Arvind Limited filed its Business Responsibility and Sustainability Report (BRSR) for FY26 on August 26, 2026. The disclosure details the company's progress toward environmental and social governance targets across its textile operations.

The report covers standalone operations, with limited assurance provided by Intertek India Private Limited. Arvind operates 12 plants and six offices nationally, serving markets in 14 states and 62 countries. Exports contributed 38% of total turnover during the reporting period.

Sustainable Sourcing and Energy Mix

Arvind achieved significant milestones in sustainable material procurement. 87% of the cotton sourced in FY26 was sustainable, surpassing the target of 50% set for 2025. Additionally, 87% of this sustainable cotton originated from small and medium holder farmers, exceeding the 50% target for this demographic.

In energy management, the company reported that 43% of its energy usage came from renewable sources, exceeding its 40% target for 2025. Total energy consumption rose to 6,452.00 TJ from 6,187.58 TJ in FY25. Renewable energy consumption increased to 2,523.7 TJ, while non-renewable consumption stood at 3,928.3 TJ.

Water Management and Waste

All facilities achieved zero freshwater use for manufacturing operations, meeting the 2025 target. Total water withdrawal decreased to 2,379,724 kilolitres from 2,684,427 kilolitres in FY25. Water consumption fell to 2,356,210 kilolitres. Total water discharged dropped significantly to 23,513 kilolitres from 38,443 kilolitres.

Waste generation increased to 42,199 metric tonnes from 34,493 metric tonnes. Of this, 27,164 metric tonnes were recovered through recycling or reuse. Hazardous waste disposal via landfilling rose to 15,064 metric tonnes from 10,899 metric tonnes.

Greenhouse Gas Emissions

Scope 1 emissions increased slightly to 256,769 metric tonnes of CO2 equivalent from 253,283 metric tonnes. Scope 2 emissions declined to 174,213 metric tonnes from 190,808 metric tonnes. Combined Scope 1 and Scope 2 emission intensity per rupee of turnover rose to 6.03E-06 MT CO2e/rupee from 5.82E-06 MT CO2e/rupee.

What the Numbers Show

While total energy consumption increased by approximately 4.3% year-on-year, renewable energy consumption grew by roughly 10.1%. This divergence indicates a deliberate shift in the energy mix toward cleaner sources, supporting the reported increase in renewable share from previous periods despite higher overall operational energy demand.

Human Capital and Safety

The company employed 3,733 permanent employees and 35,139 workers. Permanent employee turnover rate rose to 37% from 24% in FY25. Permanent worker turnover increased to 73% from 84%.

Safety metrics showed mixed results. The Lost Time Injury Frequency Rate (LTIFR) for workers increased to 0.69 per million person-hours worked from 0.43. However, total recordable work-related injuries for workers dropped sharply to 28 from 367. No fatalities were reported for either employees or workers.

Arvind has terminated its previous power agreement with Torrent Urja 28 Private Limited (TU28) and acquired equity stakes in two new entities to procure renewable energy.

Agreement termination

The Power Transfer Agreement (PTA) and Share Subscription and Shareholders Agreement (SSHA) dated May 12, 2025, with TU28 were terminated by mutual agreement on August 25, 2026. The termination was due to the reallocation of capacity. Arvind did not make any equity infusion or subscription towards TU28 shares and holds no equity participation in the entity.

New equity acquisitions

Pursuant to the capacity reallocation, Arvind entered into separate PTAs and SSHA agreements with Torrent Urja 12 Private Limited (TU12) and Torrent Urja 21 Private Limited (TU21). Both entities are generating companies defined under Section 2(28) of the Electricity Act, 2003, set up to establish Hybrid Power Projects in Gujarat.

The transactions are not related party transactions. The promoter group or group companies of Arvind have no interest in TU12 or TU21. The acquisitions aim to allow Arvind to offtake contracted electricity quantities as a captive user in Gujarat, citing significant financial and commercial benefits.

Transaction details

For TU12, incorporated on April 18, 2023, Arvind proposes to subscribe to equity shares in one or more tranches for an aggregate amount of up to ₹6.93 crore, representing a minimum 26.6% equity of the company. Arvind’s specific investment is capped at ₹3.47 crore for its proportionate share.

For TU21, incorporated on August 5, 2024, Arvind proposes to subscribe to equity shares for an aggregate amount of up to ₹17.33 crore, representing a minimum 26.6% equity. The investments are subject to the achievement of agreed milestones as per the terms of the agreements.