Textile recycling: how truly effective is it as an ethical alternative?

Written By Jules Namubiru

The case of India and its workers in Panipat.

E-CO2 Consulting's mission is to drive the fashion industry toward a sustainable and eco-conscious future, with foundational circular strategies at its core.

This commitment demands constant, informed vigilance. We must continuously assess existing “circular” processes to determine if they remain ethical, effective, and truly beneficial, or if long-standing practices have become blurred and no longer serve a meaningful purpose.

The proper management of textile waste is a core principle of genuine circularity. To advise our clients effectively, we must first follow the trail of discarded garments to understand where their lifecycle truly ends.

This leads us to Panipat, India, a city that has earned the title of the “castoff capital of the world.” As a major global hub for textile recycling, Panipat processes roughly 1 million tonnes of textile waste annually. This massive operation involves around 20,000 industrial units and employs a workforce of 300,000 people.

Understanding its operational scale and ethical challenges is critical to shaping our future consulting strategies. It is imperative that we now turn our attention to the darker realities of this massive operation.

The hidden cost of textile recycling

It’s a tough truth: the shift toward greener, more circular production sometimes harms the very people and places it’s meant to protect.

In Panipat’s recycling factories, workers producing “shoddy yarn” from recycled textiles are routinely exposed to microfibres and dust. They often work without proper ventilation and lack adequate Personal Protective Equipment (PPE). This exposure is directly linked to widespread human health impact, including skin diseases, asthma, fibrosis, and chronic obstructive pulmonary disease (COPD). This reveals a cruel paradox, one where sustainability for some means suffering for others.

Environmental impact in Panipat

Beyond the human cost, the environmental toll of this recycling model is stark. Panipat hosts around 400 registered dyeing units, yet up to 80% of their wastewater is released untreated into the environment. This chronic pollution contaminates soil, surface water, and groundwater, rendering local rivers uninhabitable for aquatic life. Furthermore, the toxins are carried by the Yamuna River toward Delhi, spreading contamination far beyond Panipat’s border.

The image becomes clear: a circular model built on the promise of sustainability but leaking toxicity into the very ecosystems it claims to protect.

Our Approach at E-CO2 Consulting

Sustainability shouldn't be about circular strategies that only benefit some. Environmentally conscious reforms should always keep the well-being of the workers who enable them at their core.

●      At E-CO2 Consulting, we prioritise ethical and inclusive sustainability in all our practices.

●      We design circular business models that reduce waste while centering worker welfare.

●      Our consulting focuses on optimising supply chains for greater resource efficiency and long-term impact.

This comprehensive approach ensures that the push toward circularity doesn’t come at the expense of humanity or the planet.

Conclusion

At the heart of the circular economy lies the care we must have for others and for our environment. The goal is to create and provide without leaving a lasting scar on the world that sustains us. Yet, this principle is lost when recycling models disregard the lives and health of the people who uphold them, counting on weak regulation while workers suffer and waters turn toxic.

So the question we pose is: how can the fashion industry embrace circular strategies that are truly ethical?


We’d love to hear your thoughts.



 To learn More:

If you want to dive deeper into the realities of textile recycling and the impact of fast fashion in India, here are some insightful articles and reports:

 


Jules Namubiru
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