In global textile trade today, sustainability is priced, compared, and traded through data. Increasingly buyers are asking for emission factors, water intensity ratios, traceability percentages, and verified disclosures.
This shift has turned Business Responsibility and Sustainability Reporting (BRSR) into something far more consequential than a regulatory template. For Indian textile manufacturers, exporters, and fashion brands, it is the language through which credibility, market access, and risk are evaluated.
As global regulatory frameworks tighten and supply chains become quantifiable, the ability to measure and disclose sustainability performance is emerging as a decisive operational capability. This guide explores how BRSR functions within the textile sector, and how organisations can use it not merely for compliance, but as infrastructure for competitive positioning.
PART 1: What is BRSR?
BRSR stands for Business Responsibility and Sustainability Reporting.
Introduced by the Securities and Exchange Board of India (SEBI), it is a mandatory framework for the top 1,000 listed companies in India to disclose their performance on Environmental, Social, and Governance (ESG) parameters.
If your financial balance sheet is the report card of your profitability then BRSR is the report card of your responsibility. It asks how you made your money. Did you pollute the river? Did you pay your workers fairly? Did you govern your company ethically?
Evolution From BRR to BRSR
Previously, companies filed a BRR (Business Responsibility Report). However, the BRR was largely qualitative and companies could write vague statements saying that they care about the environment.
The BRSR changed the game by demanding quantifiable metrics. If you are saying that you care about water resources, you are mandated to report exactly how many kilolitres of water you recycle per rupee of turnover.
What is BRSR Core?
The full BRSR report is a massive 100-page storytelling document where companies describe their sustainability efforts. It contains a lot of data, but also a lot of narrative.
BRSR Core is the “Truth Serum.”
SEBI realised that companies might cherry-pick data to look good. To fix this, they identified a specific sub-set of Key Performance Indicators (KPIs) that are most critical. These specific KPIs are collectively called BRSR Core.
What is Value Chain Assurance?
For the top 250 listed entities, SEBI has introduced the requirement to disclose KPIs for their value chain partners (suppliers/distributors) that comprise 75% of their purchase/sales value.
The Impact on Textile MSMEs:
If you are a small spinning mill supplying to a listed giant like Page Industries or Raymond, they will send auditors to your factory. They will demand your water and energy data to put into their BRSR Core report. If you cannot provide this data, you risk losing the contract.
Types of Assurance
- Limited Assurance: The auditor reviews the data and says, “We found no evidence that this is wrong.” (Lower confidence).
- Reasonable Assurance: The auditor digs deep, tests controls, and says, “We are reasonably sure this data is correct.” (High confidence, mandated for BRSR Core).
Scope: Is it Applicable to you?
Based on the latest SEBI regulations (updated for February 2026), BRSR applies to companies in two ways: Directly (by mandate) and Indirectly (through supply chain pressure).
1. Direct Applicability (Mandatory by Law)
SEBI mandates BRSR for the Top 1,000 listed companies in India (by market capitalization). If your company is listed on the BSE or NSE and falls in this bracket, you must file a BRSR report annually.
- From FY 2022-23: Mandatory for Top 1,000 listed entities.
- From FY 2023-24: Mandatory “BRSR Core” (Assurance/Audit required) for Top 150 listed entities.
- From FY 2024-25: BRSR Core expands to Top 250 listed entities.
- From FY 2025-26: BRSR Core expands to Top 500 listed entities.
- From FY 2026-27: BRSR Core expands to Top 1,000 listed entities.
Examples: Companies like Reliance Industries (Textile Division), Aditya Birla Fashion & Retail Ltd (ABFRL), Raymond, Page Industries, Trident Ltd, and Welspun Living fall under this mandatory bracket.
2. Indirect Applicability
SEBI has mandated that the Top 250 listed companies must also disclose ESG data for their Value Chain Partners.
If you are an unlisted spinning mill, a dyeing unit, or a garment exporter supplying to a major brand like Arvind or Tata Trent, they are legally required to collect ESG data from you to file their own report.
