Annual Report On CSR of Chinas Textile and Apparel Industry

Social Responsibility Report
of China’s Textile and Apparel Industry
Oﬃce for Social Responsibility of CNTAC

2022-2023 Social Responsibility Report of China’s Textile and Apparel Industry
Contents
Foreword..........................................................................................................................................................................................1
Part 1 Development of China’s Textile and Apparel Industry and

Its Impact on CSR Construction...............................................................................................2
1.1 Development Overview of the Industry in 2022..........................................................................2

1.2 Major Trends of the Industry and Their Impact on CSR.............................................................8
Part 2 CSR Construction of China’s Textile and Apparel Industry in 2022......................... 17
2.1 Responsibility for People...............................................................................................................17

2.2 Responsibility for the Planet.........................................................................................................21
2.3 Responsibility for Prosperity.........................................................................................................27
Part 3 Introduction of Guidance on Social and Environmental Due Diligence

for Textile and Apparel Enterprises in China.................................................................. 30
3.1 Background......................................................................................................................................30
3.2 Framework of Due Diligence.........................................................................................................31
3.3 Process of Due Diligence...............................................................................................................32
3.4 Key Topics in Due Diligence Management..................................................................................35
3.5 Promotion and Application...........................................................................................................35
Part 4 China’s Textile and Apparel Industry During 2023-2024 Plan of

Social Responsibility Construction...................................................................................... 36
4.1 Continuously Integrate Social Responsibility into Governance by Relying

on the Information-based Service Platform...............................................................................36
4.2 Make an Active Response to Climate Change and Accelerate the Low-carbon
Transformation of the Industry....................................................................................................37
4.3 Strengthen Product Lifecycle Management to Lead the Industry
in Contributing to Sustainable Development.............................................................................37
4.4 Improve the Resilience of Supply Chain with a Focus on Social
and Environmental Risks...............................................................................................................38
4.5 Support Going-global Businesses to Conduct Responsible
Overseas Investment......................................................................................................................38
Appendix China’s Textile and Apparel Industry During 2023-2024 Plan of

Social Responsibility Construction...................................................................................... 39
Appendix 1：SDGs Index......................................................................................................................39

Appendix 2：CSR Chronicles of China’s Textile and Apparel Industry (2022)...............................40
Appendix 3：Directory of Environmental Protection Policies in the Textile Industry.....................42
Foreword
2022 was a year of upheavals and turns. The world economy remained
sluggish in the aftermath of the COVID-19 pandemic and geopolitical
tensions. The turbulent external environment brought various risks and
challenges far beyond expectations. 2022 was a year to build on our past
achievements and open up a new future. The successful 20th National
Congress of the Communist Party of China (CPC) charted a magnificent
blueprint for building a great modern socialist country in all respects
and pursuing the great rejuvenation of the Chinese nation on all fronts
through a Chinese path to modernization. It showed a bright prospect
and provided fundamental guidance for the textile and apparel industry,
endowing the industry with fortitude, confidence, and opportunities.
Looking back to the past year, in the face of a grim and complicated
international situation and multiple pressures brought by the demand
contraction, supply shock, and weakened expectations in the domestic
market, the textile and apparel industry forged ahead despite challenges
and achieved steady and sound development by continuously optimizing
the industrial structure, quickening the pace of innovative adjustments,
and expediting the transformation of growth drivers. The future-oriented
structural indexes lived up to expectations, global cooperation became
wider, and the innovation in textile science and technology continued to
go deeper. The textile and apparel industry plays a vital role in stabilizing
the economy, balancing international payments, and improving people’s
livelihoods, and becomes a stabilizer and ballast for China’s national
economic and social development.
This report, the 18th consecutive CSR report of the industry issued by
China National Textile and Apparel Council (CNTAC), was presided over
by CNTAC, prepared by the Office for Social Responsibility of CNTAC,
and supported by the leaders and departments of CNTAC. In addition,
many domestic and foreign stakeholders of CNTAC also offered valuable
revision opinions during its preparation. The report falls into four parts.
The first part outlines the development of China’s textile and apparel
industry in 2022 and the impact of the industry development trend
on social responsibility construction; in the second part, the main CSR
efforts and achievements of CNTAC and enterprises in this industry in
2022 are presented; the third part introduces the general framework of
the Guide for Social and Environmental Due Diligence of Chinese Textile
and Apparel Enterprises and the basic ideas of social and environmental
due diligence; and the CSR plan of China’s textile and apparel industry
from 2023 to 2024 is indicated in the fourth part.
1
Development of China’s Textile

and Apparel Industry and Its
Impact on CSR Construction
1.1 Development Overview of the Industry in 2022
1.1.1 Support the stable development of China’s economy
The textile and apparel industry serves as the cornerstone of people’s livelihood. In 2022, the added value of China’s
textile industry accounted for 3.5% of the national total, ranking ahead of food, tobacco, railway and ship equipment
manufacturing, and other industries. The composite prosperity index of China’s textile industry fluctuated somewhat due
to factors such as insufficient market demand and sporadic resurgence of COVID-19 cases. Based on the research data
of the CNTAC, the composite prosperity index of China’s textile industry in 2022 remained below the boom-or-bust line
of 50%, demonstrating 42.6%, 46.3% and 44.3% in the first three quarters. Since China adjusted its epidemic prevention
policy and the market consumption saw seasonal growth, the prosperity index rose to 47% in the fourth quarter.
Prosperity index of China’s textile industry1
1 Source: Industrial Economy Research Institute of CNTAC. A prosperity index of China’s textile industry higher than 50 indicates a good condition of the
industrial business; a higher index shows a more prosperous business.
2
In 2022, enterprises above the designated scale decreased their industrial added value by 1.9% on a year-on-year basis
and realized a growth of 6.3 percentage points lower than the previous year.
Cumulative quarterly growth on a year-on-year basis of key economic operation

indicators of textile industry in 20222
Key indicators Q1 Q1 and Q2 Q1, Q2 and Q3 The whole year
Industrial added value

(of enterprises above the 4.9 0.9 -0.4 -1.9
designated scale)
Operating revenue
(of enterprises above the 10.6 5.7 3.1 -0.9
designated scale)
Total profit
(of enterprises above the -9.2 -17 -23.6 -24.8
designated scale)
The industrial added value of sub-industries such as chemical fiber, wool textile, linen textile, and filament achieved a
year-on-year positive growth, while the industrial added value of the apparel industry dropped somewhat.
(Unit %)
Textile industry Textile Apparel industry
2022 Average growth over the past biennium
Year-on-year growth of the industrial added value of textile industry

and sub-industries in 20223
Major product categories experienced a dramatic slowdown in their output growth in 2022. Among them, the output
of the chemical fiber, yarn and cloth declined by 0.2%, 5.4% and 6.9% respectively compared to the previous year;
enterprises above the designated scale had a reduction in the output of dyeing cloth and apparel by 7.5% and 3.4%
respectively on a year-on-year basis.
2 Source: National Bureau of Statistics.

3
Output growth of major product categories of textile enterprises

above the designated scale in 20224
Name of product Year-on-year growth in 2022 (%) Comparing with 2021 (percentage points)
Yarn -5.4 15.2

Cloth -6.9 16.2
Dyeing cloth -7.2 19.3
Nonwoven 0.6 3.8
Apparel -3.4 11.8
Chemical fiber -0.2 9.7
The operational quality and efficiency of the textile industry slipped. The operating margin of textile enterprises above
the designated scale in 2021 was 3.9%, 1.3 percentage points lower than the previous year; the turnover of finished
products was 13 times/year, a year-on-year slowdown of 5.1%; the total assets turnover was 1.1 times/year, 4% lower
than the previous year; the financial costs, management costs and marketing costs accounted for 6.4%, 0.2 percentage
points less than the previous year.
Main operational quality and efficiency indicators of textile industry

and major sub-industries in 20225
Operating margin Turnover of finished products Total assets turnover

Year-on-year
2022 年 2022 YoY 2022 YoY
Industry change (percentage
（%） (Time/year) (%) (Time/year) (%)
points)
Textile
industry 3.9 -1.3 13.0 -5.1 1.1 -4.0
Textile 3.8 -0.8 12.4 -7.0 1.2 -4.4

Chemical
fiber 2.2 -4.0 15.4 -2.6 1.0 -2.2
Apparel 5.3 -0.1 12.5 -4.9 1.3 -3.6
The domestic market was restored to be under stress. Due to factors such as decelerated growth in income and
restricted restoration of consumption scenarios, residents’ willingness to spend on apparel weakened in China in 2022.
According to the National Bureau of Statistics, Chinese people spent an average amount of 1,365 yuan (5.6% of the
4 Source: Industrial Economy Research Institute of CNTAC.

4
per capita consumption expenditure) on apparel in 2022, with a decrease of 3.8% compared with the same period last
year, demonstrating a decline of 0.3 percentage points, the lowest level since the 21st century. The textile industry
faced greater stress. Retail sales via brick-and-mortar channels saw continuous negative growth since March, without
any visible signs of sustained improvement. The retail sales of apparel, shoes, hats, knitwear and textiles of distributors
above the designated scale decreased by 6.5% compared to the previous year, a drop of 19.2 percentage points to that
in 2021. The online retail sales grew stably in 2022, as evidenced by the online retail sales growth of clothing products by
3.5% over the previous year, a 4.8-percentage-point faster pullback in growth rate than the previous year and a positive
growth trend since June. The integration of online and offline sales led to the innovation of business types. According
to the relevant statistics, the sales volume of MCN partners on the Douyin platform in apparel and underwear, sports
and outdoors, and household supplies and home textiles demonstrated an increase of 37.7%, 74.9% and 81.5% over
2021 respectively. The sales volume in apparel and accessories was maintained in the first echelon on the live-streaming
e-commerce platforms like Douyin and Kuaishou.
Cumulative quarterly growth on a year-on-year basis of key economic operation indicators

of the textile industry in 20226
Key indicators Q1 Q1 and Q2 Q1, Q2 and Q3 The whole year
Retail sales of apparel, shoes, hats,

knitwear and textiles of distributors
above the designated scale in China
-0.9 -6.5 -4.0 -6.5
Online retail sales of clothes in China 0.9 2.4 4.7 3.5
Under the significantly increased pressure of development, the investment situation of the industry remained stable
basically. According to the National Bureau of Statistics, in 2022, the completion rate of investment in fixed assets of
China’s textile industry, chemical fiber industry, and apparel industry increased by 4.7%, 21.4% and 25.3% compared
to the previous year respectively. Considering 2019 as the base period, the three-year average growth rate (2020-2022)
of the investment volume in the textile and chemical fiber industries was 2.9% and 8.8% respectively, with the newly
increased investment volume exceeding the pre-pandemic level; the growth of investment volume in the apparel industry
had a three-year average decline of 3.9%, failing to achieve a complete recovery.
1.1.2 Optimize the overseas market structure
According to China Customs, in 2022, the export volume of China’s textile and apparel industry exceeded 300 billion US
dollars for the third year in a row, with the total exports reaching 340.95 billion US dollars, a year-on-year increase of
2.5%, hitting a new record high. Among them, the export volume of textile products reached 156.84 billion yuan, a 1.4%
increase compared to the previous year and a recovery in growth rate of 5.5 percentage points over 2021 (accounting
for 46% of the industry-wide export volume); the export volume of apparel products was 184.11 billion US dollars, a 3.4%
growth compared to the previous year and a fallback in growth rate of 20.7 percentage points over 2021 (accounting for
54% of the industry-wide export volume, an increase of 0.7 percentage points).
5
In terms of the structure of export products, the textile supply chain of Southeast Asia and South Asia remained resilient,
becoming major drivers for the export of supporting products in the industrial chain such as yarn and fabric. In terms of
the structure of export markets, the markets along the Belt and Road played a bigger role in driving China’s textile and
apparel exports. The structure of export markets tended to be more diversified. In 2022, China’s exports of textiles and
apparel to developed economies were generally curtailed. China’s exports of textile and apparel to the US, EU and Japan
were 58.54 billion, 48.97 billion and 21.4 billion US dollars respectively, a year-on-year decrease of 5.4%, 1.1% and 0.2%;
backed up by the steady recovery of the textile supply chain of the emerging economies, China’s exports of textile and
apparel to ASEAN countries and other markets along the Belt and Road rose by 14.8% and 11.3% respectively, wherein
the contribution rate of ASEAN countries to the industry’s export growth reached up to 114.5%.
China’s export of textile raw materials and products to major countries and regions in 20227
Countries and Export value (Unit: 100 YoY Average annual growth Proportion of export
regions million US dollars) (%) over the two years (%) value (%)
Global 3409.5 2.5 100.0 -
The US 585.4 -5.4 17.2 -56.4
EU 489.7 -1.1 14.4 -13.4
Japan 214.0 -0.2 6.3 -4.9
ASEAN 582.0 14.8 17.1 114.5

