Status Quo Analysis - Textile Sector

3.3. Implementation Drivers and Benefits

The implementation of chemical traceability systems in the textile industry is driven by three interconnected forces: regulatory compliance, market competitiveness, and sustainable chemical management, each offering distinct benefits while contributing to the industry's broader sustainability goals.

Regulatory compliance emerges as a primary driver, with expanding legal frameworks creating increasingly stringent requirements. (Schenten et al., 2019) emphasise how these regulations, including the EU's REACH and ESPR, compel companies to adopt comprehensive chemical traceability systems. These systems help organisations identify and substitute hazardous substances, ensuring alignment with both legal requirements and internal company policies (Roos et al., 2020).

Market expectations serve as another crucial driver, reflecting growing societal demands for transparency and sustainability in textile production. (Schenten et al., 2019) highlight how this market pressure creates competitive advantages for brands that demonstrate effective chemical traceability, often encouraging companies to exceed minimum regulatory requirements. By adopting these systems, companies can differentiate themselves in the market while responding to consumer demands for sustainable and transparent products.

The pursuit of green and sustainable chemistry opportunities represents the third key driver, particularly as awareness of chemical risks continues to grow. Traceability systems facilitate the management and substitution of hazardous chemicals throughout the supply chain, addressing the challenges posed by complex and often non-transparent supply networks (Roos et al., 2020). This capability delivers multiple benefits, including enhanced communication and knowledge sharing across the supply chain, improved risk management of hazardous substances, and better sustainability performance (Garcia-Torres et al., 2019).

The implementation of these systems generates significant benefits across multiple dimensions. They provide a platform for communication and knowledge sharing crucial for effective chemicals life cycle management (Roos et al., 2020), while enabling better risk management through full substance traceability (Garcia-Torres et al., 2019). Notably, traceability for sustainability (TfS) integrates governance, collaboration, and tracking mechanisms, contributing to improved triple-bottom-line performance addressing economic, environmental, and social impacts across supply chain actors (Garcia-Torres et al., 2019). These benefits collectively support the textile industry's transition toward more sustainable practices while meeting regulatory requirements and enhancing market competitiveness.