Implication for Suppliers: You will receive “BRSR Questionnaires” from your buyers asking for your water usage, energy mix, and labor data. If you cannot provide this data, they may stop sourcing from you to remain compliant.
3. Voluntary Applicability
Many unlisted companies and smaller listed companies (outside the top 1,000) are voluntarily adopting BRSR.
Why? To attract green finance (loans at lower interest rates for sustainable projects) or to export to Europe/USA, where regulations like CBAM (Carbon Border Tax) and ESPR (Ecodesign for Sustainable Products Regulation) require similar data transparency.
PART 2: The 9 Principles of BRSR
The BRSR framework is built on the National Guidelines on Responsible Business Conduct (NGRBC). There are 9 Principles and here is how they translate to the factory floor of a textile company.
Principle 1: Ethics, Transparency, and Accountability
“Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent, and Accountable.”
Principle 1 is the Governance pillar of ESG. It questions if your company plays by the rules, focusing on the structure of your organisation, how you prevent bribery and corruption, how you handle conflicts of interest, and whether you are transparent about your mistakes (fines and penalties).
| Area under Principle 1 | Requirement (BRSR expectation) | What it means for Fashion & Lifestyle Businesses | Example Metrics / Disclosures |
| 1. Anti-Bribery & Anti-Corruption (ABAC) Mechanisms | Disclose existence of anti-corruption policies and training provided to Directors, KMPs, and employees | Train procurement teams handling raw material sourcing, vendor selection, and logistics contractingTrain compliance teams interacting with regulatorsEmbed ethical sourcing practices | Number of ethics/ABAC training sessions conducted for Board, employees, and workersParticipation rates |
| 2. Managing Conflict of Interest | Disclose complaints or cases involving conflict of interest among Directors or KMPs | Require declaration of interests in vendor relationshipsEnforce transparency in sourcing decisions (e.g., packaging, trims, accessories suppliers) | Number of complaints received and resolvedExistence of COI declaration policy |
| 3. Disclosure of Fines & Penalties | Report fines, penalties, or imprisonment related to legal violations | Publicly disclose penalties related to environmental discharge, labour law violations, fire safety, or factory complianceStrengthen compliance systems to avoid reputational damage | Monetary value and number of fines/penalties disclosed in BRSR |
| 4. Value Chain Awareness (Leadership Indicator) | Conduct awareness programmes on ethical conduct for value chain partners | Train job workers, processing units, washing facilities, embroidery vendors, etc. on Code of ConductEnsure ethical behaviour across supply chain | Number of awareness programmes conducted for suppliers/partnersCoverage across value chain |
Principle 2: Safe and Sustainable Goods (Product Lifecycle)
“Businesses should provide goods and services in a manner that is sustainable and safe.”
Principle 2 focuses on product stewardship and the circular economy. It is about what you make. It challenges companies to take responsibility for their product throughout its entire life cycle, from the design stage (raw materials) to the manufacturing process, and finally, to what happens to the product after the consumer throws it away.
It covers:
- Chemical Management: adherence to ZDHC (Zero Discharge of Hazardous Chemicals).
- Recycling: Using Recycled Polyester (rPET) or regenerative cotton.
- Circularity: Reporting how much of your textile waste (cutting scraps) is sent to landfills vs. recycled into new yarn.
| Area under Principle 2 | Requirement (BRSR expectation) | What it means for Fashion & Lifestyle Businesses | Example Metrics / Disclosures |
| 1. Sustainable Sourcing (Inputs) | Disclose % of input materials sourced sustainably | Track origin and sustainability credentials of fibres and yarns used in productionClassify materials by certification or recycled content | % of cotton sourced as BCI/Organic/Regenerative% of recycled polyester vs virgin% of certified MMCFs (e.g., FSC-based viscose) |
| 2. Life Cycle Assessment (LCA) — Leadership Indicator | Conduct and disclose LCA for key products | Measure cradle-to-grave environmental impact of garments to identify hotspots and redesign products/processes | Number of products assessed via LCAWater/carbon footprint per productImprovement actions based on findings |
| 3. R&D / Capex for Sustainability | Disclose % of R&D and capital investment towards environmental/social impact improvements | Invest in cleaner technologies, circular product design, and waste-reduction infrastructure | % of R&D budget for sustainabilityCapex spent on waterless dyeing, recycling machinery, or eco-design innovations |
| 4. Extended Producer Responsibility (EPR) & Waste | Report applicability of EPR and waste collection measures | Manage plastic packaging responsibilityEstablish textile take-back or recycling programmes | % packaging recovered/recycledTonnage of textile waste collected% reclaimed vs products sold |
| 5. Use of Recycled Materials (Circularity) | Disclose % recycled/reused inputs in production | Integrate pre-consumer and post-consumer recycled materials into manufacturing | % recycled fibre content; % pre-consumer waste reused% post-consumer recycled materials used |
Principle 3: Employee Well-being
“Businesses should respect and promote the well-being of all employees, including those in their value chains.”