“Markets along the
Belt and Road” 1303.8 11.3 38.2 202.8
International investment and cooperation boosted steadily. Seeing from outward investment, the industry’s enthusiasm
for outward investment was not undermined by the pandemic, and the enterprises engaged in overseas operations
despite the odds. Over the past ten years, the stock of direct outward investment by China’s textile industry approached
12 billion US dollars, involving all links of the industrial chains such as chemical fiber, spinning and weaving, dyeing,
apparel, home textiles, and industrial textiles. Relevant investment projects were distributed in more than 100 countries
and regions in Southeast Asia and Africa, accounting for more than 80% of the industry’s outward investment since the
21st century. Considering the major countries and regions receiving investment, besides international financial centers
such as Hong Kong and Singapore, Vietnam has been the top destination of outward investment made by China’s textile
industry for seven consecutive years.
As one of the most internationally competitive industries in China and a pioneering and demonstrating industry in the
industrial cooperation under the Belt and Road Initiative (BRI), China’s textile and apparel industry has made innumerable
achievements in the economic and trade cooperation with the countries along the Belt and Road and involved in
7 Source: National Bureau of Statistics, China Customs.
6
the BRI. In 2022, the two-way trade volume of China’s textiles and apparel with countries involved in the BRI reached
approximately 190 billion US dollars, accounting for over 53% of the total imports and exports of the industry; China’s
exports of textiles and apparel to countries along the Belt and Road amounted to 126.2 billion US dollars, a year-on-
year increase of 11.1% and 8.5 percentage points higher than the growth rate of the industry’s exports to the world. The
amount of direct investment by China’s textile industry to the countries involved in the BRI from 2013 to 2022 reached
approximately 6 billion US dollars, accounting for about 50% of the industry’s global investment.
The execution and implementation of RCEP promoted the investment, cooperation and development of the textile
and apparel industry in Southeast Asia. In terms of outward investment, from 2013 to 2022, China’s textile and apparel
industry made direct investments in RCEP countries with a total amount of 4.59 billion US dollars, accounting for 39% of
the investment worldwide in the same period. In 2022, China’s exports of textiles and apparel to the other 14 members
reached 95.02 billion dollars, a year-on-year increase of 9.3%, 6.7 percentage points higher than the average growth
rate of the industry’s exports to the world, and substantial growth of over 30% compared to that before the COVID-19
pandemic in 2019. Seeing from major export categories in the textile industry, in 2022, China’s exports to RCEP countries
showed a higher growth rate in both upstream (e.g., yarn and fabric) and downstream products (e.g., textile products,
apparel, and clothing accessories) than that to the world in products of the same kind.
Comparison between the growth rate of China’s exports to the world and RCEP
countries in major textile export categories in 20228
Textile yarn Textile fabric Textile products Apparel and clothing accessories
Growth rate of ChinaÕs exports to the world Growth rate of ChinaÕs exports to RCEP countries
8 Source: China Customs.
7
1.2 Major Trends of the Industry and Their Impact on CSR
1.2.1 Innovation-driven high-tech industry
The Report to the 20th National Congress of the CPC

made strategic deployment on modernizing the industrial
system, moving the manufacturing sector toward higher-
The unveiling of the Action Plan has brought new
end, smarter, and greener production, and further opportunities for the textile industry to better practice
integrating the digital economy with the real one. In the new development philosophy, integrate into the
January 2022, the State Council rolled out the Development new development pattern, and achieve high-tech,
fashionable and green development with high quality.
Plan for Digital Economy During the 14th Five-Year Plan
To better implement the Action Plan, the textile industry
Period. The Plan serves as a guide to action for digital should make efforts in the following three aspects:
development in various regions and sectors, making clear firstly, we should improve the industrial ecology to
the guiding ideology, basic principles, development goals, make digitalization a new pivot in the coordinated
development and innovation of the industry;
key tasks, and supporting measures to facilitate the sound
secondly, we should enhance our basic ability to make
development of the digital economy during the 14th Five- digitalization a new pivot in the steady development of
Year Plan period. In June 2022, the Ministry of Industry and the industry; thirdly, we should broaden the application
Information Technology together with other authorities scenarios to make digitalization a new pivot in creating
a more dynamic domestic market and more unimpeded
released the Action Plan to Facilitate the Digitalization of
domestic and international economic flows.
the Consumer Goods Industry (2022-2025) (hereinafter
referred to as the Action Plan). Based on the scientific Sun Ruizhe, President of CNTAC
judgment of the transition of the digital technology
revolution and the increasingly mature industrial base
conditions, the Action Plan provides a clear direction and
sound environment for the deep integration and value
interaction between the digital technology and consumer
goods industry.
In June 2022, CNTAC released the Three-Year Action Plan for Digital Transformation of the Textile Industry (2022-2024),
which aims to expedite the digital transformation of the textile industry by focusing on the integrated development of
next-generation information technology and textile industry, intelligent manufacturing, and the innovative applications
in the Industrial Internet. In the same year, the Catalogue of Innovative Development of the Industry Base led and
prepared by the Chinese Academy of Engineering was launched, which involves software in the textile industry, such
as the Industrial Internet platform, textile workshop simulation software and the 3D virtual design of clothing. China
Textile Machinery Association, in conjunction with other institutions, created a public service platform for intelligent
manufacturing standard testing and verification of the textile industry, preparing a series of standards concerning the
interconnection, operation and maintenance of textile equipment, smart textile factories, textile maturity evaluation,
supply chains, logistics, and visual inspection, and serving as a strong support for the intelligent manufacturing of the
textile industry.
Intelligent manufacturing extends to terminal sectors. Intelligent manufacturing is the main direction of the digital
transformation of the textile industry, wherein intelligent production lines have been the focus of attention. Upstream
sectors such as chemical fiber and spinning were the mainstay in the previous stage. Recently, efforts have been
extended to downstream terminal sectors such as apparel and home textiles, with a range of advances achieved.
8
Case | Digital transformation initiatives of manufacturing in Zhongshan City
In January 2022, Several Policies and Measures for Digital and Intelligent Transformation and Development of
Manufacturing in Zhongshan City were officially issued and implemented. Focusing on the integrated development
of next-generation information technology and manufacturing and the construction of benchmark enterprises,
benchmark platforms, and demonstration industrial parks (industrial clusters), these policies intend to create 40
digital and intelligent demonstration factories and 60 digital and intelligent demonstration workshops and build
Industrial Internet benchmark and demonstration projects in 40 enterprises by 2025. Zhongshan supports enterprises
engaging in intelligent transformation with policy portfolio by adopting the mode featuring “government policies
+ intelligent manufacturing suppliers + financing assurance + SMEs in the industrial chain”. Taking the intelligent
transformation of the whole industrial chain of home appliances as an example, Zhongshan introduces chip design
enterprises and creates intelligent and digital platforms upstream, making home appliances more intelligent and
have access to HarmonyOS. Considering the midstream of the industrial chain, Zhongshan endeavors to enhance the
overall digital level of manufacturing by building generic factories in polishing and panel beating as well as an array of
benchmark digital factories and workshops and promoting SMEs to build cloud platforms. Concerning downstream
measures, Zhongshan plans to carry out digital marketing with the regional brand “Menjoy”, thereby improving the
competitiveness of home appliance brands.
Case | The “High-speed Intelligent Cam Weft Jet Loom” project passed the review of scientific and
technological achievements
To tailor the requirements of high-speed air-jet looms for short strokes and small openings, Jiangsu Lenado Intelligent
Equipment Co., Ltd. independently designed a cam-filling mechanism for the air-jet loom in the “High-speed Intelligent
Cam Weft Jet Loom” project. The moving rule of the driven part is optimized, which can satisfy different filling forces and
control the residence time of the reed at the rear of the loom, so that it can the weaving demands of different types of
yarn and fabric. Moreover, by means of 3D digital design, the company has developed a high-efficiency conjugate cam
weft-beating technology, which can effectively reduce the vibration and noise of the loom. The company also developed
an industrial control system compatible with digital air-jet looms. The system uses low pressure, multiple-gas-pack
independent gas supply and other techniques to achieve closed-loop control during filling insertion, thus increasing
the precision of filling initiation and reducing the gas consumption of filling by more than 10%. Besides, the use of
an integral wall panel and strengthening process can meet the needs of large-width, heavy, and high-density fabric,
while the technology of circling injection lubrication system has realized intensive management, reduced friction, and
extended the service life of components. In implementing the project, 12 national patents were acquired.
9
Case | Digital transformation of “Smart HOdo”
In early 2022, HOdo Co., Ltd. (stock code: 600400), a listed company of HOdo Group, obtained the updated AAA-level
assessment certificate for the integration of informatization and industrialization and successfully passed the system
certification according to the Integration of Informatization and Industrialization Management Systems—Requirements
(GB/T23001-2017) and the Integration of Informatization and Industrialization Management Systems—Enhanced
Capability Grading Requirements (T/AIITRE 10003-2020) by the Ministry of Industry and Information Technology.
Enterprises under HOdo Group mainly pursue digital transformation through “intelligent factory + intelligent workshop
+ AI intelligent body measuring cabin”.
Intelligent factory: The first 5G intelligent flexible manufacturing factory in the apparel industry. Its production system
breaks the tight coupling of traditional production lines and optimizes the combination of production lines dynamically
and virtually using the radar monitoring of order processes and workers’ skills. It can achieve automated material
delivery and dynamic adjustment of production lines, thus completely eliminating the balancing loss of the production
lines and upgrading the quality grade. After intelligent transformation and upgrading, the factory has achieved a
reduction of 10% in unit consumption cost, an increase of 20% in productivity, and a lessening of 30% in work in process.
Intelligent workshop: After the intelligent equipment is put into operation, the overall productivity of the workshop is up
by 20%.
AI intelligent body measuring cabin: The BANJO-customized AI intelligent body measuring cabin rolled out by HOdo
Industrial Internet Co., Ltd. adopts AI intelligent body measurement and remote fitting technology, connecting all links
in the apparel manufacturing chain from body measurement at the outlets, manufacturing to delivery, and providing
efficient tailored service for consumers.
The innovative applications of the Industrial Internet prioritize integrated services. In 2022, the integrated
applications of the Industrial Internet made a series of achievements driven by some leading enterprises in the industry,
demonstrating the effects of digital transformation.
Case | Tongkun Group’s Industrial Internet platform for the chemical fiber industry was put into use
Tongkun Group’s Industrial Internet platform for the chemical fiber industry, covering five business types and 28
factories, was put into use and a digital management system in five horizontal and four vertical directions was built.
It achieves cross-domain, cross-region integrated development covering the whole chain through the comprehensive
application of big data, AI, 5G, and other technologies and the integration of multiple fields such as R&D design,
purchasing and supply, manufacturing, operation and management, and warehousing and logistics.
10
Case | Weihai Textile Group Import and Export Co., Ltd. created a digital platform for the apparel
industrial chain
Weihai Textile Group Import and Export Co., Ltd. created a digital platform for the apparel industrial chain. Relying
on IoT, big data and other technical means, the platform collects upstream and downstream data on procurement,
production and sales via multiple industrial software, thereby integrating the resources across the apparel industrial
chain and enhancing collaborative competitiveness of all links. The company’s Industrial Internet connects the
whole production chain including order reception of the factory, material scheduling, production equipment, energy
consumption management, emission monitoring, and inventory management, to help increase the management
efficiency of the enterprise. Furthermore, it can assist managers to make decisions and support intelligent production
through intelligent scheduling, intelligent color matching, and other functions, thus resolving the conflict between
large-scale production and personalization. Meanwhile, it effectively links the enterprise with upstream suppliers
and downstream customers, giving the enterprise keener insight into the product layout adjustment according to the
downstream demands, so that the enterprise can choose suppliers more rationally and respond to the risks of supply
chain disruption more effectively.
Case | Establish benchmarks in technical development of the textile industry
In 2022, five enterprises in the textile and apparel industry were incorporated into the list of the 29th batch of National
Enterprise Technology Centers to be identified led by the National Development and Reform Commission, including Anhui
Yuanchen Environmental Protection Technology Co., Ltd., Fujian Changyuan Textile Co., Ltd., Shaanxi Changling Electronic
Technology Co., Ltd., Hunan Zhongtai Special Equipment Co., Ltd., and Zhongfu Shenying Carbon Fiber Co., Ltd.
Two enterprises in the industry were selected for the list of best candidates and three enterprises for excellent scenarios
of intelligent manufacturing demonstration factories in 2022 released by the Ministry of Industry and Information
Technology, the National Development and Reform Commission, the Ministry of Finance, and the State Administration
for Market Regulation.
Regions Enterprises Tasks Typical Scenarios
1. Pollution monitoring and control; 2. Energy efficiency

Demonstration
balance and optimization; 3. Advanced process control; 4.
Baowu Carbon factory for intelligent
Real-time monitoring and emergency response of security
Shanghai Technology manufacturing of
risks; 5. Equipment fault diagnosis and prediction; 6. Digital
Co., Ltd. carbon-based new
infrastructure integration; 7. Digital twin factory construction;
materials
8. Network collaborative manufacturing
1. Accurate traceability of quality; 2. Digital infrastructure

