Textile companies filing BRSR for FY 2025-26 face a more complex compliance landscape than most other sectors. Two major frameworks converge this year: BRSR Core reasonable assurance (if the company is in the top 500 by market cap) and the first compliance year of India's Carbon Credit Trading Scheme (CCTS), which notified textile companies as an obligated sector in January 2026. This guide covers how to manage both obligations without duplicating work.
Why textile is a high-stakes BRSR sector
Textile manufacturing generates significant environmental impacts across all three major BRSR environmental indicators: energy (heat-intensive dyeing and finishing), water (among the most water-intensive manufacturing processes in India), and waste/effluent (dyeing wastewater often carries high chemical oxygen demand and colour). Simultaneously, the sector employs a large, predominantly female, often contract-heavy workforce, making P3 and P5disclosures especially material. Analysts and ESG rating agencies scrutinise textile BRSR filings closely on all of these dimensions.
The CCTS obligation for textile companies
India's Carbon Credit Trading Scheme (CCTS), administered by the Bureau of Energy Efficiency (BEE), notified textile as one of nine GEI-obligated sectors in January 2026. Obligated textile companies must measure their actual GHG emission intensity (GEI, measured in tCO2e per unit of production) for FY 2025-26 and submit a verified GHG emission intensity report to BEE by July 31, 2026. This is the first compliance year; obligated companies that beat their BEE-set GEI target earn Carbon Credit Certificates (CCCs), while those that miss the target must purchase CCCs.
CCTS and BRSR P6-E1 use substantially the same underlying data
P6-E1. If you set up a single data collection workflow that captures monthly fuel and electricity data by unit, you can satisfy both obligations from the same source dataset. Do not run two parallel data collection exercises.GHG calculation for textile: what the numbers look like
For a typical spinning or weaving unit, Scope 1 comes from coal or biomass in boilers and diesel in DG sets. Scope 2 comes from grid electricity for looms, dyeing machines, and air-conditioning. Standard calculation approach:
| Energy source | Typical unit | Emission factor | Source |
|---|---|---|---|
| Coal (thermal) | Tonnes | 2.27 tCO2e/tonne (94.6 kg CO2/GJ × 0.024 GJ/kg) | IPCC 2006, Vol.2, Table 2.2 |
| Diesel (DG sets) | Litres | 2.68 kg CO2e/litre | IPCC 2006, Vol.2, Table 2.2 |
| LPG | kg | 1.56 kg CO2e/kg | IPCC 2006, Vol.2, Table 2.2 |
| Grid electricity | kWh | 0.710 kg CO2e/kWh | CEA CO2 Baseline v21.0 (2024) |
Convert all figures to tCO2e (divide kg CO2e by 1,000) before summing. GHG intensity for BRSR and CCTS is expressed as tCO2e per tonne of fabric or yarn produced, depending on the unit specified in the BEE Target Order for textile.
Water: the most scrutinised textile disclosure
Textile dyeing and finishing consumes large volumes of water. P6-E3 requires disclosure of total water withdrawal by source (groundwater, surface water, municipal supply, rainwater harvesting) in megalitres (ML), along with water intensity (kL per tonne of output or per ₹ crore of turnover). Water discharge volume and the treatment method (effluent treatment plant, ZLD) are required under P6-E4. If your client holds a Zero Liquid Discharge certification from the State Pollution Control Board, this significantly simplifies the effluent disclosure and strengthens the BRSR Core assurance position.
Workforce: P3 and P5 for a contract-heavy sector
Textile factories typically have a workforce that is predominantly female at the operator level and contract-heavy in certain functions. P3-E1 requires a complete headcount segmented by employment type (permanent employees, permanent workers, other-than-permanent employees, other-than-permanent workers) and by gender. P5-E4 requires the gender wage ratio. This requires payroll data segmented by gender, which HR teams in labour-intensive textile factories do not always maintain in an easily extractable format. Budget extra time for this extraction.
Key documentation for BRSR Core assurance in textile
- Monthly fuel purchase invoices (coal deliveries, diesel receipts) for the full FY 2025-26.
- Monthly electricity bills for each unit or sub-meter (separate bills for spinning, weaving, finishing if separately metered).
- Monthly production records (tonnes of yarn, fabric, or garment by product type).
- Effluent monitoring reports from the CETP or in-house ETP (required quarterly by most PCBs).
- Water withdrawal records by source (borewell water flow meter readings, municipal water invoices).
- ZLD certification if held (PCB order).
- HR system export for headcount and payroll by gender.
Key takeaways
- Textile companies face both BRSR Core assurance and CCTS obligations in FY 2025-26. Use a single data collection workflow for both.
- CCTS requires a verified GHG emission intensity report to BEE by July 31, 2026. Start data collection immediately.
- GHG calculation uses IPCC 2006 factors for coal and diesel, and CEA v21.0 (0.710 kg CO2e/kWh) for electricity.
- Water and effluent disclosures are material for textile. ZLD certification helps significantly.
- P3 and P5 workforce disclosures require payroll segmented by gender. Allow extra time to extract this from HR systems.
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