Principle 3 is the “People” pillar of ESG (Environmental, Social, and Governance). It goes beyond just paying salaries and encompasses the physical safety, mental health, professional growth, and human rights of everyone who works for you, whether they are a permanent manager in the corporate office or a contract worker loading cotton bales in the warehouse.
Crucially, it explicitly includes the value chain, meaning brands are responsible for the well-being of workers in their supply chain, not just their immediate payroll.
| Area under Principle 3 | Requirement (BRSR expectation) | What it means for Fashion & Lifestyle Businesses | Example Metrics / Disclosures |
| Coverage of Benefits | Report % of employees and workers covered by social security & welfare benefits | Extend insurance, maternity, etc. beyond permanent staff to contract/migrant labor in mills, dyeing, garmenting | % covered by health insurance, accident insurance, maternity/paternity benefits, daycare facilities (segmented by permanent vs contract) |
| Occupational Health & Safety (OHS) | Report workplace injuries, fatalities, LTIFR | Address sector risks like cotton dust exposure, chemical hazards, machine injuries, fire risk | LTIFR, number of injuries, fatalities, hours lost due to incidents, safety audit frequency |
| Gender Equity & POSH | Disclosure of POSH complaints and resolution | Garment workforce is female-dominatedEnsure ICC, maternity protection, fair pay | Number of complaints filed/resolved, retention rate post-maternity leave, gender workforce ratio |
| Union Rights & Collective Bargaining | Disclose worker participation in associations/unions | Respect union activity in mills/garment unitsAvoid retaliation | % of workforce in unions/associations, policies supporting freedom of association |
| Training & Skill Upgradation | Report training initiatives | Safety training, machinery handling, career progression (helper → operator) | Hours of training per employee, safety training coverage %, skill development participation |
| Accessibility (Differently Abled) | Ensure accessible infrastructure | Accessible offices, adapted factory zones where feasible | Accessibility features available, % sites compliant, inclusion policies |
Global buyers heavily scrutinise the “S” (Social) aspect because labor scandals destroy brand reputation faster than anything else. A strong BRSR report on Principle 3 serves as a compliance passport for Indian textile exporters looking to work with global giants.
Principle 4: Stakeholder Engagement
“Businesses should respect the interests of and be responsive to all its stakeholders.”
In simple terms, Principle 4 is about Inclusivity. It moves the corporate focus from just shareholders (investors/owners) to stakeholders (everyone affected by your business).
It recognises that a business does not exist in a vacuum. It demands that companies identify who is impacted by their operations, especially vulnerable and marginalised groups, and actively listen to their concerns.
| Area under Principle 4 | Requirement (BRSR expectation) | What it means for Fashion & Lifestyle Businesses | Example Metrics / Disclosures |
| Stakeholder Mapping | Describe process used to identify key stakeholders | Identify full value-chain actors: local communities near dyeing units, farmers, suppliers, contract workers, NGOs | List of stakeholder groups, methodology for identification, prioritisation criteria |
| Identifying Vulnerable & Marginalised Groups | Explicit disclosure of vulnerable stakeholders and engagement approach | Smallholder farmers, women workers, migrant labor, informal job-workers | Categories identified, engagement programmes, support initiatives (training, housing, fair pricing etc.) |
| Frequency & Mode of Engagement | Explain how often and through which channels engagement occurs | Panchayat meetings, supplier/vendor meets, worker committees, surveys | Engagement frequency, mode (meetings/surveys/workshops), participation levels |
| Grievance Redressal (External) | Mechanisms for non-employee stakeholders to raise concerns | Community complaint lines for pollution issues, supplier whistleblower channels | Grievance channels available, number received/resolved, resolution timelines |
| Leadership Indicator: Stakeholder Consultation | Evidence that consultation informs ESG issue identification | NGO consultations influencing water strategies, supplier feedback shaping policies | Documentation of consultations, issues identified, actions taken based on feedback |
Principle 5: Human Rights
“Businesses should respect and promote human rights.”