Chongqing Demonstration
integration; 3. Real-time monitoring and emergency response
Huafon factory for intelligent
Chongqing of security risks; 4. Energy consumption data monitoring; 5.
Chemical Co., manufacturing of
Online operation monitoring; 6. Advanced process control; 7.
Ltd. adipic acid
Pollution monitoring and control; 8. Precision delivery
11
Regions Enterprises Typical Scenarios

Fujian Province Fujian Eversun Technology Co., Ltd. Process dynamic optimization
Intelligent online detection
Fujian Province Billion Industrial Holdings Limited Intelligent collaborative operation
Process dynamic optimization
Zhejiang Province Zhejiang Petroleum & Chemical Co., Ltd. Equipment fault diagnosis and prediction
1.2.2 Culture-based fashion industry
With the constant innovations, breakthroughs and development of the textile industry, Chinese textile and apparel
brands have become an important pivot in leading modern consumption, boosting self-confidence in our national
culture, and exerting the influence of Chinese culture. China’s textile and apparel industry has continuously enhanced
brand building, promoted the establishment of a modern system of fashion brands in the textile and apparel industry,
and upgraded the market performance of the brands.
Fashion empowerment: The inheritance and innovation of oriental aesthetics and national culture. Creative
ideas and personalized consumption with Chinese culture as core elements are rewriting the market structure, and
the inheritance and innovation of oriental aesthetics and national culture will become a trend. China National Garment
Association, together with SHI SAN YU, a Chinese romantic brand engaging in new-style Han Chinese clothing, Tmall
Apparel, and iResearch, issued the 2022 Chinese Modern Hanfu Industry Development Report. The report includes four
parts: the basic situation of the modern Hanfu industry, external opportunities for modern Hanfu industry upgrade,
drivers of modern Hanfu promotion, and modern Hanfu industry trends. It systematically sorts out the opportunities
and challenges faced by the modern Hanfu industry and elaborately analyzes the opportunities for the industry to
become popular and its future development trend based on an in-depth survey. This endeavor plays an important role
in promoting the deep integration of cultural creativity and the digital economy, steadily building textile and apparel
brands, and enhancing the influence of fashion consumption in leading the trend.
Case | The costumes of Beijing 2022 shows oriental aesthetics
On December 31, 2022, the Victory Ceremony costumes of the Beijing 2022 Olympic and Paralympic Winter Games were
rolled out by BTV. The costumes consist of three sets of clothing—titled “Lucky Snow and Cloud”, “Great Landscape” and
“Flying Snow in Tang Dynasty”, drawing their inspiration from two Chinese traditional symbols of “snow” and “clouds”, a
famous Chinese painting, “A Thousand Miles of Mountains and Rivers”, Chinese traditional fabrics of the Tang Dynasty,
and other Chinese traditional cultural elements. The three sets of costumes were used in all snow event competition
venues, all ice event victory ceremonies, and at the Medals Plaza, respectively.
12
Case | 28 textile intangible cultural heritage workshops were selected for the recommendation list
of “Typical Cases of Intangible Cultural Heritage Workshops”
On December 12, the Intangible Cultural Heritage Department of the Ministry of Culture and Tourism released
and disclosed the recommendation list of “Typical Cases of Intangible Cultural Heritage Workshops9”. A total of 28
textile intangible cultural heritage (ICH) workshops were selected for the list, including “Zanhuang native cloth: Good
craftsmanship gives women jobs and increases their income” submitted by the native cloth ICH workshop in Yuancun
Village, Zanhuang County, “Miao embroidery in western Hunan: Let mothers return home” submitted by the ICH workshop
of Xiangxi Qixiufang, “Yao nationality’s indigo dyeing: Bring vitality to the well-off life” submitted by the Fengzhen indigo
dyeing ICH workshop in Nandan County, and “Li brocade: Inherit traditional skills and boost rural revitalization” submitted
by the ICH workshop of Li’s traditional spinning, dyeing, weaving and embroidery skills in Wuzhishan City.
Fashion collision: A deep integration of cultural creativity and digital economy. The characteristics and outline of
the integrated development of digital and fashion industries have become more distinct during the renewal of elements
and resources and scenario reengineering. The new mode of production represented by intelligent and collaborative
manufacturing, the new market connection represented by cross-border and live-streaming e-commerce, and the new
scenario mode represented by virtual idol and industrial metaverse will lead to a new wave of sustainable fashion.
Case | Style3D • 2022 China Fashion Forum facilitates the frontier exploration of the apparel industry
In August 2022, the Style3D • 2022 China Fashion Forum was held in Beijing. Themed “Diversification: the Future of
Branding”, the forum mainly focused on four topics, i.e., metaverse, metadata, meta-innovation, and meta-power,
collecting the insights and experience of interdisciplinary thinkers and excellent practitioners and helping apparel
enterprises establish a definitive internal system to respond to the diversified market competition. The topic of “Metadata:
the Cornerstone and Ecology of Technology” included two parts, i.e., “Digital Pioneers Summit” and “Roundtable
Discussion”, attracting digital experts and fashion icons to discuss how to make traffic layout effectively, how to bring
online and offline omnichannel experience, and how to convert data into productivity efficiently to clarify the strategies,
capabilities and values in the era of Industrial Internet for enterprises in an all-round way.
9 Intangible cultural heritage (ICH) workshops refer to all kinds of business entities and manufacturing and processing sites that protect and inherit
intangible cultural heritage based on representative ICH projects or traditional handicraft and drive the local people to work locally and nearby.
13
Case | The application of virtual digital humans is reshaping the industry landscape
As an element and interactive carrier of the metaverse, the virtual digital human is becoming the starting point of many
brands to explore the metaverse. Brand owners are making efforts to pursue interconnection with the virtual human,
get closer to young consumers, and snatch market share in the metaverse concept, aiming to reshape the industry
landscape in the parallel universe between reality and virtuality. Among them, Fujian Eversun Jinjiang Co., Ltd. created
a virtual digital human named “RONG”, serving as the first virtual digital human IP created by textile and chemical fiber
enterprises. Through 3D and high-level physics simulation technology, RONG made a stunning debut in costumes made
of six types of fabrics, including “water-cooling technology, Jin Yi Cai, Jiangnan Chunyun, Huan Cai Ge, Golden Cicada
Silk, and Ice Crack”, in a fantastic space. Staying in a canyon or stepping into the universe, RONG dynamically displayed
the awarded work to give the users a metaverse fabric show. The launch of “RONG” represents the first time that the
virtual digital human expands its presence from “to C” brand owners to “to B” manufacturers, broadening the application
scenarios of virtual digital humans and bringing more possibilities for fashion manufacturing.
1.2.3 Responsibility-oriented green industry
As pointed out in the Report to the 20th National Congress of the CPC, we should accelerate the transition to a model of
green development. This provides guidance and principles for the green development of the industry. As a responsibility-
oriented green industry, the textile industry must establish a sound green, low-carbon, and circular industrial system,
which serves as an important symbol and baseline for the high-quality development of the whole industry. Meanwhile,
with the goals of “carbon peak and carbon neutrality”, green development has brought new opportunities and
challenges while the integration of digital technology and industry is also accelerating, providing a new engine to drive
the development of the textile and apparel industry.
Promote green transformation of the industry through the recycling of waste textiles. Promoting CSR construction
and sustainable development is a key task for the development of the textile industry during the 14th Five-Year Plan
period. The Development Direction for the Textile and Apparel Industry in the 14th Five-Year Plan Period pinpoints the
necessity for regenerative cycle development. Supported by relevant national policies10, the textile and apparel industry
makes a sustained effort to pursue high-quality development by expediting the recycling of waste textiles, building a
resource recycling industrial system and a recycling system for waste and used materials, and synergizing the reduction
of pollution and carbon emissions.
Work together for a green development path. Themed “Gather the Strength of Industry for Green Development”,
the 2022 China Textile Green Development Conference & Concluding Meeting of the National Textile Labor Competition
reviewed the achievements in green and innovative development of the textile industry in 2022. CNTAC and the Chinese
Financial, Commercial, Light Industry, Textile and Tobacco Workers’ Union jointly launched the National Textile Labor
Competition for Green Development in the 14th Five-Year Plan Period in March 2022, to build consensus across the whole
industry, meet the people’s needs for a better life, and coordinate industrial development with green and low-carbon
10 See the appendix.
14
transformation by taking energy and water conservation, and pollution and carbon emission reduction as effective
means. As a result, 19 “water-saving enterprises”, 20 “water-saving benchmark enterprises”, 10 “low-carbon enterprises”,
and a gallery of excellent teams and individuals emerged. At the meeting, the 2023 National Textile Labor Competition
for Green Development kicked off, encouraging industrial parks (clusters), enterprises, groups, and individuals to explore
a path to the modern textile industrial system featuring green, low-carbon, and recycling development and promote the
green development of the textile industry.
Green design empowers sustainable development of the industry. Over the three years since the strategic goals of
“carbon peak and carbon neutrality”, China’s textile industry has made positive responses and quick actions to actively
explore the modes and paths of sustainable production and consumption from the perspectives of industrial clusters,
enterprises, and products and boost green transformation and development.
In November 2022, the Ministry of Industry and Information Technology announced the List of Green Design
Demonstration Enterprises for Industrial Products (Fourth Batch), involving nine textile enterprises. This greatly
stimulates the textile enterprises to further improve the innovation and development capability and management level
of green design and continue to enhance the supply ability and market influence of green products.
List of Green Design Demonstration Enterprises for Industrial Products (Fourth Batch)
Enterprises Industry Segment (Products)
Zhejiang Furun Printing and Dyeing Co., Ltd. Textile printing and dying
Xinfengming Group Co., Ltd. Polyester fiber
Zhejiang Shinefair Textile Printing and Dyeing Co., Ltd. Textile fabrics
Zhejiang Mihuang Apparel Co., Ltd. Cashmere and blended clothing
Zhejiang Haili Environmental Technology Co., Ltd. Recycled polyester filament
Zhejiang Charming Dyeing and Finishing Co., Ltd. Knitted printing and dying fabrics
Anhui Tianzhu Textile Technology Group Co., Ltd. Recycled cotton yarn
Fujian Fynex Textile Science & Technology Co., Ltd. Textile printing and dyeing
Yuyue Home Textile Co., Ltd. Textile fabrics and home textile products
15
Case | China won three awards including the ITMF Sustainability & Innovation Award
Convened in Davos, Switzerland, the International Textile Manufacturers Federation (ITMF) Annual Conference 2022
served as an important platform for further expanding consensus across the industry and strengthening the cooperation
of the global value chain, effectively promoting the openness, integration, innovation, and sustainable development of
the global textile industry. For further scientific and technological innovation and international cooperation in the textile
industry, the Committee of Management approved the establishment of ITMF Awards in recognition of the progress
made in international cooperation of the textile industry. In 2022, the complete sets of technology development for
bio-based polyamide 56 industrial chain jointly developed by Donghua University and Cathay Biotech Inc. won the first
ITMF Sustainability & Innovation Award. The Platform on Sustainable Textiles of the Asian Region (the STAR Network)
established by nine industry associations including CNTAC and a cooperative project named “Coloro—creating a
universal color standard and global end-to-end workflow” developed by Coloro Co., Ltd., Shanghai were granted the first
ITMF International Cooperation Award11.
Case | Two textile technologies were selected for Engineering Fronts 2022
In December 2022, the Chinese Academy of Engineering (CAE), Clarivate, and the Higher Education Press of China jointly
released a report—Engineering Fronts 2022, wherein two textile technologies were selected.
1. Extraction and development of new natural cellulose fibers
With the increasing shortage of petrochemical resources and the progressive worsening of the environment, natural
cellulose fibers, also known as plant cellulose, have received more and more attention due to their green, clean, and
environment-friendly characteristics such as abundant resources, unique performance, renewable feedstocks, natural
degradability after abandonment, and the poisonless and harmless nature to the environment. The R&D and application
of the new natural cellulose fibers are of great significance for the current resource utilization and environmental
protection. The green and efficient separation, extraction, and development of new natural cellulose fibers are important
research directions for the development of high-value-added functional natural cellulose fiber textiles.
2. Recycling of personal protective equipment
Personal protective equipment (PPE) refers to the protective equipment designed to protect the wearer’s body from
injury or infection, such as protective clothing, helmets, masks, and goggles. Impacted by the COVID-19 pandemic, the
recycling and upcycling of waste PPE, especially waste disposable medical masks, become an important topic under the
new domestic and international situation. China ranks top globally in terms of investment in research on the development
of waste textile recycling. Continuous innovation has been made in the recycling technologies for PPE. Among the key
technology patents in recent years, China disclosed 974 patents, accounting for 97.99% of the global patents disclosed.
11 ITMF Awards are selected annually, including ITMF Sustainability & Innovation Award and ITMF International Cooperation Award. ITMF Sustainability
& Innovation Award recognizes sustainable and innovative achievements in the textile industry with focus on innovation, design, development, and
production under the strictest standards of sustainability and respect for the environment. The jury will grant this award to a company/organization or
person which/who significantly improved textile manufacturing in the combined areas of innovation and sustainability. ITMF International Cooperation
Award recognizes progress in the area of international collaboration in the textile industry according to the values of the 17 Sustainable Development
Goals (SDGs) of the 2030 Agenda for Sustainable Development. The jury will grant this award to a company/organization or person which/who
significantly improved textile manufacturing through the means of international collaboration.
16
CSR Construction of China’s

