Mumbai, India – August 28, 2024 — Aditya Birla Fashion and Retail Ltd. (ABFRL), the leader in the Indian fashion industry, announced the release of its long-awaited Business Responsibility and Sustainability Report (BRSR) for the financial year 2023-24. This integrated report, therefore, underlines the commitment of the company toward sustainability: this is the journey of integrating ESG principles in all aspects of its operations. The spirit of commitment toward a sustainable future with responsible business practices is at the forefront of ABFRL’s operations as the firm strives to set new benchmarks in the apparel industry.
Sustainability Journey: ReEarth – For Our Tomorrow
ABFRL initiated its journey on sustainability over a decade ago by launching the “ReEarth – For Our Tomorrow” initiative in FY13. This pioneering program set the beat for the company’s long-term journey of sustainable business commitment. Over time, ABFRL has evolved its approach toward sustainability, culminating into its ReEarth 2.0 program. The BRSR articulates ambitious milestones for 2025, focusing on sustainable product development, environmental stewardship, and social responsibility.
ReEarth is an anchor program of ABFRL through which the company aspires to integrate eco-friendly practices into each and every part of the business. This is in resonance with ABFRL’s vision: to make sure that this latest version of the program, ReEarth 2.0, can deliver sustainable fashion to meet consumer demand and have a positive influence on the environment and society as a whole. With clear goals set for 2025, ABFRL will spearhead the fashion industry in sustainable innovation.
Alignment with ESG Standards and National Guidelines
Care has been taken to see that the 2024 BRSR is in full compliance with the NGRBCs laid down by the Ministry of Corporate Affairs. This, in turn, reflects our commitment to pursuing the highest standards of corporate governance and sustainability. The report has been prepared in conformity with the SEBI regulations so that the business practices of ABFRL are not only ethical and transparent but also in line with global ESG standards.
The BRSR of ABFRL provides an in-depth view into the ESG performance of the Company and outlines its commitment to conducting responsible business practices with integrity and accountability. Further, the alignment of its business practices with national and global benchmarks strengthens its commitment as a responsible corporate citizen to ensure sustainability in growth.
Highlights of the Report
Product Development Sustainability: ABFRL has taken adequate steps to build its portfolio of products on sustainability. As on date, 89.2% of its total products have at least one sustainable attribute. It has set a volume share target of 50% of the total product volume with sustainability value addition for 2025, confirming its commitment toward ‘green fashion’ for consumers.
Sustainability of the Environment: The report accuses ABFRL of a number of strategic implementations that not only reduce its carbon footprint but also meet environmental legislation. It had set a target to reach 50% renewable energy usage across all facilities by 2025, coupled with the reduction of Scope 1, 2, and 3 emissions by 5% over the same period. These undertakings hint at ABFRL’s actions in regard to climate change and environmental stewardship.
Employee Welfare and Inclusion: ABFRL believes in the welfare of its employees by providing comprehensive health and safety training programs to 100% of its workforce. Further, the Company endorses inclusion and diversity in the workplace, with a sizeable number of women representatives in different levels of the organization structure. ABFRL commits to creating an inclusive and safe environment at the workplace, as part of its integral social responsibility.
Governance and Transparency: The governance framework at ABFRL undertakes periodic reviews of its policies in view of the NGRBC principles and ensures that operations are always undertaken in a manner so as to promote the highest degree of transparency coupled with high ethical conduct. The Company adopts zero tolerance for corruption and bribery, respectively, and also has in place strong grievance redressal mechanisms concerning employees and stakeholders. Such an emphasis on governance ensures the business practices at ABFRL are in conformity with the goals of sustainability.
Waste Management and Circular Economy: The report apprises ABFRL of its commitment to more efficient practices concerning waste management, aspiring for zero waste to landfill by the year 2025. It is also striving toward the adoption of a circular economy through the use of sustainable sourcing and post-consumer recycled material in its products. These are a reflection of the commitment by ABFRL to reduce waste and make its supply chain more sustainable.
The Way Forward: Challenges and Opportunities
While ABFRL has achieved much during its journey of sustainability, this report recognises that many challenges lie ahead. Attaining the 2025 Sustainability Goals will take continuous effort, innovation and collaboration with various stakeholders. Yet, ABFRL leadership remains optimistic, committed to the integration of ESG principles into all aspects of operations, long-term value creation for all stakeholders.
Conclusion
This report by Aditya Birla Fashion and Retail Ltd. is a good example of the commitment that this fashion house has undertaken to lead the industry towards a better future with sustainability and accountability. With ambitious targets on sustainability along with an operationally transparent approach, ABFRL can keep the legacy running in the fashion industry for innovation and excellence.