Dignity and freedom are at the core of Principle 5. It mandates that a company must ensure it is not complicit in human rights abuses, such as forced labor, child labor, discrimination, or unsafe working conditions.
Just like Principle 3, this also extends beyond the company’s own walls to include its entire value chain (suppliers, contractors, and job workers).
Principle 5 is critical for fashion and lifestyle because of:
- Modern Slavery Risks: The spinning and textile mill sector in certain regions has historically faced allegations of “Sumangali” schemes (where young women are bonded to work for a lump sum dowry payment) or restriction of movement.
- Child Labor: Cotton farming and seed production are areas where child labor is still a significant risk.
- Complex Subcontracting: Brands often lose visibility of human rights conditions once production moves to Tier 2 (fabric mills) or Tier 3 (yarn/fiber) suppliers. Principle 5 demands you regain that visibility.
| Area under Principle 5 | Requirement (BRSR expectation) | What it means for Fashion & Lifestyle Businesses | Example Metrics / Disclosures |
| Human Rights Training | Percentage of employees/workers trained on human rights policies | Training security staff, floor managers, HR teams to identify abuse, harassment, forced labour indicators | % workforce trained, training hours, categories covered, frequency |
| Minimum vs Median Wages | Disclosure of wage levels paid across workforce categories | Track how many workers earn statutory minimum vs above itAddress “poverty wage” concerns | Wage distribution data, minimum wage compliance, median wage comparison |
| Human Rights Due Diligence (Assessment) | Conduct assessments/audits of human rights practices | Internal or third-party audits (SMETA, SA8000 etc.) covering discrimination, forced labour indicators, safety risks | Audit coverage, findings, risk areas identified |
| Value Chain Assessment | % of value chain partners assessed for human rights risks | Auditing fabric mills, job workers, washing/printing units | % suppliers assessed (by value/volume), high-risk supplier identification |
| Corrective Actions / Remediation | Disclosure of steps taken to address violations | Supplier capacity building instead of disengagementFixing fire safety or working conditions | Actions taken, timelines, follow-up audits, closure rates |
| Sexual Harassment & Discrimination | Complaints reported and resolved | Monitoring wage equality, POSH implementation, gender equity | No. of complaints filed/resolved, wage parity indicators |
In the age of social media, one photo of a child working in a supply chain can destroy a brand’s value overnight. Principle 5 forces Indian textile companies to build a clean supply chain, proving that their clothes are not made at the cost of human dignity. This is increasingly becoming a requirement for export to the EU and USA (due to laws like the Uyghur Forced Labor Prevention Act).
Principle 6: Environmental Protection (The Heavy Hitter)
“Businesses should respect and make efforts to protect and restore the environment.”
The “E” in ESG is looked after by Principle 6 and is the most data-intensive part of the BRSR report. It requires businesses to measure, report, and reduce their environmental footprint regarding energy, water, emissions, and waste.
The Fashion and Lifestyle industry is one of the most polluting industries globally. In India, textile clusters (like Tiruppur, Ludhiana, Surat, and Pali) are often under strict surveillance by Pollution Control Boards due to effluent discharge.
Principle 6 is the “Make or Break” principle for the industry:
- Processing textiles (dyeing, bleaching) consumes massive amounts of water.
- Untreated effluent discharge damages rivers and soil health.
- Spinning, weaving, and heating water for dyeing require significant electricity and fuel (often coal or wood).