Textile and Apparel Industry
in 2022
2.1 Responsibility for People
2.1.1 Build a better workers’ team and carry forward the spirit of model workers
As the backbone force to create value, drive innovation, and build a strong country, industrial workers play a crucial role
in underpinning the modern textile industrial system. Efforts to build a better workers’ team and enhance their skills
and quality are beneficial to decent work for all employees, the transformation and upgrading of the enterprise, and the
improvement of labor productivity.
In 2022, CNTAC organized extensive labor and skills competitions in the textile industry centering around the new
directions and business types for industrial development. CNTAC recommended employees to participate in the
selection of the 5th Outstanding Engineer Award and the 6th China Skills Award in 2022, and declared three national
second-category competitions for different professions to the Ministry of Human Resources and Social Security, further
arousing the innovative potential of industrial workers and driving the industry to take the initiative to integrate into
the scientific and technological revolution and the industrial transformation. The textile labor competition for green
development, focusing on water conservation and efficiency improvement, energy conservation and low-carbon, and
resource recycling, was included in the database of national leading labor and skills competition projects in the 14th Five-
Year Plan period of the All-China Federation of Trade Unions (ACFTU). Moreover, CNTAC improved the vocational skill
assessment standard and system in the textile industry and completed the revision of relevant professions in the textile
industry in the Occupational Classification System of the People’s Republic of China, smoothing the career development
channels for high-skilled talent and professional and technical talent. Furthermore, CNTAC set up “Online Training
Courses for Skilled Workers” and training classes for quality improvement of skilled talent in the Chinese apparel
industry, providing a platform and channel for talent training.
To give full play to the leading and exemplary role of outstanding models, CNTAC held the national commendation
conference for outstanding groups, model workers, and outstanding workers in the textile industry in 2022, stimulating
more outstanding groups and individuals, advocating new trends of the times focusing on “glorious labor, noble
knowledge, valuable talent, and great innovations”, and laying a solid foundation for industrial development through
personal growth.
17
Case | “Chinese Textile Craftsman” Qian Qinfang won the National May 1 Labor Medal
Qian Qinfang is a senior engineer and now serves as a team leader in the Production Technology Department of
Shenghong Group. She won the title of “Chinese Textile Craftsman” in 2021 and the National May 1 Labor Medal in 2022.
In 1992, she was assigned by the enterprise for two-year full-time studies in the junior-college class of dyeing and finishing
at Suzhou University as a potential technical backbone. Since then, she has been engaging in the dyeing development
of textiles. In 2000, when workers in the branch factory of Shenghong Group encountered problems in production, they
sought help from Qian Qinfang at first due to her excellent color-matching technology. To increase the first-attempt
success rate in the branch factory, Qian Qinfang, together with her team members, drew designs and made analyses
for hundreds of dyes in the company for more than two years. Led by Qian Qinfang, the technology and informatization
team overcame obstacles, tackled more than 70 thorny problems concerning the integration of informatization and
industrialization in the projects, inspected and introduced over 600 devices, and developed information-based systems
such as MES and CRM, bringing earth-shaking changes to the overall degree of automation and informatization of
the company. In 2016, the optimized “Textile Color Big Data System” presented by Qian Qinfang successfully solved
the incompatibility of the foreign equipment manufacturer’s software with different types of base materials and the
inadaptability of tristimulus matching, breaking the long-term monopoly of foreign companies in this field.
Case | The textile workshop of Alashankou Zhende won the title of “National Workers’ Pioneer”
In the face of the COVID-19 pandemic, Alashankou City implemented a lockdown in August 2021 and all enterprises in
the city were subject to suspension of business. As its products are at the forefront of the industrial chain of medical
supplies, the suspension of Alashankou Zhende Medical Textile Co., Ltd. (hereinafter referred to as Zhende Textile) led to
short supply, making downstream enterprises face supply tensions and partly affecting the sound development of some
medical sections. Led by the general manager, Zhende Textile overcame difficulties and resumed work and production
to ensure supply in harsh times. Not only the hard work and dedication of workers but also the technical breakthroughs
contributed to the resumption of work and production of the company. The differences among cotton fibers from
different countries resulted in an unstable production efficiency of the company. Aiming at this, the textile workshop
established a special technical research team to conduct process tests of the fiber properties of cotton from Uzbekistan,
Kazakhstan, Tajikistan, the United States, Australia, and Brazil. Through continuous research, production efficiency
was greatly improved. Moreover, Zhende Textile achieved waste heat recycling through technical transformation by
trial and error in production, greatly saving energy use. The “Zhende experience” has attracted other enterprises in the
comprehensive bonded areas in Alashankou to learn from this energy recycling technology, helping the administrative
committee of the comprehensive bonded area save an investment of nearly ten million yuan. To help new employees
master the equipment operating techniques, the textile workshop of Zhende Textile organized and arranged training for
new employees by the senior ones, thus accelerating the employees’ growth and ensuring the smooth resumption of
work and production.
18
2.1.2 Establish harmonious labor relations and ensure the sound development of
industrial teams
China’s textile and apparel industry attaches importance to harmonious labor relations. Positive progress has been
made in guaranteeing the rights and interests of employees, improving the consultation and coordination mechanism,
and pursuing extensive consultation, joint contribution, and shared benefits between the enterprise and employees,
which has effectively safeguarded the legitimate rights and interests of workers. Since 2009, CNTAC has continuously
organized the campaign to foster national textile enterprises with harmonious labor relations, intending to explore and
summarize the advanced experience and cases from enterprises, enhancing the publicity of models among “national
textile enterprises with harmonious labor relations”, providing a reference for establishing harmonious labor relations
across the whole industry and guiding the enterprises in the industry to form standard, orderly, just, reasonable,
harmonious, and steady labor relations featuring mutual benefit and win-win results.
Case | Training on the protection of employees’ rights and interests
In 2022, the Office for Social Responsibility of CNTAC, in cooperation with the Business Social Compliance Initiative (BSCI),
held four sessions of training on “decent work hours and fair pay”, attracting the participation of about 150 enterprise
representatives from the textile, apparel, shoe, and light industries. The ILO Convention, applicable Chinese laws and
regulations, and the auditing requirements of BSCI were introduced in the training, helping Chinese enterprises increase
their responsibility performance ability. Since 2007, the two sides have jointly organized more than 100 sessions of
special training, covering nearly 8,000 person-times.
2.1.3 Uphold human-centric values and promote decent work
Upholding human-centric values, CNTAC advocates a family-friendly corporate culture and system concerning human
rights, gender equality, child protection, and other key issues, enhancing the sense of gain, happiness and safety of the
employees and promoting the decent work of industrial workers. Meanwhile, CNTAC vigorously publicizes and promotes
the typical examples of fulfilling CSR in the industry to play an exemplary and leading role.
During the annual sessions of the National People’s Congress (NPC) and the National Committee of the Chinese People’s
Political Consultative Conference (CPPCC) convened in March 2022, delegates from the textile industry submitted
proposals. Qiu Guanghe, deputy to the NPC and Chairman of Semir Group, proposed to promote gender equality
and family-friendly policies in the textile industry. As pointed out in the proposal, facing the persistent shortage of
labor resources in the textile industry, enterprises should further protect women’s rights and interests, advance equal
employment and labor protection of female employees, and foster a more human-oriented corporate culture. This
accords with the current reform of fertility policy adjustment and helps create a pleasant employment environment
in the textile industry, thereby further promoting the sustainable and high-quality development of the industry and
stimulating the competitiveness of China’s manufacturing.
19
Case | Let the industry and commerce play a bigger role in promoting gender equality and
protecting the rights of children
In July 2022, CNTAC, China NGO Network for International Exchanges, and China Chamber of Commerce of Metals,
Minerals & Chemicals Importers & Exporters (CCCMC) co-organized an online event on the sideline of the 50th regular
session of the United Nations Human Rights Council themed “Business and Human Rights: Gender Equality and
Children’s Rights Protection in International Investment and Trade”. Chen Dapeng, Vice President of CNTAC, attended
the online event and raised concerns that as the world economy is in a downturn, with the global market and supply
chains hard hit by the COVID-19 pandemic, women and children may experience a bigger impact. It is a challenge all
sides will meet to build an inclusive and sustainable industry pattern. Further cooperation should be explored to help
eliminate poverty, improve women’s leadership, and solve the gender and digital divide, thus working together for the
high-quality and sustainable development of the industry and improving global human rights governance.
Case | Support overseas Chinese-invested enterprises to implement gender equality
To assist in the CSR performance of overseas Chinese-invested enterprises, the Office for Social Responsibility of CNTAC
launched the pilot program “Promoting Corporate Social Responsibility and Gender Equality of Chinese-invested Textile and
Apparel Enterprises” in Vietnam, Cambodia and Bangladesh in 2019. This program aims to help Chinese-invested textile and
apparel enterprises in these countries establish a management mechanism for gender equality and enhance the loyalty of
employees to enterprises by improving their abilities, thus raising the sustainable competitiveness of the enterprises.
With regular COVID-19 prevention and control measures in place in 2022, the program organizer mainly conducted
remote counseling and online exchange in consideration of the epidemic prevention requirements of the enterprises.
From February to May 2022, experts in the Vietnam program provided revision suggestions and counseling for the
existing system of pilot enterprises concerning gender equality. In June, a concluding meeting of the program was held
online. On October 25 and November 4, 2022, program partners in Bangladesh also carried out activities such as the
training of managers and employees from local Chinese-invested enterprises. The successful completion of this program
has helped raise gender awareness in local Chinese-invested enterprises and laid a solid foundation for creating a more
inclusive workplace and corporate culture in the enterprises.
Case | Implement WEPs in textile and apparel enterprises
On May 30, 2020, CNTAC and UN Women officially signed a cooperative agreement to start the Work Plan for WEPs Projects
in the Textile and Apparel Industry. A total of 91 textile and apparel enterprises signed a CEO statement supporting WEPs
through active promotion and publicity among industrial clusters, all sub-industries, and CSC9000T members.
In 2022, the Office for Social Responsibility of CNTAC completed the development of the Implementation Guidelines
for WEPs in the Textile and Apparel Enterprises and introduced the practical methods and examples of seven WEPs to
Chinese textile enterprises and relevant upstream and downstream sectors. Three online training sessions were carried
out, with more than 26,000 persons attending. Four onsite training and seminars were conducted, covering more than
1,200 persons and effectively driving enterprises to improve women’s rights and gender equality in the workplace,
market and community.
20
2.2 Responsibility for the Planet
2.2.1 Strengthen enterprise participation and propel climate stewardship
Climate Stewardship 2030. Based on the Carbon Stewardship 2020 initiated in October 2017 and the China Corporate
Climate Action (CCCA) established by CNTAC as a participator in September 2018, the Office for Social Responsibility
of CNTAC launched the Climate Stewardship 2030 with the hope of improving the utilization of clean energy and the
application efficiency of carbon emission reduction technologies and accelerating the low-carbon transformation of
enterprises through industrial actions such as preparing the climate action roadmap for enterprises in the industry.
Moreover, the initiative is intended to create low-carbon brands in the Chinese fashion industry and raise the international
competitiveness of Chinese enterprises in the global low-carbon supply chain through industrial cooperation.
① ②
① Launch site of the White Paper of

Climate Stewardship Under“30•60”
Goals of the Textile Industry
Wujiang District, Suzhou
② Cover of the White Paper of

Climate Stewardship on Shengze’s
Textile Industry
③ Sun Ruizhe (left), President of

