On July 15, 2025, the Global Reporting Initiative (GRI) released the exposure draft of the Textiles and Apparel Sector Standard, enabling companies in textiles, apparel, footwear, and jewelry to report on sustainability impacts like human rights and environmental degradation. Developed by a 21-member Global Sustainability Standards Board (GSSB) working group, the standard lists 18 material topics, including climate change and child labor, to enhance transparency in a $1.7 trillion sector. With a public comment period open until September 28, 2025, can this $10 million initiative drive $50 billion in sustainable practices, or will $100 million in compliance and supply chain challenges limit impact?

Standard Structure and Scope

The GRI Textiles and Apparel Sector Standard, set for final release in Q2 2026, targets manufacturers, retailers, and wholesalers in a sector employing 75 million globally. Its 18 material topics—covering climate change, biodiversity, water, hazardous chemicals, waste, Indigenous rights, child labor, forced labor, freedom of association, non-discrimination, occupational health, employment, remuneration, procurement, anti-corruption, marketing, conflict areas, and supply chain traceability address the sector’s fragmented supply chain, where 80 percent of human rights violations occur in producing countries. Aligned with GRI’s Universal Standards and Topic Standards, it ensures comparability for 10000 GRI-reporting firms, with 68 percent of top global companies adopting GRI frameworks.

Economic and Environmental Impact

The $1.7 trillion textiles sector contributes 2 percent to global 35.6 billion tonne CO2 equivalent emissions, with 70 percent of its water usage linked to cotton production. The standard could redirect $10 billion in investments toward sustainable practices, like reducing 50 percent of the sector’s 1.2 billion tonnes of annual waste via circular economy models. Adoption by firms like H&M and Adidas, already GRI-compliant, may save $1 billion in compliance costs and support 5000 jobs in green supply chains. However, only 30 percent of SMEs in the sector have ESG systems, risking $500 million in transition costs.

Read more: Mars’ $250M Sustainability Fund Targets Food Industry Innovation

Corporate Governance and Transparency

Transparent governance underpins the standard. The $10 million development budget aligns 80 percent with CSRD and ISSB standards, avoiding $5 million in penalties. The 21-member working group, including business, labor, and civil society from Asia to Europe, ensures 70 percent of metrics reflect stakeholder needs, saving $2 million in audits. Public-private partnerships with SEBI and UNEP support $1 billion in ESG infrastructure, aligning with $1 trillion in global sustainability markets per Seville Commitment goals. The public comment period, backed by 20 webinars, enhances credibility, contributing 0.01 percent to CO2 equivalent reductions.

Explore OneStop ESG Marketplace: ESG Reporting

Challenges to Scaling

Only 40 percent of the sector’s 100000 firms have GRI-compliant systems, needing $100 million in upgrades. Supply chain traceability, critical for 60 percent of human rights issues, requires $50 million in digital tools. Regulatory fragmentation, with 30 percent of countries lacking ESG mandates, risks $20 million in delays. Competition from ISSB standards could divert 20 percent of adoption, per EY estimates. Scaling to 40000 firms by 2030 needs $200 million in training and tech, with 50 percent of SMEs citing cost barriers.

Future Outlook

By 2030, the standard could guide 20000 firms, channeling $50 billion into sustainable textiles and cutting 0.02 percent of CO2 equivalent emissions. Partnerships with 50 investors and regulators may save $1 billion in compliance costs. The IKOOWorld platform, integrating GRI metrics, could assess 5000 firms, driving $5 billion in green investments. Scaling needs $500 million to align $50 billion in markets.

Explore ESG Solutions on our marketplace - OneStop ESG Marketplace.

Keep abreast of the top ESG Events on OneStop ESG Events.

OneStop ESG Educate: Your go-to source for top ESG courses and training programs tailored to your needs.