- The industry creates huge pre-consumer waste (fabric scraps) and hazardous waste (chemical sludge).
| Area under Principle 6 | Requirement (BRSR expectation) | What it means for Fashion & Lifestyle Businesses | Example Metrics / Disclosures |
| Energy Consumption & Intensity | Report total energy consumed from renewable and non-renewable sources | Electricity for spinning, weaving, sewingFuels for boilers/TFH in dyeing & processing | Total energy (GJ), renewable vs non-renewable split, energy intensity per turnover |
| GHG Emissions (Scope 1 & 2) | Disclosure of carbon emissions (tCO₂e) | Scope 1: Boiler/generator emissionsScope 2: Grid electricity useScope 3 (Leadership): logistics, raw materials | Scope 1 & 2 emissions totals, reduction initiatives, renewable adoption |
| Water Management | Report withdrawal, consumption, discharge | Groundwater vs tanker vs surface use; ZLD implementationRecycling in wet processing | Total water withdrawal, recycled/reused %, water intensity (L/kg fabric or yarn) |
| Waste Management | Categorize hazardous & non-hazardous waste and disposal method | Hazardous: ETP sludge, chemicalsNon-hazardous: fabric scraps, yarn waste | Waste quantities, % recycled vs landfilled, disposal compliance |
| Extended Producer Responsibility (Plastic) | Compliance with plastic waste management obligations | Polybags and packaging in garment supply chains | EPR compliance status, quantity of plastic recovered/recycled |
| Environmental Impact Assessment (EIA) | Disclosure of environmental clearance and impact studies | Required for new mills, expansions, dyeing operations | EIA conducted (Yes/No), approvals obtained, mitigation actions |
BRSR makes being environmentally conscious a financial and competitive necessity. A textile company that recycles 90% of its water and uses solar power will have a much better BRSR Score than a competitor using coal and fresh water. This score is what global investors and brands are looking at before signing contracts.
Principle 7: Public Policy
“Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent.”
In simple terms, Principle 7 is about Lobbying and Advocacy.
Companies often interact with the government to influence laws, subsidies, and trade rules. This principle demands transparency for the same. It questions who companies are paying to speak on their behalf and what they are asking the government to change.
Relevance to Fashion and Lifestyle
The Indian Fashion and Lifestyle industry is highly regulated and heavily dependent on government policy. It relies on subsidies, export incentives, and labor laws. Therefore, it is an industry that engages in heavy lobbying.
- Association-Driven Industry: Unlike tech or pharma where individual giants lobby, the textile sector is fragmented. It operates through powerful Trade Associations (e.g., CITI, TEXPROCIL, AEPC, CMAI). These bodies speak to the government on behalf of the mills and garment units.
- High Stakes in Policy: The industry constantly negotiates on:
- Cotton MSP (Minimum Support Price): Which affects raw material costs.
- Export Incentives: Like RoDTEP (Remission of Duties and Taxes on Exported Products).
- Pollution Norms: Asking for relaxation or time extensions on Zero Liquid Discharge (ZLD) norms.
- Labor Laws: Asking for flexibility in overtime hours or contract labor rules.
- Trade Agreements: The industry actively pushes the government for Free Trade Agreements (FTAs) with the UK and EU to compete with Bangladesh and Vietnam.
| Area under Principle 7 | Requirement (BRSR expectation) | What it means for Fashion & Textile Businesses | Example Metrics / Disclosures |
| Disclosure of Affiliations (Trade Bodies) | List major industry associations/chambers the entity is a member of | Membership in bodies like CITI, AEPC, CMAI, TEA, FICCI, CII etc. | Names of associations, nature of involvement, role/position held |
| Public Policy Positions | Disclose key policy issues your participation focuses on | Advocacy on PLI schemes, import duty reforms (e.g., ELS cotton), Lifestyle policy consultations | Policy areas engaged in, methods of participation, outcomes sought |
| Consistency Check (Alignment with ESG Claims) | Ensure advocacy positions align with sustainability commitments | Avoid contradictions between environmental claims and lobbying activities | Explanation of alignment between stated ESG goals and policy engagement |
| Anti-Competitive Conduct | Disclose corrective actions related to anti-competitive behavior | Relevant for fiber manufacturers or large players influencing market pricing | Details of incidents, penalties, remediation measures |
It ensures that while you negotiate for better business conditions (like tax breaks or trade deals), you are not secretly undermining the social and environmental progress of the country. For a sector that relies on government support to remain globally competitive, this transparency is key to maintaining public trust.