CNTAC, gives an award to the People
Government of Shengze Town, and
Xu Huilin (right), mayor of Shengze
Town receives the award.
21
The White Paper of Climate Stewardship on Shengze’s Textile Industry was issued. In 2022, the China Textile Information
Center and Shengze Town, a key town of textiles in Wujiang District, Suzhou City, Jiangsu Province, jointly issued the
White Paper of Climate Stewardship on Shengze’s Textile Industry. The white paper has outlined the current development
and progress in green and low-carbon development of Shengze’s textile industry, finished the measurement of the
greenhouse gas emission baseline of Shengze’s textile industry, identified key emission sources, fields and enterprises,
and clarified the goals of achieving carbon peak and carbon neutrality, the carbon emission roadmap, and key tasks
for the industry. It has also analyzed the opportunities and challenges that the industry would face when implementing
climate action now and in the future. The release of the white paper will bring more textile enterprises and industrial
clusters into action and speed up the green and low-carbon transition of the industry, which is of practical significance for
China and the world to explore the effective path of carbon peaking and carbon neutrality in the textile industry.
Important advances were made in the 30·60 Net Zero Accelerating Plan. The
30·60 Net Zero Accelerating Plan was initiated by CNTAC in 2021, aiming to guide the
demonstration work in carbon neutrality of key industrial clusters and focusing on the
collaborative research and development, model exploration, technical and product
innovation, the R&D and practice of market applications, and talent training under the
30·60 Goals. By the end of 2022, 21 brand enterprises and 41 manufacturing enterprises
had joined the 30·60 Net Zero Accelerating Plan, an increase of 4 brand enterprises and 1
manufacturing enterprise compared to the end of 2021. On April 22, 2022, Erdos Group
announced its participation in CNTAC’s 30·60 Net Zero Accelerating Plan and donated
2 million yuan to the climate stewardship fund of China Green Carbon Foundation to
support the climate stewardship work in China’s textile and apparel industry and inspire
value chain partners and consumers to actively participate in the green, low-carbon, and
sustainable development of industries and markets.
Case | Erdos Group joined the 30·60 Net Zero Accelerating Plan in 2022
Erdos Group joined the 30·60 Net Zero Accelerating Plan in 2022 and devoted itself to climate change governance and
low-carbon transition by establishing carbon neutrality goals and implementation roadmap for the enterprise and
building a green and low-carbon mode of production and management. At present, the Group is making concerted
efforts with the Office for Social Responsibility of CNTAC to comprehensively investigate the carbon emission baseline of
the enterprise and further promote sustainable technology and process innovations in the whole value chain covering
the management of source pastures, raw material purchasing, selection and manufacturing, product design and
production, and brand sales and promotion. These efforts will help Erdos Group reduce carbon emissions, achieve low-
carbon and circular development, and meet its sustainable development goals. Meanwhile, the Group will encourage
partners in the industrial chain to work together for the application of low-carbon technologies to build a carbon
neutrality ecosystem, give full play to the leading role of brands in the industrial chain, and support the green and low-
carbon transition and sustainable development of the cashmere industry.
22
Deepen the cultivation of climate talent in the industry. In 2022, the Office for Social Responsibility of CNTAC organized
climate training camps in different enterprises. Climate training camps are designed to empower the enterprise’s shift
towards greenness by integrating theory with practice, mainly geared to the employees. The climate training camps
covered four enterprises, namely Embry Form, Erdos, Cabbeen, and Luolai Group, enabling the enterprises to recognize
that under the goals of achieving carbon peaking and carbon neutrality, they should focus on improving their capabilities
and reasonably applying methodology to make their carbon emission management more scientific and effective.
Site of the climate training camps at Luolai Group
Set up benchmarks to play an exemplary role. Since 2020, CNTAC has been making efforts to push forward climate
stewardship, receiving active responses and participation from the textile and apparel enterprises. These pioneering
practices in climate stewardship have provided valuable experience for the carbon peaking and carbon neutrality work
of the industry and made great contributions to guiding and promoting the green and low-carbon development of the
industry. To deepen the climate stewardship practices of industrial enterprises and organizations and boost the green,
low-carbon, and sustainable development of the industry, CNTAC commended 55 “Pioneer Units of Climate Stewardship
in China’s Textile and Apparel Industry” and 65 “Pioneer Contributors to Climate Stewardship in China’s Textile and
Apparel Industry” at the 2022 China Textile Conference held on December 29. The outstanding contributions made by the
awarded units to promoting the climate stewardship of enterprises and the low-carbon transformation of the industry in
the recent two years were highly affirmed.
Selection for the Pursuer of Excellence in Sustainability. The selection for the 2022 Pursuer of Excellence in
Sustainability was completed with the China National Garment Association and the Office for Social Responsibility
of CNTAC as organizers and China International Fashion Fair (CHIC), China Fashion (the publication of the China
National Garment Association), and WWD China (an international fashion media authority) as co-organizers. The
selection campaign shows the thoughts and actions of excellent enterprises in the apparel industry in the direction of
environmental protection and the transformation and upgrading of the industrial structure, thus contributing to the 30·60
Goals and propelling the overall transformation of the industry.
2.2.2 Improve environmental efficiency with a focus on the material application
China Textile Recycling Innovation Research Project. Driven by the demands for sustainable and high-quality
development, the fashion industry is rethinking the mode to manufacture, consume, and dispose of textiles and apparel.
On May 31, 2022, the kick-off meeting of the China Textile Recycling Innovation Research Project was held online. This
project aims to deeply investigate the current situation and problems in the recycling, sorting, and reusing of textiles,
identify the problems, and search for innovation opportunities to promote the Textile to Textile (T2T) transformation of
23
China’s textile industry. A total of 62 units including brand purchasers, manufacturers of recycled materials, government
departments, professional associations, and research institutes attended the meeting. All sides made in-depth exchanges
and communication to achieve industrial sustainable development and actively implement the industrial system solution,
whereby fibers, textiles, and apparel can maximize their value during design, production, use, and circulation following
the principles of circular economy, thus reducing resource consumption and waste generation and reshaping a more
responsible, resilient industry.
Project on the White Paper of Textile Materials for

a Sustainable Future. According to the research of the
Office for Social Responsibility of CNTAC on the life cycle
assessment of textiles, up to 30%-50% of the carbon
emissions of textiles come from materials. The recyclability
of textile materials becomes an important factor for the
fashion industry to transform into a circular industry. To
this end, the Social Responsibility Promotion Committee
of CNTAC launched a project on the White Paper of
Textile Materials for a Sustainable Future. With a focus
on the medium-term goals by 2023 and the sustainability
goals by 2050 of the textile and apparel industry, this
project is intended to explore the common connotation
and evaluation system for materials for a sustainable
future and the industrial objectives and roadmap for its
development. In 2022, the Office for Social Responsibility
Li Lingshen, Vice President of CNTAC, delivers a speech
of CNTAC initiated an investigation and a call for excellent at the 2021 Future Materials Summit
papers on the White Paper of Textile Materials for a
Sustainable Future, to arouse the scientific insights of all
stakeholders in the textile industrial chain into sustainable
materials and discuss the sustainable development trend
and the direction and ideas for technological innovation
of the future industrial materials in the textile industry.
Furthermore, the Office for Social Responsibility of CNTAC
created a platform for exchange and interaction called “Cai
Zhi Dao”, whereby sophisticated professionals are invited
to make in-depth exchanges and discussions about the
“Future of Materials Under Sustainable Consumption”
and further probe into the interplay between sustainable
textile materials and green consumption as well as the
interest relevance between sustainable materials and the
fashion industry. Launch site of the “Materials for a Sustainable Future” project
24
2.2.3 Accelerate the low-carbon transformation through energy conservation and

emission reduction
The CNTAC-LCA working group made significant headway. In 2020, CNTAC pushed for the establishment of the
CNTAC-LCA working group12 to guide the life cycle assessment and environmental information disclosure of textile
products in the industry. In the same period, the working group developed a local carbon footprint database for China’s
textile and apparel industry, which covers 13 fiber types, 6 spinning methods, 24 yarn count types, 2 fabric weaving
methods, and 3 dyeing methods as well as multiple textile and apparel categories such as clothing, bedding, fabrics,
and yarn. In 2022, the CNTAC-LCA working group made some achievements in LCA measurement of textile and apparel
products in terms of quantity and quality. By the end of 2022, the real data of the whole supply chain of 27 terminal
brands and 71 end products had been collected and measured, involving 129 enterprises. Through the investigation
of the life cycle data of the industrial chain of textile products, the working group endeavors to explore and study the
optimized paths and solutions in supply chain management, energy conservation, and emission reduction of enterprises
in the supply chain via scientific tools and methods.
Ellassay Product Carbon Footprint Septwolves Product Carbon Footprint
Intensify efforts in the development of industrial standards. On August 1, 2022, the Standardization Technical
Committee of CNTAC issued the Notice on Assigning the Planned Projects of Four Group Standards Including the
Technical Specification for Carbon Labels of Textiles and Apparel (Letter of the Standardization Technical Committee
of CNTAC [2022] No. 13) to approve and initiate the planned projects of four group standards including the Technical
Specification for Carbon Labels of Textiles and Apparel (see the table below for detailed project list). The four standards
belong to the fundamental and comprehensive fields involved by the CNTAC and are under the administration of the
Secretariat of the Standardization Technical Committee of CNTAC. Among these standards, the Technical Specification
for Carbon Labels of Textiles and Apparel, the Technical Specification for Evaluation of Zero-carbon Textile Products,
and the Technical Specification for Evaluation of Zero-carbon Factories in Textile Enterprises relate to the evaluation
standards for the carbon label of textile and apparel products, zero-carbon products, and zero-carbon factories, which
are expected to provide technical basis for carbon labels, zero-carbon products, and zero-carbon evaluation in the
textile industry. The ESG Disclosure Guidelines for Textile Enterprises will serve as guidance for the ESG evaluation and
information disclosure of textile and apparel enterprises.
12 The working group has developed a digital SaaS platform for environmental footprint tracing and evaluation during the entire life cycle—the “System
for Assessing the Entire-life-cycle Greenness of Textiles” (LCAplus). It aims to provide a credible and scientific platform for analyzing, assessing, and
designing green textile products during the entire life cycle for the market, helping trace the greenness of products and dig into their value during the
entire value chain from production to consumption.
25
Enhance international exchanges and promote green and low-carbon development. The 2022 International Summit
on Green Development and Just Transition in the Textile and Garment Sector was held in Humen on November 17,
2022. This summit was jointly organized by CNTAC, the International Labor Organization (ILO) and relevant international
bodies, and Humen Town. Guests from 16 countries around the world including Afghanistan, Bangladesh, Cambodia,
and India, discussed the effective paths, policy initiatives, and best practices of green development and just transition in
the textile and apparel industry. This summit was held concurrently in the main venue (in Humen) and parallel sessions
(in Bangkok, Thailand) online and offline for a special discussion on the just transition in the textile and garment sector
(TAGS). Furthermore, guests from the ILO and UN agencies also participated in the meeting in Vienna, Geneva, and other
places remotely. Through this summit, China shared its industrial practices in achieving the zero-carbon reduction goal
in the textile and apparel industry and conveyed a green, low-carbon industrial image of the industry.
2022 International Summit on Green Development and Just Transition in the Textile and Garment Sector
26
2.3 Responsibility for Prosperity
2.3.1 Empower high-quality development with science and technology
The textile and apparel industry is now at a critical

juncture of structural reform, transformation, and
upgrading. Accelerating the deep integration of next-
generation digital, information, and intelligent technology
with the textile industry is of positive significance to Enhance the ESG
performance
the high-quality development of the industry. In 2022, through digital
CNTAC and Baidu officially signed a memorandum of technologies
understanding concerning cooperation in promoting Research on

sustainable
the sustainable development of the textile and apparel development
industry by digital technology in the future. The two sides under the goals Scenario-based
of carbon peaking application of the
will give full play of their advantages to establish a long- and carbon AI technology
neutrality
term cooperative mechanism and promote the in-depth
integration of digital technology and the real economy. Push
forward talent
Intelligent technologies will be adopted to empower the transformation
through the integrated
transformation and upgrading of traditional sectors in cooperation between
the whole chain in an all-around way. New industries, industry, academia,
research, and
business types, and models will emerge to enhance the application
technological capability and sustainability of the industry
and open up a new chapter for the digital transformation
of the textile and apparel industry.
2.3.2 Enhance enterprises' ESG performance by offering capability improvement

