, providing safe working conditions, and promoting the well-being of workers and communities. It emphasizes ethical treatment, fair wages, and opportunities for social and economic development.
- Economy – Also known as profit, this pillar highlights the importance of creating sustainable economic growth. It involves adopting business models that are financially viable in the long term, fostering innovation, and ensuring that economic activities do not deplete resources or harm social and environmental systems.
Features of iTexClouds textile ERP for ESG Tracking
ESG reporting is already mandated across regions like the USA, the UK, Malaysia, and Hong Kong. It won’t be long before it becomes mandatory globally. However, 41% of global executives have cited inadequate data to be the biggest hurdle stopping their ESG progress. To solve this problem, several organizations are turning to advanced ERP systems like iTexClouds.
Take a look at the features of iTexClouds ERP software that simplify tracking and reporting ESG in textile industry:
For Environmental Tracking
- Resource Management: Textile manufacturers get comprehensive resource management tools through iTexClouds ERP. Using these tools, they can monitor and optimize the use of water, energy, and raw materials. As a result, they can significantly reduce their environmental footprint, minimize waste, and ensure efficient resource utilization.
- Waste Reduction: With the help of iTexClouds ERP software, textile manufacturers can track production processes in real time and identify areas where waste is generated. These insights and actionable data help them easily implement waste reduction strategies, like recycling and reusing, thereby contributing to a more sustainable production cycle.
- Carbon Footprint: Using iTexClouds textile ERP, textile manufacturers can easily calculate and track the carbon emissions from various manufacturing activities. With this feature, companies can accurately measure their carbon footprint and implement practices that contribute to reducing greenhouse gas emissions that align with global climate goals.
For Social Responsibility
- Labor Practices: iTexClouds ERP software allows textile manufacturers to track working hours, wages, employee welfare, etc., effortlessly. Therefore, manufacturers can keep a real-time check on labor conditions and ensure 100% compliance with fair labor standards. This results in ethical labor practices and improved worker satisfaction and retention.
- Product Quality: Textile manufacturers can ensure high product quality by leveraging iTexClouds capabilities of tracking production processes. Manufacturers can implement quality control measures that help them guarantee their end-products meet safety and quality standards and ultimately enhance customer trust and brand reputation.
- Health and Safety: iTexClouds ERP software helps business owners manage health and safety protocols within their manufacturing units. It tracks incidents, conducts risk assessments, and ensures compliance with safety regulations, creating a safer working environment for employees.
For Governance and Compliance
- Ethical Business Practices: iTexClouds textile ERP supports ethical business operations by ensuring transparency and accountability in all processes. It helps textile manufacturers implement anti-corruption measures and promotes integrity across the supply chain, fostering trust and ethical conduct.
- Regulatory Compliance: Textile manufacturers can keep track of all relevant regulations and standards, ensuring they comply with environmental, social, and governance-related laws. This feature reduces the risk of legal penalties and enhances the company’s reputation as a responsible entity.
- Risk Management: iTexClouds provides robust risk management tools that identify, assess, and mitigate potential risks. By offering a comprehensive view of risks related to ESG factors, the ERP system helps companies proactively address challenges and sustain long-term growth.
Top 3 Benefits of Using iTexClouds ERP for ESG Reporting
As per a study, 94% of organizations believe that ERP software helps keep up with manufacturing sustainability goals. This underscores the critical role of ERP software systems in facilitating sustainable practices. So, what makes ERPs so essential for ESG reporting?
Let’s take a quick look at the top 3 benefits of using iTexClouds ERP for ESG reporting in textile industry:
- Data Integration: iTexClouds textile ERP collects data from various departments and provides them to users in a centralized platform. This offers a holistic view of environmental, social, and governance metrics. Using this integrated data, textile manufacturers can easily ensure accurate and comprehensive ESG reporting.
- Real-Time Monitoring: iTexClouds ERP not only provides data from all sources but it also offers real-time tracking of key performance indicators relevant to ESG. Hence, textile manufacturers can promptly address issues and make informed decisions as and when needed to improve sustainability practices.
- Customizable Reporting: Every company has internal sustainability goals that differ from each other. iTexClouds textile ERP offers customizable reports that are tailored to the specific needs of the companies. Therefore, manufacturers can generate reports that align with regulatory requirements, industry standards, and their internal goals. This flexibility enables textile manufacturers to present ESG performance metrics in a clear and concise manner, facilitating better communication with stakeholders, investors, and regulatory bodies.
To conclude, the integration of ESG principles into the textile industry is crucial for fostering sustainability, ethical practices, and long-term viability. iTexClouds textile ERP emerges as a powerful tool in this pursuit, offering robust features that streamline ESG tracking and reporting.
By seamlessly integrating data from various departments, providing real-time monitoring capabilities, and offering customizable reporting functionalities, iTexClouds empowers textile manufacturers to meet regulatory requirements, enhance transparency, and drive meaningful progress towards ESG goals. As ESG in the textile industry continues to gain prominence, iTexClouds stands as a reliable ally, facilitating the transition towards a more sustainable and responsible future.