Principle 8: Inclusive Growth
“Businesses should promote inclusive growth and equitable development.”
Principle 8 focuses on the company’s impact on the society in which it operates and asks how the business supports the “have-nots” in its ecosystem, specifically marginalised communities, small businesses, and underdeveloped regions.
It aligns closely with CSR (Corporate Social Responsibility) but pushes for a more strategic approach, i.e. sourcing from the poor to help them grow.
The fashion and textile industry creates massive wealth at the brand level but is often built on the backs of low-income rural communities. Principle 8 becomes critical for the industry because:
- The industry starts with agriculture (cotton, jute, silk). Millions of small, marginalised farmers are the bedrock of this sector.
- India has a rich heritage of handloom and handicrafts (weavers, embroiderers). These groups often struggle to access markets and are vulnerable to exploitation by middlemen.
- The textile supply chain is dominated by Micro, Small, and Medium Enterprises (MSMEs), e.g. spinning mills, dyeing units, and job workers. Their survival depends on orders from large buyers.
- Textile hubs are often located in or draw labor from “Aspirational Districts” (underdeveloped regions identified by NITI Aayog).
| Area under Principle 8 | Requirement (BRSR expectation) | What it means for Fashion & Lifestyle Businesses | Example Metrics / Disclosures |
| Social Impact Assessment (SIA) | Disclosure of SIAs conducted for major projects | Assess impact of textile parks, processing units on local communities (water use, cost of living, livelihoods) | SIA conducted (Yes/No), key impacts identified, mitigation actions |
| Rehabilitation & Resettlement (R&R) | Reporting on land acquisition impacts and resettlement actions | Compensation and relocation for displaced farmers or residents when factories are built | No. of affected families, compensation provided, rehabilitation status |
| Preferential Procurement | % of procurement from MSMEs, small producers, or local district sourcing | Buying cotton from FPOs, artisan work from SHGs, sourcing from local SMEs | % procurement from MSMEs, local sourcing %, supplier categories |
| CSR in Aspirational Districts | CSR spend in designated aspirational districts | Supporting cotton-growing regions through irrigation, health, education initiatives | CSR spend distribution, project locations, beneficiaries |
| IP & Traditional Knowledge Sharing | Disclosure of benefits shared from IP based on traditional knowledge | Compensation/partnership with artisans when using traditional motifs/weaves | Revenue-sharing mechanisms, collaborations, artisan benefit programmes |
| Job Creation in Smaller Towns | Wages paid to people employed in rural/semi-urban areas | Employment generation in textile hubs outside metros | Workforce distribution by geography, wages paid in smaller towns |
Principle 8 is about Shared Prosperity.
It challenges the industry to move away from an extractive relationship (taking cheap labor and resources) to a supportive relationship. It asks the big brands: “You are growing rich, but are the farmers and weavers in your supply chain growing with you?” A good BRSR report answers “Yes” with data on procurement and CSR impact.
Principle 9: Consumer Engagement
“Businesses should engage with and provide value to their consumers in a responsible manner.”
The final principle of BRSR is about customer trust and safety. Companies are mandated to treat customers fairly, provide accurate information (no lying in ads), ensure product safety, and handle customer data (privacy) securely.
The Fashion industry spends billions on marketing and building brand image. However, it is also an industry rife with Greenwashing (false environmental claims) and product safety issues.
Principle 9 is critical for F&T because:
- Brands often label products as “Eco-friendly,” “Natural,” or “Sustainable” without scientific backing. Principle 9 demands factual, verifiable advertising.
- Textiles use dyes and finishes. If a baby’s t-shirt contains lead or carcinogenic azo dyes, it is a massive safety risk. Clothing is in constant contact with human skin.