platform
The Office for Social Responsibility of CNTAC officially launched the ESG indicator system and capability improvement
platform for Chinese textile and apparel enterprises at the “Innovation Platform Technology Exchange in the Textile
Industry & Forum on Industrial Textile Research Achievements and Talent Training and Development” held in Wuxi. This
platform integrates the requirements of “CSC9000T China Social Compliance 9000 for Textile & Apparel Industry” and
the characteristics of major ESG evaluation and disclosure indicator systems in Chinese and overseas capital markets.
It effectively serves enterprises for their self-evaluation, management and disclosure of ESG performance, satisfying
simultaneously the industry enterprises’ increasing demands for ESG management and capability improvement tools.
2.3.3 Ensure stable industrial supply chain through market linkage
Facing the COVID-19 pandemic and the complicated international situation, CNTAC provided multi-channel services
to help affected enterprises resume work and production as early as possible and ensure the stable operation of the
industrial and supply chain. In 2022, CNTAC, in coordination with the Ministry of Industry and Information Technology,
carried out a series of events themed “Optimize Supply and Promote Upgrading” in the textile and apparel industry
27
spanning four quarters. These events include trade exhibitions and promotion activities in professional markets and
e-commerce platforms on the demand side as well as professional exchanges in technology and management on the
textile production and manufacturing side. With a wide coverage, these events attracted the participation of about
3,950 enterprises, institutes and schools, including 60 overseas agencies, and involved 18,000 merchants in professional
markets. The “Optimize Supply and Promote Upgrading” events have shored up the industry’s confidence and eased
the pressure on enterprises; promoted communication and exchange and supported transformation and upgrading;
embodied the wisdom of the industry and guided the direction of development; strengthened cooperation in the
industrial chain and maintained the resilience of the supply chain; and will play a leading and catalytic role in promoting
the high-quality development of the textile industry.
2.3.4 Exert an agglomeration effect for coordinated regional development
In 2022, CNTAC completed the fifth review of the pilot area of national textile industrial clusters and specifically rolled out
a series of reports on the in-depth action of the fifth review of textile cluster pilots themed “Embark on a New Journey
of Industrial Clusters during the 14th Five-Year Plan Period”. The reports go deep into a series of industrial clusters in
this review, show the new look and new trend of the clusters, and assist the textile and apparel industrial clusters to
embark on a new journey during the 14th Five-Year Plan period. Moreover, CNTAC also led provinces in Central and
West China and Northeast China and those at the borders to undertake industrial transfer according to their resource
endowment in the form of projects, meetings, exhibitions, and other activities, to accelerate an industrial development
pattern featuring distinctive characteristics, complementary advantages, and coordinated development, and facilitating
a virtuous cycle of coordinated development between industries and regions.
Case | Boost the high-quality development of the textile and apparel industry in Northeast China by
setting up examples
The fashion industry, with textiles and apparel as its mainstay, has become an important support in building
consumption center cities and fashion cities, and the promotion of fashion industry development is significant for the
high-quality development of the textile industry. In June 2022, CNTAC signed a strategic cooperation agreement with
the Jinpu New District Management Committee for concerted efforts to pool resources, gather enterprises, and build
stronger brands in the textile and apparel sector of Jinpu New District. Emphasis will be placed on the construction of
the “China Fashion Trend Center” and resource sharing, further extending the relevant industrial chains and driving the
high-quality development of the textile and apparel industry in Dalian and even Northeast China.
The China Fashion Trend Center is one of the key projects for urban renewal of the southern urban area of Jinpu New
District, covering a planned area of 60,000 square meters. The China Textile Planning Institute of Construction (CTPIC)
has been entrusted with project planning and operation guidance. According to the plan, the project will create four
areas, i.e., a new highland area for Chinese fashion trends, a pioneering area in original fashion design in Northeast Asia,
a clothing intelligent production and marketing demonstration area in Liaoning, and a popular fashion consumption
area in Dalian. The project serves as an example and trendsetter for transforming and upgrading time-honored brands,
empowering the apparel industry of Dalian, and creating new highlights in China’s apparel industry. CNTAC will establish
a task force to support the construction of the China Fashion Trend Center and resource sharing and drive the high-
quality development of the textile and apparel industry in Dalian and even Northeast China.
28
2.3.5 Enhance sustainable development capacity with multi-party cooperation
Set up domestic sustainable cotton benchmarks in China. In 2022, the China Textile Information Center and
Solidaridad cooperated to carry out a pilot event of the “Sustainable Cotton Framework” program in Gansu. The
pilot work props up the preparation of the “Sustainable Cotton Framework”, providing a platform for boosting
cooperation with upstream and downstream participants in the textile and apparel supply chain in the fields of CSR and
sustainability. This endeavor is beneficial for creating a sound business ecology that promotes the common prosperity
of cotton farmers and enhancing the economic, social and environmental feasibility and sustainability of China’s cotton
value chain.
Enhance the sustainable development capacity of Chinese-invested enterprises in Africa. In response to the
initiative of Chinese-invested textile, apparel, and light industrial enterprises in Ethiopia, CNTAC established the “China
(Ethiopia) Sustainable Development Alliance for Textile and Light Industrial Enterprises” in June 2022, aiming to create
a platform of communication, action and dissemination for Chinese-invested enterprises. The alliance further provides
mechanism support and organizational guarantee for sustained investment and business expansion of Chinese
enterprises in Ethiopia, promoting responsible, sustainable investment and operation of enterprises. Meanwhile,
the Office for Social Responsibility of CNTAC provided a series of ESG capacity improvement training sessions for
more than 20 Chinese-invested textile enterprises in Ethiopia, greatly supporting the improvement of the sustainable
development capacity of Chinese-invested and local textile and apparel enterprises in Ethiopia. Furthermore, the Office
for Social Responsibility of CNTAC researched the ESG status of textile and apparel enterprises operating in Ethiopia
and the impact of the COVID-19 pandemic on local industries to further promote the sustainable development of
Ethiopian textile enterprises. The research has effectively identified the shortcomings and challenges of the sustainable
development of Chinese-invested textile and apparel enterprises operating in Ethiopia and further proposed targeted
policy support suggestions and capacity-building measures. Its achievement, “Research on Sustainable Development
Capacity of Chinese-invested Textile and Apparel Enterprises in Ethiopia”, won the second prize in the “2022 CNTAC
Science and Technology Progress Award”.
Share experience in sustainable development. As a forerunner in promoting CSR construction of the industry in
China, CNTAC has been making progress in knowledge spillovers and experience sharing, encouraging more industries
to be involved in the sustainable development process. In August 2022, bearing in mind the principle of “friendly
cooperation for common development”, CNTAC and China National Forest Products Industry Association signed the
Memorandum of Understanding on Cooperation in Promoting Sustainable Forestry Development in Beijing. The two
sides decided to pursue cross-domain, multi-level, and multi-form cooperation in all respects by giving full play to
their strengths, to accelerate the formulation and improvement of the CSR standard and working mechanism of the
international forest product industry.
29
Introduction of Guidance on
Social and Environmental Due
Diligence for Textile and Apparel
Enterprises in China
3.1 Background
Since the United Nations Guiding Principles on Business At the same time, more and more Chinese textile and
and Human Rights formally introduced “human rights apparel enterprises are growing into “chain dominators”
due diligence”, the basic framework of due diligence in their niche industries or direct-to-consumer brand
has been established at the international normative enterprises, which makes maintaining and promoting a
level. In recent years, due diligence or supply chain due safe, stable, resilient and sustainable supply chain ecology
diligence based on human rights and environmental risks a fundamental part of the enterprise’s longevity. This
has become a core issue in the agenda of responsible also means that due diligence based on supply chain
business conduct in China and abroad. On the one hand, and focusing on social and environmental risks must
due diligence has become a policy lever and compliance become the basic skills for enterprises to fulfill their social
orientation for an increasing number of public institutions responsibility and promote sustainable development.
to regulate supply chain responsibility, and on the other For a large number of Chinese supply chain companies
hand, it is increasingly becoming a basic practice and that rely on domestic and foreign buyers and brands,
common approach for industry to deal with social and their customers’ supply chain due diligence based on
environmental risks in the supply chain. In September legal compliance, risk management or value creation has
2021, the Chinese government released Human Rights also put forward more detailed and strict requirements,
Action Plan (2021-2025) and brought forward “Promoting including fully understanding and adapting to supply
responsible business conduct in global supply chains. It chain due diligence.
will encourage Chinese businesses to abide by the UN
Guiding Principles on Business and Human Rights in their Guidance on Social and Environmental Due Diligence for
foreign trade and investment, to conduct due diligence Textile and Apparel Enterprises in China (the Guidance
on human rights, and to fulfill their social responsibility to for short below) aims to meet the needs of the above-
respect and promote human rights.” This lays the policy mentioned growing number of companies at all levels of
foundation for Chinese companies, including textile and the industry to understand and apply due diligence. Based
apparel companies, to understand and implement social on the UN Sustainable Development Goals (SDGs), the
and environmental due diligence. current development of the industry and Chinese laws and
30
regulations, and incorporating the essence and experience

of domestic and international standards and guidelines
related to due diligence, the Guidance aims to provide "In order to identify, prevent, mitigate and account for
practical, complete and systematic tools for enterprises how they address their adverse human rights impacts,
business enterprises should carry out human rights due
to carry out due diligence and build a responsible supply
diligence. The process should include assessing actual and
chain. This Guidance also aims to enhance the ability potential human rights impacts, integrating and acting
of enterprises to identify and manage their own social upon the findings, tracking responses, and communicating
and environmental risks and those of their supply how impacts are addressed. Human rights due diligence:
chain, to take advantage of opportunities of social • Should cover adverse human rights impacts that
and environmental value, and to conduct constructive the business enterprise may cause or contribute to
cooperation with stakeholders in the supply chain. through its own activities, or which may be directly
linked to its operations, products or services by its
business relationships;
In the research and development process, this Guidance has
received strong support from international organizations, • Will vary in complexity with the size of the business
enterprise, the risk of severe human rights impacts,
including the Organization for Economic Cooperation and
and the nature and context of its operations;
Development. The Office for Social Responsibility of the
China National Textile and Apparel Council will track and • Should be ongoing, recognizing that the human
rights risks may change over time as the business
evaluate the use of this Guidance and feedback from
enterprise's operations and operating context evolve."
enterprises, and organize revisions when necessary.
——United Nations Guiding Principles on
Business and Human Rights
3.2 Framework of Due Diligence

The four-step framework of "Identify," "Integrate," "Track," and "Communicate" for human rights due diligence is
generally established in the United Nations Guiding Principles on Business and Human Rights. On this basis, the
OECD Due Diligence Guidance for Responsible Business Conduct addresses due diligence for enterprises - It is a risk
management approach that is commensurate with risks. Risk refers to the possibility of adverse impacts on people,
environment or society. To address risks, OECD proposes a six-step management process of policy embedment,
identification and assessment, response (cease, prevention, or mitigation), tracking, communication, and remediation
(see Figure 1-1). The due diligence approach and process as enshrined in the UNGPs and the OECD Guidance are key
reference points for responsible business which outline how companies can act responsibly. They provide practical
support, which do not impose additional burdens on enterprises.
As a subfile of CSC9000T, this Guidance is dedicated to providing guidance for China's textile and apparel enterprises in
implementing social and environmental due diligence. China has formed the most complete textile and apparel industry
chain in the world, covering the process from manufacturing fibers to the final garment. This Guidance is designed to
provide effective social and environmental due diligence tools for all the enterprises in the Chinese textile and apparel
industry. On the one hand, this Guidance incorporates the due diligence approach established in the United Nations
Guiding Principles on Business and Human Rights and the OECD Due Diligence Guidance for Responsible Business
31
Conduct. Social and environmental risk management are integrated into the business management process. On the
other hand, this Guidance is formulated on the basis of the objective reality of Chinese textile and apparel industry,
which starts from the requirements of Chinese laws and regulations and integrates the requirements and suggestions
of CSC9000T on the social responsibility construction of enterprises in the industry. It aims to realize the localized
application of due diligence methods and promote Chinese textile and apparel enterprises to integrate into the
international textile and apparel industry value chain with a more responsible attitude and standpoint.
3.3 Process of Due Diligence Identify and assess adverse impacts in operations, supply
chains and business relationships
3.3.1 Embed RBC into Policies and

Management Systems Communicate 02 Cease, prevent or
how impacts mitigate adverse
are addressed impacts
Develop Responsible Business Conduct management
policies. Enterprises are expected to develop RBC policies 01
that articulate their commitment to RBC in their own
05 Embed responsible
business conduct
03
operations and supply chains, as well as their plans to
into policies and
manage due diligence in relation to their own operations, management systems
supply chains and other business relationships.
04
06
Embed Responsible Business Conduct into Management
Systems. Enterprises should embed RBC policies into their
Provide for or
management systems within the framework of domestic cooperate in
Track remediation when
laws and regulations so that due diligence is implemented implementation and results appropriate
as part of the regular business processes.
Due Diligence Process
Embed Responsible Business Conduct into Supply Chains.
Enterprises should incorporate RBC expectations and
policies into engagement with suppliers and other
business relationships.
3.3.2 Identify and Assess Adverse Impacts in Operations, Supply Chains and Business
Relationships
Carry out a Broad Scoping Exercise. The broad scoping is multi-layered. First, the scope is determined by all areas of
the business, across its operations and relationships, including in its supply chains. Second, relevant elements include,
among others, information about geography, different industrial chain links, product, business models, sourcing model
and enterprise risk factors. Third, the scope is diverse on time, i.e., it includes known risks the enterprise has faced or is
likely to face.
Identify and Assess Adverse Impacts. Starting with the significant areas of risk identified above, carry out iterative and
increasingly in-depth assessments of prioritised operations, suppliers and other business relationships, ideally at the site
level, in order to identify and assess specific actual and potential adverse RBC impacts.
32
Prioritization of Risk Factors. Drawing from the information obtained on actual and potential adverse impacts, where
necessary, prioritise the most significant RBC risks and impacts for action, based on severity and likelihood. Prioritisation
will be relevant where it is not possible to address all potential and actual adverse impacts immediately. Once the most
significant impacts are identified and dealt with, the enterprise should move on to address less significant impacts.
Determine the Appropriate Responses. Assess the enterprise's involvement with the actual or potential adverse
impacts identified in order to determine the appropriate responses. Specifically, assess whether the enterprise (a)
caused (or would cause) the adverse impact; or (b) contributed (or would contribute) to the adverse impact;or whether (c)
the adverse impact is (or would be) directly linked to its operations,products or services by a business relationship.
Adverse impact
Directly linked to
Caused by enterprises Contributed to by business operations,
enterprises products or services of
the enterprise
Use LEVERAGE Use LEVERAGE to

