2. Understanding Chemical Traceability in the Textile Industry

2.5. Advancing Chemical Traceability in the Textile Industry

Technological solutions for implementing chemicals traceability in the textile and carpets industries are crucial for ensuring sustainability and compliance with legal and societal demands. Current state-of- the-art solutions include blockchain technology, flexible SERS substrates and Internet of Things

The blockchain technology is increasingly used for supply chain traceability in the textile and apparel industries as it offers a secure and transparent way to track products from raw materials to finished goods, ensuring product authentication and supply chain sustainability.

The Lenzing Group, a leading fiber producer, has adopted blockchain technology to enhance traceability, addressing the growing demand for transparency in supply chains, although challenges remain in its full implementation (Ahmed, 2021). Complementing such advancements, flexible SERS (surface-enhanced Raman scattering) substrates are being employed to detect hazardous materials, such as chemicals in textiles, further supporting efforts to ensure safety and sustainability across the textile value chain. These substrates, made from materials like fabrics and polymer nanofibers, enable practical, on-field applications due to their low cost and ease of use. They are particularly effective for trace detection of dyes and other chemicals in textiles (Bharati and Soma, 2021). Finally, the integration of Internet of Things (IoT) technologies for remote monitoring and control of water quality in textile manufacturing is another emerging solution. These systems can help manage the removal of dyes and chemicals from wastewater, although a common platform for integrating traditional and modern treatment methods is still lacking (Hynes et al., 2020).

While these technological solutions for chemical traceability are burgeoning in the market, this analysis deliberately maintains a technology-agnostic approach in alignment with the ECHT project's scope and objectives. This position addresses chemical traceability focusing on organisational readiness, stakeholder collaboration, and systemic understanding. By focusing on the underlying principles, barriers, and enablers of traceability rather than specific technical solutions, we ensure that our findings and recommendations remain relevant regardless of technological evolution or market preferences. This approach also aligns with the project's goal of creating inclusive solutions that work for organisations of all sizes and technical capabilities, particularly considering that 89% of textile companies in the NWE region are SMEs (Di Bella et al., 2023) with varying levels of technological maturity and resources. The emphasis therefore remains on establishing the foundational elements of successful traceability implementation, allowing organisations to select and adapt technological solutions that best fit their specific contexts and capabilities. However, a globally harmonised system would best accommodate the needs of seamless information flow and avoidance of multiple reporting requirements.

The barriers and the lack of incentives in the textile supply chains, create significant challenges for chemical traceability and information flow. Implementing effective chemical management in this context requires key practices and considerations, particularly for small and medium-sized enterprises (SMEs) seeking to enhance their environmental performance.

Literature suggests that SMEs should prioritise both reducing chemical usage and substituting hazardous chemicals with environmentally friendly alternatives, as these strategies have shown impressive results. Studies demonstrate that such practices can achieve 15-32% reductions in chemical use alongside 13-37% reductions in chemical oxygen demand in wastewater (Ozturk et al., 2020). Given the complex chemical composition of textile wastewater, effective treatment remains crucial, with advanced oxidation processes (AOPs) and biological treatments emerging as promising solutions that can be combined to manage and recycle process water efficiently (Paździor et al., 2019).

Smart environmental management practices (SEMPs) offer SMEs effective strategies to reduce pollution and resource consumption through low-cost, high-return approaches that deliver significant savings in water, chemicals, and energy while simultaneously reducing greenhouse gas emissions (Kumar et al., 2022). To enhance these efforts, a function-based approach to life cycle management (LCM) empowers SMEs to manage and substitute hazardous chemicals effectively by providing tools that simplify chemical information for non-chemists and foster continuous knowledge sharing among stakeholders (Roos et al., 2020). Complementing these management strategies, SMEs must navigate regulatory restrictions on specific chemicals, such as endocrine-disrupting surfactants, while understanding the associated financial and technical risks alongside the benefits of compliance to ensure effective chemical management (Ho and Watanabe, 2020).

Successful chemical management in textile SMEs requires a holistic strategy combining hazardous chemical reduction and substitution, effective wastewater treatment, smart environmental practices, and regulatory compliance. While these approaches deliver tangible financial and operational benefits that support the transition toward sustainable production, their implementation faces significant challenges. Notably, transparency within supply chains is hindered by technical capacity limitations, inconsistent global standards, and supplier reluctance to disclose proprietary formulations. To address these barriers, emerging solutions such as incorporating chemical information into ecolabelling and leveraging digital tools like RFID tags show promise in enhancing chemical visibility across supply chains.

However, as long as transparency and traceability regarding chemical composition information remain optional, companies, including SMEs, may find it challenging to obtain the necessary details from upstream suppliers. They may be too small for suppliers to take their information requests seriously. If the supplier is located in another jurisdiction, demanding transparency from upstream can be even more difficult. Consequently, a growing number of companies advocate for the establishment of mandatory globally harmonised transparency and traceability systems and standards that save time and money for businesses while protecting their brand reputations and levelling the playing field in trade.