- With the rise of D2C (Direct-to-Consumer) fashion brands (like Myntra, Ajio, or brand websites), companies hold massive amounts of personal customer data, making privacy a key governance issue.
- Fast fashion relies on selling volume. Principle 9 subtly pushes brands to educate consumers about responsible usage (e.g., washing less often) and recycling, rather than just pushing for more sales.
| Area under Principle 9 | Requirement (BRSR expectation) | What it means for Fashion & Lifestyle Businesses | Example Metrics / Disclosures |
| Consumer Complaints | Report number and status of complaints on quality, delivery, advertising, privacy | Issues like fabric shrinkage, mislabeling, late delivery in e-commerce | Total complaints received, resolved %, pending cases |
| Product Labeling & Transparency | Disclosure of information beyond statutory requirements | QR traceability, certification logos (GOTS, OEKO-TEX), sustainability care instructions | Type of additional info provided, traceability tools, certifications displayed |
| Product Safety & Recalls | Details of product recalls due to safety issues | Hazardous drawstrings, chemical contamination, faulty trims | No. of recalls, reasons, corrective measures |
| Responsible Advertising | Corrective action taken on misleading advertising claims | Prevent greenwashing or unverifiable sustainability claims | Advertising complaints, actions taken, substantiation protocols |
| Data Privacy & Cybersecurity | Framework for protecting consumer data | Protection of customer info in retail/e-commerce platforms | Policies in place, breaches reported, mitigation actions |
| Consumer Education | Initiatives to promote responsible product use | Wash-care education, take-back awareness, sustainability messaging | Campaigns conducted, reach/engagement metrics |
PART 3: Key Environmental KPIs for Textiles
To outrank competitors, your BRSR report must be data-rich. Based on the ASSOCHAM and ICAI guidelines, here is how to calculate the critical environmental metrics for a textile unit.
1. GHG Emissions (The Carbon Footprint)
You must report emissions in Metric Tonnes of CO2 equivalent (tCO2e).
- Scope 1 (Direct Emissions): Emissions from sources you own.
- Example: Diesel used in your backup generators, coal burnt in your boilers for steam generation.
- Scope 2 (Indirect Energy Emissions): Emissions from the electricity you buy.
- Example: The electricity bill from the state grid that powers your looms and sewing machines.
- Scope 3 (Value Chain Emissions): The hardest to track.
- Example: Emissions produced by the trucks transporting your cotton bales; emissions generated by the farmers growing the cotton (fertiliser use).
Intensity Ratios: SEBI mandates reporting of “emission intensity.”
- Calculation: Total Emissions (Scope 1 + 2) ÷ Total Turnover (in Rupees).
- For BRSR Core indicators, SEBI requires Intensity Ratios to be calculated based on Purchasing Power Parity (PPP) adjusted revenue. This normalises the data for global comparison. You must use the PPP conversion factor published by the IMF.
- This matters because it shows if you are becoming more efficient as you grow. If your revenue doubles but emissions stay the same, your intensity drops and that is good.
2. Water Footprint (Crucial for Dyeing/Processing)
Textile processing is water-intensive. You must report:
- Water Withdrawal: How much did you pull from borewells, rivers, or third-party tankers?
- Water Consumption: Withdrawal minus Discharge. (How much water evaporated or stayed in the product).
- Zero Liquid Discharge (ZLD): If you are a ZLD unit, you must report the efficiency of your recycling system.
- KPI: Water Intensity per Rupee of Turnover.
3. Waste Management (Circularity)
In fashion, waste is a massive issue. BRSR requires a breakdown of waste into:
- Plastic Waste: Packaging polybags.
- Hazardous Waste: Chemical sludge from ETPs, empty dye containers.
- Non-Hazardous Waste: Fabric scraps, yarn waste, paper.
- The Metric: You must report the percentage of this waste that was Recycled, Re-used, or Recovered vs. what was sent to Landfill.
PART 4: Industry Case Studies – Who is Doing it Right?
To implement BRSR effectively, look at the leaders.
