Advancing vertical integration and circularity in the textile industry by developing a novel framework of textile sustainability index

As the world population grows, the demand for essential goods, such as clothing and textiles, naturally increases. The textile industry is the backbone of Pakistan's export sector. The textile industry must prioritize sustainability on a large scale to meet the demands of international buyers and ensure the exportability of its products. This study aims to develop the Textile Sustainability Index (TSI), which helps industrialists evaluate the sustainability performance of their textile firms against established standards or benchmarks. The sustainability assessment was done using the proximity to target method. This method measures the industry's sustainability performance in relation to the standards and targets established by the industry. The closer the industry's performance aligns with the targets, the better the compliance with industry benchmarks. Firstly, the indicator performance scores for each parameter were calculated, and then these scores were aggregated into parameter scores for each category. Afterwards, the parameter scores were combined to determine the aspect scores for environmental, economic, and social factors. Lastly, the aspect scores were compiled to calculate the textile sustainability index score. The textile firm's vertical integration process has been selected and used as a case study to validate the applicability of this index. The sustainability performance of the selected firm was evaluated, and the overall TSI of the firm was calculated to be 91.72, comprising environmental (36.91 %), economic (33.66 %), and social (21.15 %) components. Low-performance indicators and parameters were identified based on this TSI. The results indicated that parameters of water consumption, diesel consumption, and chemical consumption were identified as hotspot areas in environmental aspects, and practical improvements were suggested to optimize the process. From an economic perspective, the efficiency of raw material input and the profitability of finished products require improvement. In social aspects, only the risk factor parameter is required for advancement to achieve sustainable targets. This research presents a framework for measuring the sustainability of textile industries, encompassing environmental, economic, and social performance. Thus, this research can be valuable to industrialists, policymakers, and stakeholders in informing decision-making, improving sustainable practices, and setting future targets.