REMEDY actual
to mitigate any influence the entity
impact CEASE OR CEASE OR PREVENT
remaining impacts causing the adverse
PREVENT potential contribution
to the greatest impact to prevent or
impact
extent possible mitigate the impact
Addressing Adverse Impacts
3.3.3 Cease, Prevent or Mitigate Adverse Impacts
Manage Risks Caused or Contributed to by Enterprises. Enterprises are responsible to cease the adverse impacts they
cause or contribute to, but in different ways. For the adverse impacts caused by the enterprise's own operation activities,
the enterprise should immediately cease this activity, and formulate corrective plans in terms of policies, management
systems, equipment and facilities, and training. For the adverse impacts the enterprise contributes to, enterprises
should immediately cease the contributing activities, and strengthen the due diligence on the suppliers through supplier
engagement, control measures, and red flag systems.
Manage Risks Arising from Business Relationships. Based on the enterprise's prioritisation, develop and implement
plans to seek to prevent or mitigate adverse impacts on RBC issues which are directly linked to the enterprise's
operations, products or services by business relationships. Appropriate responses to risks associated with business
relationships may at times include: continuation of the relationship throughout the course of risk mitigation efforts;
temporary suspension of the relationship while pursuing ongoing risk mitigation; disengagement with the business
relationship either after failed attempts at mitigation, or where the enterprise deems mitigation not feasible, or because
of the severity of the adverse impact. A decision to disengage should take into account potential social and economic
adverse impacts. These plans should detail the actions the enterprise will take, as well as its expectations of its suppliers,
buyers and other business relationships.
33
Collaborate in carrying out due diligence. Enterprises can collaborate at an industry or multi-industry level as well as
with relevant stakeholders throughout the due diligence process, although they always remain responsible for ensuring
that their due diligence is carried out effectively. For example, collaboration may be pursued in order to pool knowledge,
increase leverage and scaleup effective measures. Cost sharing and savings is often a benefit to sector collaboration and
can be particularly useful for SMEs.
3.3.4 Track Implementation and Results
Track the implementation and effectiveness of the enterprise's due diligence activities, i.e. enterprises need to assess
whether identified adverse impacts have been effectively responded to in the agreed time period, and in turn, use the
lessons learned from tracking to review their own due diligence processes and improve them in the future.
Prioritisation for tracking activities should align with prioritisation decisions in the previous steps. In other words,
enterprises should prioritise tracking those adverse impacts they assessed to be most significant and took action to
cease, prevent and mitigate.
How an enterprise tracks its implementation and results, including whether impacts have been effectively addressed, will
vary based on the context in which the enterprise operates, its size, and the risks that it faces through its own activities
and in its business relationships. In many cases, an enterprise will need to look across a range of inputs, including
assessment data, data from grievance mechanisms, and stakeholder feedback to get a full picture as to whether impacts
are being addressed.
3.3.5 Communicate How Impacts Are Addressed
For adverse impacts that the enterprise causes or contributes to, be prepared to communicate with impacted or
potentially impacted rightsholders in a timely, culturally sensitive, and accessible manner. Engage the views of
rightsholders in the corrective plan and make recommendations for remedies. Periodically summarize the improvements
resulting from due diligence processes, and communicate externally relevant information on due diligence policies,
processes, activities conducted to identify and address actual or potential adverse impacts, including the findings and
outcomes of those activities.
3.3.6 Provide for or Cooperate in Remediation When Appropriate
Eliminate and remediate adverse impacts. When the enterprise identifies that it has caused or contributed to actual
adverse impacts, address such impacts by providing for or cooperating in their remediation.
Address Differences. When appropriate, provide for or cooperate with legitimate remediation mechanisms through
which impacted stakeholders and rightsholders can raise complaints and seek to have them addressed with the
enterprise. Referral of an alleged impact to a legitimate remediation mechanism may be particularly helpful in situations
where there are disagreements on whether the enterprise caused or contributed to adverse impacts, or on the nature
and extent of remediation to be provided.
34
3.4 Key Topics in Due Diligence Management

This guide provides a comprehensive overview of risk exposures and countermeasures on important topics for
each stakeholder, and innovatively uses case studies such as industry scenarios to provide graphic explanations for
enterprises to understand and manage relevant risks.
Key risk topics
Equality, Democratic right, Child protection, Forced labor, Sexual harassment,

Labor contract,Working hours and the right to rest, Recruitment, Salary
Employees
and social insurance, Occupational health and safety, Personal information
protection
Product quality, Consumers' right to know,Personal information protection,

Clients and Customers
Marketing ethics
Localized operations, Vulnerable groups, Government relations， Non-profit

Community
organization relations，Information disclosure
Waste water, Waste gas, Waste, Chemicals,Energy Conservation and Emission

Environment
Reduction, Adapt to climate change, Biodiversity conservation
Anti-corruption Agent corruption，Procurement corruption，Internal capacity
3.5 Promotion and Application

To promote the localized application of social and environmental due diligence in China’s textile and apparel industry,
and help Chinese textile and apparel enterprises integrate into the global value chain of the textile and apparel industry
in a more responsible posture and position, the Office for Social Responsibility of CNTAC, together with the Embassy of
Sweden in China and the China Cotton Textile Association, held an online training session on the Guidance in December
2022, which has provided a strong support for the high-quality, sustainable development of China’s textile and apparel
industry. During the training, senior insider experts explained the Guidelines comprehensively and extensively, analyzed
and commented on many business cases in the industry, and showcased the concepts of responsible management and
the methods and strategies presented in the Guidelines to the enterprises in an all-around and multi-dimensional way.
This will help Chinese textile and apparel enterprises better identify the potential negative impacts on the environment
and society in their business operations and enhance their management level of businesses and risks associated with
the entire supply chain by incorporating responses to risks and opportunities in their management system and business
processes through responsible management. In this way, the management ability and CSR performance will be fully
enhanced.
35
China’s Textile and Apparel

Industry During 2023-2024 Plan of
Social Responsibility Construction
From 2023 to 2024, the social responsibility construction of China’s textile and apparel industry will focus on the key
target of serving and facilitating the high-quality development of the industry, strengthening the soft power of the
industry in sustainable development, supporting and reinforcing the synergy of software and hardware, promoting
the high-end, intelligent, green, and integrated development of the industry, raising the resilience and security of the
industrial chain and supply chain, upgrading the quality of the textile industry, and consolidating the leading position of
the industry in the world.
4.1 Continuously Integrate Social Responsibility into Governance by

Relying on the Information-based Service Platform
Intensify efforts in CSC9000T membership pilots. Promote and apply the online information platform for
CSC9000T members and improve the services and support for member enterprises; develop the CSC9000T
Guidelines for the Implementation of Social Responsibility System for Textile and Apparel Companies, and revise
and optimize the management indicator system; and continue to promote CSC9000T membership pilots with the
support of the Responsible Supply Chain Association (RSCA) of CNTAC and key textile and apparel companies.
Improve the transparency management of ESG of listed companies in the textile and apparel industry. Continue
to build the ESG public service platform of China’s textile and apparel industry, improve the industrial ESG disclosure
tools and the ESG information disclosure quality of listed companies in the textile and apparel industry, conduct
annual ESG performance evaluations, increase transparency and trust of the textile and apparel industry in the
financial market, and co-build a sound industrial ESG ecosystem with all stakeholders; encourage various investors
to fully consider the ESG disclosure level and performance level of the invested organizations during industrial
investment, guide investment to lean to enterprises and projects with excellent ESG performance, and play the role
of financial leverage in optimized allocation of elements and sustainable development.
36
4.2 Make an Active Response to Climate Change and Accelerate the

Low-carbon Transformation of the Industry
Develop industrial standards geared towards the goals of carbon peaking and carbon neutrality. Complete
the preparation and release of four group standards including the Technical Specification for Carbon Labels of
Textiles and Apparel, the Technical Specification for Evaluation of Zero-carbon Textile Products, and the Technical
Specification for Evaluation of Zero-carbon Factories in Textile Enterprises, and select outstanding enterprises as the
pilots of standard application.
Promote the construction of world-class climate action demonstration zones in the textile industry. Continue
to strengthen support in professional services, basic capacity improvement, and platform construction, and promote
the construction of world-class climate action demonstration zones in the textile industry such as Shengze and
Keqiao.
Promote and apply climate-friendly technologies. Carry out the collection and promotion of “climate-friendly
technologies in the textile industry” together with the Science Technology Development Department of CNTAC
to provide technical support for pollution control, carbon emission reduction, and green development of textile
enterprises.
4.3 Strengthen Product Lifecycle Management to Lead the Industry

in Contributing to Sustainable Development
Make sustained efforts to promote the circular development of China’s textile and apparel industry. Continue
to promote the circular development of China’s textile industry and actively explore systematic solutions for the
circular development of the textile industry. Establish platforms for further cooperation and exchanges and boost
the research on industrial circulation, resource value accounting, innovative application of circular technologies, and
industry-finance cooperation in circular development.
Improve the LCAplus construction and its application pilots. Continue to enhance the construction of the
existing LCAplus system; guided by the CNTAC-LCA working group, arrange pilots for the system and promote its
application among member enterprises of the Carbon Stewardship 30•60 Net Zero Accelerating Plan, and achieve
the delivery and conversion of market value.
37
4.4 Improve the Resilience of Supply Chain with a Focus on Social

and Environmental Risks
Develop and popularize responsible management tools suitable for industrial enterprises. Based on the
Guide for Social and Environmental Due Diligence of Chinese Textile and Apparel Enterprises, enhance industrial
training and deepen the cognition and application of responsible management in industry enterprises; enhance the
traceability and research of the responsible management legislation of overseas supply chains, and develop tailored
responsible management tools suitable for Chinese textile and apparel enterprises to enhance their capabilities to
manage social and environmental risks.
Step up dialogue and cooperation with international institutions. Optimize dialogue and cooperation
with relevant UN agencies, international standards bodies, and international NGOs in the field of responsible
management in the supply chain of the textile and apparel industry, and build consensus and coordinated actions
among upstream and downstream sides of the supply chain to enhance the resilience of the supply chain of the
textile and apparel industry in response to non-commercial risks at home and abroad.
4.5 Support Going-global Businesses to Conduct Responsible

Overseas Investment
Enhance the awareness and ability of responsible overseas investment. Continue to speed up the promotion
and application of the Guidelines for Responsible Investment Overseas of China’s Textile and Apparel Industry,
increase the frequency and times of online training, and conduct local training according to local conditions.
Such efforts include conducting further investigations on the sustainable development situation of textile and
apparel companies in Lancang-Mekong Cooperation (LMC) countries and African countries, and improving the
competitiveness of Chinese-invested textile and apparel companies overseas in the aspect of social responsibilities,
especially those running their businesses in Southeast Asia and Africa.
Shore up network building and experience sharing. Strengthen communication and contact with textile and
apparel manufacturers’ associations in Asia based on the STAR (Sustainable Textile of the Asian Region) network to
discover and summarize the experience and challenges of industrial sustainable development; give full play to the
local advantage of China (Ethiopia) Sustainable Development Alliance for Textile and Light Industrial Enterprises
to serve Chinese-invested textile and apparel enterprises in Africa, improve the layout of international capacity
for Chinese textile and apparel enterprises, and provide support for the improvement of multi-phase and multi-
dimensional capabilities such as pre-investment due diligence, stakeholders’ engagement in operations, social and
environmental due diligence.
38
Appendix
Appendix 1
SDGs Index
Part I. Development of China’s Textile and Apparel Industry and Its Impact on CSR Construction
1.1 Development Overview of China’s Textile and Apparel Industry
1.2 Major Trends of China’s Textile and Apparel Industry