1. Arvind Limited (Focus on Water)
Arvind is a benchmark for water stewardship. In their sustainability reporting, they do not just list consumption but also highlight their largest usage of recycled water in the industry. They use blockchain technology (Fibrecoins) to trace the lifecycle of their products, providing hard data for the “Product Lifecycle” principle of BRSR.
2. Welspun Living (Focus on Social & Cotton)
Welspun’s “Welocity” framework focuses heavily on the “S” (Social). They track the source of their cotton back to the farm level using tracking technologies (Wel-Track). Their BRSR reports emphasise community engagement in the Kutch region, linking CSR spend directly to beneficiary impact.
3. Aditya Birla Fashion and Retail Ltd (ABFRL)
ABFRL focuses on “ReEarth.” Their reporting excels in Scope 1 and 2 emissions reduction by installing roof-top solar across their factories. They provide detailed data on packaging waste reduction, directly addressing the “Plastic Waste” KPI of BRSR.
PART 5: Implementation Roadmap for Textile Companies
Whether you are a listed entity or a supplier preparing for a buyer’s audit, here is your 4-step roadmap to BRSR readiness.
Step 1: Materiality Assessment (What matters?)
Do not try to report everything with equal weight.
- For a Dyeing Unit: Water and Effluents are highly material.
- For a Garment Unit: Labor welfare and Wages are highly material.
- For a Spinning Mill: Energy consumption and Cotton sourcing are highly material.
Step 2: Data Collection Architecture
You can only report what you can measure.
- Energy: Install IoT-enabled smart meters on boilers and main lines.
- Water: Calibrated flow meters at inlet and ETP outlet.
- Social: Digitise your HR records. Ensure contract labor hours are tracked as accurately as permanent staff.
- Spend-based Calculation: If you lack direct meters, use the spend-based method (allowed in initial phases). Calculate fuel consumed based on the money spent on diesel/coal using average market rates (as detailed in ASSOCHAM guidelines).
Step 3: Policy Formulation
BRSR requires you to have a policy for every principle.
- Draft a Human Rights Policy.
- Draft a Supplier Code of Conduct (and make your suppliers sign it).
- Draft an Anti-Corruption/Bribery Policy.
Step 4: The Assurance Audit
Do not wait for the deadline.
- Engage an assurance provider (like a CA firm or specialised ESG auditor/software).
- Start with a “Readiness Assessment” (Mock Audit) to find gaps in your data.
- Move to Limited Assurance, and finally Reasonable Assurance.
PART 6: Future Trends – Green Credits and Carbon Markets
The landscape is evolving fast.
The Green Credit programme (2023)
The Ministry of Environment, Forest and Climate Change (MoEFCC) has launched Green Credits. Textile companies can earn credits for:
- Tree plantation (Green cover).
- Water conservation (Rainwater harvesting).
These credits can be traded on a platform. Your BRSR report is the perfect place to highlight these credits.
Carbon Credit Trading Scheme (CCTS)
India is developing its own domestic carbon market. Textile giants who reduce emissions below a certain target will earn Carbon Credit Certificates (CCCs). They can sell these to companies that are polluting too much. This turns sustainability from a “cost center” into a “revenue center.”
Conclusion: The Future is Transparent
For the Indian textile industry, which faces stiff competition from Bangladesh and Vietnam, Transparency is the new differentiator. Global brands want to source from India, but they are terrified of ESG risks (child labor scandals or pollution scandals).
A robust, data-backed BRSR report is your proof of quality. It tells the world that you are clean, fair and you have the data to prove it.
Important Terms You Must Know
- ESG: Environmental (Planet), Social (People), Governance (Policy/Ethics).
- Materiality: Identifying which ESG issues matter most to your specific business. For a dyeing unit, “Water Management” is highly material. For a software company, it is not.
- BRSR Core: A subset of key indicators (KPIs) within the BRSR that must be Assured (audited) by a third party. This ensures companies aren’t lying about their data.
- Value Chain Partners: Your suppliers and distributors. SEBI now mandates that listed companies must report data not just for themselves, but for their supply chain. This means if you are an MSME supplying to a listed brand (like Raymond or Aditya Birla), you will be asked to provide this data.