and Their Impact on CSR
Part II. CSR Construction of China’s Textile and Apparel Industry in 2022
2.1 Responsibility for People
2.2 Responsibility for the Planet
2.3 Responsibility for Prosperity
Part III. Introduction to the Guide for Social and Environmental Due Diligence of Chinese Textile and
Apparel Enterprises
Part IV. China’s Textile and Apparel Industry During 2022-2023 Plan of Social Responsibility
Construction
39
Appendix 2
CSR Chronicles of China’s Textile and Apparel Industry (2022)
April 2022
The development of the online management platform for CSC9000T member enterprises was finished and the
relevant implementation plan was promoted.
April 2022
An investigation and a call for excellent papers on the White Paper of Textile Materials for a Sustainable Future
were initiated.
May 2022
The China Textile Recycling Innovation Research Project was launched. Brand purchasers, manufacturers of
recycled materials, government departments, professional associations, and research institutes were united to
study the key issues and innovative opportunities for the circular transformation of China’s textile industry and
explore systematic solutions for the circular development of the industry.
June 2022
CNTAC pushed for the establishment of the “China (Ethiopia) Sustainable Development Alliance for Textile and
Light Industrial Enterprises”, which is the first cross-regional sustainable development enterprise alliance in the
industry.
June 2022
The Office for Social Responsibility and the Science Technology Development Department of CNTAC jointly
initiated the collection for “climate-friendly technologies in the textile industry” to collect, sort out, and promote
a series of advanced and practical innovative technologies, engineering cases, and solutions with a high sci-tech
level, good pollution control effects, and low consumption of resources, providing technical support for scientific
decision-making, precise pollution control, and carbon emission reduction of textile enterprises.
June 2022
The China Textiles Development Center (CTDC) cooperated with the China National Institute of Standardization
to launch the Switch-Asia Grant Project—Transition to Circular Economy Practices in Textile and Apparel MSMEs
along the Lifecycle in Huzhou and Shaoxing.
July 2022
The development of the ESG evaluation system and information platform for the industry was finished and the
ESG rating of the industry was officially started.
40
July 2022
CNTAC officially signed a memorandum of understanding with Baidu to reach a cooperation plan that promotes
sustainable development through the combination of intelligent technologies and industries at the industry,
especially cluster, level. The investigation of enterprises from three clusters was finished.
August 2022
The planned projects of four group standards including the Technical Specification for Carbon Labels of
Textiles and Apparel, the Technical Specification for Evaluation of Zero-carbon Textile Products, the Technical
Specification for Evaluation of Zero-carbon Factories in Textile Enterprises, and the ESG Disclosure Guidelines for
Textile Enterprises were officially approved.
September 2022
The Sustainable Cotton Framework program kicked off and a pilot project in Gansu was started in cooperation
with domestic and foreign partners such as China Cotton Textile Association and Solidaridad.
October 2022
The China Textile Information Center and the People’s Government of Shengze Town, Wujiang District, Suzhou
City, Jiangsu Province prepared and issued the White Paper of Climate Stewardship on Shengze’s Textile Industry.
November 2022
CNTAC cooperated with the Humen government to organize the 2022 International Summit on Green
Development and Just Transition in the Textile and Garment Sector, where guests from 16 countries around the
world discussed the effective paths, policy initiatives, and best practices of green development and just transition
in the textile and apparel industry.
November 2022
The family-friendly enterprise project was supported by the All-China Federation of Trade Unions (ACFTU),
the United Nations International Children’s Emergency Fund (UNICEF), and national and international brand
enterprises and started implementation.
November 2022
The development of the Guide for Due Diligence of Supply Chain of Chinese Textile and Apparel Enterprises and
the training of relevant international brands, their suppliers, and Chinese enterprises were finished.
41
Appendix 3
Directory of Environmental Protection Policies
in the Textile Industry
Policy Directory on Recycling of Waste Textiles
Document Description
Guiding Opinions on Accelerating the Construction Textile and other production enterprises are encouraged to
of Waste Materials Recycling System (Department develop an integrated model of recycling, processing and
of Resource Conservation and Environmental utilization.
Protection of NDRC [2022] No. 109)
Guiding Opinions on Accelerating the Construction In terms of improving the regional recycling system of
of Urban Environmental Infrastructure (Letter of renewable resources, it is necessary to promote the
the General Office of the State Council [2022] No. 7) classified utilization and centralized disposal of wastes such
as waste textiles.
Implementation Opinions on Accelerating the Nine specific measures have been defined from the three
Recycling of Waste Textiles (Department of aspects of production, recycling, and comprehensive
Innovation and High-Tech Development of NDRC utilization, namely promoting the green design of textiles,
[2022] No. 526) encouraging the use of green fibers, strengthening the
social responsibility of textile producers, improving
the recycling network, expanding recycling channels,
intensifying recycling management, standardizing and
implementing reuse, promoting the development of
recycling industry, and implementing key breakthroughs in
standard clothing.
The 14th Five-Year Plan for Bioeconomic It is required to promote the application of biodegradable
Development (Department of Innovation and material products, with a focus on the application
High-Tech Development of NDRC [2021] No. 1850) demonstration in the fields of daily use products, agricultural
mulch, packaging materials, textile materials, etc.
Implementation Plan for Carbon Peaking in Efforts will be accelerated to promote the recycling of waste
Industry (Ministry of Industry and Information textiles.
Technology [2022] No. 88)
42
Policy Documents on Promoting High-quality Development of the Textile and

Apparel Industry in 2022 (Part)
Guiding Opinions on High-quality Development of Efforts will be accelerated in the transformation and
Industrial Textile Industry (Ministry of Industry and upgrading of high-end, digital, green, and service-oriented
Information Technology [2022] No. 44) industrial textiles.
Guiding Opinions on High-quality Development of Efforts will be focused on the high-end, intelligent and
Chemical Fiber Industry (Ministry of Industry and green transformation of the industry to achieve high-quality
Information Technology [2022] No. 43) development.
Notice on Consolidating an Upturn and Redoubling Efforts will be made to support the green development
Efforts to Revitalize the Industrial Economy (Ministry of the textile and apparel industry, increase publicity and
of Industry and Information Technology [2022] No. promotion of recycled fiber products, stabilize the export of
160) labor-intensive products such as light industry and textiles,
and promote the smooth operation of traditional industries.
Policy Documents on Synergizing the Reduction of Pollution and

Carbon Emissions in 2022 (Part)
Action Plan for Industrial 1. By 2025, the unit water withdrawal of the main products of the textile industry
Water Efficiency will be reduced by 15%;
Improvement (Ministry of 2. The key technology research directions of the textile industry are as follows:
Industry and Information dip dyeing with online addition of dye liquor, efficient treatment and reuse of
Technology [2022] No. 72) printing and dyeing wastewater, and near-zero discharge of wastewater from the
water jet loom;
3. The key directions of water efficiency improvement and upgrading in the textile
industry are as follows: continuous dyeing of polyester fabric with less water,
low-bath-ratio batch dyeing, continuous open-width dyeing of knitted fabrics,
digital jet printing, reuse of process water according to compositions, printing
and dyeing wastewater treatment according to compositions and technology
integration application, and efficient wastewater treatment and reuse of the
water jet loom;
4. Emphasis will be placed on key industries with large wastewater discharge,
relatively mature transformation conditions, and obvious demonstration and
driving roles, such as iron and steel, petrochemical and chemical industries,
textiles, paper making, food, and non-ferrous metals. Priority will be given
to enterprises leading in water efficiency, green factories, green industrial
parks, and new industrialization demonstration bases. The transformation
and upgrading of wastewater recycling will be steadily promoted, and several
wastewater recycling demonstration enterprises and industrial parks will be
created to increase the water reuse rate.
43
Implementation Plan for Measures should be taken to synergize the reduction of pollution and carbon
Synergizing the Reduction emissions, such as implementing green manufacturing projects, promoting green
of Pollution and Carbon designs, exploring the green industrial chain including product design, production
Emissions (Ministry of process, product distribution, recycling, disposal, and utilization, and accelerating the
Ecology and Environment green development of the whole process in the industrial field including emission
[2022] No. 42)
reduction from the source, process control, end treatment, and comprehensive
utilization, thus promoting industrial energy conservation and energy efficiency.
Implementation Plan 1. Promote coordinated low-carbon demonstration of various industries. Efforts

for Carbon Peaking in will be made to strengthen the coupling development of such industries
Industry (Ministry of as energy, iron and steel, petrochemical and chemical industries, building
Industry and Information materials, non-ferrous metals, textiles, and paper;
Technology [2022] No. 88) 2. Build a green and low-carbon supply chain. Support will be given to leading
enterprises in the automotive, machinery, electronics, textile, communications,
and other industries to play a leading role in key areas such as supply chain
integration and innovative low-carbon management;
3. Carry out upgrading and transformation demonstrations in key industries.
Technology demonstration projects for deep decarbonization of production
processes, industrial process reengineering, electrification transformation, and
carbon dioxide recovery and recycling will be carried out in such industries as
iron and steel, building materials, petrochemical and chemical industries, non-
ferrous metals, machinery, light industries, and textiles;
4. Boost the integrated development of next-generation information technology
and manufacturing. The advantages of information technology in personalized
customization, flexible production, product traceability, and other aspects will
be leveraged in household appliances, textiles, food, and other industries, and
product life-cycle management should be implemented;
5. In the textile industry, efforts will be focused on developing intelligent and
efficient flexible preparation technology for chemical fibers, promoting low-
energy printing and dyeing equipment, and applying advanced technologies
such as low-temperature printing and dyeing, low-bath-ratio dyeing, and
continuous dyeing of knitted fabrics;
6. Accelerate the recycling of waste textiles;
7. Efforts will be accelerated in the green and low-carbon transformation of
the manufacturing industry by adopting green credit under the premise
of legal compliance and risk control, and several low-carbon technological
transformation projects will be supported in such industries as iron and steel,
building materials, petrochemical and chemical industries, non-ferrous metals,
light industries, textiles, machinery, automobiles, ships and electronics.
44
中国纺织工业联合会社会责任办公室
Office for Social Responsibility of CNTAC
Add： 815, PICC Life Insurance Building, No. 18 Chaoyangmen North Street,
Chaoyang District, Beijing Oﬃce for Social Responsibility
Tel： 010 8522 9681 / 010 8522 9159

of CNTAC
E-mail： [email protected]/[email protected]

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Social Responsibility Report

of China’s Textile and Apparel Industry

Oﬃce for Social Responsibility of CNTAC

Part 1 Development of China’s Textile and Apparel Industry and

1.1 Development Overview of the Industry in 2022..........................................................................2

Part 2 CSR Construction of China’s Textile and Apparel Industry in 2022......................... 17

2.1 Responsibility for People...............................................................................................................17

Part 3 Introduction of Guidance on Social and Environmental Due Diligence

Part 4 China’s Textile and Apparel Industry During 2023-2024 Plan of

4.1 Continuously Integrate Social Responsibility into Governance by Relying

Appendix China’s Textile and Apparel Industry During 2023-2024 Plan of

Appendix 1：SDGs Index......................................................................................................................39

Development of China’s Textile

1.1 Development Overview of the Industry in 2022

1.1.1 Support the stable development of China’s economy

Prosperity index of China’s textile industry1

Cumulative quarterly growth on a year-on-year basis of key economic operation

Key indicators Q1 Q1 and Q2 Q1, Q2 and Q3 The whole year

Industrial added value

Textile industry Textile Apparel industry

2022 Average growth over the past biennium

Year-on-year growth of the industrial added value of textile industry

2 Source: National Bureau of Statistics.

Output growth of major product categories of textile enterprises

Yarn -5.4 15.2

Main operational quality and efficiency indicators of textile industry

Operating margin Turnover of finished products Total assets turnover

Textile 3.8 -0.8 12.4 -7.0 1.2 -4.4

Apparel 5.3 -0.1 12.5 -4.9 1.3 -3.6

4 Source: Industrial Economy Research Institute of CNTAC.

Cumulative quarterly growth on a year-on-year basis of key economic operation indicators

Key indicators Q1 Q1 and Q2 Q1, Q2 and Q3 The whole year

Retail sales of apparel, shoes, hats,

Online retail sales of clothes in China 0.9 2.4 4.7 3.5

1.1.2 Optimize the overseas market structure

6 Source: National Bureau of Statistics.

Global 3409.5 2.5 100.0 -

The US 585.4 -5.4 17.2 -56.4

EU 489.7 -1.1 14.4 -13.4

Japan 214.0 -0.2 6.3 -4.9

ASEAN 582.0 14.8 17.1 114.5

7 Source: National Bureau of Statistics, China Customs.

8 Source: China Customs.

1.2 Major Trends of the Industry and Their Impact on CSR

1.2.1 Innovation-driven high-tech industry

The Report to the 20th National Congress of the CPC

Case | Digital transformation initiatives of manufacturing in Zhongshan City

Case | Digital transformation of “Smart HOdo”

Case | Establish benchmarks in technical development of the textile industry

Regions Enterprises Tasks Typical Scenarios

1. Pollution monitoring and control; 2. Energy efficiency

1. Accurate traceability of quality; 2. Digital infrastructure

Regions Enterprises Typical Scenarios

Intelligent online detection

Fujian Province Billion Industrial Holdings Limited Intelligent collaborative operation

Process dynamic optimization

1.2.2 Culture-based fashion industry

Case | The costumes of Beijing 2022 shows oriental aesthetics

1.2.3 Responsibility-oriented green industry